Cambria Community Services District

Cambria Community Services District Municipal Service Review and Sphere of Influence Study Prepared by the San Luis Obispo Local Agency Formation Commission Adopted January 18, 2024 Cambria Community Services District 2 MSR & Sphere Study Acknowledgments San Luis Obispo LAFCO gratefully acknowledges the time and effort of staff with the Cambria Community Services District in assisting in the preparation of this report and includes – but not limited to – the following: Matthew McElhenie, General Manager Denise Fritz, Administrative Department Manager Haley Dodson, Confidential Administrative Assistant Michael Burkey, Fire Chief Jim Green, Utilities Department Manager Tristan Reaper, Program Manager San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 3 MSR & Sphere Study TABLE OF CONTENTS About LAFCO ____________________________________________________ 5 Authority and Objectives _____________________________________________________ 5 Regulatory Responsibilities ___________________________________________________ 5 Planning Responsibilities _____________________________________________________ 6 LAFCO Decision-Making _____________________________________________________ 7 SLO LAFCO _______________________________________________________________ 8 District MSR & Sphere Study ________________________________________ 10 Overview _____________________________________________________________ 10 At A Glance ____________________________________________________________ 11 Boundary Map _________________________________________________________ 12 Sphere of Influence ______________________________________________________ 13 Accountability __________________________________________________________ 14 Population Profile _______________________________________________________ 15 Present and Planned Land Use ______________________________________________ 19 Services & Capacity ______________________________________________________ 22 Finance ______________________________________________________________ 38 Determinations _________________________________________________ 47 Service Review Determinations per Government Code Section 56430 ___________________ 47 Sphere of Influence Determinations per Government Code Section 56425 ________________ 52 Appendix ______________________________________________________ 55 Sources ________________________________________________________________ 55 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 4 MSR & Sphere Study List of Figures Figure 1: CCSD Boundary Map ................................................................................................... 12 Figure 2: Cambria Disadvantaged Unincorporated Community Area #1 Boundary Map ................... 19 Figure 3: CCSD Land Use Designations ........................................................................................ 21 Figure 4: Firefighters per 1,000 Population ................................................................................. 33 Figure 5: Actual Revenues vs. Actual Expenditures (FY 2017-18 to FY 2021-22) .............................. 41 List of Tables Table 1: District Profile ........................................................................................................................... 11 Table 2: CCSD Board of Directors ........................................................................................................... 14 Table 3: CCSD Population ....................................................................................................................... 16 Table 4: CCSD Disadvantaged Unincorporated Communities Area #1 Census Block Information ........ 18 Table 5: Cambria Urban Reserve Line Land Use Category Acreage ....................................................... 20 Table 6: Summary of Cambria Community Services District Water Supply ........................................... 25 Table 7: Existing Water Demand ............................................................................................................ 27 Table 8: Projected Future Water Demand at Buildout ........................................................................... 28 Table 9: Projected Future Water Demand ............................................................................................. 28 Table 10: Existing Wastewater Collection .............................................................................................. 31 Table 11: Future Wastewater Collection ................................................................................................ 31 Table 12: General Fund Revenues & Expenditures ................................................................................ 41 Table 13: Enterprise Fund Revenues & Expenditures ............................................................................ 42 Table 14: Audited Assets and Deferred Outflow .................................................................................... 43 Table 15: Audited Liabilities and Deferred Inflow .................................................................................. 44 Table 16: Audited Net Position ............................................................................................................... 45 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 5 MSR & Sphere Study ABOUT LAFCO Authority and Objectives Local Agency Formation Commissions (LAFCOs) were established in 1963 and are considered regional subdivisions of the State of California responsible for providing regional growth management services in all 58 counties. LAFCOs’ authority is currently codified under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH) with principal oversight provided by the Assembly Committee on Local Government. LAFCOs are comprised of locally elected and appointed officials with regulatory and planning powers delegated by the Legislature to coordinate and oversee the establishment, expansion, and organization of cities, towns, and special districts as well as their municipal service areas. Regulatory Responsibilities LAFCOs’ principal regulatory responsibility involves approving or disapproving all jurisdictional changes involving the establishment, expansion, and reorganization of cities, towns, and most special districts in California. CKH defines “special district” to mean any agency of the State formed pursuant to general law or special act for the local performance of governmental or proprietary functions within limited boundaries. All special districts in California are subject to LAFCO oversight with the following exceptions: school districts; community college districts; assessment districts; improvement districts; community facilities districts; and air pollution control districts. LAFCOs are also tasked with overseeing the approval process for cities, towns, and special districts to provide new or extended services beyond their jurisdictional boundaries by contracts or agreements or annexation. LAFCOs also oversee special district actions to either activate new service functions and service classes or divest existing services. LAFCOs generally exercise their regulatory authority in response to applications submitted by affected agencies, landowners, or registered voters. Recent amendments to CKH also authorize and encourage LAFCOs to initiate jurisdictional changes to form, consolidate, and dissolve special districts consistent with community needs. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 6 MSR & Sphere Study Planning Responsibilities LAFCOs inform their regulatory actions, in part, through two central planning responsibilities: (a) making sphere of influence determinations and (b) preparing municipal service reviews. With these, and other relevant information in the record, LAFCO makes decisions on a variety of matters, including but not limited to annexations to cities and special districts, city incorporations, activation of powers for special districts, dissolutions of special districts, etc. Sphere of Influence (SOI) A SOI is defined by G.C. 56425 as “…a plan for the probable physical boundary and service area of a local agency or municipality…”. A SOI is generally considered a 20-year, long-range planning tool. LAFCOs establish, amend, and update spheres for all applicable jurisdictions in California every five years, or as necessary. When updating the SOI, LAFCOs are required to consider and prepare a written statement of its determinations with respect to each of the following 5 factors: 1) The present and planned land uses in the area, including agricultural and open-space lands. 2) The present and probable need for public facilities and services in the area. 3) The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. 4) The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. 5) For an update of a sphere of influence of a city or 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, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 7 MSR & Sphere Study SOI determinations have been a core planning function of LAFCOs since 1971. The intent in preparing the written statements is to orient LAFCOs in addressing the core principles underlying the sensible development of local agencies consistent with the anticipated needs of the affected communities. Municipal Service Reviews (MSR) MSRs in contrast, are intended to inform, among other activities, SOI determinations. LAFCOs also prepare MSRs regardless of making any specific sphere determinations in order to obtain and furnish information to contribute to the overall orderly development of local communities. When updating a MSR, LAFCOs are required to consider and prepare written statements of its determinations with respect to each of the following 7 factors: 1) Growth and population projections for the affected area. 2) The location and characteristics of any disadvantaged unincorporated communities within or 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. LAFCO Decision-Making LAFCO decisions are legislative in nature and therefore are not subject to an outside appeal process; only courts can overturn LAFCO decisions. LAFCOs also have broad powers with respect to conditioning San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 8 MSR & Sphere Study regulatory and planning approvals so long as not establishing any terms that directly effects land use density or intensity, property development, or subdivision requirements. LAFCOs are generally governed by a board comprising of county supervisors, city council members, independent special district members, and representatives of the general public, and an alternate member for each category. SLO LAFCO is governed by a 7-member board comprising of two county supervisors, two city council members, two independent special district members, one representative of the general public and an alternate member for each category. All members serve four-year terms and must exercise their independent judgment on behalf of the interests of residents, landowners, and the public as a whole. LAFCO members are subject to standard disclosure requirements and must file annual statements of economic interests. LAFCOs are independent of local government with their own staff. All LAFCOs, nevertheless, must appoint their own Executive Officers to manage agency activities and provide written recommendations on all regulatory and planning actions before the Commission. In addition, all LAFCOs must also appoint their own legal counsel. SLO LAFCO Regular Commissioners Chair Debbie Arnold County Member Vice Chair Marshall Ochylski Special District Member Jimmy Paulding County Member Robert Enns Special District Member Steve Gregory City Member Ed Waage City Member Heather Jensen Public Member San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 9 MSR & Sphere Study Alternate Commissioners Charles Bourbeau City Member Dawn Ortiz-Legg County Member Ed Eby Special District Member David Watson Public Member Staff Rob Fitzroy Executive Officer Imelda Marquez-Vawter Analyst Morgan Bing Clerk Analyst Brian Pierik Legal Counsel Contact Information San Luis Obispo LAFCO’s office is located at 1042 Pacific St Suite A in the City of San Luis Obispo. The LAFCO office is open by appointment to discuss proposals or other matters and can be scheduled by calling 805-781-5795. Additional information is also available online by visiting slo.lafco.ca.gov. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 10 MSR & Sphere Study DISTRICT MSR & SPHERE STUDY Overview This report represents San Luis Obispo LAFCO’s scheduled municipal service review for the Cambria Community Services District (CCSD or District), located in the northwestern coastal region of San Luis Obispo County. The report has been prepared by staff consistent with the requirements of the CKH Act. The purpose of this report is to produce an independent assessment of municipal services in this area over the next five years or as seen necessary, relative to the Commission’s regional growth management duties and responsibilities as established by the State Legislature. This includes evaluating the current and future relationship between the availability, demand, and adequacy of municipal services within the service areas of the CCSD subject to the Commission’s oversight. Information generated as part of the report will be used by the Commission in (a) guiding subsequent sphere of influence updates, (b) informing future boundary changes, and – if merited – (c) initiating government reorganizations, such as special district formations, consolidations, and/or dissolutions. The period for collecting data to inform the Commission’s analysis and related projections on population growth and service demands has been set to cover any major updates and changes since the last time the MSR was updated in 2014. The financial analysis has been set to cover the last five- year audited fiscal year period. The timeframe for the report has been generally oriented to cover the next five to seven-year period with the former (ten years) serving as the analysis anchor as contemplated under State law. The document outline serves to inform all the state mandated requirements outlined in government code sections 56430 and 56425. Written determinations have been included as the concluding chapter of this document. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 11 MSR & Sphere Study At A Glance Table 1: District Profile1 Agency Name Cambria Community Services District Formation 1976 Legal Authority Government Code §61000 - 61850 Office Location 1316 Tamsen Street, Suite 201, Cambria, CA 93428 Website www.cambriacsd.org General Manager Matthew McElhenie Employees 35 Full-time Employees, 4 Part-time employees Public Meetings The Cambria Community Services District (CCSD) Board of Directors holds its regular meetings on the second and third Thursday of the month at 1:00 p.m. Special meetings may be scheduled on an as- needed basis. Board of Directors Five members elected to four-year terms Active Powers Water, Wastewater, Solid Waste, Fire Protection, Street Lighting, Parks & Recreation, Transit, Veterans Memorial Administration District Service Area Approx. 2,928 acres Population Estimate 5,6782 Revenues $13,356,6643 1 As of submission of MSR-SOI Request for Information Questionnaire, August 2023 2 Cambria CDP 2020 US Census Data 3 Cambria Community Services District Financial Statements June 30, 2022 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 12 MSR & Sphere Study Boundary Map Figure 1: CCSD Boundary Map San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 13 MSR & Sphere Study Sphere of Influence Existing SOI CCSD’s existing SOI includes approximately 57-acres; comprised of a wide variety of land use categories. It should be noted, should the District pursue annexation of any of the existing SOI areas, LAFCO Policy 2.9.12 may be applicable, which requires 1:1 mitigation of prime agriculture land converted from an agricultural use as defined by government code section 56064. The existing SOI includes four (4) separate areas as described below: 1. APN 013-111-006: zoned public facilities, located northeast of the District’s current service area and is approximately a 11.98-acre property owned by the Cambria Public Cemetery District. 2. APNs 013-151-024 & 013-151-022: zoned residential suburban, located southeast of the District’s service area and consists of two privately owned parcels totaling approximately 8.13-acres. 3. APN 013-151-025: zoned residential suburban, located southeast of the District’s service area and consists of one privately owned parcel of approximately 1.7-acres. 4. A portion of APN 013-161-025: zoned agriculture, located southeast of the District, and consists of approximately 35-acres of a privately owned property within a larger parcel of about 430-acres adjacent to Highway 1. The property is not under Williamson Act Contract. Proposed SOI CCSD wishes to retain their current sphere, therefore no changes are proposed to the District’s SOI. Some SOI areas have remained within the sphere for over 20 years; if needed, CCSD is encouraged to review and determine whether areas within the existing SOI should remain in the sphere for eventual annexation to the District or be excluded in the future. If serving areas within the SOI is not possible due to ongoing and unresolved water constraints the commission should consider reducing the sphere boundary to better reflect the District’s future growth limitations. Water supply constraints are discussed in more detail within the water section of this municipal service review. At this time, no areas are being studied for removal or possible inclusion into the District. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 14 MSR & Sphere Study Accountability CCSD is an independent special district governed by a five-member Board of Directors that are elected to four-year terms. Directors receive $100.00 for each day’s attendance at board meetings or board committee meetings, provided that a board member’s compensation does not exceed a $600.00 cap. The Board holds regular meetings on the second and third Thursday of the month at 1:00 PM at the Cambria Veterans’ Memorial Hall 1000 Main Street, Cambria, CA 93428. Currently, the Board Room is open to the public who wish to attend meetings in-person; however, meetings are also available by teleconference. Agendas and Board Packets are officially posted on the CCSD website and District bulletin boards and sent directly to those subscribed to the District’s email list. Every agenda for a regular meeting provides an opportunity for members of the public to directly address the board. Table 2: CCSD Board of Directors Board Member Title Term Expiration Karen Dean President December 2024 Tom Gray Vice President December 2024 Harry Farmer Board Member December 2024 Debra Scott Board Member December 2026 Michael Thomas Board Member December 2026 CCSD has several sub-committees that help shape the District’s needs and guide District operations; There’s a total of 5 sub-committees (Resources and Infrastructure Committee; Parks, Recreation and Open Space Committee; Finance Committee; and Policy Committee). The CCSD website posts each committee’s regular meeting schedule with dates, time, location, and committee member names. CCSD currently employs 35 full-time and 4 part-time staff including the General Manager, Administrative Department Manager, Confidential Administrative Assistant, Utilities Department Manager, Wastewater Systems Superintendent, Water Systems Superintendent, Program Manager, Fire Chief, and Facilities & Resources Manager. Current staffing levels are considered adequate to provide services within the District’s service area, with the exception of the Facilities and Maintenance San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 15 MSR & Sphere Study department which is understaffed as was determined in the MSR-SOI Request for Information Questionnaire. CCSD has identified work efforts to increase efficiency and improve administrative functions such as online document storage, transferring to an online document storage archive, online payment program that integrates with CCSD’s financial software, and updated records retention program. CCSD maintains an up-to-date website in compliance with Senate Bill 929 which contains contact information for the District, the current agenda, financial transaction reports, compensation reports, and an SB 272 Enterprise System catalog. Approved minutes and audio/visual recordings are also made available for public access on the website. CCSD reports that all Form 700 financial disclosures are current. The District maintains active memberships with several supportive associations including the California Special Districts Association and Special District Risk Management Authority. Population Profile CCSD is located within the Cambria Census Designated Place (CDP), which has a population of 5,6784 according to 2020 US Census data. By 2050, it was determined there’d be an estimated 6,217 persons5. The build-out population, defined as the maximum population that can occur considering the zoning and land use designations, was determined to be 12,658 with an indefinite buildout year6. Following these projections, CCSD is currently about 91% built out, with 2050 projections, and 45% built out, with the indefinite build out year population projections. The 2020 Census and 2020 American Communities Surveys both represent a decreasing population for the Cambria CDP; however, CCSD staff analysis of utility billing data does not align with Census data. According to the 2020 Census, Cambria CDP has a total of 4,046 housing units and an occupancy rate of just 67%. However, CCSD analysis of 2022 CCSD utility billing data reflects an 80.5%7 occupancy rate 4 US Census, 2020 Cambria Census Designated Place Data 5 San Luis Obispo Council of Governments, 2050 Regional Growth Forecast for San Luis Obispo County 6 San Luis Obispo Council of Governments, 2050 Regional Growth Forecast for San Luis Obispo County 7 Cambria Community Servies District 2023-2024 Annual Water Shortage Assessment, June 2023 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 16 MSR & Sphere Study with only 2.5%8 of residential accounts reporting true zero consumption (i.e. vacant). Approximately 17%9 of utility billing accounts register usage on a part-time basis. CCSD staff attributes the bulk of the variance between Census and billing data to the high percentage of part-time and full-time vacation rentals along with a large stock of second homes, both of which the Census designates as vacant properties. Table 3 shows the historical, current, and projected populations for the District. Historical and current populations are calculated for the service area based on US Census data and data developed by the County, and projected populations are calculated from the San Luis Obispo Council of Governments (SLOCOG) data. The timing of future growth within the CCSD service area is subject to the permitting and approval of future projects by other agencies, economic conditions, and other factors that may not be under the direct control of the CCSD. Therefore, any projections on population growth should be viewed with caution. Due to the building moratorium in Cambria, which will be discussed in more detail further in the document, there has been no population growth between 2010 and 2020. Table 3: CCSD Population10 Year Population Percent Increase 1980 3,100 - 1990 5,382 74% 2000 6,218 16% 2010 6,025 -3% 2020 5,678 -6% 2030 6,090 7% 2040 6,117 0.4% 2050 6,217 2% Indefinite 12,658 104% 8 Cambria Community Servies District 2023-2024 Annual Water Shortage Assessment, June 2023 9 Cambria Community Servies District 2023-2024 Annual Water Shortage Assessment, June 2023 10 Cambria CDP 2020 US Census Data, North Coast Area Plan, and San Luis Obispo Council of Governments 2050 Regional Growth Forecast. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 17 MSR & Sphere Study Disadvantaged Unincorporated Communities In 2011, SB 244 (Chapter 513, Statutes of 2011) made changes to the CKH Act related to Disadvantaged Unincorporated Communities (DUCs), including the addition of SOI determination number five, which states: “(5) For an update of a sphere of influence of a city or 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, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence.” DUCs are defined in government code section 56033.5 as inhabited territories (containing 12 or more registered voters) where the annual median household income (MHI) is less than 80 percent of the statewide annual median household income. LAFCOs are required to make written determinations regarding DUCs within a city or special districts’ SOI and in Municipal Services Reviews. In addition, Government Code Section 56375 (a)(8)(A) prohibits LAFCO from approving a city annexation of more than 10 acres if a DUC is contiguous to the annexation territory but not included in the proposal, unless an application to annex the DUC has been filed with LAFCO. The legislative intent is to prohibit selective annexations by cities of tax-generating land uses while leaving out under-served, inhabited areas with infrastructure deficiencies and lack of access to reliable potable water and wastewater services. As previously mentioned, one of the qualifications for a DUC is a community with an annual MHI that is less than 80 percent of the statewide annual MHI. California’s MHI is $84,097; therefore, the threshold for a DUC (80% of the states MHI) is an MHI less than $67,277. For the purpose of identifying the MHI for locations within the unincorporated areas of SLO County, and to identify those that meet the DUC MHI threshold, LAFCO used U.S. Census American Community Survey (ACS) five-year reports San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 18 MSR & Sphere Study for Census Block Groups and Census Designated Places data. Once a Census Block Group (CBG)11 or a Census Designated Place (CDP)12 meets the DUC MHI threshold, LAFCO must then verify that those areas are inhabited as specified in government code section 56033.5. For the purpose of identifying whether a location is inhabited, LAFCO staff used Registered Voter data from the SLO County Clerk Recorder to verify that any CBG and CDP area that was flagged is also inhabited (containing 12 or more registered voters). The estimated MHI for Cambria CDP is $87,744; taking into account that the Cambria CDP encompasses an area much larger than the CCSD service area boundary. When using CBG data, a smaller measurement area, LAFCO staff was able to identify multiple MHI’s within CCSD’s service area. One of the CBG areas within CCSD service area did meet the DUC MHI threshold, with an estimated MHI of $51,87513; the area was also determined to be inhabited. Therefore, LAFCO identified one DUC at the Census Block Group level, located within the community of CCSD as seen in Figure 2 on the following page. It should be noted that the identified DUC includes some open space, recreation, public facilities, and agriculture zoned areas with no registered voters and determinations made are for the inhabited areas within the residential single family, residential multi-family, residential suburban, and commercial service zoned areas, per State law. CCSD DUC #1 was also identified as a disadvantaged community through the California Association of Local Agency Formation Commissions DUC mapping tool and the Department of Water Resources' Disadvantaged Communities (DAC) Mapping Tool. Table 4: CCSD Disadvantaged Unincorporated Communities Area #1 Census Block Information Median Household DUC Census Block Group Registered Voters14 Income Cambria DUC Area #1 104.04.2 $51,875 529 11 Block groups are a group of blocks within a census tract with populations of 600 to 3,000 people. 12 CDPs are a statistical geography representing closely settled, unincorporated communities that are locally recognized and identified by name. 13 U.S. Census Bureau, American Community Survey data from 2016-2020 in 2021 inflation/adjusted dollars, Census Tract 104.04, Block Group 2 14 SLO County Clerk Recorder Registered Voter GIS Data, October 2023 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 19 MSR & Sphere Study Figure 2: Cambria Disadvantaged Unincorporated Community Area #1 Boundary Map Social or Economic Communities of Interest in the Area There are no District relevant social or economic communities of interest in the proposed SOI area. Present and Planned Land Use Land Use within the District is subject to the North Coast Area Plan, adopted in 1980, last revised in 2022, which is part of the Local Coastal Program (LCP). The LCP is part of the County General Plan and Zoning Ordinance, and applies to those areas lying within the Coastal Zone. Consistent with State law, the County’s Local Coastal Program also functions as the mandatory Circulation Element and Land Use Element of the General Plan. Table 4 summarizes the acreage of each land use category within the Cambria Urban Reserve Line (URL). The County's Land Use Element establishes URLs, which are boundaries separating urban and non-urban areas, and define the proper level of service needed for each. Any changes to a URL require an amendment to the Land Use Element approved by the County. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 20 MSR & Sphere Study In addition, any proposed expansion of a URL is required to be within the Sphere of Influence of the community and any separate service districts. Table 5: Cambria Urban Reserve Line Land Use Category Acreage15 Land Use Category Acreage Agriculture 39.78 Rural Lands 0 Recreation 41.88 Open Space 515.02 Residential Rural 0 Residential Suburban 57.54 Residential Single Family 893.99 Residential Multi-Family 70.73 Office and Professional 13.05 Commercial Retail 64.61 Commercial Service 21.81 Industrial 0 Public Facilities 72.06 Total 1,790.47 The following map shows the Land Use Categories (zoning) for the community of Cambria as established by the North Coast Area Plan. 15 SLO County North Coast Area Plan, 2007, Revised April 2022 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 21 MSR & Sphere Study Figure 3: CCSD Land Use Designations San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 22 MSR & Sphere Study Services & Capacity Authorized Services In January of 2006, Senate Bill (SB) 135 took effect and revised state laws governing community services districts (CSD). SB 135 consolidated the provisions for CSDs into a list of 31 services and facilities and changed the definition of latent powers. The old CSD Principal Act from 1955 required voter approval of latent powers and predated the statewide creation of LAFCO in 1963. With SB 135, all powers authorized for CSDs but not being exercised became latent powers, regardless of the initial formation petition. SB 135 redefined latent powers as those services and facilities authorized by the new CSD Principal Act that a CSD did not provide before January 1, 2006, as determined by LAFCO. Therefore, SB 135 effectively grandfathered in all services and facilities that CSDs provided before January 1, 2006. Following such legislative changes, SLO LAFCO passed resolution No. 2006-03 to clearly document which powers were being exercised by Districts in SLO County and deemed all other powers, not mentioned in the resolution, as latent. According to LAFCO Resolution No. 2006-03, CCSD’s active powers were determined to be as follows: 1) Water, 2) Sewer, 3) Solid Waste, 4) Fire Protection, 5) Street Lighting, 6) Parks & Recreation, 7) Transit, and 8) Veterans Memorial Administration. Government Code § 56425 (i) provides that “[w]hen adopting, amending, or updating a sphere of influence for a special district, the commission shall establish the nature, location, and extent of any functions or classes of services provided by existing districts.” Government Code § 56050.5 defines a latent service or power as “those services, facilities, functions, or powers authorized by the principal act under which the district is formed, but that are not being exercised, as determined by the commission pursuant to subdivision (i) of Section 56425.” Therefore, once the Commission has established what services are being provided pursuant to § 56425 (i), all other services, functions and powers become “latent services or powers” by operation of law. The last time the Commission adopted a SOI and MSR Update for CCSD was August 2014. In that update, the Commission determined that CCSD was authorized to provide the following services: San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 23 MSR & Sphere Study 1. Water 2. Wastewater 3. Solid Waste 4. Fire Protection 5. Street Lighting 6. Parks and Recreation 7. Veterans Memorial The 2014 MSR identified “Veterans Memorial” as a standalone power; although, government code section 61100 does not recognize “Veterans Memorial” as a standalone service. CCSD is authorized to provide these services through their Parks and Recreation power, as is described in government code section 61100 (b) and the Recreation and Park District Law, Chapter 4 (commencing with Section 5780) of Division 5 of the Public Resources Code. More information about the Veterans Memorial Administrations can be found within the Parks and Recreation section further in the report. This “Services and Capacity” section analyzes present and long-term infrastructure demands and resource capabilities of the local agency. LAFCO reviews and evaluates 1) the resources and services that are currently available, and 2) the ability of the CSD to expand such resources and services in line with increasing demands. An adequate supply of services should be documented to support areas in the sphere, envisioned for eventual annexation and service by a jurisdiction. As was previously mentioned, CCSD does not wish to make any SOI adjustments at this time; therefore, no areas are being studied for possible inclusion into the District. Water CCSD is authorized to provide water service as it is described in government code section 61100 (a). CCSD operates and relies on five (5) production wells: three wells in the San Simeon aquifer and two wells in the Santa Rosa aquifer. CCSD’s water rights are subject to the regulatory authority of the State Water Resources Control Board (SWRCB), and to a certain extent, conditions imposed under development permits issued by the California Coastal Commission (CCC). San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 24 MSR & Sphere Study Water Reclamation Facility The CCSD owns and operates the Water Reclamation Facility (WRF) which extracts water from below the CCSD’s wastewater percolation ponds, treats it to an advanced degree, and then reinjects the treated water at the CCSD’s San Simeon Creek aquifer’s potable well field. In 2014, the WRF was constructed in response to exceptional drought conditions and to meet the SWRCB’s requirements for indirect potable reuse of recycled water. The WRF went into service early 2015 and can provide 21 to 250 AFY of water depending on its hours of operation. CCSD has a Water Capital Improvement Plan (CIP) that assists the District in monitoring its water related projects such as facility maintenance expenses and identifies funding to be set aside each year so that equipment and facilities are continuously maintained and operating efficiently. In May 2022, the Board concluded a Prop 218 Hearing process and adopted a water rate increase through FY 2024-2516. Water Supply CCSD continuously tracks water supply conditions and utilizes metrics to assess supply availability which are included in the criteria for the Water Shortage Contingency Plan (WSCP), as part of the District’s Urban Water Management Plan (UWMP). The CCSD’s WSCP includes six stages of water shortage, each with its own set of shortage response actions. Each stage aims to achieve a percentage reduction in customer demands. The WRF is currently operated under an emergency permit from the County of San Luis Obispo which limits operation to Extreme (Stage 5) and Exceptional Water Shortage Emergencies (Stage 6) of the WSCP; which can mean a minimum of 41% or greater in reductions to customer demand. The CCSD filed its application with the County of San Luis Obispo for a regular Coastal Development Permit on June 12, 2014, DRC2013-00112. Pursuant to a San Luis Obispo County Department of Planning and Building information hold dated August 14, 2020, the CCSD is currently working with consultants to complete this application, including an instream flow study of the San Simeon and Van Gordon Creeks is pending completion. 16 CCSD Website San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 25 MSR & Sphere Study The current SWRCB licenses allow a maximum of 1,017 AF of water during the wet season (799 AFY annually from the San Simeon aquifer & 218 AFY annually from the Santa Rosa aquifer)17 and 525.3 AF of water during the dry season (370 AFY from the San Simeon aquifer & 155.3 AFY from the Santa Rosa aquifer from May 1 to October 31)18. This amount of water is not necessarily available every year due to the nature of the two creek aquifers. The San Simeon and Santa Rosa aquifers are relatively shallow and porous, with the groundwater levels typically recharged every year during the wet or rainy season and steady decline during the dry season. In addition to the SWRCB licenses, CCC Coastal Development Permit 428-10 limits the CCSD’s annual diversion from both basins to 1,230 AFY19. District staff indicated that unless a supplementary or additional water source is authorized, the amount available in 2023 and 2045 will be the same. Table 5 summarizes CCSD’s water supply. Table 6: Summary of Cambria Community Services District Water Supply Existing & Future Supply - Existing & Future Supply - Source Wet Season (AFY) Dry Season (AFY) Groundwater – San Simeon Creek Basin 799 370 Groundwater – Santa Rosa Creek Basin 218 155.3 Total 1,017 525.3 Constraints on Water Supply The CCSD has had a water connection moratorium in place since November of 2001 due to concerns over long-term reliability of its water supply and a need to increase water storage for fire suppression. To address these concerns, the CCSD completed a series of water master planning studies, which were incorporated by reference into a program-level water master plan Environmental Impact Report (EIR) that was certified by the CCSD Board on August 21, 2008. Over the years, the CCSD has made steady progress, including the completion of its Pine Knolls storage tanks, and an interconnecting water 17 Cambria Community Servies District 2023-2024 Annual Water Shortage Assessment, June 2023 18 Cambria Community Servies District 2023-2024 Annual Water Shortage Assessment, June 2023 19 Cambria Community Servies District 2020 Urban Water Management Plan, June 2021 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 26 MSR & Sphere Study distribution main across an open space area (the East-West Ranch pipeline, which interconnects the Lodge Hill distribution system with the Park Hill distribution system). As with many areas throughout the state, CCSD’s water is a limited and shared resource between municipal, agricultural, and environmental needs. The area’s two creeks have also been inhabited by listed endangered species. Compliance with the Endangered Species Act is also a key driver in decision making related to use of the coastal streams as a water resource. The CCSD has historically relied upon its two local coastal groundwater aquifers for its water supply. The relatively small storage in these aquifers make them dependent upon seasonal rains to recharge. When such rainfall arrives late or in low amounts, the aquifers dip in elevation to where the threat of seawater intrusion, subsidence, and a reversal in hydraulic gradient between percolated wastewater and potable wells become key concerns. To adequately prepare for insufficient precipitation, demand management must be implemented during the dry season to ensure supply reliability for the following wet season. The District’s WSCP helps take a conservative approach to provide an added buffer to protect fall and winter supplies in a scenario of incomplete aquifer recharge. According to the CCSD’s 2020 UWMP the community’s isolated location along the coast has made it difficult to connect to distant water supplies, such as the State Water Project and Nacimiento Water Project. It was also mentioned that for many years, the CCSD pursued seawater desalination as a means to diversify and secure a more reliable supply source. However, the regulatory climate (including denials by state agencies), environmental sensitivity of the area, and growth inducement concerns associated with seawater desalination have proven to be a formidable deterrent toward completing a seawater desalination project. Existing Water Demands San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 27 MSR & Sphere Study CCSD serves potable drinking water to its customers. Potable drinking water demand includes all municipal uses (residential and commercial). CCSD used about 541 AFY20 of water during 2020. CCSD residential demand accounts for about 66% of the total water demand in 2020. A summary of 2020 demands are shown in Table 6. Table 7: Existing Water Demand Total Demand21 Connection Type Total Service Connections (AFY) Residential 3,777 358 Commercial 232 114 Other 20 8 Losses - 61 Total 4,029 541 Future Water Demand As stated in the 2007 North Coast Area Plan, water is one of the most important limiting factors to growth in CCSD. The earlier 2008 water master plan programmatic EIR addressed growth inducement concerns through the adoption of a build-out reduction program mitigation measure. The result was a recommended build-out goal of 4,650 for existing and future residences. The total for commercial and non-residential is 342 for a total number of 4,992 connections by 2045. According to CCSD staff, the District’s waitlist for future water connections consists of 656 positions on the Single-Family Residential waitlist, 10 on the Commercial waitlist, 7 on the Multi-Family Residential waitlist, and 56 units on an affordable housing water waitlist for a grand total of 729 positions on the District’s waitlist. The number of years over which building will take place and the percentage of growth allowed is ultimately determined by the County of SLO, as the land-use authority. Overall connections expected at build-out are 4,992; of those, 4,029 are existing connections and 729 are positions on the District’s waitlist, with 20 Cambria Community Servies District 2020 Urban Water Management Plan, June 2021 & verified by Staff Dec2023 21 Cambria Community Servies District 2020 Urban Water Management Plan, June 2021 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 28 MSR & Sphere Study a remaining 234 new connections. It is important to note that there is no plan for the remaining 234 connections until a sustainable water supply is secured. A summary of future water demands by 2045 is shown in Table 8. Table 8: Projected Future Water Demand at Buildout22 Total Projected Service Demand Connection Type Connections (AFY) Residential23 4,650 390 Commercial/Non-Residential 342 170 Losses - 70 Total 4,992 630 For the purpose of future water planning, the 2020 UWMP assumed that new service connections will not be allowed until 2026; keeping in mind that this estimate represents a best-case scenario and can still vary based on local conditions. A population growth rate of approximately 1% per year for single family was projected in the UWMP, until a goal of 4,650 residential units is reached from 2026 through 2043. Current and projected demands, based on projected water use by customer category and assumptions regarding passive savings, are shown in Table 8. Table 9: Projected Future Water Demand24 Projected Water Demand25 (AFY) Connection Type 2025 2030 2035 2040 2045 Residential26 370 370 380 390 390 22 Cambria Community Servies District 2020 Urban Water Management Plan, (Projections from the Decision Support System Model completed by Maddaus Water Management), June 2021 and CCSD Staff, September 2023 23 Includes vacation rental home water use. 24 Cambria Community Servies District 2020 Urban Water Management Plan, (Projections from the Decision Support System Model completed by Maddaus Water Management), June 2021 25 Projected demands have been rounded to the nearest 10 AFY 26 Includes vacation rental home water use San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 29 MSR & Sphere Study Commercial 140 150 150 160 160 Other 10 10 10 10 10 Losses 60 60 70 70 70 Total 580 590 610 630 630 Water Supply Reliability Water service reliability depends on a number of variables regarding supplies and availability of infrastructure to meet projected demand. The 2020 UWMP water service reliability assessment results indicated that water shortages can be avoided over the next 25 years under normal, single-dry, and five consecutive dry years conditions through supplemental supplies provided by the WRF. Permitting of the WRF is crucial to ensure CCSD’s water supplies are reliable during drought conditions. For the drought risk assessment that assesses surpluses or shortfalls over a five-year drought extending from today through 2025, WSCP Use Reductions or water conservation measures are required to reduce demand because it is assumed that a regular Coastal Development Permit for the WRF will not be obtained until 2025. In addition to the WRF operation, CCSD expects to mitigate water shortages through extensive communication and outreach efforts, demand reduction actions, and operational changes. Other Water Providers in the Area In addition to CCSD, three other private water purveyors and Water Mutual Companies provide water services to neighboring area residents but none of them overlap with CCSD. These include: 1) San Simeon Community Services District 2) San Simeon Creek Ranch and 3) Harmony Water Works EC. Wastewater CCSD is authorized to provide Wastewater service as it is described in government code section 61100 (b). CCSD’s Wastewater Department provides wastewater treatment as well as collection of sanitary waste. The sanitary sewer collection system includes ten (10) lift stations and fifty-nine (59) miles of gravity sewers and force mains. In May of 2012, the CCSD Board of directors adopted the CCSD’s San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 30 MSR & Sphere Study Sanitary Sewer Management Program (SSMP) to be compliant with the State Water Resources Control Board’s (SWRCB’s) General Waste Discharge Order No. 2006-0003-DWQ Monitoring and Reporting Program (MRP). Since then, the SWRCB amended the MRP with the issuance of Order No. 2013-0058- EXEC. This more recent MRP developed specific categories of sanitary sewer overflows and associated reporting requirements, along with an internal auditing of the SSMP’s effectiveness. The audit identifies any deficiencies with the SSMP and steps to correct them. In addition, the title has been modified to match the “Sewer System Management Plan” (SSMP) used by the State in the aforementioned orders and associated guidebooks. The most recent SSMP was adopted in 2018 and is to be periodically updated every five years. Wastewater Treatment Plant CCSD owns and operates a Wastewater Treatment Plant (WWTP) located at 5500 Health Lane in Cambria. The original WWTP was constructed in 1970. In 1995, a major upgrade was completed to improve the WWTP’s ability to reliably meet the discharge requirements of the Regional Water Quality Control Board (RWQCB). CCSD’s Wastewater CIP assists the District in monitoring its projects that include facility maintenance expenses and identifies funding to be set aside each year so that equipment and facilities are continuously maintained and operating efficiently. Some of those projects include large infrastructure improvements to the wastewater plant that are being funded by bond funds. In May 2022, the Board concluded a Prop 218 Hearing process and adopted a rate increase in wastewater revenues each year through FY 2024-2527. Existing Wastewater Capacity CCSD serves 3,90328 existing connections for wastewater collection. The collection system discharges to the Cambria CSD’s one-million gallon per day (MGD) capacity WWTP. The CCSD WWTP has an average influent wastewater flow of approximately 416,337 gallons per day (gpd), or approximately 27 CCSD Website 28 CCSD Staff, September 2023 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 31 MSR & Sphere Study 0.5 million gallons per day (MGD) with capacity of 1.0 MGD based on this design. Table 9 summarizes CCSD’s existing wastewater collection. Table 10: Existing Wastewater Collection Number of Plant Design Description Existing Flows (MGD) Connections Capacity (MGD) Existing Wastewater 3,903 0.5 1.0 Collection Future Wastewater Capacity CCSD estimates 4,632 future connections with a flow of 0.6 MGD; which allows approximately 729 additional connections to meet the WWTP capacity at buildout. Table 10 summarizes CCSD’s future wastewater collection. Table 11: Future Wastewater Collection Number of Plant Design Description Future Flows (MGD) Connections Capacity (MGD) Future Wastewater 4,632 0.6 1.0 Collection Fire Protection CCSD is authorized to provide Fire service as it is described in government code section 61100 (d). The CCSD Fire Department is responsible for providing fire protection and life safety services for all areas within the District boundaries, as well as participating in automatic and mutual aid with neighboring agencies. In 2022, the Department responded to 1,067 calls for service, for an average of 89 calls per month. The Department is capable of providing protection on most incidents encountered within the CCSD. Additional apparatus, equipment, and staffing are available through Automatic or Mutual Aid agreements with Cal Fire, and Cambria Community Healthcare District. This coverage allows a 4-minute emergency response time to any location, greater than 90 percent of the time, within the CCSD service San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 32 MSR & Sphere Study area and ensures that the special needs of Cambria residents are addressed in the most efficient manner. In an area-wide emergency, assistance is provided by: • Cal Fire • Morro Bay Fire Department • Paso Robles Fire Department • State of California (for fires burning for extended periods) Staffing & Personnel The CCSD fire department consists of a Fire Chief, 3 career Captains, 3 career Engineers, 3 career Firefighter Paramedics, 3 career SAFER Firefighter EMT’s and 14 active part-time Reserve Firefighters. CCSD’s goal is to provide staffing of four career firefighters on duty at all times. Their reasoning is to support the 2 in 2 out standard due to their isolated north coast location and the time it takes to get backup mutual aid support. CCSD received a SAFER29 grant in 2015 that funded 3 additional full-time firefighters to allow for 4 firefighters to be on duty daily (1 career Captain, 1 career Engineer, 1 full- time SAFER Firefighter and 1 part-time Reserve Firefighter). The grant expired and a 2018 ballot measure to approve a special tax to continue funding the 3 additional career firefighters did not receive the required vote. At the time, the District’s Board of Directors chose not to accept an extension of the SAFER grant since continued District funding was not viewed as sustainable. On September 16, 2021, the CCSD Board of Directors unanimously approved the acceptance of another awarded SAFER grant from FEMA. This grant fully funded the hiring of 3 full-time Firefighter Paramedics for a period of 3 years and will add a third, full-time person on the engine to increase staffing, with no match required from the receiving agency. The SAFER grant expires on 1/1/2025. The District has expressed interest IN continuing to pursue SAFER grant opportunities. Cambria reports efforts to sustain a reserve firefighter program to augment career staff as well as volunteer/ paid call firefighter (PCF) program but have been largely unsuccessful, which they attribute to community demographics, current NFPA requirements, and monetary restrictions. 29 SAFER Grant: Dept. of Homeland Security; FEMA, US Fire Administration grant program San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 33 MSR & Sphere Study In comparing the number of firefighters on staff per 1,000 population of the service area, the following figure illustrates the current comparison of CCSD Fire Department staffing compared to the national averages within the 2020 United States Fire Department Profile30 published by National Fire Protection Association. The career staffing level for CCSD Fire Department (including SAFER Firefighters) is 2.11 per 1,000 population, which is above the national average of 1.72. Volunteer/Reserve staff available for emergency operations is 1.76, which falls below the national average of 5.66. According to the 2018 SLO County Special Districts Fire Protection Study, CCSD would like to phase reserves out completely in favor of all career firefighters in 8-10 years. Figure 4: Firefighters per 1,000 Population31 6 5 4 3 2 1 0 Career Volunteer (Reserve) National CCSD Fire Dept Service Delivery & Performance The CCSD Fire Department responds to emergencies 24 hours a day, 7 days a week. As mentioned previously, CCSD Fire Department coverage allows for a 4-minute emergency response time to any location, greater than 90 percent of the time with assistance from mutual aid agreements. The majority of calls received by the CCSD Fire Department are for emergency medical and rescue services, including ocean rescue and auto extrication. 30 National Fire Protection Association (NFPA), US Fire Department Profile Sep 2020 31 NFPA US Fire Department Profile, Table 2, Sep 2020 and CCSD website San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 34 MSR & Sphere Study CCSD Fire Department was rated 4/4X32 out of 1033 through the Insurance Service Office (ISO). The ISO is an agency that evaluates fire protection features for all fire departments to establish rates for underwriters, such as property insurance providers. ISO uses a rating system that is based on a scale of one through 10, with one being the best fire protection rating and 10 being the worst. ISO ratings are also used by fire departments and municipalities as a benchmark for evaluating and improving their fire services. According to ISO's Fire Suppression Rating Schedule (FSRS), four main criteria comprise a fire rating score: 1) 50% | Quality of local fire department. a. (i.e., staffing levels, training & proximity of the firehouse) 2) 40% | Availability of water supply. a. (i.e., prevalence of fire hydrants & quantity of water available to put out fires) 3) 10% | Quality of the area's emergency communications systems. a. (i.e., 911) 4) 5.5% | Extra credit, Community outreach. a. (i.e., fire prevention and safety courses) The largest loss of points came from the quality of the Fire Department section and the availability of Water Supply section which make up 90% of the score. One of CCSD major limitations is that it contracts out dispatch services, therefore the CCSD can’t control those point values within the quality of the Fire Department Section. The February 2023 Fire Chief’s Report to the CCSD Board, identified areas/goals where CCSD can increase their overall ISO score by investing in the following: 1) Fire Department Staffing Model, 2) Increasing the staffing number to 4 on duty daily, 3) Building a training site for the fire department, and 4) Having the water department conduct and record annual hydrant flow tests on all hydrants in the district. Capital Facilities & Equipment 32 The first number is the class that applies to properties within 5 road miles from a fire station and 1,000 ft from a water supply. The second number (# X) applies to properties within 5 miles of a station but beyond 1,000 ft from a hydrant. 33 CCSD Public Protection Classification Summary Report for Cambria FPSA, November 2017, Effective March 2018 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 35 MSR & Sphere Study CCSD has a General Fund CIP that assists the District in monitoring its general fund projects that include Fire Department facility maintenance expenses and identifies funding to be set aside each year so that equipment and facilities are continuously maintained and operating efficiently. The CCSD Fire Station was determined to be in relatively new and good condition according to the 2018 SLO County Special Districts Fire Protection Study. District staff state that future remodels may be necessary to accommodate more on-duty staff. CCSD utilizes lease-purchase agreements for significant equipment purchases rather than a sinking fund. They have also had success with utilizing grant funding to pay for some equipment. CCSD utilizes various engines, vehicles, and equipment to mitigate all emergencies and maintains the following apparatus: (1) Chevrolet Tahoe-2023, (2) Pierce Type 1 Fire Engine-2017 & 2007, (1) Ford F-250 Command Vehicle-2017, (1) Ford F-150 Utility Truck-2013, (1) Pierce Water Tender-2002, and (1) Rescue Boat34. Solid Waste CCSD is authorized to provide solid waste service as it is described in government code section 61100 (c). CCSD has a Franchise Agreement with Mission Country Disposal to provide solid waste services within the District. The current agreement was set for a fifteen-year term, having commenced June 1, 2010; and expiring in May 2025 (with the option to renew at any time prior to the end of the term of the agreement). The agreement allows Mission Country Disposal to include the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform the services (refuse collection, disposal and recycling activities). CCSD reserves the right to revise its laws and regulations pertaining to solid waste collection and disposal in order to protect public health, safety and welfare. The most recent amendment to the franchise agreement, between both parties, was adopted in July of 2022. Funding for solid waste collection and disposal activities comes primarily from fees charged to residents. The area being served with solid waste service is consistent with the boundaries of the district. Parks & Recreation 34 CCSD Website San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 36 MSR & Sphere Study Background CCSD is authorized to provide Parks and Recreation services as it is described in government code section 61100 (e). CCSD has a Parks, Recreation & Open Space Master Plan, that has been a tool for the District to establish adequate park, recreation, and open space resources within the community for the use and enjoyment of all its citizens and visitors. The Master Plan has identified different projects; management and maintenance objectives; funding sources; and criteria for acquisition. The Master Plan was last adopted November 21, 1994, with the intent to establish a vision of the future. CCSD is working with a consultant to update the Community Park Master Plan, with an estimated completion of first quarter 2024. Operations CCSD currently owns, operates, and maintains the Veterans Memorial Building Center, Cambria Dog Park, and Fiscalini Ranch Preserve. The County of San Luis Obispo and California Department of Parks and Recreation also maintain a number of existing parks, recreation, and open space areas within the boundaries of CCSD. CCSD has a General Fund CIP that assists the District in monitoring its general fund projects that include Parks, Recreation, and Open Space facility maintenance expenses, and identifies funding to be set aside each year so that equipment and facilities are continuously maintained and operating efficiently, however, the District has indicated that sources of revenue within the General Fund have not been sufficient (more information can be found within the Finance section of this report). More recently, CCSD began pursuing a Skate Park project and on May 25, 2023, the CCSD Board of Directors approved submission of the Land and Water Conservation Fund (LWCF) grant application for the Cambria Skate Park project. This project proposes development of a vacant asphalt lot and adjacent dirt parking area in Cambria into a skatepark facility. The community has been fundraising to build a new skatepark and the District committed $178,000 towards the preliminary costs of the Skate Park project. This type of grant program requires a 50/50 match and is a reimbursement-based grant program. CCSD General Manager submitted the LWCF grant application on June 1, 2023. Grant awards are expected in late 2025. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 37 MSR & Sphere Study Veterans Memorial Hall LAFCO Resolution No. 2006-03 and the 2014 CCSD MSR and SOI update recognized “Veterans Memorial” as a power authorized to the District. Government Code Section 61100 does not recognize “Veterans Memorial” as a standalone service; instead, CCSD is authorized to provide these services through their Parks and Recreation power that allows for the management and operation of Recreation Facilities as it is described in government code section 61100 (b) and the Recreation and Park District Law, Chapter 4 (commencing with Section 5780) of Division 5 of the Public Resources Code. Recreation Facilities is defined under Government Code Section 5780.1 as an area, place, structure, or other facility under the jurisdiction of a public agency that is used either permanently or temporarily for community recreation; this can include but is not limited to, an arts and crafts room, auditorium, beach, camp, community center, golf course, gymnasium, lake, meeting place, open space, park, parkway, playground, playing court, playing field, recreational reservoir, river, and swimming pool. Therefore, it was determined that CCSD is utilizing its Parks and Recreation power to maintain and operate the Veterans Memorial Hall. Street Lighting CCSD is authorized to provide street lighting services as it is described in government code section 61100 (g). CCSD provides street lighting service to the District through a contract with the Pacific Gas and Electric Company. PG&E operates and maintains approximately 70 streetlights and an additional 42 are customer owned and maintained for a total of 112 streetlights35. Street Lighting service is funded through the General Fund which primarily receives revenue from property taxes. Shared Facilities There are opportunities for continued shared relationships between agencies for services within the CCSD boundary. The relationship between the District and the County could be enhanced by continued 35 CCSD Staff, October 2023 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 38 MSR & Sphere Study improvement of the lines of communication. At present, the distinction between District and County services in the area is clear. The opportunities for more coordination may include: • Coordination between the District and nearby private water purveyors • Coordination between neighboring agencies providing emergency response services • Coordinated open space preservation • District and County parks and recreational facilities Finance District Budget CCSD prepares and adopts their annual budget prior to the beginning of each fiscal year, consistent with overall Board policy and direction. Along with budget preparation, the District also includes changes or maintenance to the Capital Improvement Plan and fee schedules. In 2021, the Board retained a consultant to prepare a Cost of Services and Rate Study. In May 2022, the Board concluded the Prop 218 Hearing process and adopted a 3-year rate increase which included a maximum 6% increase for water and a maximum 7.5% increase in wastewater revenues each year through FY 2024- 2536. The District aims to pursue sustainable rate increases into the future that will help collect reserves needed to adequately maintain District infrastructure. CCSD uses fund accounting to maintain control over resources that have been segregated for specific activities as well as to ensure compliance with finance-related legal requirements. The District maintains two fund categories, the General Fund and the Enterprise fund, as seen below: A. General Fund: a. Fire Department b. Facilities & Resource Department c. Parks, Recreation & Open Space Department d. Administrative Department B. Enterprise Fund: a. Water Department 36 CCSD Website San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 39 MSR & Sphere Study b. Water Reclamation Facility Operations Department c. Water Reclamation Facility Capital Department d. Wastewater Department General Fund revenues are primarily property taxes, which are allocated between the Fire, Facilities & Resources, and Parks, Recreation, & Open Space to fund budgeted expenditures. Other revenues, such as the Fire Assessments, are restricted to the Fire Fund. While the CCSD Enterprise Fund revenues are obtained through fees charged to rate payers for water, sewer and Water Reclamation Facility. CCSD summarizes all of the District’s fund activities in the Combined Preliminary Budget of each corresponding fiscal year which is designed to illustrate the District’s overall budget status. In addition, CCSD’s Preliminary Budget provides a narrative on current financial highlights with regard to Significant Budget Items, Trade-Offs, Goals, Objectives, and Plans within the General and Enterprise Funds. Based on CCSD’s latest Preliminary Operating Budget ending in FY 2023-2024, several unfunded items continue to exist due to stagnant taxes and assessments, that although increasing, are not parallel to the increased rate of inflation. The Fire Fund is allocated 70% of the CCSD property taxes, which together with Fire Assessments of $544,894, provide most of its funding. The Facilities and Resources Fund receives 27% of the CCSD property taxes, which with the rental income of the Veterans Hall of $26,000, provides for most of its funding. The remaining portions of property tax are allocated to the Parks, Recreation and Open Space and the Administrative Departments. Allocating more property taxes to one fund, and decreasing the other, would result in trade-offs, changes in staffing, and changes in the list of “Unfunded Requests”. Options to increase revenues to address unfunded items are limited but are being explored as part of the CCSD Board’s Adopted Strategic Plan and ad-hoc committee. More specifically, it was mentioned that CCSD has taken on added responsibilities in recent years without funding. Funding for the maintenance of open space, maintenance of the Veterans Hall, and homeless camp cleanup are three primary responsibilities of the Facilities and Resources budget that continue to be underfunded and where service is provided in the best manner possible within available funding. Over time, as the CCSD continues to maintain the Fiscalini Ranch and take ownership of more open San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 40 MSR & Sphere Study space parcels (now at over 500 parcels) with insufficient funding, the General Fund budgets for Fire, Facilities and Resources and Admin will continue to decline and impact operations and safety. Financial Statements / Audits CCSD hires an outside accounting firm to perform an annual audit in accordance with established governmental accounting standards. This includes auditing CCSD’s financial statements with respect to verifying overall assets, liabilities, and net position. These audited statements provide quantitative measurements in assessing CCSD’s short and long-term fiscal health with specific focus on delivering its active service functions. LAFCO has used the five most recent audited financial statements to conduct its evaluation of the District’s Financial Health; separated into four categories (Revenues and Expenditures, Agency Assets, Agency Liabilities, and Agency Net Position). Revenues and Expenditures CCSD’s average operating revenue during the previous five-year audited period was $12.387 million. CCSD is primarily funded through property tax/assessment and charges for services. CCSD’s average operating expense during the last five-year audited period was $12.686 million. CCSD experienced an overall average decrease in revenue and increase in expenditures from FY 17-18 to FY 21-22, as depicted in Figure 5. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 41 MSR & Sphere Study Figure 5: Actual Revenues vs. Actual Expenditures (FY 2017-18 to FY 2021-22)37 Actual Revenues vs. Actual Expenditures $16,000,000 $13,612,171 $13,356,664 $14,000,000 $12,644,734 $12,387,133 $11,628,779 $12,000,000 $10,693,318 $10,000,000 $8,000,000 $6,000,000 $12,804,853 $11,865,188 $12,390,339 $12,885,564 $13,487,417 $12,686,672 $4,000,000 $2,000,000 $0 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5-Yr Average Total Revenues Total Expenditures Figure 5 and Table 12 outline CCSD’s General Fund vs Enterprise Fund revenues and expenditures. Overall average General Fund expenses exceeded their revenues during the last five-year audited period whereas average Enterprise Fund expenses did not exceed their revenues. Exceeded expenditures within the General Fund could be attributed to added responsibilities in recent years without funding, as was previously discussed. CCSD has begun new investment strategies with their general fund and reserves that aim to balance their revenues and expenditures. It should be noted, at times, additional factors are considered when reviewing revenues & expenditures; those are “Other Financing Sources” (i.e proceeds from loan payable) and “Non-Operating Revenues (expenses)” (i.e. availability charges, investment income, or interest expense). Table 12: General Fund Revenues & Expenditures38 Category FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Total Revenue 5,207,118 5,256,862 5,327,304 5,452,591 5,501,631 Total Expenditures 5,755,883 5,173,018 5,104,390 5,491,787 5,988,560 37 Cambria CSD Financial Statements between FY 2017-18 to FY 2021-22 38 Cambria CSD Financial Statements between FY 2017-18 to FY 2021-22 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 42 MSR & Sphere Study Table 13: Enterprise Fund Revenues & Expenditures39 Category FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Total Revenue 5,486,200 6,371,917 7,317,430 8,159,580 7,855,033 Total Expenditures 7,048,970 6,692,170 7,285,949 7,393,777 7,498,857 Agency Assets An agency’s assets provide current, future, or potential economic benefit for the entity. An agency asset is therefore something that is owned by the agency, or something that is owed to the agency. In this section agency assets will be reviewed in two separate categories as defined below: 1) Current Assets: cash and other assets that are expected to be converted to cash within a year. 2) Non-Current Assets: long-term investments that are not expected to become cash within an accounting year. CCSD’s audited assets at the end of FY 2021-2022 totaled $49.626 million and are 1.5% lower than the average year-end amount of $48.875 million documented during the previous five-year audited period. Assets classified as current, with the expectation they could be liquidated within a year, represented 21% of the total amount, or $10.591 million, and are primarily tied to cash and investments. Assets classified as non-current make up the remainder of the total, $39.035 million, and are primarily attributed to property, plant, and equipment capital. Overall, all assets for CCSD have increased by 3% over the corresponding 5-year audited period. In addition to assets, the District’s net position also considers deferred outflows of resources. A deferred outflow of resources is defined as a consumption of net position by the government that is applicable to a future reporting period. The District has two items which qualify for reporting in this category; those are 1) Deferred Pensions and 2) Deferred Other Post employment Benefits (OPEB). A 39 Cambria CSD Financial Statements between FY 2017-18 to FY 2021-22 San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 43 MSR & Sphere Study total of $2.443 million was reported in FY 2021-2022 as deferred outflows of resources and will be recognized as a reduction of the net pension liability in a future reporting period. Table 14: Audited Assets and Deferred Outflow 5-yr % 5-yr Category FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Change Average Current Assets 5,405,900 4,378,388 7,896,254 10,289,400 10,591,362 96% 7,712,261 Non-Current 42,937,030 42,669,774 41,439,504 39,733,415 39,035,156 -9% 41,162,976 Assets Total Assets 48,342,930 47,048,162 49,335,758 50,022,815 49,626,518 3% 48,875,237 Deferred 1,649,949 1,585,432 1,586,100 1,633,508 1,614,944 -2% 1,613,987 Pensions Deferred OPEB 0 1,844,989 1,825,270 1,602,233 828,382 -55% 1,220,175 Total Deferred Outflow of 1,649,949 3,430,421 3,411,370 3,235,741 2,443,326 48% 2,361,801 Resources Agency Liabilities An agency’s liability is something the agency owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services. In this section agency liabilities will be reviewed in two separate categories as defined below: 1) Current Liabilities: an agency's short-term financial obligations due to be paid within a year 2) Other Non-Current Liabilities: an agency’s long-term financial obligations that are due more than a year away CCSD’s audited liabilities at the end of FY 2021-2022 totaled $18.031 million and were 13.5% lower than the average year-end amount of $20.460 million documented during the previous five-year audited period. Liabilities classified as current and representing obligations owed in the near-term account for 3%, or $0.548 million, of the total. Non-current liabilities represent the remaining total, or $17.482 million, and are largely tied to payments on liabilities due after one year. Overall, all liabilities have increased by 7% over the corresponding 5-year audited period. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 44 MSR & Sphere Study In addition to liabilities, the District’s net position also considers deferred inflows of resources. A deferred inflow of resources is defined as an acquisition of net position by the District that is applicable to a future reporting period. The District has two items which qualify for reporting in this category; those are 1) Deferred Pensions and 2) Deferred OPEB. A total of $4.807 million was reported as deferred inflows of resources in FY 2021-2022 and will be recognized as an acquisition of the net position in a future reporting period. Table 15: Audited Liabilities and Deferred Inflow 5-yr % 5-yr Category FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Change Average Current 1,273,329 396,447 437,705 754,871 548,298 -57% 682,130 liabilities Non-Current 15,618,888 21,522,800 21,853,868 22,410,945 17,482,958 12% 19,777,892 Liabilities Total Liabilities 16,892,217 21,919,247 22,291,573 23,165,816 18,031,256 7% 20,460,022 Deferred -262,804 453,159 505,795 328,735 3,408,259 -1397% 886,629 Pensions Deferred OPEB 0 0 0 0 1,399,711 - 279,942 Total Deferred Inflow of -262,804 453,159 505,795 328,735 4,807,970 -1929% 972,139 Resources Agency Net Position The agency’s net position is the difference between an entity’s (1) assets plus deferred outflows of resources and (2) liabilities plus deferred inflows of resources. Net position should be displayed in three categories which focus on the accessibility of the underlying assets: • Net investment in capital assets • Restricted Net Position • Unrestricted Net Position San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 45 MSR & Sphere Study CCSD’s audited net position or equity at the end of FY 2021-2022 totaled $29.226 million and represents the difference between the District’s total assets and total liabilities along with adjusting for deferred resources (i.e., pension outflows and inflows). The most recent year-end amount is 3.4% lower than the average year-end sum of $30.228 million documented during the previous 5-year audited period. The ending net investment in capital assets is 109%, or $31.996 million, with the remainder categorized as unrestricted, at a deficit of $2.770 million. Overall, the net position for CCSD has decreased by 12% through the corresponding 5-year audited period. Table 16: Audited Net Position 5-yr % 5-yr Category FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Change Average Net Investment in 33,689,954 33,937,875 32,927,649 31,965,202 31,996,640 -5% 32,903,464 Capital Assets Restricted 0 0 0 0 0 - - Unrestricted (326,488) (5,094,195) (2,977,889) (2,204,397.00) (2,770,290.00) 749% (2,674,652) Total Net 33,363,466 28,843,680 29,949,760 29,760,805 29,226,350 -12% 30,228,812 Position Financial Conclusions Statements made in this section are made based on information provided in CCSD’s Financial Audits from Fiscal Year ending in June 30, 2018, through June 30, 2022, and help explain financial trends that have been identified in the tables above. It is also important to note that the District’s audits do not express an opinion or provide any assurance on information because the limited analysis/procedures do not provide sufficient evidence. CCSD’s net position, the difference between assets and liabilities, is one way to measure the District’s financial health, or financial position. Over time, increases or decreases in the District’s net position is one indicator of whether its financial health is improving or deteriorating. CCSD’s net position has decreased by 12% over the last 5-year audited period ending at $29.226 million in FY 2021-2022 with a 5-year average of $30.228 million. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 46 MSR & Sphere Study Other nonfinancial factors, such as changes in the District’s property tax base and the condition of the District’s assets should also be considered to assess the overall health of the District. The CCSD separates its summary statements into two kinds of categories: Governmental Activities Relates to the general fund including the following Departments: 1) Fire, 2) Administration, 3) Facilities and Resources, and 4) Parks and Recreation; taxes & assessments, program fees, rental, grant and interest income finance most of these activities. Revenues and Expenditures for the District’s governmental activities have increased from FY 2017-2018 to FY 2021-2022, ending with a revenue of $5.501 million and expenditures of $5.988 in FY 2021-2022. CCSD’s most recent operating budget documentation indicated that several unfunded items continue to exist due to stagnant taxes and assessments and the District has taken on added responsibilities within their “General Fund” budget category without funding. As was previously stated, funding for the maintenance of open space, Veterans Hall and homeless camp cleanup are three primary responsibilities of the Facilities and Resources budget that continues to be underfunded. Over time, as the CCSD continues to maintain the Fiscalini Ranch and take ownership of more open space with insufficient funding, the General Fund will continue to decline and impact operations and safety. Business-Type Activities Relates to business-type activities including the Water Fund and Sewer Fund; fees charged to customers help cover cost for these services. Revenues and expenditures for the District’s business- type activities have increased from FY 2017-2018 to FY 2021-2022, ending with a revenue of $7.855 million, and expenditures of $7.498 million in FY 2021-2022. CCSD Board concluded a proposition 218 hearing in May 2022, and adopted a 3-year rate increase which included a maximum 6% increase for water and a maximum 7.5% increase in wastewater revenues each year through FY 2024-25. Rate increases will provide CCSD with the ability to cover the cost of anticipated debt service in the wastewater fund and to begin implementation of multi-year capital improvement projects, in both the water and wastewater funds. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 47 MSR & Sphere Study DETERMINATIONS Service Review Determinations per Government Code Section 56430 As set forth in Section 56430(a) of the CKH Act—In order to prepare and to update the SOI in accordance with Section 56425, the commission shall conduct a service review of the municipal services provided in the county or other appropriate area designated by the commission. The commission shall include in the area designated for a service review the county, the region, the sub-region, or any other geographic area as is appropriate for an analysis of the service or services to be reviewed, and shall prepare a written statement of its determinations with respect to each of the following: 1. Growth and population projections for the affected area a. Currently, the estimated population of CCSD is 5,678. With an estimated population of 6,217 by 2050, CCSD is currently 91% built out and with an estimated population of 12,658 by an indefinite buildout year, CCSD is currently 45% built out. 2. The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence a. LAFCO staff has identified one DUC within part of CCSD’s SOI and service area boundary. The location identified as a DUC displays characteristics of a DUC pursuant to CKH Act. b. The threshold for a DUC (80% of CA’s MHI) is an MHI less than $67,277. Once a Census Block Group (CBG) or a Census Designated Place (CDP), meets the DUC MHI threshold, LAFCO then verifies that those areas are inhabited as specified in government code section 56033.5. One of the CBGs within the CCSD boundary did meet the threshold for a DUC, with an estimated MHI of $51,875; the area was also determined to be inhabited. Therefore LAFCO, identified one DUC at the Census Block Group level, within the community of CCSD as seen in Figure 2 within the “Population Profile” Section of this report. 3. Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 48 MSR & Sphere Study a. Water | CCSD is authorized to provide water service as it is described in government code section 61100 (a). CCSD operates and relies on 5 production wells: three wells in the San Simeon aquifer and two wells in the Santa Rosa aquifer. The WRF is currently operated under an emergency permit from the County which limits operation to Extreme and Exceptional Water Shortage Emergencies, which means a minimum of 41% or more in reductions to customer demand. CCSD filed its application with SLO County for a regular Coastal Development Permit and pursuant to the County Department of Planning and Building information hold dated August 14, 2020, the CCSD is currently working with consultants to complete this application for permitting of the WRF. The current SWRCB licenses allow CCSD a maximum of 1,017 AF of water during the wet season (799 AFY annually from the San Simeon aquifer & 218 AFY annually from the Santa Rosa aquifer) and 525.3 AF of water during the dry season (370 AFY from the San Simeon aquifer & 155.3 AFY from the Santa Rosa aquifer from May 1 to October 31). This amount of water may not be available every year due to the nature of the two creek aquifers. District staff also indicated that unless a supplementary or additional water source is authorized, the amount available in 2023 and 2045 will be the same. Through the adoption of a build-out reduction program mitigation measure, the recommended build-out goal was set at 4,650, assuming new water connections are allowed in the foreseeable future given that the District is still under a connection moratorium. The total designated amount for buildout commercial and non-residential is 342 connections for a total number of 4,992 connections by 2045. According to CCSD staff, the District’s waitlist for future water connections consists of 656 positions on the Single-Family Residential waitlist, 10 on the Commercial waitlist, 7 on the Multi-Family Residential waitlist and 56 units on an affordable housing water waitlist for a grand total of 729 positions on the District’s waitlist. Overall connections expected at build-out are 4,992; of those, 4,029 are existing connections and 729 are positions on the District’s waitlist, with a remaining 234 positions for new connections. CCSD is working diligently towards securing an additional water supply to bolster its ability to serve the residents of Cambria. The CSD has implemented a very aggressive conservation program and San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 49 MSR & Sphere Study residents have reduced water demand significantly. CCSD has a Water CIP that assists the District in monitoring its water related projects like facility maintenance expenses and identify funding to be set aside each year so that equipment and facilities are continuously maintained and operating efficiently. LAFCO determines that CCSD has capability to adequately meet existing water connection demand and some level of increased future water demand at buildout under the assumption that water reliability improves, and the water connection moratorium is lifted. b. Wastewater | CCSD is authorized to provide wastewater service as it is described in government code section 61100 (b). The sanitary sewer collection system includes ten (10) lift stations and fifty-nine (59) miles of gravity sewers and force mains. CCSD serves 3,903 existing connections for wastewater collection at a flow of 0.5 MGD, with a plant design capacity of 1.0 MGD. CCSD estimates the number of future connections to be 4,632, at a flow of 0.6 MGD, which allows approximately 729 additional connections to meet the wastewater treatment plant capacity. CCSD’s Wastewater CIP assists the District in monitoring its projects that include facility maintenance expenses and identifies funding to be set aside each year so that equipment and facilities are continuously maintained and operating efficiently. LAFCO determines that CCSD has capability and capacity to adequately meet the needs existing and future wastewater demand. c. Fire Protection | CCSD is authorized to provide fire protection service as it is described in government code section 61100 (d). CCSD Fire Department was rated 4/4X40 out of 10 through the ISO. The largest loss of points coming from the quality of the Fire Department section41 and the availability of Water Supply section42 which make up 90% of the score. CCSD’s goal is to always provide staffing of four career firefighters on duty. 40 One being the best fire protection rating and 10 being the worst. The first number is the class that applies to properties within 5 road miles from a fire station and 1,000 ft from a water supply. The second number (# X) applies to properties within 5 miles of a station but beyond 1,000 ft from a hydrant. 41 i.e., staffing levels, training & proximity of the firehouse 42 i.e., prevalence of fire hydrants & quantity of water available to put out fires San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 50 MSR & Sphere Study In September 2021, the CCSD Board of Directors unanimously approved the acceptance of an awarded SAFER grant from FEMA. This grant fully funded the hiring of three full- time Firefighter Paramedics for a period of three years and will add a fourth person on the engine to increase staffing, with no match required from the receiving agency. LAFCO determines that CCSD has capability and capacity to adequately provide fire protection service, however, to continue providing the same level of service the District will need to identify a sustainable source of funding into the future once the SAFER grant expires. d. Solid Waste | CCSD is authorized to provide solid waste service as it is described in government code section 61100 (c). CCSD currently collects sufficient fees and has a Franchise Agreement with Mission Country Disposal to provide solid waste services within the District in its entirety. LAFCO determines that CCSD has capability and capacity to adequately provide solid waste services. e. Parks & Recreation | CCSD is authorized to provide parks and recreations services as it is described in government code section 61100 (e). CCSD currently owns, operates, and maintains the Veterans Memorial Building Center, Cambria Dog Park, Fiscalini Ranch Preserve, and the San Simeon Creek open space. An ongoing challenge that the Facilities and Resources Department faces is limited funding for recreation operation and maintenance which could conflict with the District’s ability to provide adequate service. Over time, as the CCSD continues to maintain the Fiscalini Ranch and take ownership of more open space parcels with insufficient funding, the General Fund budgets for Fire, Facilities and Resources, and Administration will continue to decline and impact operations and safety. LAFCO determines that CCSD has capability to provide parks and recreation services where service is provided in the best manner possible within available funding. However, the District will need to identify a sustainable level of service with available funding into the future. f. Street Lighting | CCSD is authorized to provide street lighting service as it is described in government code section 61100 (g), this is done through a contract with the Pacific San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 51 MSR & Sphere Study Gas and Electric Company. LAFCO determines that CCSD has capability and capacity to adequately provide street lighting. 4. Financial ability of agencies to provide services a. CCSD appears to have adequate revenue to provide for expenditures within its Enterprise Fund. At the end of FY 2021-2022, the CCSD had approximately $7.855 million in actual revenue and $7.498 million in actual expenditures. b. CCSD appears to have inadequate revenue to provide for expenditures within its General Fund. At the end of FY 2021-2022, the CCSD had approximately $5.501 million in actual revenue and $5.988 million in actual expenditures. c. CCSD’s net position has slightly decreased over the last 5-year audited period ending at $29.226 million in FY 2021-2022 with a 5-year average of $30.228 million. d. CCSD is financially stable despite increasing costs, limited revenues, and new regulatory requirements. Water and wastewater rates were last revised in 2022 and adopted for a 3-year rate increase to support operating and maintenance needs and to provide funding for capital improvements. LAFCO determines that CCSD’s net position has been decreasing at a rate of 12% over the last 5-year audited budgets and expenditures have exceeded revenues within the General Fund primarily related to increased responsibility within the Facilities and Resources budget with no funding. With insufficient funding, the General Fund budgets for Fire, Facilities and Resources, and Admin will continue to decline and impact operations and safety. Service is to be provided in the best manner possible within available funding, however, the District will need to identify a sustainable level of service with the available funding into the future. 5. Status of and, opportunities for, shared facilities a. At present, the distinction between District and County services with the service boundary is clear. b. Opportunities for shared facilities may include: i. Coordination between the District and nearby private water purveyors San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 52 MSR & Sphere Study ii. Coordination between neighboring agencies providing emergency response services iii. Coordinated open space preservation iv. District and County parks and recreational facilities c. The potential to create shared relationships for providing some services is suggested and may be appropriate when providing certain services. 6. Accountability for community service needs, including governmental structure and operational efficiencies a. CCSD is governed by a five-member Board of Directors that are elected to four-year terms. Regularly scheduled monthly Board meetings are held and all meetings are open to the public and are publicly posted a minimum of 72 hours prior to the meeting in accordance with the Brown Act. b. CCSD maintains and up-to-date website which contains District information, documents, and updates. c. CCSD has demonstrated accountability and transparency in its disclosure of information and cooperation during the process of this MSR. The District responded to the questionnaires and cooperated with document requests. d. LAFCO determines that CCSD is accountable and transparent. 7. Any other matter related to effective or efficient service delivery a. There are no other matters related to the efficiency of services. Sphere of Influence Determinations per Government Code Section 56425 In order to carry out its purposes and responsibilities for planning and shaping the logical and orderly development of local governmental agencies to advantageously provide for the present and future needs of the county and its communities, the commission shall develop and determine the sphere of influence of each local agency, as defined by G.C. Section 56036, and enact policies designed to promote the logical and orderly development of areas within the sphere. In determining the sphere of influence of each local agency, the commission shall consider and prepare a written statement of its determinations with respect to the following: San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 53 MSR & Sphere Study 1. Present and planned land uses in the area, including agricultural and open-space lands. a. Land uses within CCSD's existing SOI are residential suburban, public facilities, and agriculture. The existing SOI areas may contain prime agriculture land as defined by government code section 56064. Should annexation be pursued in the future, then it may be subject to LAFCO Policy 12 which requires 1:1 mitigation on prime land to be converted from agricultural use. The agriculture zoned portion of the SOI is not under Williamson Act Contract. b. The SOI is expected to remain unchanged, with no expansions or reductions for CCSD. 2. Present and probable need for public facilities and services in the area. a. There is an anticipated need for service within the existing SOI area. b. The SOI is expected to remain unchanged, with no expansions or reductions for CCSD. c. If serving areas within the existing SOI is not possible due to ongoing and unresolved water constraints, the Commission should consider reducing the sphere boundary to better reflect the District’s future growth limitations. 3. Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. a. CCSD has capability and capacity to adequately meet existing service demand and some level of increased future service demand within the existing SOI area. Although it is important to make note that certain departments face more significant challenges to capacity than others and some departments have been constrained due to financial limitations. 4. Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. a. There are no District relevant social or economic communities of interest in the existing SOI area. 5. For an update of a sphere of influence of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 54 MSR & Sphere Study a. LAFCO staff has identified one DUC within part of CCSD’s SOI and service area boundary as seen in Figure 2 within the “Population Profile” Section of this report. The location identified as a DUC displays characteristics of a DUC pursuant to CKH Act of 2000. b. At present time, the portion of the DUC that is located within CCSD’s service area is eligible to receive water, wastewater and fire services through CCSD considering the District’s service limitations. The portion of the DUC that is located outside of the District’s current service area and within the District’s SOI (APNs: 013-151-024, 013-151- 022, 013-151-025 and a portion of 013-161-025), is not currently receiving water or sewer service from the District and may at times receive fire service from the District due to the District’s participation in mutual aid agreements for fire service. c. No particular water, wastewater, or fire service infrastructure needs have been identified for the SOI areas within the DUC. The type of public services and public facilities required in these areas is not anticipated to change, although the level of service demand may increase within the portion of the DUC that is within CCSD’s SOI, if annexed in the future. San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 55 MSR & Sphere Study APPENDIX Sources General 1. Sphere of Influence Update and Municipal Service Review for Coastal Community Services Districts and Cambria Healthcare District (Avila Beach Community Services District, Cambria Community Services District, Los Osos Community Services District, San Simeon Community Services District, and Cambria Healthcare District), 2014 2. CCSD Response to LAFCO MSR-SOI Request for Information Questionnaire, August 2023 3. CCSD Website, Cambria Community Services District (cambriacsd.org) Accountability 1. CCSD Website, District Transparency - Cambria Community Services District (cambriacsd.org) 2. CCSD District Bylaws, August 2023 Population Profile 1. Cambria Community Servies District 2023-2024 Annual Water Shortage Assessment, June 2023 2. SLO County North Coast Area Plan, 2007, Revised April 2022 3. San Luis Obispo Council of Governments 2050 Regional Growth Forecast 4. US Census, 2020 Cambria Census Designated Place Data 5. U.S. Census Bureau, American Community Survey data from 2016-2020 in 2021 inflation/adjusted dollars Present and Planned Land Use 1. SLO County North Coast Area Plan, 2007, Revised April 2022 Water 1. CCSD Staff, 2023 2. CCSD 2023-2024 Annual Water Shortage Assessment, June 2023 3. CCSD 2020 Urban Water Management Plan, June 2021 4. SLO County North Coast Area Plan, 2007, Revised April 2022 Wastewater San Luis Obispo LAFCO | Adopted 1/18/24 Cambria Community Services District 56 MSR & Sphere Study 1. CCSD Staff, 2023 2. CCSD Sewer System Management Plan, 2018 Fire 1. CCSD Fire Chief Report Presentation Slides, February 2023 2. CCSD Website, Cambria Fire Department - Cambria Community Services District (cambriacsd.org) 3. Public Protection Classification (PPC) Summary Report, Cambria FPSA, November 2018 4. Special Districts Fire Protection Study for County of San Luis Obispo, 2018 Parks, Recreation & Opens Space 1. CCSD Parks, Recreation & Opens Space Master Plan, November 1994 2. CCSD Website, Parks, Recreation & Open Space - Cambria Community Services District (cambriacsd.org) Finance 1. CCSD Preliminary Budget, Fiscal Year 2023-2024 2. CCSD Approved Fiscal Year 23-24 Operating Budget 3. CCSD Financial Statements June 30, 2022 4. CCSD Financial Statements June 30, 2021 5. CCSD Financial Statements June 30, 2020 6. CCSD Financial Statements June 30, 2019 7. CCSD Financial Statements June 30, 2018 San Luis Obispo LAFCO | Adopted 1/18/24 February 8, 2024 Exhibit B | Resolution No. 2024 - 01 Page 1 of 8 Service Review Determinations per Government Code Section 56430 for the Cambria Community Services District 1. Growth and population projections for the affected area a. Currently, the estimated population of CCSD is 5,678. With an estimated population of 6,217 by 2050, CCSD is currently 91% built out and with an estimated population of 12,658 by an indefinite buildout year, CCSD is currently 45% built out. 2. The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence a. LAFCO staff has identified one DUC within part of CCSD’s SOI and service area boundary. The location identified as a DUC displays characteristics of a DUC pursuant to CKH Act. b. The threshold for a DUC (80% of CA’s MHI) is an MHI less than $67,277. Once a Census Block Group (CBG) or a Census Designated Place (CDP), meets the DUC MHI threshold, LAFCO then verifies that those areas are inhabited as specified in government code section 56033.5. One of the CBGs within the CCSD boundary did meet the threshold for a DUC, with an estimated MHI of $51,875; the area was also determined to be inhabited. Therefore LAFCO, identified one DUC at the Census Block Group level, within the community of CCSD as seen in Figure 2 within the “Population Profile” Section of the Cambria Municipal Service Review and Sphere of Influence Study, LAFCO File No. 2-S-23. 3. Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies a. Water | CCSD is authorized to provide water service as it is described in government code section 61100 (a). CCSD operates and relies on 5 production wells: three wells in the San Simeon aquifer and two wells in the Santa Rosa aquifer. The WRF is currently operated under an emergency permit from the County which limits operation to Extreme and Exceptional Water Shortage Exhibit B | Resolution No. 2024 - 01 Page 2 of 8 Emergencies, which means a minimum of 41% or more in reductions to customer demand. CCSD filed its application with SLO County for a regular Coastal Development Permit and pursuant to the County Department of Planning and Building information hold dated August 14, 2020, the CCSD is currently working with consultants to complete this application for permitting of the WRF. The current SWRCB licenses allow CCSD a maximum of 1,017 AF of water during the wet season (799 AFY annually from the San Simeon aquifer & 218 AFY annually from the Santa Rosa aquifer) and 525.3 AF of water during the dry season (370 AFY from the San Simeon aquifer & 155.3 AFY from the Santa Rosa aquifer from May 1 to October 31). This amount of water may not be available every year due to the nature of the two creek aquifers. District staff also indicated that unless a supplementary or additional water source is authorized, the amount available in 2023 and 2045 will be the same. Through the adoption of a build-out reduction program mitigation measure, the recommended build-out goal was set at 4,650, assuming new water connections are allowed in the foreseeable future given that the District is still under a connection moratorium. The total designated amount for buildout commercial and non-residential is 342 connections for a total number of 4,992 connections by 2045. According to CCSD staff, the District’s waitlist for future water connections consists of 656 positions on the Single-Family Residential waitlist, 10 on the Commercial waitlist, 7 on the Multi-Family Residential waitlist and 56 units on an affordable housing water waitlist for a grand total of 729 positions on the District’s waitlist. Overall connections expected at build-out are 4,992; of those, 4,029 are existing connections and 729 are positions on the District’s waitlist, with a remaining 234 positions for new connections. CCSD is working diligently towards securing an additional water supply to bolster its ability to serve the residents of Cambria. The CSD has implemented a very aggressive conservation program and residents have reduced water demand significantly. CCSD has a Water CIP that assists the District in monitoring its water related projects like facility maintenance expenses and identify funding to be set Exhibit B | Resolution No. 2024 - 01 Page 3 of 8 aside each year so that equipment and facilities are continuously maintained and operating efficiently. LAFCO determines that CCSD has capability to adequately meet existing water connection demand and some level of increased future water demand at buildout under the assumption that water reliability improves, and the water connection moratorium is lifted. b. Wastewater | CCSD is authorized to provide wastewater service as it is described in government code section 61100 (b). The sanitary sewer collection system includes ten (10) lift stations and fifty-nine (59) miles of gravity sewers and force mains. CCSD serves 3,903 existing connections for wastewater collection at a flow of 0.5 MGD, with a plant design capacity of 1.0 MGD. CCSD estimates the number of future connections to be 4,632, at a flow of 0.6 MGD, which allows approximately 729 additional connections to meet the wastewater treatment plant capacity. CCSD’s Wastewater CIP assists the District in monitoring its projects that include facility maintenance expenses and identifies funding to be set aside each year so that equipment and facilities are continuously maintained and operating efficiently. LAFCO determines that CCSD has capability and capacity to adequately meet the needs existing and future wastewater demand. c. Fire Protection | CCSD is authorized to provide fire protection service as it is described in government code section 61100 (d). CCSD Fire Department was rated 4/4X1 out of 10 through the ISO. The largest loss of points coming from the quality of the Fire Department section2 and the availability of Water Supply section3 which make up 90% of the score. CCSD’s goal is to always provide staffing of four career firefighters on duty. In September 2021, the CCSD Board of Directors unanimously approved the acceptance of an awarded SAFER grant from FEMA. This grant fully funded the hiring of three full-time Firefighter Paramedics for a 1 One being the best fire protection rating and 10 being the worst. The first number is the class that applies to properties within 5 road miles from a fire station and 1,000 ft from a water supply. The second number (# X) applies to properties within 5 miles of a station but beyond 1,000 ft from a hydrant. 2 i.e., staffing levels, training & proximity of the firehouse 3 i.e., prevalence of fire hydrants & quantity of water available to put out fires Exhibit B | Resolution No. 2024 - 01 Page 4 of 8 period of three years and will add a fourth person on the engine to increase staffing, with no match required from the receiving agency. LAFCO determines that CCSD has capability and capacity to adequately provide fire protection service, however, to continue providing the same level of service the District will need to identify a sustainable source of funding into the future once the SAFER grant expires. d. Solid Waste | CCSD is authorized to provide solid waste service as it is described in government code section 61100 (c). CCSD currently collects sufficient fees and has a Franchise Agreement with Mission Country Disposal to provide solid waste services within the District in its entirety. LAFCO determines that CCSD has capability and capacity to adequately provide solid waste services. e. Parks & Recreation | CCSD is authorized to provide parks and recreations services as it is described in government code section 61100 (e). CCSD currently owns, operates, and maintains the Veterans Memorial Building Center, Cambria Dog Park, Fiscalini Ranch Preserve, and the San Simeon Creek open space. An ongoing challenge that the Facilities and Resources Department faces is limited funding for recreation operation and maintenance which could conflict with the District’s ability to provide adequate service. Over time, as the CCSD continues to maintain the Fiscalini Ranch and take ownership of more open space parcels with insufficient funding, the General Fund budgets for Fire, Facilities and Resources, and Administration will continue to decline and impact operations and safety. LAFCO determines that CCSD has capability to provide parks and recreation services where service is provided in the best manner possible within available funding. However, the District will need to identify a sustainable level of service with available funding into the future. f. Street Lighting | CCSD is authorized to provide street lighting service as it is described in government code section 61100 (g), this is done through a contract Exhibit B | Resolution No. 2024 - 01 Page 5 of 8 with the Pacific Gas and Electric Company. LAFCO determines that CCSD has capability and capacity to adequately provide street lighting. 4. Financial ability of agencies to provide services a. CCSD appears to have adequate revenue to provide for expenditures within its Enterprise Fund. At the end of FY 2021-2022, the CCSD had approximately $7.855 million in actual revenue and $7.498 million in actual expenditures. b. CCSD appears to have inadequate revenue to provide for expenditures within its General Fund. At the end of FY 2021-2022, the CCSD had approximately $5.501 million in actual revenue and $5.988 million in actual expenditures. c. CCSD’s net position has slightly decreased over the last 5-year audited period ending at $29.226 million in FY 2021-2022 with a 5-year average of $30.228 million. d. CCSD is financially stable despite increasing costs, limited revenues, and new regulatory requirements. Water and wastewater rates were last revised in 2022 and adopted for a 3-year rate increase to support operating and maintenance needs and to provide funding for capital improvements. LAFCO determines that CCSD’s net position has decreased 12% from FY 2017-2018 through FY 2021-2022 and expenditures have exceeded revenues within the General Fund primarily related to increased responsibility within the Facilities and Resources budget with no funding. With insufficient funding, the General Fund budgets for Fire, Facilities and Resources, and Admin will continue to decline and impact operations and safety. Service is to be provided in the best manner possible within available funding, however, the District will need to identify a sustainable level of service with the available funding into the future. 5. Status of and, opportunities for, shared facilities a. At present, the distinction between District and County services with the service boundary is clear. b. Opportunities for shared facilities may include: i. Coordination between the District and nearby private water purveyors Exhibit B | Resolution No. 2024 - 01 Page 6 of 8 ii. Coordination between neighboring agencies providing emergency response services iii. Coordinated open space preservation iv. District and County parks and recreational facilities c. The potential to create shared relationships for providing some services is suggested and may be appropriate when providing certain services. 6. Accountability for community service needs, including governmental structure and operational efficiencies a. CCSD is governed by a five-member Board of Directors that are elected to four- year terms. Regularly scheduled monthly Board meetings are held and all meetings are open to the public and are publicly posted a minimum of 72 hours prior to the meeting in accordance with the Brown Act. b. CCSD maintains and up-to-date website which contains District information, documents, and updates. c. CCSD has demonstrated accountability and transparency in its disclosure of information and cooperation during the process of this MSR. The District responded to the questionnaires and cooperated with document requests. d. LAFCO determines that CCSD is accountable and transparent. 7. Any other matter related to effective or efficient service delivery a. There are no other matters related to the efficiency of services. Sphere of Influence Determinations per Government Code Section 56425 for the Cambria Community Services District 1. Present and planned land uses in the area, including agricultural and open-space lands. a. Land uses within CCSD's existing SOI are residential suburban, public facilities, and agriculture. The existing SOI areas may contain prime agriculture land as defined by government code section 56064. Should annexation be pursued in the future, then it may be subject to LAFCO Policy 12 which requires 1:1 mitigation on prime Exhibit B | Resolution No. 2024 - 01 Page 7 of 8 land to be converted from agricultural use. The agriculture zoned portion of the SOI is not under Williamson Act Contract. b. The SOI is expected to remain unchanged, with no expansions or reductions for CCSD. 2. Present and probable need for public facilities and services in the area. a. There is an anticipated need for service within the existing SOI area. b. The SOI is expected to remain unchanged, with no expansions or reductions for CCSD. c. If serving areas within the existing SOI is not possible due to ongoing and unresolved water constraints, the Commission should consider reducing the sphere boundary to better reflect the District’s future growth limitations. 3. Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. a. CCSD has capability and capacity to adequately meet existing service demand and some level of increased future service demand within the existing SOI area. Although it is important to make note that certain departments face more significant challenges to capacity than others and some departments have been constrained due to financial limitations. 4. Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. a. There are no District relevant social or economic communities of interest in the existing SOI area. 5. For an update of a sphere of influence of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere. a. LAFCO staff has identified one DUC within part of CCSD’s SOI and service area boundary as seen in Figure 2 within the “Population Profile” Section of the Cambria Municipal Service Review and Sphere of Influence Study, LAFCO File No. Exhibit B | Resolution No. 2024 - 01 Page 8 of 8 2-S-23. The location identified as a DUC displays characteristics of a DUC pursuant to CKH Act of 2000. b. At present time, the portion of the DUC that is located within CCSD’s service area is eligible to receive water, wastewater and fire services through CCSD considering the District’s service limitations. The portion of the DUC that is located outside of the District’s current service area and within the District’s SOI (APNs: 013-151-024, 013-151-022, 013-151-025 and a portion of 013-161-025), is not currently receiving water or sewer service from the District and may at times receive fire service from the District due to the District’s participation in mutual aid agreements for fire service. c. No particular water, wastewater, or fire service infrastructure needs have been identified for the SOI areas within the DUC. The type of public services and public facilities required in these areas is not anticipated to change, although the level of service demand may increase within the portion of the DUC that is within CCSD’s SOI, if annexed in the future. ¹ £¤ 1 Fresno Cambria Monterey Kings Community Service District LAFCO Boundaries Kern San Luis Obispo Sphere of Influence Service Area Prepared By SLOLAFCO Latest SOI Approval: Jan 2024 Name: Cambria CSD Santa Barbara Miles Date: 12/14/2023 0 0.5 1 Sources: Esri, USGS, NOAA © OpenStreetMap (and) contributors, CC-BY-SA