Mountain Gate Csdmsrsoi332022

Shasta Local Agency Formation Commission Mountain Gate Community Services District Municipal Services Review & Sphere of Influence Update Commission Approved March 3 2022 SHASTA LOCAL AGENCY FORMATION COMMISSION Commissioners Les Baugh, County Member - District 5 Supervisor Joe Chimenti, County Member & Vice Chair - District 1 Supervisor Mike Dacquisto, City Member – City of Redding Stan Neutze, City Member - City of Anderson Brenda Haynes, Special District Member - Anderson Cottonwood Irrigation District Irwin Fust, Special District Member & Chair - Clear Creek Community Services District Larry Russell, Public Member Alternate Members: Mary Rickert, County Member - District 3 Supervisor Pamelyn Morgan, City Member - City of Shasta Lake Fred Ryness, Special District Member – Burney Water District Katherine Ann Campbell, Public Member Shasta LAFCO Staff: George Williamson, AICP, Executive Officer Kathy Bull, Office Manager James M. Underwood, Legal Counsel Planwest Partners Staff: Krystle Heaney, AICP, Services Specialist Jason Barnes, GIS Analyst Cosette McCave, Planning Technician Acknowledgements: LAFCO staff would like to thank contributors to this Municipal Service Review. Input instrumental in completing this report was provided by CSD Manager Jeff Cole. . Mountain Gate Community Services District Table of Contents Municipal Service Review ...................................................................................................... 1 Sphere of Influence UpdatE .................................................................................................... 1 Introduction ...................................................................................................................................1 Community Services Districts Overview ..........................................................................................1 Principal Act ...................................................................................................................................1 Service Review Determinations ......................................................................................................1 Sphere of Influence Determinations ................................................................................................2 Uses of the Report ..........................................................................................................................3 Review Methods ............................................................................................................................3 California Environmental Quality Act ..............................................................................................3 Common Topics for an Agency Profile .............................................................................................4 Agency Profile ....................................................................................................................... 5 Formation and Mission ...................................................................................................................5 CSD Boundary and Sphere ..............................................................................................................5 Other Service Providers ..................................................................................................................5 Existing and Planned Land Uses ......................................................................................................6 Growth and Population ..................................................................................................................6 Disadvantaged Unincorporated Communities .................................................................................6 Municipal Services .........................................................................................................................6 Financial Overview ....................................................................................................................... 12 Accountability and Governance .................................................................................................... 13 Municipal Service Review Determinations .................................................................................... __ Figures Figure 1: Mountain Gate CSD Boundary and Sphere of Influence ................................................................ 7 Figure 2: Mountain Gate CSD Land Uses ...................................................................................................... 8 Tables Table 1: Mountain Gate CSD Overview Summary ......................................................................................... 5 Table 2: Mountain Gate CSD Water Use Rates ............................................................................................. 9 Table 3: CSD emergency incidents and responses .......................................... Error! Bookmark not defined. Table 4 Gate CSD Financial Summary ......................................................................................................... 12 Table 5 Mountain Gate CSD Board of Directors .......................................................................................... 13 MUNICIPAL SERVICE REVIEW SPHERE OF INFLUENCE UPDATE Introduction Municipal Services Reviews (MSRs) provide agency infrastructure, management, services & boundary information. The report is for Shasta Local Agency Formation Commission’s (LAFCO) use in conducting a statutorily required MSR review process. The Cortese-Knox- Hertzberg Local Government Reorganization Act of 2000 (CKH Act) requires that the Commission conduct periodic reviews for cities & special districts in Shasta County (Government Code § 56425). State law also requires that, prior to Sphere of Influence (SOI) adoption, LAFCO must conduct a review of municipal services provided by that local agency (Government Code §56430). This report provides LAFCO with a tool to study current & future public service conditions comprehensively & evaluate organizational options for accommodating growth, preventing urban sprawl, & ensuring that critical services are provided efficiently. Community Services Districts Overview Community Services Districts are independent special districts under Community Services District Law (Government Code §61000, et seq.). They can provide several community services including water, wastewater, solid waste disposal, fire protection services, parks and recreation, street maintenance, and other services to unincorporated areas. Principal Act The CSD principal act is the Community Services District Law (Government Code §61000, et seq.) which authorizes CSDs to provide up to 31 types of governmental services within their boundaries. Mountain Gate CSD is authorized to provide water and fire. Other services, facilities, functions or powers enumerated in the District’s principal act but not identified in the formation resolution are “latent,” meaning that they are authorized by the principal act under which the District is formed but are not being exercised. Latent powers and services activation require LAFCO authorization as indicated in Government Code §25213.5. Service Review Determinations Government Code §56430 requires LAFCO to conduct a review of municipal services provided in the county by region, sub-region or other designated geographic area, as appropriate, for the service or services to be reviewed, and prepare a written statement of determination with respect to each of the following topics: (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 Shasta LAFCO 1 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 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; and (7) Any other matter affecting or related to effective or efficient service delivery, as required by Commission policy. This service review provides an overview of Community Services District along with an agency profile. The report also includes service review determinations and sphere of influence recommendations for: Mountain Gate Community Services District State Guidelines and Commission policies encourage stakeholder cooperation in the municipal service review preparation. It also provides a basis to evaluate, and make changes to the Spheres of Influence, if appropriate. Sphere of Influence Determinations A SOI is a LAFCO-approved boundary that designates an agency’s probable physical service area. Spheres are planning tools used to provide guidance for individual boundary change proposals and are intended to encourage efficient provision of organized community services, discourage urban sprawl and premature conversion of agricultural and open space lands, and prevent overlapping jurisdictions and duplication of services. LAFCO is required to establish SOIs for all local agencies and enact policies to promote the logical and orderly development of areas within the SOIs. Furthermore, LAFCO must update those SOIs every five years. In updating the SOI, LAFCO is required to conduct a municipal service review (MSR) and adopt related determinations. In addition, in adopting or amending an SOI, LAFCO must make the following determinations: (1) The present and planned land uses in 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; and (5) The present and probable need for public facilities and services related to sewers, municipal or industrial water, or structural fire protection of any disadvantaged unincorporated communities in the existing sphere of influence (effective July 1, 2012). Shasta LAFCO 2 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 Uses of the Report This service review provides the opportunity to identify trends relating to the adequacy, capacity, and cost of providing services in rural areas of Shasta County. Service reviews may identify district boundary changes, where appropriate, to extend services; evaluate consolidation feasibility, where appropriate, and implement other measures to address community water and wastewater service needs. The potential uses of this report are described below. To Update Spheres of Influence This MSR serves as the basis for an SOI update which considers territory LAFCO believes represents an agency’s appropriate future jurisdiction and service area. All boundary changes, such as annexations, must be consistent with an affected agency’s SOI with limited exceptions. To Consider Jurisdictional Boundary Changes LAFCO is not required to initiate any boundary changes based on service reviews. However, LAFCO, other local agencies (including cities, special districts, or the County), or the public may subsequently use this report together with additional research and analysis, where necessary, to pursue changes in jurisdictional boundaries. Resource for Further Studies Other entities and the public may use this report for further study and analysis of issues relating to Community Services Districts and municipal services in Shasta County. Review Methods The following information was considered in the service review: o Agency-specific data: responses to LAFCO Requests for Information from Mountain Gate CSD, maps, district plans and agency correspondence; o Land Use and Shasta County General Plan data: Shasta County Resource Management –Planning Division; o Demographic data: U.S. Census; CA Dept of Finance; and Water Resources Board; o Finances: budgets, rates and fees; and o Other Reports and Assessments: State Water Resources Control Board citation. Information gathered was analyzed and applied to make the required determinations for the agency and reach conclusions about the focus issues identified in the service review. All information gathered for this report is filed by LAFCO for future reference. California Environmental Quality Act The California Environmental Quality Act (CEQA) is contained in Public Resources Code §21000 et seq. Under this law, public agencies are required to evaluate the potential environmental effects of their actions. MSRs are statutorily exempt from CEQA pursuant to §15262 (feasibility or planning studies) and categorically exempt pursuant to CEQA Guidelines §15306 (information collection). It should be noted that when LAFCO acts to update an SOI, CEQA requirements must be satisfied. The lead agency for CEQA compliance would most likely be LAFCO. Shasta LAFCO 3 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 Common Agency Profile Topics Topics in this section are discussed further in the agency profile. Disadvantaged Unincorporated Communities LAFCO is required to evaluate disadvantaged unincorporated communities (DUCs) as part of its municipal service review process. Per California Senate Bill 244, a DUC is defined as any area with 12 or more registered voters where the median household income (MHI) is less than 80 percent of the statewide MHI. Within a DUC, three basic services are evaluated: water, sewer and fire protection. The most recently available data for US Census Block Groups, Tracts and Places from the US Census American Community Survey (ACS) 5-Year Data is used to determine disadvantaged communities in the region of interest. Using this information, each district or agency is evaluated to determine whether it is a DUC, or in the case of cities, whether there are DUCs within the city’s SOI. In many cases, Census Block Groups are larger than Districts. In these cases, LAFCO’s evaluation is broad, to ensure no DUCs are overlooked. Shasta County Growth Projections Between 2014 and 2020, the estimated Shasta County population grew from 178,520 to 180,040 people, an average annual growth rate of 0.17 percent1. When reviewing population data, it is important to distinguish between population changes that affect the entire County and the County’s unincorporated area, which can be affected by annexations and other boundary changes. The unincorporated area population is currently about 38% of the total County population. The California Department of Finance projects the County’s population will increase from 179,412 to 188,154, between 2020 and 2030, an average annual growth rate of 0.49%2. If the unincorporated area’s portion of the County’s population remains near 38%, it is estimated that the unincorporated area would increase from 68,177 to 71,499 people. However, according to the most recent California Department of Finance estimate, the Shasta County population decreased by 0.1% from 2018 to 20193. This could be the result of recent wildfires. For report purposes an annual population growth estimate of 0.17% to 0.49% is used to predict the future population range that may be served by the CSD during this MSR cycle. Existing and Planned Land Uses Land use within the unincorporated portion of the districts is subject to the Shasta County General Plan and Zoning Regulations, which was last updated in 2004. Land Uses are shown in Figure 2. Governance and Accountability Mountain Gate CSD operates as an independent special district under an elected Board of Directors pursuant to Community Services District Law (GC §61000, et seq.). 1 US Census Bureau, 2014-2018 American Community Survey 5-year Estimates for Shasta County (Table S0101). Accessed July 5, 2020. 2 California Department of Finance, Projections, P-1: State Population Projections (2010-2060), Total Population by County (1-year increments). 3 California Department of Finance, E-1 Population Estimates for Cities, Counties, and the State – January 1, 2018 and 2019, May 2019. Shasta LAFCO 4 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 AGENCY PROFILE This section profiles the Community Services District listed below. Included in the profile is a description of the agency’s organizational development, tables listing key service information, and maps showing jurisdictional boundaries. Mountain Gate CSD Mountain Gate CSD Mountain Gate CSD serves the community of Mountain Gate Table 1: Mountain Gate CSD Overview Summary Primary Contact Jeff Cole, District Manager Address: 14508 Wonderland Blvd. Redding, CA 96003 Website https://www.mountaingatecsd.com/ Services Water, Fire Provided Population 1,578 Service Area: CSD & SOI 7,510 acres Served: Service Connections (water) 720 Water Formation and Mission The Mountain Gate CSD was formed in May 1956 and initially established as an independent special district (California Government Code Section 61000 et seq.) to provide water to the Mountain Gate area. Fire protection and emergency services (Health & Safety Code) were initiated in 1966. Their initial water treatment, storage, and distribution facilities were completed in 1971. The District's adopted mission set by the Board of Directors is to provide the Mountain Gate Community with reliable, safe and clean water, and fire protection/ emergency services at the lowest cost possible. Staffing The Mountain Gate CSD maintains a staff of seven including a General Manager, Chief Operator, Office Manager, District Clerk, Maintenance I & II positions, and a Fire Chief. CSD Boundary and Sphere The CSD boundary is shown in Figure 1 Other Service Providers The other service provider for this area described below. Shasta LAFCO 5 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 The Shasta Mosquito and Vector Control District (SMVD) encompasses the Cities of Redding, Anderson, and Shasta Lake, the entire I-5 corridor through the county, Lakehead area and unincorporated areas to the west and east of Anderson. The current area of SMVD is approximately 1,291 square miles. The District monitors and controls mosquito populations through their focus on juvenile populations that are more concentrated and easier to abate using physical, biological, and chemical methods. The District also works on adult mosquito control activities and monitors for other vectors including ticks and rodents. Existing and Planned Land Uses Land Use Shasta County Land Use designations in the CSD consist of mixed and commercial uses along portions of the Wonderland Boulevard. There are also residential uses, mineral and public facility designations within District boundaries, and an industrial area designated the north end of the District. The Sphere of Influence includes primarily mineral resource lands. The current land use designations are shown in Figure 2. Zoning Zoning in the CSD is varied with mixed, commercial, residential, industrial, mineral resource, unclassified and public facility designations. Growth and Population Mountain Gate is a Census Designated Place (CDP) in Shasta County. According to the most recently available American Community Survey 5-year estimate (2014-2018) the District population is 1,900. Disadvantaged Unincorporated Communities The Shasta County Median Household Income (MHI) is approximately $63,091. This is approximately 89% of the 2021 California MHI of $75,235, according to the American Community Survey 2019 1-year Estimates. The Mountain Gate CDP is much smaller than the CSD, requiring income data to be drawn from the Census Block Group level. The surrounding block groups encompass much larger areas than just the district boundary. The average MHI for the block groups that intersect the district boundary is approximately $50,890 (ACS 2019), which is 68% of the state MHI. This qualifies the district as a DUC. Areas outside of the district but within the SOI are also considered to be DUCs. As such, when looking at future annexations for the District, each area should be looked at in detailed and assessed for water, wastewater, and fire services. Municipal Services Mountain Gate CSD provides water and fire services to the Mountain Gate community in northern Shasta County east of Interstate 5. Boundary and SOI shown in Figure 1. Shasta LAFCO 6 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 Figure 1. District & Sphere of Influence Shasta LAFCO 7 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 Figure 2. Land Use Shasta LAFCO 8 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 Water Services The water system consists of a Water Treatment Plant (WTP), at the northern end of the MGCSD water service area; five treated-water storage reservoirs with 1.16 million gallons (MG) capacity; a 12-inch transmission main; and 8-inch and smaller pipelines. The MGCSD served 670 water meters and 147 fire hydrants in 2014. The MGCSD obtains its normal water supply from Shasta Lake through a Bureau of Reclamation contract. The MGCSD also has three groundwater wells; however, groundwater use is limited due to high carbon dioxide content. In an emergency situation, the MGCSD can obtain water from Bella Vista Water District by installing a portable pump between two standpipes on Old Oregon Trail. A hydraulic analysis completed in conjunction with the MGCSD’s 2007 Master Water Plan indicates that small diameter waterlines limit maximum fire flows in some areas. The water service area along Casa Drive and Kitty Hawk Lane is served through an undersized 4- inch Casa PRV, which limits water pressure during high demand periods. The existing six-inch main dead ends approximately 2,900 feet from the Kitty Hawk Lane and Sunrise Drive intersection. Due to the potential for stagnation and water quality deterioration, dead end lines must be flushed on a weekly basis. In addition, when repairs are needed, the entire pressure zone must be shut down. The South Water Treatment Zone’s Water Tank equalizes supply and provides fire flow storage for the Main and South Zones. When the proposed Old Oregon Trail 12-inch main is installed, the Water Treatment Plant Zone will be connected to the Main and South Zones providing much of the flow rate during peak demand periods and fire flows. The dual-stage PRVs will allow the main to feed the South Zone during peak demand periods. Rates The District maintains the following rate structure for water services. Table 2: Mountain Gate CSD Water Use Rates Meter Size/Usage Service Charge/Amount RESIDENTIAL $ Up to ¾” $44.39 up to 500 cubic ft. 1” $55.73 up to 500 cubic ft. 501-2,000 CF 1.04/100 CF 2,000-10,000 CF 1.74/100 CF 10,000-UP 2.06/100 CF COMMERCIAL AND INDUSTRIAL Up to ¾” $64.63 up to 1500 cubic ft. 1” $75.75 up to 1500 cubic ft. 1 ½” $89.98 up to 1500 cubic ft. 2” $102.55 up to 1500 cubic ft. 3” $140.54 up to 1500 cubic ft. 4” $183.84 up to 1500 cubic ft. 1,501-2,000 CF 1.04/100 CF 2,000-10,000 CF 1.74/100 CF 10,000-UP CF 2.06/100 CF Shasta LAFCO 9 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 The current rates were established in 2019. Proposed Water System Improvement Project The District is proposing improvements to the Mountain Gate Community Services District’s (MGCSD) water system. Improvements include replacing/upsizing existing water mains and associated water services, installing a new water main, installing/replacing fire hydrant, replacing/installing Pressure Reducing Valve stations and associated solar panels, and installing a new emergency intertie. The project will replace aging infrastructure, achieve adequate fire flows, and ensure a safe and reliable potable water supply for MGCSD’s water service area customers. Work is anticipated to commence in the spring of 2023 and would be completed in approximately 12 months. The “project site” includes, water line alignments, South Water Tank, hydrant locations, access roads, and staging areas. In addition to the water line improvements, the following are included. Water Mains, Meters, and associated improvements Water mains (±26,850 feet) to be replaced: • ±15,000 feet of 6-inch main with 12-inch water main and associated water services, water meters, meter boxes, and appurtenances, generally between the northern end of Old Oregon Trail North to Redding City limits. • Existing 4-inch main with 6- and 8-inch mains in Copper Canyon Road, Grande Vista Lane, Lazy J Lane, Webula Drive, El Teda Lane, and Casa Drive and associated water services, water meters, meter boxes and appurtenances replacement. • ±3,000 feet of 8-inch main in southernmost segment of Sunrise Drive (new segment). South Water Tank Improvements Separate tank inlet and outlets to be provided: • Existing altitude valve removed, and an 8-inch check valve installed in existing inlet piping to ensure water flows across the tank. • New 8-inch outlet installed from new check valve vault to new tank outlet line. • New modified overflow piping and new overflow flap gate valve. Fire Hydrants Approximately 32 new or replacement fire hydrants to be installed in service area. Pressure Reducing Supervisory Control Valves Corporation Yard 6-inch PRV replaced with 6-inch dual stage PRV. Old Oregon Trail North 6-inch PRV, replaced with 10-inch dual stage PRV. Holiday Rd 8-inch PRV, replaced with 8-inch dual stage PRV. Casa Drive 4-inch PRV replaced with 8-inch dual stage PRV. The PRVs would be housed within subsurface vaults. Source IS /MND Fire Services The Mountain Gate Fire Department rolling stock include one Type I Engine, one Type II Engine, a 3,700 gallon Water tender and a Heavy Rescue vehicle. The Type I Engines serves not only Mountain Gate, but surrounding communities and has been dispatched to Southern California for service. The Type II Engine is configured in the summer months to provide wild land protection and Shasta LAFCO 10 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 has been dispatched to other locations outside the District. The District typically responds to approximately 300 to 350 incidents per year. The District operates a Volunteer, "paid call" department with a current roster of 16 persons. There is a maximum limit of 35 volunteers and always looking for new volunteers. Volunteers must reside within a 7 1/2 minute response time to the Fire Hall at posted speed limits. The District offers in-house training, enabling volunteers to training locally and not have to take time off work to gain the necessary skills and certifications to be a member. The District requires new volunteers to attend two months of weekly trainings to prove their commitment. Then allowed to start participating and responding as skill levels improve. There’s a six month probationary time to attain all the required certificates, then voted in and become a regular member. The Department receives most of its fire services revenues from property tax, assessments, and periodically, public safety grants. The Mountain Gate Fire Department consists of one fire station located at 14508 Wonderland Blvd, Redding, California, The Department maintains mutual and automatic aid agreements with the Shasta Lake Fire Protection District and Shasta County Fire (CSA #1 managed by CAL FIRE). The Fire Department logged the following incidents Table 3: Mountain Gate CSD emergency incidents and responses Year emergency medical fire vehicle accidents Total 2019 454 90 123 667 2020 472 120 91 683 Shasta LAFCO 11 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 Financial Overview Mountain Gate CSD is primarily funded through service fees and tax revenues. Debt No debts reported. Table 4: Mountain Gate CSD Financial Summary EXPENSES Fire / Water FY 2019-2020 FY 2020-2021 FY 2021-2022 ACCT# DESCRIPTION Allocation % 1 00.00 CSD & ADMIN EXP. 2 8,000.00 57080 OFFICE BACKUP POWER 50% / 50% 5 ,000.00 1,500.00 1,500.00 57090 LIAB / PROP INSURANCE 50% / 50% 1 2,000.00 30,000.00 31,900.00 57100 GEN BUILDING/GROUNDS MAINT 25% / 75% 1 0,800.00 3,500.00 3,500.00 57110 OFFICE POWER 25% / 75% 6 ,000.00 8,500.00 8,500.00 57120 PHONE / PAGER / FAX 25% / 75% 8 ,500.00 9,500.00 9,500.00 57131 OFFICE EXPENSE 25% / 75% 3 ,700.00 6,000.00 6,000.00 57132 OFFICE POSTAGE- METER 25% / 75% 3 ,000.00 7,500.00 7,500.00 57133 OFFICE COPIER 25% / 75% 5 00.00 3,700.00 3,700.00 57134 OFFICE COMPUTER EXP 25% / 75% 5 00.00 3,000.00 3,000.00 57135 BANK FEES EXPENSE 25% / 75% 2 ,500.00 400.00 400.00 57140 LEGAL PUBLICATION 25% / 75% 1 0,000.00 500.00 500.00 57145 LAFCO BUDGET EXPENSE 50% / 50% 9 ,500.00 2,800.00 2,800.00 57161 PROFESSIONAL ACCOUNTING 50% / 50% 1 ,500.00 12,000.00 12,000.00 57162 PROFESSIONAL LEGAL 25% / 75% 4 ,000.00 9,000.00 9,000.00 57169 DESCRETIONARY EXPENSE 50% / 50% 1 ,000.00 500.00 500.00 57170 DIRECTORS COMPENSATION 50% / 50% 4 ,000.00 4,000.00 4,000.00 57171 ELECTION EXPENSE 50% / 50% 1 00.00 2,000.00 100.00 57172 CSDA MEMBERSHIP DUES 25% / 75% 2 ,000.00 1,600.00 1,600.00 57173 BOARD MEMBER EDUCATION 50% / 50% 1 ,500.00 1,500.00 1,500.00 TOTAL EXPENSES 1 14,200.00 107,500.00 107,500.00 CAPITOL EXPENDITURES 11114-1 PARKING LOT REPAIR 25% / 75% 1 ,500.00 1,500.00 1,500.00 SOLAR PROJECT 25% / 75% 1 ,000.00 1,000.00 1,000.00 PRE-GRANT ADA UPGRADES 25% / 75% 500.00 500.00 13180-1 RETURN TO RESERVES 50% / 50% 3 9,320.00 48,275.00 48,275.00 TOTAL CAPITOL EXPENDITURES 4 1,820.00 $51,275.00 51,275.00 REVENUES xfers in Fire Budget 3 9,475.00 42,225.00 39,475.00 xfers in Water Budget 6 9,225.00 68,275.00 68,000.00 45000 Shasta County Tax Revenue 2 13,701.00 217,818.00 215,068.00 fund xfer outFire Budget -171881.00 -169,543.00 -169,543.00 Total Revenues 1 50,520.00 158,775.00 158,241.00 13180-1 Reserve Account 3 9,320.00 0.00 0.00 BUDGET SURPLUS / DEFICIT 0.00 0.00 0.00 Shasta LAFCO 12 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 Accountability and Governance As noted earlier, Mountain Gate CSD is governed by an independent Board of Directors elected to staggered 4-year terms (Table 5). Elections are currently held every 2 years. Board meetings are typically held on the second Wednesday of the month of the month at 6:00pm at the District Offices unless otherwise noticed. The District maintains a website that is currently in compliance with state law regarding special district websites. Board meeting agendas are available at least 72 hours in advance and meeting minutes are available after adoption by the Board. Notices are also posted at five local, public sites. Table5: Mountain Gate CSD Board of Directors Member Title Current Term Joan Anderson Chairperson 2018-2022 Greg Peterson Director 2018-2022 Katie Mason Director 2020-2024 Karrie Walter Director 2020-2024 Don Kerns Vice Chairperson 2020-2024 Budgets are approved annually by the Board of Directors which then establishes the scope of work and improvements that can be performed. Annual budgets and audits are available upon request to the District. Annual reporting is provided to the State Controller’s Office per state law. Shasta LAFCO 13 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 Municipal Service Review Determinations (1) Growth and population projections for the affected area a) There are approximately 1,578 residents in the District. b) With an annual growth rate of approximately 0.2% for the County There could be more than 1,800 residents in the District by2030. (2) The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence a) The Shasta County MHI is approximately $63,091, approximately 84% of the California MHI. The District MHI is approximately $50,890 which is 68% of the statewide MHI. The District is considered a DUC. Surrounding areas qualifying as DUCs should be considered when looking at extension of services and annexations to ensure communities are adequately served with water. 3) Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies a) The District is proposing a water system capacity increase with water main and associated water services Improvements including replacement and upsizing for increased capacity. The District proposes to install new water mains, install/replace fire hydrant, replace/install pressure reducing valve stations and associated solar panels, and install a new emergency intertie with the adjacent District. b) The water system project will, increase fire flows for emergency response, and improve potable water supply reliability and safety for MGCSD’s water service area customers. c) The District operates and maintains a fire station equipment and trained staff for responding to emergencies, and equipment is sometimes dispatched out of the area. The District periodically analyzes emergency response capacity to address any infrastructure needs or deficiencies. 4) Financial ability of agencies to provide services a) The District adopts an annual budget and conducts annual audits in compliance with CSD law. According to adopted budgets, the District revenues have exceeded expenses over the last few fiscal years. b) While the District has enough funding to support regular District activities and maintenance, there is limited funding returned to reserves each year limiting the amount that could be used major capital improvement projects. As such, any major updates, such as the water system upgrade would rely on outside funding. The District will pursue grant funding for the water system upgrades. 5) Status of and, opportunities for, shared facilities a) The District has an intertie with the Bella Vista Water District, the closest District. There are also mutual aid agreements for emergency response, with other responders in Shasta County. Shasta LAFCO 14 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 6) Accountability for community service needs, including governmental structure and operational efficiencies a) The District is governed by a five-member Board of Directors that meets monthly. b) The District maintains a website in compliance with state law where meeting agendas and minutes are posted regularly. 7) Any other matter related to effective or efficient service delivery. a) None beyond those noted above. Sphere of Influence Determinations 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, as defined by GC § 56036, and enact policies designed to promote the logical and orderly development of areas within the sphere. In determining each local agency’s SOI, the commission shall consider and prepare a written statement of its determinations with respect to the following: (1) Present and planned land uses in the area, including agricultural and open-space lands. a) Land uses surrounding the District in the SOI are primarily Mineral Resource (MR) and Rural Residential (RR). These uses are not expected to change and seem unlikely to need municipal water services. b) There are limited agriculture and natural resources land use designations outside the District, except resource lands associated with State and federal ownership. (2) Present and probable need for public facilities and services in the area. a) There appears to be a low probability for the need of municipal water services b) There is a need for emergency response services, especially in response to wildfire threats. (3) Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. a) The District planned water improvements are to increase capacity, quality and healthy supply. This will allow the District to meet current and future average daily demand. b) The District continues to analyze emergency response needs for the area, and maintain agreements with other responders for mutual aid. (4) Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. Shasta LAFCO 15 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022 a) There are a number of small communities, recreational and commercial areas to the north along Lake Shasta. The State Water Resources Control Board has expressed interest in a larger municipal water services manager maintaining and or operating some of these systems, however they are too far away, over rugged terrain, for any system interties. (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) Given the Mineral Resource land use designations in the SO to the west and east, and the limited need for services offered by the District, these areas should be considered for SOI reduction. Shasta LAFCO 16 MSR/SOI Update M ountain Gate CSD Commission Approved March 2022