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Solano Irrigation District Final MSR

Local Agency Formation Commissions · solano-msr-2022-2014-solano-irrigation-district-final-msr · Msr · 2014-06-09

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Final Municipal Service Review Solano Irrigation District Solano Local Agency Formation Commission June 9, 2014 SolanoIrrigationDistrict MunicipalServiceReview TableofContents Table of Contents Acronyms...............................................................................................................................................iii 1: Introduction.......................................................................................................................................4 1.1RoleandResponsibilityofLAFCO.................................................................................................4 1.2PurposeoftheMunicipalServiceReview....................................................................................4 1.3UsesoftheMunicipalServiceReview..........................................................................................5 1.5CaliforniaEnvironmentalQualityAct...........................................................................................6 2:ExecutiveSummary............................................................................................................................7 3:DistrictProfile...................................................................................................................................12 4: GrowthandPopulationProjections................................................................................................14 5: DisadvantagedUnicorporatedCommunities..................................................................................16 6: Presentandplannedcapacityofpublicfacilities............................................................................17 6.1WaterSupplyandAllocationAgreements................................................................................17 6.2Groundwater.............................................................................................................................23 6.3RecycledWater..........................................................................................................................23 6.4WaterConsumption..................................................................................................................23 7: FinancialAbilitytoprovideservices................................................................................................26 8: StatusandOpportunitiesforSharedFacilities................................................................................30 9: Governmentstructureandaccountability......................................................................................31 10: LAFCOPoliciesAffectingServiceDelivery.....................................................................................33 11: SummaryofDeterminations.........................................................................................................34 12: References.....................................................................................................................................36 AppendixA: CommentsReceived AppendixB: Maps ii SolanoIrrigationDistrict MunicipalServiceReview Acronyms ACRONYMS AFY acrefeetperyear CDOF CaliforniaDepartmentofFinance CEQA CaliforniaEnvironmentalQualityAct CKH Cortese-Knox-HertzbergLocalGovernmentReorganizationActof2000 CDP CensusDesignatedPlace DSWA Dixon-SolanoWaterAuthority DUC DisadvantagedUnincorporatedCommunity ETAW evapotranspirationofappliedirrigationwater FSSD Fairfield-SuisunSewerDistrict ID ImprovementDistrict JPA JointExerciseofPowersAuthority LAFCO LocalAgencyFormationCommission M&I municipalandindustrial MPWD MainePrairieWaterDistrict MSR MunicipalServiceReview POE PointOfEntry PPH personsperhousehold PSC PutahSouthCanal SCADA SupervisoryControlandDataAcquisition SID SolanoIrrigationDistrict SOI SphereofInfluence SP SolanoProject SSWA Suisun-SolanoWaterAuthority iii SolanoIrrigationDistrict MunicipalServiceReview Introduction 1: INTRODUCTION 1.1RoleandResponsibilityofLAFCO ThefundamentalroleofaLocalAgencyFormationCommission(LAFCO)istoimplementtheCortese- Knox-Hertzberg(CKH)LocalGovernmentReorganizationActof2000(GovernmentCodeSection56000, etseq.),providingforthelogical,efficient,andmostappropriateformationoflocalmunicipalities, serviceareas,andspecialdistricts. TheCKHrequiresallLAFCO’s,includingSolanoLAFCO,toconducta MunicipalServiceReview(MSR)priortoupdatingthespheresofinfluence(SOI)ofthevariouscitiesand specialdistrictsintheCounty(GovernmentCodeSection56430). CKHrequiresanMSRandSOIupdate every5years. 1.2PurposeoftheMunicipalServiceReview ThisMSRwillprovideSolanoLAFCOwithaninformationaldocumentandmakedeterminationsforeach ofthesevenelementsprescribedbyCKH. ThisMSRevaluatesthestructureandoperationofeach districtanddiscussespossibleareasforimprovement,coordination,orchangestotheSOIas appropriate. ThepurposeoftheMSRistocollectdatainordertoprovideacomprehensiveanalysisof serviceprovisionbySolanoIrrigationDistrict(SID). TheboundariesofSIDandproposedSOIareshown inExhibit1. Keysourcesforthisstudyincludedagency-specificinformationgatheredbyreviewing strategicplans,generalplans,websites,financialreports,agencyaudits,research,personal communication,andtheMunicipalServiceReviewGuidelinespublishedbytheGovernor’sOfficeof PlanningandResearch. ThereportcontainsonesectionforeachofthefollowingsevenelementsasprescribedbyCKH: 1. GrowthandPopulationProjectionsfortheAffectedArea. Thissectionreviewsprojected growthwithintheexistingserviceboundariesofthedistrictandanalyzesthedistrict’splansto accommodatefuturegrowth. 2. Thelocationandcharacteristicsofanydisadvantagedunincorporatedcommunitieswithinor contiguoustothesphereofinfluence. Adisadvantagedunincorporatedcommunityisdefined asinhabitedterritorywithamedianhouseholdincomeof80percentorlessofthestatewide medianincome. 3. PresentandPlannedCapacityofPublicFacilitiesandAdequacyofPublicServicesIncluding InfrastructureNeedsorDeficiencies. Thissectiondiscussestheservicesprovidedincludingthe qualityandtheabilityofthedistricttoprovidethoseservices,includingadiscussionofcapital improvementprojectscurrentlyunderwayandprojectsplannedforthefuturewhereapplicable. 4. FinancialAbilityofAgenciestoProvideServices. Thissectionreviewsthedistrict’sfiscaldata andratestructuretodetermineviabilityandabilitytomeetservicedemands. Italsoaddresses fundingforcapitalimprovementprojects. 4 SolanoIrrigationDistrict MunicipalServiceReview Introduction 5. StatusofandOpportunitiesforSharedFacilities. Thissectionexaminesefficienciesinservice deliverythatcouldincludesharingfacilitieswithotheragenciestoreducecostsbyavoiding duplication. 6. AccountabilityforCommunityServiceNeeds,includingGovernmentStructureand OperationalEfficiencies. Thissectionexaminesthedistrict’scurrentgovernmentstructure,and considerstheoverallmanagerialpractices. Italsoexamineshowwelleachdistrictmakesits processestransparenttothepublicandinvitesandencouragespublicparticipation. 7. MattersRelatedtoEffectiveorEfficientServiceDeliveryRequiredbyCommissionPolicy. This sectionincludesadiscussionofanySolanoLAFCOpoliciesthatmayaffecttheabilityofeach districttoprovideefficientservices. 1.3UsesoftheMunicipalServiceReview TheMSRisusedtoexaminetheoperationsofalocalagency,identifyagenciesunabletoperformtheir mandatedservices,oridentifywaystoprovidemoreeffective,efficientservices. GovernmentCode Section56375allowsLAFCOtotakeactiononrecommendationsfoundintheMSR,suchasinitiating studiesforchangesoforganization,updatingtheSOI,ororiginatingachangeoforganization. Studiesinanticipationofachangeoforganizationareusefultoidentifypotentialissuesthatmayarise duringtheprocess. Issuescanrangefromlegalbarrierstofiscalconstraintstoconcernsofresidentsand landowners. Astudywouldallowmorefocusedanalysisandtheopportunitytoresolveissuesor optionsbeforebeginningtheprocess. TheMSRalsoprovidesthenecessaryinformationtohelpLAFCOmakedecisionsonaproposedSOI update. InevaluatingtheSOI,theMSRprovidestheinformationnecessarytodetermineiftheagency hasthecapabilitytoservealargerarea. TheMSRdiscussesthefinancialconditionofeachdistrict, sourceofrevenues,andprojectedexpenses. Italsoincludesadiscussionoftheprojectedinfrastructure needsthatwouldallowforexpansionofthoseservices. TheMSR,however,doesnotaddressCalifornia EnvironmentalQualityAct(CEQA)requirementsfortheSOIupdate. Thatrequiresaseparateanalysis. Alternatively,theMSRcanrecommendchangesoforganization:consolidation,dissolution,merger, establishmentofasubsidiarydistrict,orthecreationofanewagencythattypicallyinvolvesa consolidationofagencies. Thosechangesoforganizationmayalsorequireanenvironmentalreview,a propertytaxsharingagreement,andanelection. 1.4SphereofInfluence TheSOIisdefinedas"aplanfortheprobablephysicalboundariesandserviceareasofalocalagency" (GovernmentCode56076).TheSOIrepresentsoneofthemostimportanttoolsLAFCOusesto"carry outitspurposesandresponsibilitiesforplanningandshapingthelogicalandorderlydevelopmentand coordinationoflocalgovernmentagencies"(GovernmentCodeSection56425). 5 SolanoIrrigationDistrict MunicipalServiceReview Introduction CKHrequiresLAFCOtoadoptanSOIforeachcityandspecialdistrictinthecounty.TheSOIserves muchthesamefunctionforLAFCOasgeneralplansserveforcitiesandcounties:itguidesthe Commissioninitsconsiderationofannexationsandotherformsofreorganization.Thesphere representsthelogicalextentoftheagency'sboundaryinthenext5to10years.However,sinceLAFCO isrequiredtoupdateandreviewthesphereevery5years,thesphereinallpracticalityhasa5-year planninghorizon.WhenadoptingtheSOI,theCommissionmustmakethefollowingdeterminations: (cid:120)(cid:120) Presentandplannedlandusesinthearea.Thisconsistsofareviewofcurrentandplanned landuses,includingagriculturalandopen-space,basedonplanningdocuments. (cid:120) Presentandprobableneedforpublicfacilitiesandservices.Thisincludesareviewofthe servicesavailableintheareaandtheneedforadditionalservices. (cid:120) PresentCapacityofPublicFacilities. Thissectionincludesananalysisofthecapacityofpublic facilitiesandtheadequacyofpublicservicesthatthedistrictprovidesorisauthorizedto provide. (cid:120) Socialoreconomiccommunitiesofinterest.Thissectiondiscussestheexistenceofany socialoreconomiccommunitiesofinterestintheareaiftheCommissiondeterminesthat theyarerelevanttothedistrict.Theseareareasthatmaybeaffectedbyservicesprovided bytheDistrictormaybereceivingservicesinthefuture. (cid:120) Presentandprobableneedforservicestodisadvantagedcommunities.BeginningJuly1,2012 thecommissionmustalsoconsiderservicestodisadvantagedcommunitieswhicharedefinedas populatedareaswithintheSOIwhosemedianhouseholdincomeislessthanorequalto80 percentofthestatewidemedianincome. ASOImaybeamendedorupdated.AnamendmentisarelativelylimitedchangetotheSOIto accommodateaspecificproject.Amendmentscanaddorremoveterritory,addressachangein provisionofservicesbyanagency,orreviseaplanforserviceswhenitbecomesimpractical. AnupdateisacomprehensivereviewoftheSOIthatincludesthemapandrelevantportionsofoneor moreMSR’s.Thereviewallowsfortheidentificationofareasthatarelikelytoreceiveservicesandto excludethoseterritoriesthatarenotorwillnotbeservedintheSOI. 1.5CaliforniaEnvironmentalQualityAct PublicResourcesCodeSection21000,etseq.,alsoknownastheCaliforniaEnvironmentalQualityAct (CEQA),requirespublicagenciestoevaluatethepotentialenvironmentaleffectsoftheiractions. This MSRisexemptfromCEQAunderClass6categoricalexemption. CEQAGuidelinesSection15306states that“Class6consistsofbasicdatacollection,research,experimentalmanagement,andresource evaluationactivitiesthatdonotresultinaseriousormajordisturbancetoanenvironmentalresource.” 6 SolanoIrrigationDistrict MunicipalServiceReview ExecutiveSummary 2: EXECUTIVE SUMMARY ThefundamentalroleofaLocalAgencyFormationCommission(LAFCO)istoimplementtheCortese- Knox-Hertzberg(CKH)LocalGovernmentReorganizationActof2000(GovernmentCodeSection56000, etseq.),providingforthelogical,efficient,andmostappropriateformationoflocalmunicipalities, serviceareas,andspecialdistricts. TheCKHrequiresallLAFCO’s,includingSolanoLAFCO,toconducta MunicipalServiceReview(MSR)priortoupdatingthespheresofinfluence(SOI)ofthevariouscitiesand specialdistrictsintheCounty(GovernmentCodeSection56430). CKHrequiresanMSRandSOIupdate every5years. ThisMSRwillprovideSolanoLAFCOwithaninformationaldocumentandmakedeterminationsforeach ofthesevenelementsprescribedbyCKH. ThisMSRevaluatesthestructureandoperationofadistrict anddiscussespossibleareasforimprovement,coordination,orchangestotheSOIasappropriate. The purposeoftheMSRistocollectdatainordertoprovideacomprehensiveanalysisofserviceprovision bySolanoIrrigationDistrict(SID). TheboundariesofSIDandproposedSOIareshowninExhibit1. ThereportcontainsonesectionforeachofthefollowingsevenelementsasprescribedbyCKH: 1. GrowthandPopulationProjectionsfortheAffectedArea. Thissectionreviewsprojected growthwithintheexistingserviceboundariesofthedistrictandanalyzesthedistrict’splansto accommodatefuturegrowth. 2. Thelocationandcharacteristicsofanydisadvantagedunincorporatedcommunitieswithinor contiguoustothesphereofinfluence. Adisadvantagedunincorporatedcommunityisdefined asinhabitedterritorywithamedianhouseholdincomeof80percentorlessofthestatewide medianincome. 3. PresentandPlannedCapacityofPublicFacilitiesandAdequacyofPublicServicesIncluding InfrastructureNeedsorDeficiencies. Thissectiondiscussestheservicesprovidedincludingthe qualityandtheabilityofthedistricttoprovidethoseservices,includingadiscussionofcapital improvementprojectscurrentlyunderwayandprojectsplannedforthefuturewhereapplicable. 4. FinancialAbilityofAgenciestoProvideServices. Thissectionreviewsthedistrict’sfiscaldata andratestructuretodetermineviabilityandabilitytomeetservicedemands. Italsoaddresses fundingforcapitalimprovementprojects. 5. StatusofandOpportunitiesforSharedFacilities. Thissectionexaminesefficienciesinservice deliverythatcouldincludesharingfacilitieswithotheragenciestoreducecostsbyavoiding duplication. 6. AccountabilityforCommunityServiceNeeds,includingGovernmentStructureand OperationalEfficiencies. Thissectionexaminesthedistrict’scurrentgovernmentstructure,and considerstheoverallmanagerialpractices. Italsoexamineshowwelltheeachdistrictmakesits processestransparenttothepublicandinvitesandencouragespublicparticipation. 7 SolanoIrrigationDistrict MunicipalServiceReview ExecutiveSummary 7. MattersRelatedtoEffectiveorEfficientServiceDeliveryRequiredbyCommissionPolicy. This sectionincludesadiscussionofanySolanoLAFCOpoliciesthatmayaffecttheabilityofeach districttoprovideefficientservices. DISTRICTPROFILE TheSolanoIrrigationDistrictwasformedin1948undertheCaliforniaWaterCode,Division11. Inallthe serviceareacoversapproximately73,000acres.TheDistrictprimarilyservesagricultureaswellassome municipalandindustrialusers. Itprovidesirrigationwaterandpotablewatertoapproximately11,000 retailcustomersincluding10,000potablewatercustomers,and1,000non-potablewatercustomers. Between1948and1957,substantialeffortsweremadebytheDistrictandtheCountytoprovidewater toSolanoCounty. Thewatersystem,termedtheSolanoProject,includedMonticelloDam,LakeSolano, DiversionDam,the33-milelongPutahSouthCanal(PSC),andTerminalReservoir. Thegroundbreaking ceremonyfortheMonticelloDam,withacapacityof1.6Millionacrefeet,washeldonSeptember25, 1953. ConstructionoftheSolanoProjectwascompletedonNovember7,1957. Alllandswithinthe Districtboundaryhadwateravailablebythespringof1963. InadditiontothewatersystemtheDistrictalsogenerateselectricity. In1981theDistrictbegan constructionofan11.5megawatthydroelectricpowerplantatthebaseoftheMonticelloDam. The plantwascompletedin1983. SIDmaintainsandoperatestheplant. PG&Epurchasesallthegenerated power. GROWTHANDPOPULATIONPROJECTIONS Approximately37,000peopleresidewithintheDistrictboundariesandanestimated10residentslivein theproposedSOI. ThepopulationinSolanoCountyisexpectedtoincreaseby5%overthenextfive years. SincemostoftheSIDterritoryisoutsidethecitiestheanticipatedCountygrowthratecanbe usedtoestimategrowthintheDistrictandproposedSOI. At5%growththeDistrictandproposed spherewouldhavebyapproximately38,900residentsby2020. DISADVANTAGEDUNINCORPORATEDCOMMUNITIES(DUC) In2012,themedianhouseholdincomefortheStatewas$61,400. Inordertomakethisassessment incomeforcensusdesignatedplacesinSolanoCountywerecomparedtothestatewidemedian householdincome. Elmirahasthelowestmedianincomeat84%oftheState’svalueandstilldoesnot qualifyasaDUC. Theproposedsphereincludesprimarilyagriculturallandsandonlyfourresidences with7registeredvotersscatteredthroughoutthespherearea. ThereforetherearenoDUC’sadjacent toSIDboundariesorintheproposedSOI. 8 SolanoIrrigationDistrict MunicipalServiceReview ExecutiveSummary PRESENTANDPLANNEDCAPACITY SIDoperatestheSolanoProject,whichdeliversLakeBerryessawatertofourcities,theMainePrairie WaterDistrictandotherSIDcustomers. TheSolanoProjectincludestheMonticelloDam,Putah DiversionDam,andthePSC. SIDoperatesandmaintainstheseSolanoProjectfacilitiesonbehalfof SolanoCountyWaterAgency. LakeBerryessahastheabilitytostore1,600,000acre-feetofwater. SID providesirrigationwaterfromsurfacewatersbutalsohasitsowndeepwellsthatsupplementits surface-watersupplyfromtheSolanoProject. SIDhasanallocatedsurfacewatersupplyfromtheSolanoProjectfor141,000acrefeetperyear.With theadditionofgroundwatersuppliesSIDhasavailableanaverageannualwatersupplyofapproximately 146,000acrefeet.Fullyutilizinghistoriccapacityofwellswouldresultinasupplypotentialof155,000 acrefeet. TheSolanoIrrigationDistrict’sprimarywaterdemandistheagriculturalwaternecessarytoproducethe cropsgrownwithintheSIDservicearea. InadditiontothisdemandSIDprovidesmunicipaland industrial(M&I)andnon-potablewatersuppliestosomeruraldevelopmentswithinitsservicearea. Whenlandusechangesandincreasedurbanizationoccur,M&Iwaterdemandincreases.Historically, SIDhasenteredintoagreementswithcities(Benicia,Fairfield,Suisun,andVacaville)toaugmentthe cities’supplies.TheagreementsprovideforwatertransfersfromSIDtothosecities. Dependingupon theagreement,watermaybeheldintrustforthecityandavailableupondemand,oronanentitlement basis.Ifonanentitlementbasis,thecityisabletoutilizetheentitlementwaterascarryoverstorageifit isnotusedintheyearallotted. Thereviewofprojectedagriculturalwaterdemandsneedstoconsiderongoingimprovementsinwater deliveryefficiency. WaterdeliverylossesintheSIDdistributionsystemandtheon-farmdelivery systemsofindividualfarmerstogetherwithoperationalspillsandtherecoveryandreuseoftailwater areallfactorsaffectingtherequiredquantityofSIDwaterdeliveries. SIDhasarehabilitationand bettermentprogramwhichcontinuestoimproveinfrastructurewhichhelpstoreducelosses.This includesinstallingconcreteliningincanalsnotoriginallylinedtoreduceseepagelosses,automatic controlgates,andSupervisoryControlandDataAcquisition(SCADA)systemstobettermonitor operationalspillsandreduceunnecessarywatersupplylosses. Allpotential,costeffectivecontrol measurestofurtherreducewaterlossesandimprovetheefficiencyofsurfacewaterdeliveriesare investigated. Asthevalueofwaterincreases,manyfarmersinSIDarealsomakingchangesand improvementstotheiron-farmwaterdeliverysystems.Thisincludescapturingandreusingagricultural tailwaterreturnflowsandinstallingnewwaterdeliverysystems. OverthelastfiveyearsSIDhasseenan increasednumberoffarmersinstallingmicrosprayanddripirrigationsystemsonnewlyplanted orchards. Continuedtechnologicalimprovementinwaterdeliveryefficiencywillfurtherreducethe waterdeliveryneededtomeettheannualSIDETAW. AcurrentestimateofSIDwatersuppliesand waterdemandsprojectedto2034isprovidedinTable6.2. 9 SolanoIrrigationDistrict MunicipalServiceReview ExecutiveSummary ThedatashowsthatDistricthasthecapacitytoprovidewatertocurrentcustomers.TheDistricthasan averageannualexcesscapacityof6,400AFanditislikelytheDistricthassufficientcapacitytoserve thoseareasintheproposedSphereofInfluence. Inyearswhendemandwillexceedsupply(andnocarryoverwaterisavailable),SIDhasthemeans withinitsRulesandRegulationstoimplementanallocationpolicytolimittheamountofwatersupplied (orallocated)toeachuser. Further,bymanagingitscarryoversuppliesinLakeBerryessa(SolanoProject entitlementwatersthatarenotusedinoneyeararecarriedovertothenextandarecumulativeuntil LakeBerryessaspills),SIDhastheabilitytomeetdemandsinyearsthedemandwillexceedsupply. SID hasproventhisabilityoverthelast50+yearswithonlyoneyear(1991)whenSIDimplementedawater shortageallocationprogramtoconservewaterandprovideasupplementalurbanwatersupplytohelp SolanoProjecturbanwaterusersmeettheirdemandsduringawatershortage.Basedontheproposed SphereofinfluenceandthedataprovidedinTable6.1,theaverageannualdemandresultsin approximately3,500AF. FINANCIALABILITYTOPROVIDESERVICES SIDhasanoperatingbudgetofapproximately$7million. Alongwithjointventureoperations(SSWA, DSWA,etc.)thebudgetisgenerallyinthe$14-16millionrange. Between2008and2012SIDhasshown asurplusinfourofthefiveyears. In2009thesurpluswasduetothesaleofwaterrights. In2011 Powerplantrevenuesdecreasedby$2.8millionduetothetimingofthereceiptofcashfromPG&Eto maketheJanuaryprincipalpaymentontheMonticelloPlantProject2006and1986Refunding Hydroelectricbonds.In2010thefundswerereceivedandrecordedasrevenueinDecember2010; whereas;in2011thefundswerereceivedandrecordedasrevenueinJanuary2012. SIDprovidespotablewatertoseveralcommunitiesandsetsratesspecifictothoseareas. Insome improvementdistricts,voterapproveddebt(liketheconstructionoftheGibsonCanyonImprovement DistrictWaterTreatmentPlant)isrepayedthroughspecialassessmentappliedthroughtheproperty taxes. In2013SIDapprovedarateincreasetocoveranticipatedcostsduetoinflation,toreplenishan operatingreserve,andtobegintoaddresscostsofpost-retirementbenefits. ThenewratesallowSIDto implementitsfinancialplansoSIDwillhavethefinancialresourcestoprovideservices. STATUSANDOPPORTUNITIESFORSHAREDFACILTIES Managementandoperationalefficienciesareprovidedbycooperativearrangementwithother agenciessuchastheSolanoWaterAuthority. AdditionallySIDtakespartinseveralother committeesandagreementsincluding: 10 SolanoIrrigationDistrict MunicipalServiceReview ExecutiveSummary (cid:120) SID/FairfieldWaterServicesAgreement (cid:120) SID/VacavilleMasterWaterAgreement (cid:120) SID/VallejoAgreement(exchangeofwater) (cid:120) SID/MainPrairieWaterDistrictAgreement(forcoordinatingLakeBerryessawatersupplies) (cid:120) SID/CountyAgriculturalCommissionerAgreement(forsharingshopspaceatSIDyard) (cid:120) DSWAJointWaterServiceinDixon (cid:120) SSWAJointWaterServiceinSuisunCity SIDalsopartnerswiththeCityofDixonandSuisunCityforwaterdeliverythroughajointpowers agreement.InadditionSIDparticipatesinpurchasingagreementswithotherlocalwatertreatment plantsinordertoobtainbestpricingonchemicalpurchases,anditisinaninsurancepoolwiththe AssociationofCaliforniaWaterAgenciesJointPowersInsuranceAuthority. GOVERNMENTSTRUCTUREANDACCOUNTABILITY SIDisgovernedbyafivememberboardelectedbydivisiontofouryearstaggeredterms. TheBoardof DirectorsmeetsregularlyonthethirdTuesdayofthemonth. Meetingsarenoticedinthreelocal newspapersandpostedontheDistrictwebsite. TheDistrictusesitswebsitetocommunicatewith ratepayers. SIDhas78employeesand15vacanciesforatotalstaffof93. StaffingisallocatedaccordingDistrict functions. LAFCOPOLICIESAFFECTINGSERVICEDELIVERY SeveralofLAFCO’spoliciescanaffectSID’sservicedelivery. Theyincludethespherepolicywhichis appliedtoareasthattheDistrictwouldliketoserveintheneartermandlongterm. SIDisoften requestedtoprovideservicesoutsideitsboundary,soLAFCO’soutofareaservicepolicyapplies. LAFCO policyallowingdetachmentfeescompensatesSIDforlossofrevenueswhenanareaisdetachedand annexedtoacity. 11 SolanoIrrigationDistrict MunicipalServiceReview DistrictProfile 3: DISTRICT PROFILE Bydefinition,anirrigationdistrictisatypeofspecialdistrictwhohaveauthoritytosellandleasewater, operateasewagecollectionanddisposalsystem,deliverwaterforfireprotection,maintainrecreational facilitiesinconnectionswithdamsandreservoirsoroperateandsellelectricalpower. Irrigationdistricts operateunderSection20500etseq.oftheWaterCode.Therearenearly92irrigationdistrictsin California. SIDistheonlyirrigationdistrictinSolanoCounty. TheSolanoIrrigationDistrictwasformedin1948undertheCaliforniaWaterCode,Division11. Inallthe serviceareacoversapproximately73,000acres.TheDistrictprimarilyservesagricultureaswellassome municipalandindustrialusers. Itprovidesirrigationwaterandpotablewatertoapproximately11,000 retailcustomersincluding10,000potablewatercustomers,and1,000non-potablewatercustomers. Exhibit1showstheboundariesoftheDistrictandtheproposedsphere. Between1948and1957,substantialeffortsweremadebytheDistrictandtheCountytoprovidewater toSolanoCounty. Thewatersystem,termedtheSolanoProject,includedMonticelloDam,LakeSolano, DiversionDam,the33-milelongPutahSouthCanal(PSC),andTerminalReservoir. Thegroundbreaking ceremonyfortheMonticelloDam,withacapacityof1.6Millionacrefeet,washeldonSeptember25, 1953. ConstructionoftheSolanoProjectwascompletedonNovember7,1957. Alllandswithinthe Districtboundaryhadwateravailablebythespringof1963. InadditiontothewatersystemtheDistrictalsogenerateselectricity. In1981theDistrictbegan constructionofan11.5megawatthydroelectricpowerplantatthebaseoftheMonticelloDam. The plantwascompletedin1983. SIDmaintainsandoperatestheplant. PG&Epurchasesallthegenerated power. 12 SolanoIrrigationDistrict MunicipalServiceReview DistrictProfile Exhibit1:SIDBoundaryMap 13 SolanoIrrigationDistrict MunicipalServiceReview GrowthandPopulationProjections 4: GROWTH AND POPULATION PROJECTIONS TheDistrictthroughitsoperationoftheMonticelloDamandPutahSouthCanalimpactsapproximately threequartersofthepopulationoftheCounty. Howeverthenumberofpeopleactuallyresidinginthe districtismuchsmaller. Wecanestimatethepopulationbasedonthenumberofconnectionsandusing amultiplierforpersonsperhousehold. Table4.1showshowtheestimatedpopulationofthedistrictis approximately37,000. Thatestimatereliesonseveralassumptions. Whilethenumberofaccountsintheimprovement districtsisknown,itisassumedtheyareprimarilyresidentialsothepopulationisbasedontheCounty averageof2.83personsperhousehold. Elmiraisacensusdesignatedplacewhereactualpersonsper householdisknownandslightlylower. ThepersonsperhouseholdvaluesforDixonandSuisunare basedonthevalueswithinthecitylimits. Itwasalsoassumedthateachirrigationaccountistiedtoa residencesotheestimatedpopulationforirrigationaccountsisthetotalaccountsmultipliedbythe Countypersonsperhouseholdvalue. Whilenotexact,theestimatedDistrictpopulationshouldbe reasonablyclose. Muchoftheproposedsphereofinfluenceiszonedcommercialoragricultural. Afewoftheparcelsare zonedag-resandincludeonedwellingunit. Therearefourparcelswhichincludearesidence. Usingthe Countyestimateofpersonsperhouseholdtheproposedsphereislikelytoinclude10residents. Table4-1:EstimatedPopulationofSID Area Connections PPH Est.Population ElmiraID 86 2.21 190 QuailCanyonID 37 2.83 105 StockingRanchID 6 2.83 17 TolenasID 180 2.83 509 GibsonCanyonID 158 2.83 447 PeabodyID 19 2.83 54 BlueRidgeOaksID 20 2.83 57 Dixon-SolanoWaterAuthority 2,563 3.13 8,031 Suisun-SolanoWaterAuthority 8,000 3.15 25,178 Irrigation 897 2.83 2,486 Total 37,073 Source:CDOF2013a,NBS2012,TheReedGroupInc.2012 AccordingtotheCaliforniaDepartmentofFinancethepopulationinSolanoCountyisexpectedtogrow by5%between2015and2020. SincemostoftheSIDterritoryisoutsidethecitiestheCountygrowth rateisagoodestimateofpopulationgrowthintheDistrict. AccordinglythepopulationoftheDistrict wouldbeexpectedtogrowby5%overthenextfiveyearstoapopulationofapproximately38,900. 14 SolanoIrrigationDistrict MunicipalServiceReview GrowthandPopulationProjections DETERMINATIONS: 4.1 WhilethepopulationthatbenefitsfromservicesprovidedbytheDistrictapproachesthree quartersofthepopulationofSolanoCountyonlyapproximately37,000peopleresidewithinthe Districtboundariesandanestimated10residentsliveintheproposedSOI. 4.2 ThepopulationinSolanoCountyisexpectedtoincreaseby5%overthenextfiveyears. Since mostoftheSIDterritoryisoutsidethecitiestheanticipatedCountygrowthratecanbeusedto estimategrowthintheDistrictandproposedSOI. At5%growththeDistrictandproposed spherewouldhaveapproximately38,900residentsby2020. 15 SolanoIrrigationDistrict MunicipalServiceReview DisadvantagedUnincorporatedCommunities 5: DISADVANTAGED UNICORPORATED COMMUNITIES TheCommissionisrequiredtoprovidewrittendeterminationswithrespecttothelocationand characteristicsofanydisadvantagedunincorporatedcommunitieswithinorcontiguoustothesphereof influence. TheCaliforniaGovernmentCodeSection56033.5definesadisadvantagedunincorporated community(DUC)asaninhabitedterritory(12ormoreregisteredvoters)withanannualmedian householdincomethatislessthan80percentofthestatewideannualmedianhouseholdincome. In2012,themedianhouseholdincomefortheStatewas$61,400. Thetablebelowrepresentsthe2012 medianhouseholdincomesforallCensusDesignatedPlaces(CDP)inSolanoCounty. Asshowninthe Table,Elmirahasthelowestmedianincomeat84%oftheState’svalueandstilldoesnotqualifyasa DUC. Theproposedsphereincludesprimarilyagriculturallandsandonlyfourresidenceswith7 registeredvotersscatteredthroughoutthespherearea. Therefore,therearenoDUC’sadjacenttoSID boundariesorintheproposedSOI. Table5.1:SolanoCountyCDP2012HouseholdIncome SolanoCountyCDP MedianHouseholdIncome %of State’sMedianHousehold Income($61,400) AllendaleCDP $89,984 147% ElmiraCDP $52,125 84% GreenValleyCDP $139,474 227% HartleyCDP $100,123 163% Source:CDOF2013c DETERMINATIONS: 5.1 TherearenodisadvantagedunincorporatedcommunitiesadjacenttotheboundariesofSIDor intheproposedSOI. 16 SolanoIrrigationDistrict MunicipalServiceReview PresentandPlannedCapacity 6: PRESENT AND PLANNED CAPACITY OF PUBLIC FACILITIES SIDoperatestheSolanoProject,whichdeliversLakeBerryessawatertofourcities,theMainePrairie WaterDistrictandotherSIDcustomers. TheSolanoProjectincludestheMonticelloDam,Putah DiversionDam,andthePSC. SIDoperatesandmaintainstheseSolanoProjectfacilitiesonbehalfof SolanoCountyWaterAgency. LakeBerryessahastheabilitytostore1,600,000acre-feetofwater. SID providesirrigationwaterfromsurfacewatersbutalsohasitsownwellsthatsupplementitssurface- watersupplyfromtheSolanoProject. SIDalsoownsandoperatesthehydroelectricpowerplantlocatedatthebaseofMonticellodam. The powerplantwasbuiltin1983andhasthreegeneratorswithacombinedcapacityof11,500kilowatts. SIDsellselectricalpowertoPG&EandprovidesadditionalelectricitytoNorthernCalifornia. 6.1WaterSupply,Demand,andAllocationAgreements SIDhasanallocatedsurfacewatersupplyfromtheSolanoProjectfor141,000acrefeetperyear.With theadditionofgroundwatersuppliesSIDhasavailableanaverageannualwatersupplyofapproximately 146,000acrefeet.Fullyutilizinghistoriccapacityofwellswouldresultinasupplypotentialof155,000 acrefeet. TheSolanoIrrigationDistrict’sprimarywaterdemandistheagriculturalwaternecessarytoproducethe cropsgrownwithintheSIDservicearea. InadditiontothisdemandSIDprovidesmunicipaland industrial(M&I)andnon-potablewatersuppliestosomeruraldevelopmentswithinitsservicearea. Whenlandusechangesandincreasedurbanizationoccur,M&Iwaterdemandincreases.Historically, SIDhasenteredintoagreementswithcities(Benicia,Fairfield,Suisun,andVacaville)toaugmentthe cities’supplies.TheagreementsprovideforwatertransfersfromSIDtosaidcities. Dependinguponthe agreement,watermaybeheldintrustforthecityandavailableupondemand,oronanentitlement basis.Ifonanentitlementbasis,thecityisabletoutilizesaidentitlementwaterascarryoverstorageifit isnotusedintheyearallotted. Toconfirmitsagriculturalwaterdemandanagriculturalwaterbalanceanalysisfora1991–2010study periodisunderdevelopmentbySIDtoguidedevelopmentofafutureagriculturalwaterallocation policy.Thepreliminaryanalysisshowscropevapotranspirationofappliedirrigationwater(ETAW)orthe portionofappliedwateractuallyconsumedwithinSIDhasrangedfrom57,000to91,000acre-feetper yearovera1991–2010studyperiod. Table6.1summarizesthenormalizedETAWforthecropsgrown withinSID. Itsummarizesbyyear,fromthelowesttothehighest,theannualappliedwaterrequiredto meettheevapotranspirationrequirementsfortheagriculturalacreageofthestudyperiod. Thisanalysis includedtheweatherdataandcroppingpatternsexperienced.TheETAWhassignificantvariations whicharedependentonchangesinweather. Thisincludesvariationsinprecipitation,temperature,and windswhichallaffecttheamountofwaterrequiredforoptimumcropproduction. Theagricultural 17 SolanoIrrigationDistrict MunicipalServiceReview PresentandPlannedCapacity waterbalanceanalysisshowsvariationsincroppingpatternshaveoccurredduringthestudyperiod. Additionalchangesinthetypeofcropsbeingplantedandcropacreagecanalterthecropwater demands. Thereviewofprojectedagriculturalwaterdemandsneedstoconsiderongoingimprovementsinwater deliveryefficiency. WaterdeliverylossesintheSIDdistributionsystemandtheon-farmdelivery systemsofindividualfarmerstogetherwithoperationalspillsandtherecoveryandreuseoftailwater areallfactorsaffectingtherequiredquantityofSIDwaterdeliveries. SIDhasarehabilitationand bettermentprogramwhichcontinuestoimproveinfrastructurewhichhelpstoreducelosses.This includesinstallingconcreteliningincanalsnotoriginallylinedtoreduceseepagelosses,automatic controlgates,andSupervisoryControlandDataAcquisition(SCADA)systemstobettermonitor operationalspillsandreduceunnecessarywatersupplylosses. Allpotential,costeffectivecontrol measurestofurtherreducewaterlossesandimprovetheefficiencyofsurfacewaterdeliveriesare investigated. Asthevalueofwaterincreases,manyfarmersinSIDarealsomakingchangesand improvementstotheiron-farmwaterdeliverysystems.Thisincludescapturingandreusingagricultural tailwaterreturnflowsandinstallingnewwaterdeliverysystems. OverthelastfiveyearsSIDhasseenan increasednumberoffarmersinstallingmicrosprayanddripirrigationsystemsonnewlyplanted orchards. Continuedtechnologicalimprovementinwaterdeliveryefficiencywillfurtherreducethe waterdeliveryneededtomeettheannualSIDETAW. AcurrentestimateofSIDwatersuppliesand waterdemandsprojectedto2034isprovidedinTable6.2. 18 SolanoIrrigationDistrict MunicipalServiceReview PresentandPlannedCapacity TABLE 6.1-Normalized Evapotranspiration ofApplied Water(ETAW) ForSID AgriculturalAcreage1991-2010 Seasonal ET ofApplied Water(ac-ft) Other Pasture/ Representative Corn Grain Annual Hay Tree/ Vine Total Year 4,219 4,215 14,946 24,562 9,031 56,974 1998 4,680 5,764 17,315 28,469 10,638 66,866 1995 4,865 5,404 17,271 30,792 11,364 69,695 1993 4,695 5,942 16,512 30,921 11,964 70,035 2010 4,956 5,840 17,858 31,038 11,162 70,854 2006 5,005 5,548 17,785 31,734 11,814 71,885 1996 4,853 5,970 17,490 31,640 12,039 71,993 2005 4,819 5,743 16,975 33,711 12,926 74,174 2000 5,177 6,420 18,905 32,438 11,380 74,320 1991 5,088 6,405 18,730 34,264 12,493 76,980 2003 5,031 6,192 17,795 36,109 13,569 78,696 2009 5,171 5,940 18,419 36,077 13,327 78,933 1992 4,929 6,544 18,187 36,691 14,095 80,445 1999 5,093 6,721 18,460 37,882 14,329 82,485 1994 5,259 6,739 18,703 38,888 14,449 84,039 2004 5,339 6,513 18,959 38,770 14,461 84,042 2001 5,088 6,919 18,170 40,132 15,606 85,914 2007 5,333 7,212 19,707 39,142 14,772 86,166 2008 5,452 7,244 19,793 40,235 15,397 88,121 2002 5,444 7,643 19,849 42,592 15,572 91,101 1997 Average 77,186 Source:DavidsEngineering2014 19 SolanoIrrigationDistrict MunicipalServiceReview PresentandPlannedCapacity TABLE 6.2 SIDWaterSuppliesandWater Demands AgWaterBalanceScenarioTypes 1 SIDWaterSupplies (QuantitiesinAF) A B C Minimum Average Maximum 1. SolanoProjectAllocation 141,000 141,000 141,000 2. GroundwaterPumping (HistoricMinimum,Average,andHistoricMaximum) 2,300 5,000 14,000 EstimatedRangeTotalWaterSupply(AF) 143,300 146,000 155,000 SIDWaterDemands 1. AgWaterDemand-TheestimatedrangeofSIDAgriculturalWaterDemands isbasedonWaterBalanceScenarioTypes,definedbelowinthefootnotes. SIDETAWforWaterScenarioTypes(AF) A B C 56,9742 77,1863 91,1014 TheETAWaretheinfieldcropwaterdemandsanddonotincludeestimated distributionsystemlossesandon-farmlossesexperiencedindeliveringand applyingtheirrigationwater. Theseareestimatedat30.1%intheWaterBalance Analysis.TheestimatedWaterDeiliveriesrequiredtomeettheEtaware estimatedbydividingtheETAWby69.1%. SIDEstimatedRangeforAgWaterDemands (AF) (82,452) (111,702) (131,839) 2. SIDMunicipal&IndustrialDemands (AF) (5,240) (5,300) (5,650) 3. SIDSupplyProvidedtoSuisun-SolanoWaterAuthority (AF) (2,400) (3,150) (3,900) EstimatedRangeTotalSIDWaterDemands(AF) (90,092) (120,152) (141,389) SIDWATERSUPPLYCITYCOMMITMENTS 1. VacavilleAgreement (3,000) (6,525) (9,325) 2. FairfieldAgreements (3,820) (10,920) (19,386) 3. Benicia (2,000) (2,000) (2,000) EstimatedRangeSIDWaterSupplyCityCommitments(AF) (8,820) (19,445) (30,711) 1TheWaterScenarioTypesweredevelopedbyDavidsEngineeringandSIDduringarecentDistrictWaterBalanceAnalysis. For WaterSupplyand Demands,"Minimum"referstotheminimumsupplyordemandavailableorrequiredduringtheperiodofrecord, the"Average"refers totheaveragesupplyordemandovertheperiodofrecord,andthe"Maximum"representsthemaximum supplyordemandanticipatedinthefuturethrough2034. 2TheMinimumNormalizedETAWexperiencedfrom1991-2010. SeeTable6.1. 3TheAverageNormalizedETAWcalculatedbetween1991-2010. SeeTable6.1. 4TheMaximumNormalizedETAWexperiencedfrom1991-2010. SeeTable6.1. Source:SummersEngineering2014 20 SolanoIrrigationDistrict MunicipalServiceReview PresentandPlannedCapacity Thetabulateddataforwaterdeliveredtocitiesshowsaminimumdemand(today’scontractualamount tosupply,notwatersheldintrust),amaximumdemand(maximumwaterrequiredtodeliverby contractinyear2034),andanaveragedemand(anaverageoftheminimumandmaximumbasedon waterentitledandheldintrust).Thesevariousdemandsareshowntoillustratetheuseofcarryover waterthatisstoredinLakeBerryessa. SIDreceives100percentofitssurfacewaterfromLakeBerryessa. Groundwaterfordomestic consumptioncomesfromwellsinElmira,QuailCanyon,StockingRanch,andfivewellsintheDixon- SolanoWaterAuthorityarea. Additionally,SIDmaintains29agriculturalwells. SIDalsoprovidesdomestic-waterservicetoseveralareasoftheunincorporatedcounty,alongwiththe citiesofVallejo,SuisunCity,andVacaville. TheDistrictprovidespotablewaterservicetoDixon-Solano WaterAuthority,SuisunSolanoWaterAuthority,Elmira,QuailCanyon,BlueRidgeOaks,PeabodyRoad commercialarea,GibsonCanyon,StockingRanch,and,PleasantHillsRanchEstates. Inaddition, agriculturalwaterisprovidedtoElmira,VacaValley,PleasantsValley,SuisunValleyandtheDixonarea. Non-potablewaterforutilizationinlandscapingisprovidedtoTolenas,GreenValley,andbusinesses andindustrylocatedintheGreenValley,Fairfield,Cordelia,andVacavilleareas. Atpresent,two capitalimprovementprojectsareplannedforpotablewatersystems.Thefirst,contingentuponthe outcomeofProposition50grantfunding,isawatertreatmentplanttoprovidepotablewatertothe PleasantHillsRanchEstatesdevelopment. Theotheristhereplacementofthemembranesatthe GibsonCanyonWaterTreatmentPlant. TheDistrictisalsooperatingunderacomplianceagreementwiththeCaliforniaDepartmentofPublic Healthforvariousnon-publicwatersystemsscatteredthroughouttheDistrict.Approximately114of thesetypesofcustomersexist.Thenon-publiccustomershaveanoldPointOfEntry(POE)treatment devicesthat,priortothesurfacewatertreatmentrulechangesinthemid1990’s,sufficientlytreated rawwaterforuseaspotablewater.Asaninterimmeasure,acomplianceagreementwasexecuted.The ComplianceAgreementallowsforbottledwatertobeconsumedforcookinganddrinkinginsidethe home,withnonewgrowthallowed.TheSIDcontinuestoinvestigateoptionstoprovidepotablewater totheseusersthatarescatteredthroughouttheDistrictboundary. Inadditiontoservingitsownservicearea,SIDhasvariouswatersupplyandexchangeagreementswith otherSolanoCountyagencies. Suisun-SolanoWaterAuthority TheCityofSuisunandSIDenteredintoaJointPowersAuthority(JPA)Agreementin1988,referredtoas theSuisun-SolanoWaterAuthority(SSWA),andfullyimplementedin1991. UndertheSSWA,SID operatesawatertreatmentplanttotreatwateronSuisun’sbehalf. Thatwatertreatmentplanttreats Suisun’s1,600AFYofcontractedSolanoProjectwatersanddeliversittotheserviceareafor distribution. 21 SolanoIrrigationDistrict MunicipalServiceReview PresentandPlannedCapacity MainePrairieWaterDistrictExchange SIDhasashortterm(fiveyears)IrrigationTailWaterExchangeAgreementwithMainePrairieWater District(MPWD),toexchangeandprovideSolanoProjectwaterbasedonseveraltiersofsupply. VallejoExchange SIDmaintainsaserviceexchangeagreementwiththeCityofVallejoinwhichVallejoprovidesrawwater servicetoTolenas,withinSID’sservicearea,andinexchange,SIDdeliversanequalamountofrawwater toVallejo’sGreenValleyTreatmentPlant. Benicia,MPWDPurchases SIDprovides2,000AFtotheCityofBeniciathroughapurchaseagreement.Previously,theCityof BeniciahasnegotiatedinformalpurchaseswithSIDforSolanoProject(SP)watertoaugmentsupplies. SuchpurchasesusuallyoccurredduringthewintermonthsorwhenwaterfromtheNorthBayAqueduct wasunavailable. FairfieldAgreements AmendmentNo.2,executedin2002,toanagreementbetweenSIDandFairfieldenteredintoin1974 addsFairfield-SuisunSewerDistrict(FSSD)asapartyandre-titlestheagreementthe“SecondAmended Agreement.” TheSecondAmendedAgreementprovidesFairfieldwithupto7,000AFYof“1974 commonboundarySPwater”deemednecessaryandsufficienttoservealllandsthatwereinthe1974 commonboundariesofSIDandFairfield(including,mostnotably,theAnheuser-Buschbrewery). This amountrepresentsa1,000-AFYincreaseoverthe1974agreement. The1974agreementandSecond AmendedAgreementalsoprovideFairfieldwithupto9,018AFof“pre-1974optionSPwater”annually, basedonlandsthathadbeeninSIDpriorto1974buthaddetacheduponannexingtotheCity. Thetotal amountofSPwateravailabletoFairfieldfromtheSecondAmendedAgreementis16,018AFY. FairfieldandSIDenteredajointexerciseofpowersagreement(JPA)in1987thatestablishedabasisfor SIDtoprovidethewatertoservelandswithinthecommonboundariesofthetwoagenciesnotcovered underthe1974agreement(nowtheSecondAmendedAgreement). WaterserviceunderthisJPAis typicallysuppliedbydualsystems,potablewaterfromFairfield,andnon-potablewaterfromSID. All rawwaterissuppliedbySIDorreimbursedtoFairfield. Watersuppliesareprovidedunderseparate “waterservicesub-agreements”pursuanttotheJPA. Since1987,thetwoagencieshaveenteredthree waterservicesub-agreements. Thethreesub-agreementsprovideaminimumof1AFYofrawwaterper acreoractualquantityreimbursementtoFairfieldfromSIDforpotablewaterservedtolandsspecified. Thecurrenttotalacreagespecifiedisapproximately450acres. Inaddition,SIDprovidesdirectirrigation waterservicetoalimitednumberofpropertieswithintheFairfieldcitylimitsoutsideofanyagreements betweenthetwoagencies. Inaddition,SIDprovideswaterdirectlytoasmallnumberofirrigation customerswithintheFairfieldcitylimitsbasedonservicethatexistedpriortothepropertybeing 22 SolanoIrrigationDistrict MunicipalServiceReview PresentandPlannedCapacity annexedintoFairfield(e.g.,VandenHighSchool,FairfieldHighSchool,BuschProperties)orunder subsequentoutside-districtwaterserviceagreements(e.g.,B.GaleWilsonElementarySchool,historic Watermanranch). Thesuppliesprovidedunderthe1987JPAaretechnicallytomeetSIDdemands.The majorityofthiswaterisheldintrustfortheCityofFairfield. VacavilleAgreement The1995MasterWaterAgreementbetweenSIDandVacavilleprovidesSPwatertoVacavillefromSID. Thedeliveryschedulestartedat1,000AFYin1995and,basedonthesecondamendmentexecutedin 2010,increasesincrementallytoamaximumof10,050AFin2040. Theagreementexpiresin2045. Dixon-SolanoWater Authority In1984,Dixon-SolanoMunicipalWaterService(DSMWS)wasestablishedthroughaJPAbetweenDixon andSolanoIrrigationDistrict. In2010,DixonandSIDenteredintoaJointPowersAuthority(JPA) Agreement,referredtoastheDixon-SolanoWaterAuthority(DSWA). DSWAcurrentlyserves approximately1,800customersfromawellnetworkconsistingoffourwellsrangingfrom800to1,500 feetbelowthegroundsurface. TheDSWAserviceareaiswithinSID’sservicearea. TheCityofDixon willbeterminatingtheJPAeffectiveinAugust2014atwhichtime,Dixonwilleitheroperateit themselvesorhireafirmtooperatethecurrentDSWAwatersystem. 6.2Groundwater SIDalsousesgroundwaterconjunctivelywithsurfacewatersupplies. SIDhasagroundwaterwell networkconsistingof32wellsrangingfrom400to1,800feetbelowthegroundsurface. Groundwater isprimarilyusedtosupplementirrigationdemandsinareasconstrainedbyconveyancecapacityfor surfacewaterdeliveries. Thehistoricalyieldofthegroundwatersystemis14,000AFY. 6.3ComparisonofWaterSupply,DemandandRemainingSupplies Table6.3summarizestheSIDwatersupplyandtheSIDwaterdemandspresentedinTable6.2,butalso liststheWaterSuppliesRemainingforSIDunderthethreedifferentagriculturalwaterbalancescenarios reviewedbySID. DuetohistoricvariationsintheSIDevapotranspirationofappliedwateroccurring fromyeartoyear(seeTable6.1),Table6.3presentsRemainingSIDWaterSuppliesforayearwithan estimatedMinimumagriculturalwaterdemand,ayearwithanestimatedaveragewaterdemand,anda yearwhentheagriculturalandM&Idemandsareatthemaximumtheyhaveeverbeenorareprojected tobeinthefuture(year2034).Thismaximumyearpresentsthemaximumnormalizedagricultural waterdemandwhichoccurredin1997duringthe1991–2010studyperiod. Thisyearwasawetyear and1995,and1996werealsowetyears. In1997LakeBerryessawasfullandwaterwasavailable. Farmerswantingadoublecrophadtheopportunitytodoso,andin1997manyofthemdid,thus 23 SolanoIrrigationDistrict MunicipalServiceReview PresentandPlannedCapacity maximizingSID’scroppedacreageandtheETAWwaterrequirements.Thelikelihoodofthisdemand beingneededorrequiredinthefutureisalsolessbecauseofreductionsintheSIDagriculturalacreage. Inyearswhendemandwillexceedsupply(andnocarryoverwaterisavailable),SIDhasthemeans withinitsRulesandRegulationstoimplementanallocationpolicytolimittheamountofwatersupplied (orallocated)toeachuser. Further,bymanagingitscarryoversuppliesinLakeBerryessa(SolanoProject entitlementwatersthatarenotusedinoneyeararecarriedovertothenextandarecumulativeuntil LakeBerryessaspills),SIDhastheabilitytomeetdemandsinyearsthedemandwillexceedsupply. SID hasproventhisabilityoverthelast50+yearswithonlyoneyear(1991)whenSIDimplementedawater shortageallocationprogramtoconservewaterandprovideasupplementalurbanwatersupplytohelp SolanoProjecturbanwaterusersmeettheirdemandsduringawatershortage.Basedontheproposed SphereofinfluenceandthedataprovidedinTable6.1,theaverageannualdemandresultsin approximately3,500AF.Ofwhat? TABLE 6.3 SIDWaterSupplies,WaterDemands&RemainingSupplies AgWaterBalanceScenarioTypes 1 SIDWaterSupplies (QuantitiesinAF) A B C Minimum Average Maximum EstimatedRangeTotalWaterSupply(AF) 143,300 146,000 155,000 SIDWaterDemands EstimatedRangeTotalSIDWaterDemands(AF) (90,092) (120,152) (141,389) SIDWATERSUPPLYCITYCOMMITMENTS EstimatedRangeSIDWaterSupplyCityCommitments(AF) (8,820) (19,445) (30,711) SIDRemainingWaterSupply (AF) (=TotalWaterSupply-SIDDemands-CityCommitments) 44,388 6,403 -17,100 1TheWaterScenarioTypesweredevelopedbyDavidsEngineeringandSIDduringarecentDistrictWaterBalanceAnalysis. For WaterSupplyand Demands,"Minimum"referstotheminimumsupplyordemandavailableduringtheperiodofrecord,the"Average" referstotheaveragesupplyordemandovertheperiodofrecord,andthe"Maximum"representsthemaximumsupplyordemand anticipatedinthefuturethrough2034. Source:SummersEngineering2014 24 SolanoIrrigationDistrict MunicipalServiceReview PresentandPlannedCapacity TheDistrict,inconjunctionwiththeotherwateragenciesaspartoftheSolanoProjectagreement,hasa droughtplaninplacecalledtheSolanoProject(SP)DroughtMeasuresAgreement. Indroughtyears,SID andMPWDwillsharewaterallotmentswiththecitiescoveredbytheSPagreement. Theallotmentfor eachagencyisreducedasshowninTable6-4. Table6-4:SolanoProjectDroughtMeasuresAgreement SPStorage(acre-feet) Date Action 800,000orless December1 DevelopDroughtContingencyPlan 1.1million April1 Dropplan 550,000to800,000 April1 Partiesforgoatleast5%ofentitlement 450,000to550,000 April1 Partiesforgoatleast10%ofentitlement Source:SP1999 DETERMINATIONS: 6.1 TheDistricthasthecapacitytoprovidewatertocurrentcustomers. 6.2 TheDistricthasanaverageannualexcesscapacityof6,400AFanditislikelytheDistricthas sufficientcapacitytoservethoseareasintheproposedSphereofInfluence. 25 SolanoIrrigationDistrict MunicipalServiceReview FinancialAbilitytoProvideServices 7: FINANCIAL ABILITY TO PROVIDE SERVICES TheSIDfiscalyearbeginsonJanuary1andendsonDecember31. InDecember2012SIDadoptedan operatingbudgetof$6.67millionforfiscalyear2013. Salesofagriculturalwateraccountedfor39%of therevenuesandstandbycharges14%. Othermajorsourcesofoperatingrevenuescamefromcity watertransfers10%,propertytax9%,thepowerplant,municipalandindustrial,andotherassessments with7%each,andFairfieldWaterwith6%. Inadditiontooperatingrevenuestheyalsoreceivenon- operatingrevenuesprimarilyfromagreementswithotherentitiessuchasSuisun-SolanoWater AuthorityandDixon-SolanoWaterAuthority,thepowerplantatMonticelloReservoir. Table7.1summarizesrevenuesandexpensesforthefiveyearperiod2008-2012. TheTableshows, whenincludingjointventureoperations(SSWA,DSWA,etc.)thattotalrevenuesaregenerallyinthe $14-16millionrange. Themajordifferencesoccurredin2009and2011. Table7-1:SolanoIrrigationDistrictRevenuesandExpenses2008-2012 Year Operating Non- Total Operating Non- Total Net Revenues Operating Revenues Expenses Operating Expenses Revenues Expenses 2008 $4,808,992 $13,040,584 $17,849,576 $16,382,297 $983,427 $17,365,724 $483,852 2009 $14,849,935 $13,301,800 $28,151,735 $15,834,781 $980,815 $16,815,596 $11,336,139 2010 $5,338,294 $11,439,654 $16,777,948 $15,287,619 $1,301,470 $16,589,089 $188,859 2011 $5,634,641 $8,658,118 $14,292,759 $16,047,668 $2,499,055 $18,546,723 $-4,253,964 2012 $5,362,987 $11,496,296 $16,859,283 $13,843,347 $844,849 $14,688,196 $2,171,087 Source:Maze&Associates2010,2012,2013. In2009,revenuesincludedaonetimereceiptof$10.0millionassociatedwiththeexecutionofan agreementtosupply4,000acrefeetofwatertothecitiesofFairfieldandBenicia. The$10.0millionwas used,inpart,tofacilitatethepurchaseofthenewofficespace,thewarehouse,andtheassociated vacantland. In2011powerplantrevenuesdecreasedby$2.8millionduetothetimingofthereceiptofcashfrom PG&EtomaketheJanuaryprincipalpaymentontheMonticelloPlantProject2006and1986Refunding Hydroelectricbonds.In2010thefundswerereceivedandrecordedasrevenueinDecember2010; whereas;in2011thefundswerereceivedandrecordedasrevenueinJanuary2012. 26 SolanoIrrigationDistrict MunicipalServiceReview FinancialAbilitytoProvideServices ForfiscalyearendingDecember31,2012,thelastauditedfinancialstatements,theDistricthasatotal debtofapproximately$19.3million. TheDistrictgenerallyincurslong-termdebttofinanceprojectsor purchaseassets. ThemajorityoftheDistrict’sdebt,approximately$16.8million,canbeattributedto theMonticelloPowerProject1986RefundingHydroelectricRevenueBonds.SIDalsohasImprovement Districtswhichaccountforapproximately$3.8millionoftheirlongtermdebtobligations. The ImprovementDistrictsarehighlightedinTable7-2below. Theremaininglongtermdebtsinclude EconomicDevelopmentAdministration,forwhichthefundsareusedfortheacquisition,construction, andcompletionofimprovementstotheDistrict’swatersystem. Additionally,theDistricthasacopier capitalleasecontractthatisdueinJanuary2014. Table7-2:SolanoIrrigationDistrictImprovementDistrictsDebtService Improvement DateEntered OriginalIssueAmount DueDate BalanceasofDec31,2012 District IntoContract ElmiraID Jan2004 $416,325 4-1-2014 $38,380 GibsonCanyonID June2000 $2,127,300 1-1-2024 $1,390,274 BlueRidgeID January2004 $866,000 2025 $646,801 PeabodyID January2004 $386,000 2025 $270,774 Source:Maze&Associates2013. In2012theDistrictinitiatedaratestudytoevaluatetheDistrict’sfinancialneedsandtrends. Someof theneedsweredeterminedbytheDistrict’sfinancialplanassumptions. Theyinclude2.6%inflation,a 50%reservein3years,negligibleinterestincome,thepresentcustomerbaseanddemandas representativeofthefuture,thesaleofexcessproperty,andfundingforpost-employmentretirement benefits.Otherkeyfactorswerelossofrevenue,limitsonuseofrevenues,fundingsources,and controllablerevenue. Consideringallthesefactors,thestudyrecommendedaminimumannual increaseof9-10%startingin2013andcontinuingeveryyearuntil2021. OnFebruary19,2013the District’sBoardapproveda9%increasetotheirwaterratecharges. Table7-3showstheratesfor2013 and2014. 27 SolanoIrrigationDistrict MunicipalServiceReview FinancialAbilitytoProvideServices Table7-3WaterRatesEffective2013 AccountType 2013Rates 2014Rates Agricultural($/AF) AgWater–Gravity $23.34 $25.44 AgWater–Lifted $38.90 $42.40 Deepwell $58.53 $63.80 Stockwater(to30head)($/yr) $46.68 $50.89 Stockwater(>30head)($/yr) $58.36 $63.61 RotationalDelivery-Gravity($/acre) $74.71 $81.43 RotationalDelivery-Lifted($/acre) $124.49 $135.69 M&INonPotable($/CCF) Raw $0.38 $0.42 Filtered $0.39 $0.43 Filtered&Chlorinated $0.46 $0.50 PublicAgencies $0.55 $0.59 M&IPotable/PublicWaterSystems ($/CCF) StockingRanch $10.37 $11.30 BlueRidgeOaks $8.21 $8.95 Peabody $7.41 $8.08 QuailCanyon $1.46 $1.59 GibsonCanyon $1.42 $1.54 Elmira $1.31 $1.43 Tolenas $0.52 $0.57 Source:SID2013b DETERMINATIONS: 7.1 SIDhasanoperatingbudgetofapproximately$7million. Alongwithjointventureoperations thebudgetisgenerallyinthe$14-16millionrange. 7.2 Between2008and2012SIDhasshownasurplusinfourofthefiveyears. In2009thesurplus wasduetothesaleofwaterrightstotheCitiesofFairfieldandBenicia. In2011therewasa 28 SolanoIrrigationDistrict MunicipalServiceReview FinancialAbilitytoProvideServices shortfallof$4millionduetoalatepaymentbyPGEandthecosttodemolishtheElmira headquartersbuilding. 7.3 SIDprovidespotablewatertoseveralcommunitiesandcreatesanimprovementdistricttoset ratesspecifictothoseareas. Theratesallowfortherepaymentofdebtincurredtoprovidethat service. 7.4 In2013SIDapprovedarateincreasetocoveranticipatedcostsduetoinflation,replenishan operatingreserve,andbegintosavetowardthecostsofpost-retirementbenefits. Thenew ratesallowSIDtoimplementitsfinancialplansoSIDwillhavethefinancialsufficientresources toprovideservices. 29 SolanoIrrigationDistrict MunicipalServiceReview StatusandOpportunitiesforSharedFacilities 8: STATUS AND OPPORTUNITIES FOR SHARED FACILITIES Managementandoperationalefficienciesareprovidedbycooperativearrangementwithother agencies.Thesearrangementsareprovidedbythefollowing: (cid:120) SolanoWaterAuthority(forwhichanSIDrepresentativeservesasSecretaryandTreasurer) (cid:120) SolanoProjectTaskForce (cid:120) NoonanReservoirTaskForce (cid:120) ImportedWaterSupplyTaskForce (cid:120) CoordinatedGroundwaterDataAnalysisTaskForce AdditionallySIDtakespartinseveralothercommitteesandagreementsincluding: (cid:120) SolanoCountyAgriculturalWaterManagementCommittee (cid:120) SolanoWaterEducationCommittee (cid:120) SID/FairfieldWaterServicesAgreement (cid:120) SID/VacavilleMasterWaterAgreement (cid:120) SID/VallejoAgreement(exchangeofwater) (cid:120) SID/MainePrairieWaterDistrictAgreement(forcoordinatingLakeBerryessawatersupplies) (cid:120) SID/CountyAgriculturalCommissionerAgreement(forsharingshopspaceatSIDyard) (cid:120) DSWA JointWaterServiceinDixon (cid:120) SSWAJointWaterServiceinSuisunCity (cid:120) SID/RCDAgreementregardingdrainagemanagement (cid:120) SCWA/SIDAgreementforoperationandmaintenanceoftheSolanoProject(LAFCOPartII) TheSIDalsopartnerswiththeCityofDixonandSuisunCityforwaterdeliverythroughajointpowers agreement.TheSIDalsoparticipatesinpurchasingagreementswithotherlocalwatertreatmentplants inordertoobtainbestpricingonchemicalpurchases,anditisinaninsurancepoolwiththeAssociation ofCaliforniaWaterAgenciesJointPowersInsuranceAuthority.However,theCityofDixon,inAugust 2012,votedtodissolvetheDSWAJPA.ThisdissolutionwillbecomeeffectiveinAugust2014. DETERMINATIONS: 8.1 TheDistrictworkscooperativelywithothermunicipalagenciesandsharesfacilitieswitha numberoflocalagencies. 30 SolanoIrrigationDistrict MunicipalServiceReview GovernmentStructureandAccountability 9: GOVERNMENT STRUCTURE AND ACCOUNTABILITY TheSIDhasfiveelectedmembersonitsBoardofDirectors.TheDistrictisdividedintofivedivisions, andeachboardmemberiselectedbydivisiontoa4-yearterm.BoardmeetingstakeplaceattheSID BoardRoomlocatedat810VacaValleyParkwayinVacavilleonthethirdTuesdayofeverymonthat7 p.m.BoardMeetingsarenoticedinthreelocalnewspapersandpostedattheSIDBoardRoom.The districtmaintainsawebsitelocatedathttp://www.sidwater.org.ThewebsiteallowstheDistrictto communicatewithitsresidents.Itincludesmeetingagendas,informationonwaterquality,irrigation, reports,andkeylinks. Exhibit2showstheagency’sorganizationalchart. SIDhas78employeesofwhichsixareexecutivesor management. MostemployeesareundertheWaterandPowerOperationsManagerintheWaterand PowerDivision.StaffingisallocatedaccordingtotheDistrictfunctionswhichincludepotablewater, irrigationwater,andtheSolanoProject.Theexhibitalsoshowsthereare15vacantpositions. DETERMINATIONS: 9.1 SIDisgovernedbyafivememberboardelectedbydivisiontofouryearstaggeredterms. 9.2 TheBoardofDirectorsmeetsregularlyonthethirdTuesdayofthemonth. Meetingsare noticedinthreelocalnewspapersandpostedontheDistrictwebsite. TheDistrictusesits websitetocommunicatewithratepayers. 9.3 SIDhas78employeesand15vacanciesforatotalstaffof93. Staffingisallocatedaccording Districtfunctions. 31 SolanoIrrigationDistrict MunicipalServiceReview GovernmentStructureandAccountability Exhibit2:SIDOrganizationalChart 32 SolanoIrrigationDistrict MunicipalServiceReview SummaryofDeterminations 10: LAFCO POLICIES AFFECTING SERVICE DELIVERY SeveralofLAFCO’spoliciesmayaffecttheoperationoftheDistrict. AstheDistrictupdatesandamends itssphereofinfluencetherevisedLAFCOspherepolicywillguidetheprocess. Thenewspherepolicy allowsforneartermandlongtermspheres,wheretheneartermsphereincludesterritorythatwillbe proposedforannexationinthenextfiveyears. Thelongtermsphereisdesignedtoincludeterritory thatwillbeservedinthenext5to20years. InthepastSIDhasreceivedmanyrequestsforoutofareaservices. GovernmentCodeSection56133in CKHdescribestheconditionsthatLAFCOmayallowoutofareaservices. Generallyoutofareaservices arepermittedifthesubjectterritoryiswithinthesphereandannexationisimminent. Anexceptionis forhealthandsafetyissues. LAFCOpoliciesidentifyconditionsunderwhichqualifyasahealthand safetyissue. Forexampleacontaminatedwatersourceorawellthatdoesnotproduceadequatewater supplywouldmeettherequirements. AsapurveyorofwaterSIDisoftenrequestedtoprovideoutof areaservicesonjustsuchoccasions. OftenwhenanareaisdevelopeditisdetachedfromSIDsincetheDistrictwasonlyprovidingirrigation water. LAFCOhaspermittedSIDtoadoptadetachmentfeeschedulewhichcanbeimposedasa conditionofannexation. ThedetachmentfeeisintendedtocompensateSIDforrevenuelosses. The feewasestablishedin1985andshouldbereviewed. Determination: 10.1 SeveralofLAFCO’spoliciescanaffectSID’sservicedelivery. Theyincludethespherepolicy whichisappliedtoareasthattheDistrictwouldliketoserveintheneartermandlongterm. 10.2 SIDisoftenrequestedtoprovideservicesoutsideitsboundarysoLAFCO’soutofareaservice policyapplies. 10.3 LAFCOpolicyallowingdetachmentfeesintendedto compensateSIDforlossofrevenuesand increasesinexpenseswhenanareaisdetachedandannexedtoacity.Thefeewasestablished in1985andshouldbereviewed. 33 SolanoIrrigationDistrict MunicipalServiceReview SummaryofDeterminations 11: SUMMARY OF DETERMINATIONS 4.1 WhilethepopulationthatbenefitsfromservicesprovidedbytheDistrictapproachesthree quartersofthepopulationofSolanoCountyonlyapproximately37,000peopleresidewithinthe Districtboundariesandanestimated10residentsliveintheproposedSOI. 4.2 ThepopulationinSolanoCountyisexpectedtoincreaseby5%overthenextfiveyears. Since mostoftheSIDterritoryisoutsidethecitiestheanticipatedCountygrowthratecanbeusedto estimategrowthintheDistrictandproposedSOI. At5%growththeDistrictandproposed spherewouldhaveapproximately38,900residentsby2020. 5.1 TherearenodisadvantagedunincorporatedcommunitiesadjacenttotheboundariesofSIDor intheproposedSOI. 6.1 TheDistricthasthecapacitytoprovidewatertocurrentcustomers. 6.2 TheDistricthasanaverageannualexcesscapacityof6,400AFanditislikelytheDistricthas sufficientcapacitytoservethoseareasintheproposedSphereofInfluence. 7.1 SIDhasanoperatingbudgetofapproximately$7million. Alongwithjointventureoperationsthebudget isgenerallyinthe$14-16millionrange. 7.2 Between2008and2012SIDhasshownasurplusinfourofthefiveyears. In2009thesurplus wasduetothesaleofwaterrightstotheCitiesofFairfieldandBenicia. In2011therewasa shortfallof$4millionduetoalatepaymentbyPGEandthecosttodemolishtheElmira headquartersbuilding. 7.3 SIDprovidespotablewatertoseveralcommunitiesandsetsratesspecifictothoseareas. SID providespotablewatertoseveralcommunitiesandcreatesanimprovementdistricttosetrates specifictothoseareas. Theratesallowfortherepaymentofdebtincurredtoprovidethat service. 7.4 In2013SIDapprovedarateincreasetocoveranticipatedcostsduetoinflation,establishan operatingreserve,andthecostsofpost-retirementbenefits. ThenewratesallowSIDto implementitsfinancialplansoSIDwillhavesufficientfinancialresourcestoprovideservices. 8.1 TheDistrictworkscooperativelywithothermunicipalagenciesandsharesfacilitieswitha numberoflocalagencies. 9.1 SIDisgovernedbyafivememberboardelectedbydivisiontofouryearstaggeredterms. 34 SolanoIrrigationDistrict MunicipalServiceReview SummaryofDeterminations 9.2 TheBoardofDirectorsmeetsregularlyonthethirdTuesdayofthemonth. Meetingsare noticedinthreelocalnewspapersandpostedontheDistrictwebsite. TheDistrictusesits websitetocommunicatewithratepayers. 9.3 SIDhas78employeesand15vacanciesforatotalstaffof93. Staffingisallocatedaccording Districtfunctions. 10.1 SeveralofLAFCO’spoliciescanaffectSID’sservicedelivery. Theyincludethespherepolicy whichisappliedtoareasthattheDistrictwouldliketoserveintheneartermandlongterm. 10.2 SIDisoftenrequestedtoprovideservicesoutsideitsboundarysoLAFCO’soutofareaservice policyapplies. 10.3 LAFCOpolicyallowingdetachmentfeesintendedto compensateSIDforlossofrevenuesand increasesinexpenseswhenanareaisdetachedandannexedtoacity.Thefeewasestablished in1985andshouldbereviewed. 35 SolanoIrrigationDistrict MunicipalServiceReview References 12: REFERENCES CDOF.2013a.2008-2012AmericanCommunitySurvey(5yearestimate)TotalPopulationandMedian AgeCalifornia,Counties,IncorporatedCities,andCensusDesignatedPlaces. Website: http://www.dof.ca.gov/research/demographic/state_census_data_center/census_2010/#SF2. AccessedDecember30,2013. CDOF.2013b.ReportP-1(County):StateandCountyTotalPopulationProjections,2010-2060(5-year increments). Website:http://www.dof.ca.gov/research/demographic/reports/projections/p-1/. AccessedDecember31,2013. CDOF.2013c.2008-2012AmericanCommunitySurvey(5-yearestimates)SelectedDataforCalifornia, Counties,IncorporatedCitiesandCensusDesignatedPlacesIncome,Poverty,andEmploymentStatus. Website: http://www.dof.ca.gov/research/demographic/state_census_data_center/american_community_surve y/.AccessedDecember30,2013. CaliforniaSpecialDistrictAssociation.2012.ComprehensiveOverviewofTypesofSpecialDistricts. February1. DavidsEngineering.2014.TechnicalMemorandum:SummaryofSolanoIrrigationDistrictAgricultural WaterDemandAnalysis.March11. Governor’sOfficeofPlanningandResearch.2003.LocalAgencyFormationCommissionMunicipal ServiceReviewGuidelinesVolume1andVolume2.August. Maze&Associates.2010.SolanoIrrigationDistrictBasicFinancialStatementsfortheYearsEnded December31,2009and2008.April8. Maze&Associates.2012.SolanoIrrigationDistrictBasicFinancialStatementsfortheYearsEnded December31,2011and2010.May11. Maze&Associates.2013.SolanoIrrigationDistrictBasicFinancialStatementsfortheYearsEnded December31,2012and2011.May10. NBS.2012.FinalWaterRateStudyFindings,RecommendationsandProposedRates.March22. SP.1999.SolanoProjectMembers’AgreementastoDroughtMeasuresandWaterAllocation.March1. SID.2012.AdoptedOperatingBudgetFY13/14.December18. SID.2013a.FactSheetRegardingSolanoIrrigationDistrict’sFinancialPlanandProposed9%WaterRate Increase.January4. SID.2013b.WaterRatesimplementedResolutionNo.13-06February19. SID2013c.Websitehttp://sidwater.orgaccessed12/17/13. 36 SolanoIrrigationDistrict MunicipalServiceReview References SummersEngineering.2014.WaterSupplyAssessmentfortheMiddleGreenValleySpecificPlanProject. April. TheReedGroup,Inc.2012.SolanoIrrigationDistrictFinancialPlanandWaterRateUpdate.November27. 37 SolanoIrrigationDistrict MunicipalServiceReview AppendixA-Comments Appendix A: Comments Received SolanoIrrigationDistrict MunicipalServiceReview AppendixA-Comments Pleasant Hills Ranch Estates (PHRE) Potable Water System History, Health and Financial Concerns, Proposals, Involved Parties JM Report dated 2/27/2014 This report was prepared by James May, P.E. and PHRE Property Owner and was sent to all listed parties. Comments are requested from all: Phone 970-240-1155, Email JimMxx1@gmail.com Chronological Description of Events (cid:120) In 1976, 38 years ago, the Solano Irrigation District (SID) constructed a water system for the PHRE community, The land owners connected the untreated SID water to their Point-Of-Entry (POE) treatment devices to obtain potable water. This system now has acknowledged health risks under current laws. This system exists today in its original form. (cid:120) In 1989, the Surface Water Treatment Rule of the Safe Drinking Water Act provided stringent regulations for Public Water Systems. (cid:120) In 1998, the CA Dept of Public Health (CDPH) declared that the SID supplied water system was a Public Potable Water System. (cid:120) In 2004 CDPH/EPA identified the health risks and issued Compliance Order #02- 04-03CO-001. California Health & Safety Code and Title 22 of the California Code of Regulations provide the legal requirements for potable water systems. These laws include the requirement that a system with more than 15 connections, must comply with the state and federal potable water quality standards. (cid:120) Since 2004, the Compliance Order has forced SID to investigate various plans, project possibilities, and funding options. (cid:120) As a temporary measure: o SID must supply bottled potable water to the 22 existing PHRE homeowners. o SID must notify the PHRE home owners that they, in party with SID, violate Title 22 of the California Code of Regulations. o New homes must be build with water wells and their SID supplied water is to be used only for irrigation purposes. (cid:120) In June 2005, CDPH required SID to publish the above agreement by way of Solano County Resolution #05-16. Subsequently, Solano County required that new building permits not be issued without CDPH approvals for potable water. (cid:120) In August/October 2007, 2 SID reports were prepared: o SID reported that the bottled water method is not cost effective. o SID investigated an option for a water treatment plant. (cid:120) In October 2007, Summers Engineering, commissioned by SID, published a Grant Funding Application Technical Report (cid:120) In 2008, SID received a $2M Proposition 50 grant commitment for the construction of a water treatment plant, but this commitment was frozen due to CA budgetary issues. (cid:120) On December 21, 2010, the SID board passed Resolution #10-66 to retain the grant funding eligibility and to give them time to formulate a conformance plan: SolanoIrrigationDistrict MunicipalServiceReview AppendixA-Comments o SID requested a CA State Revolving Fund (SRF) low interest loan for the construction of a treatment plant, but the loan was denied because of high treatment plant O&M. (cid:120) In July 2011, SID sent CDPH a letter describing a treatment plant project that SID could deliver using the $2M grant. (cid:120) In November 2013, CDPH notified SID that to receive the $2M grant, a funding agreement must be in place by June 2014. (cid:120) In January 2014, the local CDPH office approved the SID treatment plant project. (cid:120) The recent 2/18/2014 SID Board Meeting notes describe much of the above history and current situation. In addition, SID notified PHRE residents that the SID proposed plan includes: o A $2M treatment plant, with its design and construction to be paid from the Safe Drinking Water State Revolving Fund. o All on-going expenses to be paid by the PHRE community users. SID estimated O&M expenses at $7000/month, and this does not include the following: On-going filter replacements and other O&M expenses. Capital recovery for the treatment plant costs above the $2M estimate. Future treatment plant rehabilitation. Water usage charges http://ca-sid.civicplus.com/AgendaCenter/ViewFile/Agenda/02182014-95 (cid:120) By sometime in March 2014, CDPH expects to complete their review of CEQA compliance and financial aspects of the proposed project. (cid:120) By April 2014, CDPH expects the SID board to sign the funding agreement and approve the treatment plant project. SID would then have 3 years to complete the water treatment plant project. Health and Financial Concerns Open-Ended Non-Compliance Health Situation The current SID proposal includes an option to withdraw their proposal if they decides, after bids are received, that its costs are too high. SID indicated that there is no time limit for conformance, and only that due diligence is required. Now after 10 years of non-compliance, due diligence seems to suggest that mandatory compliance steps should be put in place. Otherwise the existing health issues might persist for many more years. CDPH with EPA assistance are hereby requested to put mandatory compliance steps in place. Proposed Water Rates - Negative Financial Impact Currently there are 22 homes that the proposed treatment plant might serve. This SID proposal details a water rate structure to PHRE homeowners: (cid:120) $321 per month per homeowner for operation and maintenance of a small treatment plant (SID estimate). (cid:120) Future treatment plant rehabilitation expenses SolanoIrrigationDistrict MunicipalServiceReview AppendixA-Comments (cid:120) Labor costs (cid:120) Water usage (cid:120) Other expenses not yet identified This proposed water rate structure translates to an estimated $400 per month to each existing homeowner. This can be compare to about $100 per month that other homeowners in the same Vacaville community are charged for their water. Such a large cost differential would encourage existing homeowners to leave PHRE, and would discourage new home seekers from coming to PHRE. This SID proposed project would create a negative impact on PHRE property values. This SID proposal, if acted upon, could be interpreted as a terrible disservice to PHRE residents. Such action can be viewed as a fleece to the community by imposing unreasonably high water rates compared to what other Vacaville residents enjoy. Treatment Plant Investment Risk The health situation and the large financial burden that the SID proposal puts on residents has already encouraged 2 residents to install their own water wells which have estimated costs of $20,000 each. Residents that have their own water wells can then disconnect from the SID system. Eventually, the proposed $2M treatment plant might be abandoned. Reasonable Proposals SID is hereby requested to detail to the PHRE land owners, Net Present Worth economic comparisons, including its calculations for the following: 1. Current proposal for a treatment plant 2. City of Vacaville water main extension 3. Common Water well to serve the community The comparisons of the 3 proposals, probably with a 30 year life cycle, should include: 1. Capital costs 2. Operation and maintenance (O&M) costs 3. Rehabilitation costs 4. Labor costs Capacity for future population growth and subsequent water demand, as well as treatment plant and pipeline limitations, and the water rate structures should also be included in the comparisons. The current treatment plant proposal as presented, apparently includes very little financial cost or risk to SID. The plant would be built with a $2M Proposition 50 grant commitment and all future expenses would be passed on to the property owners connected to the system. The estimated SID monthly water charge per PHRE resident is $400. The City of Vacaville proposal would include a water main extension of approximately 2½ miles. Many water utilities have distribution systems that reach out 50 miles or more to serve their communities. The $2M grant money could be SolanoIrrigationDistrict MunicipalServiceReview AppendixA-Comments directed to fund the pipeline cost. The City of Vacaville could recover their expenses thru their rate structure to PHRE residents. The estimated Vacaville monthly water charge per PHRE resident is $100. Economic data for a water well proposal to serve PHRE is unknown. In general, water utilities with large distribution systems have more cost effective operations than those utilities with small distribution systems. This is demonstrated by the lower rate structures that the larger utilities provide. Water authorities here in California, including SID, justify constructing and operating a lot of small systems. SID provides potable water to Dixon-Solano Municipal Water Service, Suisun Solano Water Authority, Elmira, Quail Canyon, Blue Ridge Oaks, Peabody Road commercial area, Gibson Canyon, and Stocking Ranch. This adds up to 8 small systems, and SID now proposes still another small system. While water demands in rural areas justify smaller systems, PHRE is not in a rural area. It is only 2½ miles from the Vacaville system. As can be easily examined thru data available on the Internet, California has very high water rates when compared to other areas in the United States. Compared to Chicago rates, California rates are 500% higher in some areas. Perhaps better long term planning and implementation with a different mindset could otherwise provide much more cost effective water systems for our California residents. This is a very large and serious concern. SolanoIrrigationDistrict MunicipalServiceReview AppendixA-Comments Involved Parties The Code of Civil Procedures, under California State Law, allows every person or class, the right to file a lawsuit and to hold responsible parties liable for all costs, damages, and expenses. Solano Irrigation District (SID) (cid:120) 2/24/2014 conversation with Paul Fuchslin, SID Engineering Manager, 707-455- 4020. General Info (707) 448-6847. According to Paul, there is no stated or required time frame for SID to be in compliance with the Compliance Order issued about 10 years ago in 2004. I requested: 1) 1976 PHRE agreement with SID 2) 2004 CDPH/EPA Compliance Order #02-04-03CO-001 3) I gave Paul my email address (cid:120) 2/26/2014 phone con with Paul Fuchslin I also requested a copy of all economic comparisons SID completed in the past. I obtained Paul's email address: PFuchslin@SIDWater.org SID Board of Directors This SID board self-regulates its water rate schedules. The board is requested to review the special potable water rate structure proposed with for PHRE by SID. Glen Grant is the board chairman. A 2/27/2014 message was left with SID for Glen to call me. California Department of Public Health - CDPH (cid:120) 2/26 Phone con with Alla Lilichenko, Phone 510-620-3601. 1) We discussed the situation regarding Compliance Order No. 02-04-03CO-001 issued in 2004, and the current SID proposal. 2) I requested a copy of the current compliance order for my review. Alla will also sent me, a revised compliance order next week that is presently being completed. 3) I will send Alla a copy of my report: Alla.Lilichenko@cdph.ca.gov and give her my contact information. 4) I neglected to point out to Alla, 2 PHRE line items in CDPH's October 2013 SDWSRF Final Project Priority List for the system. One item is for a $2,000,000 treatment plant and the other for $463,000 for POE's. I would like an explanation for the $463,000. EPA Region IX Water Division (cid:120) 2/24/2014 call to Jane Diamond, Director, Ph 415-972-3275 (cid:120) 2/25/2014 Mike Montgomery 415-972-3438 returned my call. Mike will get back to me with further advise about who is a more appropriate EPA contact. SolanoIrrigationDistrict MunicipalServiceReview AppendixA-Comments Solano County LAFCO A copy of this report was sent to EMulberg@SolanoLAFCO.com, (Elliot) Phone 707- 439-3897 Governor's Office of Planning and Research A copy of this report was sent to Debbie.Davis@opr.ca.gov 916-322-0553 This office is directed by statute to prepare Guidelines that assist LAFCos in complying with the new requirements for municipal service reviews. For the subject project, SID is part of the Solano County LAFCO. Hopefully the OPR office can and will utilize the MSR process with regards to the health and financial concerns described in this report. Also, the OPR office may be able to provide specific recommendations to Solano County LAFCO in order to meet the subject CDPH and EPA compliance order. The Municipal Service Review (MSR) Process provides comprehensive assessments of the ability of government agencies to ensure that high quality public services are provided to all Californians in the most efficient and effective manner. LAFCos are the state-mandated quasi-judicial countywide Commissions whose purview is to oversee boundary changes of cities and special districts, the formation of new agencies, including the incorporation of new cities and districts, and the consolidation or reorganization of special districts and or cities. SolanoIrrigationDistrict MunicipalServiceReview AppendixA-Comments Emails 6:38AMFeb20,2014 Re:SIDMSR FROMGordonStankowskiTOYou+1More SID has a water quality problem with 70 or so customers in Pleasants Valley, I don't see that addressed. ------------------------------------------------------------------------------------------- TFeFeb27,2014at2:17PM PleasantHillsRanchEstates(PHRE)PotableWaterSystem1 FromJim To PFuchslin@SIDWater.org Alla.Lilichenko@cdph.ca.gov EMulberg@SolanoLAFCO.com AttachedisareportIcompletedandwhichisaboutthehealthandfinancialconcernsthatthecurrent SIDproposal raises.ThisSIDproposalisalsodescribedintheSIDBoardminutesofFebruary18th: http://ca-sid.civicplus.com/AgendaCenter/ViewFile/Agenda/02182014-95 Wewillappreciatereceivingcommentsfromandtoobserveproductiveinteractionsbetweenthepartiesinvolved. HopefullythereisabettersolutionthanwhatSIDiscurrentlyproposing.Wearehopefulforasolutionthatdoesnot includeapotentiallybadcapitalinvestmentinatreatmentplantandthatwillnotraisewaterratesanestimated 400%whencomparedtowhatotherVacavilleresidentspay.Isense,especiallyforthelongterm,thatmorecost effectivewaterservicescanbeprovidedtoususers. Thankyouforyourconsiderations, JimMay SolanoIrrigationDistrict MunicipalServiceReview AppendixB-Maps Appendix B: Maps