soi for rnvwd

7.A RNVWD SOI Update Solano Local Agency Formation Commission 675 Texas St. Ste. 6700 • Fairfield, California 94533 (707) 439-3897 • FAX: (707) 438-1788 October 16, 2023 TO: Solano Local Agency Formation Commission FROM: Rich Seithel, Executive Officer SUBJECT: LAFCO Project No. 2021-08: Rural North Vacaville Water District Sphere of Influence Update Recommendation: OPEN the public hearing on the item continued from the June 12, 2023 LAFCO meeting. DIRECT staff to prepare and file Notice of Exemptions pursuant to CEQA §15061(b)(3) and §15301, based on findings stated in the environmental discussion within this report. REVIEW and ADOPT, or MODIFY and ADOPT, the draft Resolution making determinations and updating the sphere of influence for Rural North Vacaville Water District. Executive Summary: The Rural North Vacaville Water District (RNVWD or District) Sphere of Influence (SOI) Update was scheduled and noticed as a public hearing item for the June 12, 2023 LAFCO meeting (Item 7C). On the morning of June 12, staff received an email requesting that the public hearing be continued (Attachment A). The Commission opened the hearing, received the staff report (Attachment B), received public comment, held a discussion, and agreed to continue the hearing to October 16, 2023. Subsequently, the October 16 meeting was canceled, and the RNVWD SOI Update was queued for LAFCO’s December meeting1 . As discussed at the June 12 meeting, there are two primary factors to establish an appropriate sphere for an agency: information and CEQA analysis. • LAFCO must have adequate information on the area's present and future service needs and the agency's capabilities to meet those needs2. Addressing these factors requires data regarding system-wide demand, potential future demand, current capacity, financial capability, and the agency's ability to serve the community, and; 1 It is important to note that this Sphere of Influence Update report is an amendment of the original October 16 staff report that was posted and was available before the October 16 meeting was canceled. 2 Government Code §56425 (e)In determining the sphere of influence of each local agency, the commission shall consider and prepare a written statement of its determinations with respect to each of the following: (pertinent sections) (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. Commissioners Nancy Shopay, Chair • Ron Kott, Vice-Chair • John Vasquez • Mitch Mashburn • Steve Bird Alternate Commissioners Robert Guerrero • Alma Hernandez • Wanda Williams Staff Rich Seithel, Executive Officer • Christina Love, Deputy Executive Officer • Aaron Norman, Analyst II • Tova Guevara, Office Administrator/Clerk • Tyra Hays, Project Specialist • Mala Subramanian, Lead Legal Counsel 7.A RNVWD SOI Update Page 1 of 208 7.A RNVWD SOI Update • A LAFCO sphere of influence determination is subject to review under the California Environmental Quality Act (CEQA) provision. An environmental review is required to be prepared concurrently with the establishment of a SOI to enable informed environmental considerations. Both factors are dependent on the quality and quantity of information. These requirements fueled discussions with the RNVWD and resulted in the Recommended Conditions of Approval outlined in the August 8, 2022 Municipal Service Review report and repeated in the June 12, 2023 SOI report. The recommended Conditions of Approval include the following to address information gathering: 1. The District initiates a five to ten-year strategic plan (i.e. demand, potential demand, fiscal analysis, infrastructure needs/growth, etc.) 2. District outreach to District members and parcels within the SOI to gather potential demand information and to check the pulse of the District. 3. RNVWD water distribution system hydraulic modeling.3 4. Fire flow testing to confirm they are satisfying Vacaville Fire District standards. 5. Crafted language for will-serve and RNVWD Annexation Application Resolutions calling out standards and compliance confirmation. RNVWD/LAFCO meetings, discussions, and presentations were frequently strained, stemming from: 1. The associated costs to the RNVWD to answer LAFCO’s demand for state-required information and; 2. English Hills LLC (APN 0123-030-060 and 0123-070-020 owners) insisting that LAFCO’s methodology and analysis were flawed and that their two parcels should be included in the sphere. However, continuing discussions with RNVWD’s Board, RNVWD’s staff, and District contractors produced District commitments to satisfy the five conditions of approval noted above. At the time of this report, the District’s efforts include: 1. Developed and shared a rough draft of a strategic plan and agreed to work with LAFCO on content; (Attachment C) 2. District executed a mail survey to RNVWD members and parcels currently located in the SOI; (Attachment D) 3. Contracted with Coastland Engineering to develop hydraulic modeling; (Attachment E) 4. Tested hydrant fire-flow performance against Vacaville FPD requirements (Attachment F) and; 5. Agreed to include language in the will-serve letter and the RNVWD Annexation Application Resolutions calling-out compliance with standards and system-wide impacts. Given the District’s commitment, staff considered 21 parcels for SOI inclusion. Staff is recommending that 19 of the 21 parcels be added to RNVWD’s SOI. Staff determined that 9 parcels met CEQA exemption status under CEQA § 15061(b)(3) and 10 parcels were determined to be exempt under CEQA §15301 (see Parcel CEQA Analysis Tables 1 and 2 in the Environmental Review section of this report). 3 A hydraulic model is a mathematical model of a fluid flow system that uses physical attributes and equations to simulate flow conditions and analyze hydraulic behavior. A hydraulic model can also illustrate the effects of changing demand and climactic conditions, predict pressures and identify bottlenecks, and demonstrate the effectiveness of proposed solutions. Hydraulic models are often used in the design, operation, and optimization of drinking water systems, testing different scenarios and configurations of the water system components. 7.A RNVWD SOI Update Page 2 of 208 7.A RNVWD SOI Update Discussion: This section includes 1) a discussion of the issues and exchanges post-June 12, 2023, and 2) a recap and update of the June 12 report, and the following sections: I. Background, II. Recap of Analysis Factors, III. Environmental Review, IV. Options to Consider, and V. Recommendation. Post-June 12, 2023: Following the continuance of the June 12 meeting, staff hosted meetings with the District, RNVWD Board members, and Coastland Engineering. Staff also attended an RNVWD Board meeting and shared the June 12 SOI Update presentation. Staff also met with SID system operators regarding SID’s role and to determine if SID serves as the District’s engineer. Throughout, staff reinforced that the Commission was concerned about outreach, fire flow/protection status, hydraulic engineering report, RNVWD’s “water rights,” and the strategic plan. In response, the District countered with five packets of comments/responses. Staff has provided responses (in blue) to the District’s and former RNVWD General Manager Stankowski’s comments in Attachments G through K, as identified below. Additionally, staff further inquired about RNVWD’s version of “water rights” in Attachment L. 8 LAFCO Recommendations from MSR Resolution No. 2022-09 (Attachment G) o Topics for discussion regarding LAFCO SOI update (Attachment H) o Reasons that the English Hills LLC property should be included in the RNVWD LAFCO o sphere update (Attachment I) Key Points regarding APNs 0123-030-060, 0123-070-020 inclusion into the RNVWD o Sphere of Influence (Attachment J) SOI Recommended Conditions of Approval 6/12/23 comments (Attachment K) o I. Background: LAFCOs establish, amend, and update SOIs to designate the territory that represents the appropriate and probable future service areas and jurisdictional boundaries of the affected agencies. All jurisdictional changes, such as annexations and detachments, must be consistent with the spheres of the affected local agencies. To establish an appropriate SOI for an agency, LAFCO must have: 1. adequate information on present and future service needs and the agency's capabilities to meet those needs, and 2. a CEQA review and determination. 7.A RNVWD SOI Update Page 3 of 208 7.A RNVWD SOI Update Information Harvesting: The RNVWD MSR was adopted on August 8, 2022. Primary MSR findings and recommendations included: To establish an appropriate SOI for • RNVWD was formed for two purposes: to an agency, LAFCO must have provide potable water and water for fire adequate information on present suppression. and future service needs and the agency's capabilities to meet those • In 1998, Vacaville Fire District (VFPD) advised needs. RNVWD that they required that the system provides a minimum of 250 GPM at a minimum of 60 PSI for 20 minutes. • Due to potential water demand resulting from the subdivision of parcels and the construction of accessory dwelling units (ADUs), the MSR recommends that RNVWD develop a strategic plan including demand forecasts, an infrastructure plan, and a hydraulic modeling study. At the MSR adoption hearing, staff strongly recommended that additional information is needed to update the SOI. The Commission “Prior to updating the RNVWD Sphere agreed and adopted five recommended conditions of Influence, all the Recommendations of approval: shall be addressed.” … August 2022 adopted MSR 1. The district initiates a five to ten-year strategic plan (i.e. demand, potential demand, fiscal analysis, infrastructure needs/growth, etc.) 2. Conduct district outreach to district members and SOI parcels to gather potential demand information. 3. RNVWD distribution system modeling.4 4. Fire flow testing for VFPD compliance. 5. Crafted language for RNVWD Annexation Application Resolutions calling out standards and compliance confirmation. Continuing discussions with RNVWD’s Board, RNVWD’s staff, and District contractors produced District commitments to satisfy the above five conditions of approval. At the time of this report, the District efforts include: 1. Developed and shared a rough draft of a strategic plan and agreed to work with LAFCO on content (Attachment C); 4 A hydraulic model is a mathematical model of a fluid flow system that uses physical attributes and equations to simulate flow conditions and analyze hydraulic behavior. A hydraulic model can also illustrate the effects of changing demand and climactic conditions, predict pressures and identify bottlenecks, and demonstrate the effectiveness of proposed solutions. Hydraulic models are often used in the design, operation, and optimization of drinking water systems, testing different scenarios and configurations of the water system components. 7.A RNVWD SOI Update Page 4 of 208 7.A RNVWD SOI Update 2. Executed a mail survey to RNVWD members and parcels currently located in the SOI (Attachment D); 3. Contracted with Coastland Engineering to develop a hydraulic model (Attachment E); 4. Tested hydrant fire-flow performance successfully against Vacaville FPD requirements (Attachment F) and; 5. Agreed to craft language for will-serve and RNVWD Resolutions that will call out compliance with standards and system-wide impacts. CEQA Applicability: Meeting the above conditions of approval addresses LAFCO’s need for adequate information on present and future service needs and the agency's capabilities to meet those needs. However, it does not address CEQA review and analysis. A SOI is defined by statute as a “plan for the probable physical boundary and service area of a local government agency as determined by the commission” (Government Code §56076). It is primarily a planning tool that will: • Serve as a master plan for the future organization of local government within the County by providing long-range guidelines for the efficient provision of services to the public; • Discourage duplication of services by two or more local governmental agencies; • Guide the Commission when considering individual proposals for changes of organization; • Identify the need for specific reorganization studies and provide the basis for recommendations to particular agencies for government reorganizations. Adopting a SOI is a discretionary action that the LAFCO Commission can approve, approve with conditions, or deny. If supported by the MSR analysis, local jurisdictions and/or special districts can request to add/expand or remove properties from their SOI. Adding or removing property from an SOI can result in physical environmental impacts as part of a larger project. Thus, a CEQA review is required to establish or amend the SOI. II. June 2023 Analysis Factors and Methodology Recap: In the absence of the quality and quantity of the information requested and with the MSR shelf- life clock ticking, LAFCO staff developed a methodology to provide criteria to inform and stimulate the SOI update discussion. This methodology was detailed in the June 12, 2023, staff report and presentation and outlined four criteria : 1) Remnant parcels; 2) 50-foot water line halo; 3) Assessment Zone 2; and 4) CALFIRE high fire hazard severity zone (see Attachment M). 7.A RNVWD SOI Update Page 5 of 208 7.A RNVWD SOI Update As presented in June, criteria that favor SOI inclusion are the “remnant parcels” and the “APNs within the 50- In the absence of the quality and foot halo.” The CALFIRE High Hazard Fire Severity quantity of the information Zone and Assessment Zone APNs are less heavily requested and with the MSR shelf- weighted. Points were assigned by criteria to develop a life clock ticking, LAFCO staff metric for decision-making. Why score remnant developed a methodology to provide parcels and 50-ft. proximity parcels higher? criteria to inform and stimulate the SOI update discussion. As noted in the June 12, 2023 report, remnant parcels are primarily parcels that are considered “legal lots”. LAFCO and the Board of Equalization recognizes Assessor Parcel Numbers. The County Planning Department, Assessor, and RNVWD consider a parcel, the RNVWD Rules and Regulations, a parcel is contiguous property under single ownership and of sufficient size to be considered buildable under Solano County’s land use and development regulations. A parcel may have one or more assessor’s parcel numbers assigned to it." It is recommended that remnant parcels be added to the SOI particularly given the policy of one connection per legal lot, not one per APN. As Commission requested, Attachment N shows all the “legal lots” as determined by Solano County. As a clean-up item, this criterion is scored high. The 50-foot water line halo identifies parcels with property boundary lines within 50 feet of the distribution line. This attribute addresses the concern that the impact system-wide must be considered. The District takes exception to this criterion. The reasoning behind this factor is a reasonable inference based on the formation of the District. The District was formed by parcels that opted to be in the District, not drawn by geographic description and exterior boundary lines. Accordingly, the infrastructure was then designed to serve the original 533 parcels. At what point does the District need to extend the system to serve a parcel? How does that system extension impact the system as a whole? These issues would be addressed on an ongoing basis if a hydraulic model is instituted. Based on General Manager Stankowski advising that the infrastructure map on the District’s website is accurate and current, LAFCO has been reviewing the RNVWD Board’s recommended SOI parcel inclusion through the lens of proximity. Furthermore, given that the District’s infrastructure map reflected a 25-foot average lateral, LAFCO believes a 50-foot distance criterion for analysis is a reasonable inference. Assessment Zone 2 parcels are not in the District but benefit from fire suppression water. A case may be made for including Zone 2 parcels because they have already invested funds into the RNVWD system. CALFIRE has updated the fire hazard severity zones. According to CALFIRE, fire hazard is a measure of how a fire will behave, based on the physical conditions of an area that create a likelihood an area may burn due to a wildfire. The best available science and data are used to evaluate these zones based on factors that include fire history, vegetation, flame length, blowing embers, terrain, weather, and the likelihood of buildings igniting. The updated severity zones will envelop more parcels within the District and may incentivize more reliable fire suppression action by landowners securing RNVWD water vs. private wells. This potential should be studied and included in a strategic plan. The CALFIRE High Hazard Fire Severity Zone and Assessment Zone APNs are less heavily weighted. 7.A RNVWD SOI Update Page 6 of 208 III. Environmental Review Staff analyzed 21 parcels and is recommending 19 for SOI inclusion. Attachment O includes a map identifying all Map the parcels. The 19 parcels that staff APN Acreage CEQA Ref # recommend be added to the SOI are exempt 1 1 0104150350 1.10 from CEQA under two different exemptions, as follows: 2 2 0104150450 1.54 3 3 0105070310 0.16 Nine (9) Remnant parcels exempt under 4 5 0105170100 1.64 CEQA §15061(b)(3): Table 1 lists the nine 5 6 0105200180 0.37 parcels with the map reference number (Attachment O) and acreage. All nine 6 7 0105220120 0.58 parcels are exempt from CEQA under the 7 8 0105220130 0.08 commonsense exemption CEQA 8 12 0105050950 0.34 §15061(b)(3) because the parcels are 9 19 0104120850 0.19 consistent with the current Solano County General Plan and the 1995, 1993, and 2000 CEQA determinations; they are remnants of existing legal lots already within the District that have connections; they are generally too small for development on their own; and they are adjacent to the existing water supply system. Ten (10) parcels exempt under CEQA §15301: Table 2 lists the ten parcels with the map reference number and acreage plus the two English Hills LLC parcels. The ten parcels are exempt from CEQA under §15301 – Existing Facilities because they are adjacent to existing water mains (facilities) within the existing right-of-way of the water supply system. Therefore, annexations for the purpose of domestic water supply connections would not require extensions or expansions to the existing water supply system, and therefore would not have any reasonably foreseeable impacts or cumulative impacts on the environment or on the system. One of the comments staff received from the English Hills LLC is regarding including their parcels within the Sphere of Influence update. The property owners adamantly believe that no further CEQA review is necessary. PRC §21082.2 (a) [CEQA regulations] states that the lead agency shall determine whether a project may have a significant effect on the environment based on substantial evidence in light of the whole record. The term “project”5 means “the whole of an action, which 5 CEQA §15378 )3()b(16051 § AQEC Parcel Analysis: Table 1 Parcel Analysis: Table 2 Map APN Acreage CEQA Ref # 10 9 0102230070 18.16 11 10 0105050410 18.82 12 11 0105050420 13.52 13 13 0105060460 5.01 14 4 0105170050 5.93 15 20 0102070030 3.82 16 21 0105180290 4.78 17 22 0105060550 5.05 18 23 0105150310 2.29 19 24 0105150320 2.29 20 15 123030060 77.77 21 16 120070020 54.29 10351§ AQEC X 7.A RNVWD SOI Update 7.A RNVWD SOI Update Page 7 of 208 7.A RNVWD SOI Update has a potential for resulting in a reasonably foreseeable indirect physical change to the environment.” LAFCO is the authority for making findings for adopting a Sphere of Influence (which is the planned growth of a jurisdiction) and, therefore is responsible for also making the CEQA determination for that project. Argument, speculation, unsubstantiated opinion or narrative, or evidence of social or economic impacts is not substantial evidence.6 CEQA determinations rely on empirical data, findings, and recommendations found in industry standard reports. The English Hills LLC Request includes parcels/lands that were not originally included in the design analysis of the water supply system and would require an extension of the system that could be growth-inducing with subsequent impacts on water supply. Therefore, updated reports with findings, recommendations, and potential mitigation should be submitted for an updated CEQA analysis. Staff contends that the District must update several studies and do an updated CEQA review for the following reasons: • The 1995 Negative Declaration was for the Formation of the new Community Service District for RNVWD and relied on water supply studies and groundwater studies based on current conditions at that time. Nearly thirty years has passed, thereby findings of the original CEQA review are likely outdated. • The subsequent CEQA review, 1998 Supplemental Environmental Impact Report for Construction and Operation of Rural North Vacaville Water District Water System analyzed impacts on the actual construction and design of the physical water system. Further, the analysis built on that of all the previous CEQA reviews – specifically for cumulative impacts that were current at that time. • The District does not have updated or current reports on water supply, groundwater impacts, or supply system operations that also compare the 1995/1998 findings to show that circumstances have not substantially changed. Additionally, extending the system that was analyzed in the 1995, 1998, and 2000 CEQA reviews may have significant cumulative impacts on water supply and growth-inducing considerations. Therefore, CEQA §15300.2 cannot support the commonsense exemption7 because it is not certain that there is no potential for impacts. • This process for review is consistent with CEQA requirements and is also consistent with past considerations for SOI updates. As far back as 1999, LAFCO considered SOI amendments that would knowingly lead to annexations and approved or denied based on CEQA analysis. One such action denied the inclusion of a parcel on Timm Road because it would have required revisions to the water system design that were not included or considered in the 1998 Supplemental EIR for the Construction and Operation of Rural North Vacaville Water District Water System. Similarly, impacts on the changes/growth of the water system that have occurred outside LAFCO involvement, cumulative impacts to the water system on past and proposed water main extensions, and changes to water demand and water supply are unknown may be potentially significant with the inclusion of English Hills LLC. Basically, LAFCO does not know and therefore cannot make a recommendation with certainty. 6 PRC §21082.2 7 CEQA §15061(b)(3) 7.A RNVWD SOI Update Page 8 of 208 7.A RNVWD SOI Update Attachment P is a detailed explanation of the history of the formation of the Community Service District – Rural North Vacaville Water District, and the construction and operation of the new domestic water system. Specifically, the explanation and table track the environmental documentation. IV. Options to Consider: Staff is offering three options for sphere inclusion. Option 1: Parcels 1-9 “remnant parcels” of existing legal lots and meet CEQA § 15061(b)(3). Option 2: Parcels 1-19 covers “remnant” and “existing structure” parcels. Parcels 10-19 meet CEQA § 15061(b)(3) and CEQA § 15301. Option 3: No changes to the existing sphere. V. Recommendation: Given the District’s commitment and efforts to satisfy the conditions of approval, staff is recommending Option 2. Option 2 parcels positively answer the CEQA determination, clean up the legal lot issues, and align with the methodology and metric-based analysis presented at the June 2023 LAFCO meeting. Staff recommends the following conditions: A. RNVWD Board Resolution of Applications shall include a clause confirming that the District has the capacity to meet the CCR §64554 Maximum Daily Demand requirements. B. RNVWD Board Resolution of Applications for annexations shall include a clause confirming that the proposed annexation/land has been tested through the hydraulic model. C. Prior to any future annexations over 2.5 acres or changes to the Sphere of Influence, a Strategic Plan that includes but is not limited to fiscal analysis, analysis of current water system and fire suppression operations, current water usage and demands, future anticipated water usage and demand (such as subdivision ability, accessory dwelling/secondary dwelling unit ability, and other growth), and consistent outreach plan. **CONTINUED ON NEXT PAGE* 7.A RNVWD SOI Update Page 9 of 208 7.A RNVWD SOI Update ATTACHMENTS: Action Item: Resolution of the Local Agency Formation Commission of Solano County Approving the Sphere of Influence Update of the Rural North Vacaville Water District Attachment A – RNVWD Request to Continue SOI Public Hearing on June 12, 2023 Attachment B – June 12, 2023 RNVWD SOI Staff Report Packet Attachment C – Draft RNVWD Strategic Plan Attachment D – RNVWD Outreach Survey Results Attachment E – Coastland Engineering Letter Regarding Hydraulic Model Contract Attachment F – Fire Hydrant Fire-Flow Test Results Attachment G – 8 LAFCO Recommendation from MSR Resolution 2022-09 RNVWD Comments Attachment H – September 27, 2023 Topics for Discussion Regarding LAFCO SOI Update Attachment I – Reason that the English Hills LLC Property should be included in the RNVWD LAFCO Sphere Update Attachment J – RNVWD’s Key Points Regarding APNs 0123-030-060, 0123-070-020 inclusion into the RNVWD SOI Attachment K – VII. Recommended Conditions of Approval, SOI Update 9/27/23 Attachment L – RNVWD’s response to “water rights” inquires Attachment M – June 2023 Parcel Analysis Chart Attachment N – Map of “Legal Lots” within RNVWD Attachment O – Map of the 21 Parcels Considered for SOI Update Attachment P – RNVWD History Summary 7.A RNVWD SOI Update Page 10 of 208