MSR G1 8 Teviston Jan06

CHAPTER 8 – TEVISTON CSD MUNICIPAL SERVICE REVIEW EXECUTIVE SUMMARY This section provides an overview of the written determinations of the Teviston Community Service District (CSD) Municipal Service Review (MSR). As part of its review of municipal services, the Tulare County Local Agency Formation Commission (LAFCO) is required to prepare a written statement of its determination with respect to each of the following: 1) Growth and population projections for the affected area; 2) Infrastructure needs and deficiencies; 3) Financing constraints and opportunities; 4) Cost avoidance opportunities; 5) Opportunities for rate restructuring; 6) Opportunities for shared facilities; 7) Government structure options; 8) Evaluation of management efficiencies; and 9) Local accountability and governance. These requirements are established by AB 2838, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. The Teviston CSD MSR identifies the following written determinations: Written Determinations 1) Growth and Population 1. Available data indicates that Teviston had a January 2005 population of approximately 363 residents. 2. It is likely that the Teviston community will continue to grow at an average annual rate between 1% and 2% depending upon land use zoning, and other policies established by the Tulare County General Plan and other factors. At these rates, the Teviston CSD could expect a year 2025 District population between 450 and 550. 3. Based upon discussions with District staff, Teviston has not experienced any significant growth in the last 5 years however a 14-unit subdivision is currently under review by the District. 2) Infrastructure Needs and Deficiencies 1. Teviston’s water supply is derived from two existing deep underground wells that provide an ample clean water supply requiring no chlorination or treatment. The two wells have a total maximum production efficiency of approximately 900 GPM. 2. The Teviston CSD water system supports 105 total connections including 99 residential connections, 4 church connections, 1 school connection, and 1 connection to the community center. 3. In 1998, the District completed several improvements to its water system including replacing old deteriorating water lines, construction of new water lines, installation of fire hydrants throughout the system, installation of meters for all connections, and improvements to the north well site. 4. The Preliminary Engineering Report Water System Rehabilitation Project (Roberts Engineering, November 1995) estimates that the two wells have adequate water supply to support a population of approximately 460 residents, or approximately 125 EDUs at a dwelling unit occupancy rate of 3.7 persons per household. Teviston Community Service District MSR Page 8-1 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 5. It is recommended that the District plan for future water system improvements as the current system reaches it’s capacity, perhaps through a mater plan, or updated water system study. Potential funding sources should also be identified during the planning process. 6. Assuming 105 equivalent dwelling units (EDUs), in order to meet Tulare County Improvement Standards the Teviston CSD water system would need to be capable of delivering a combined flow rate (from all source and storage facilities) of 857 GPM (500 GPM fire flow and 357 GPM domestic demand) for a period of two hours while maintaining a minimum pressure of 25 PSI to each lot served. The District’s water system is capable of delivering a source flow of 900 GPM, and includes pneumatic pressure tanks for storage, indicating that the system currently meets the requirements of the Tulare County Improvement Standards. 3) Cost Avoidance Opportunities 1. During fiscal year 2003-04, the District had expenditures totaling $52,808, which covers salaries and employee benefits for part time staff totaling $9,785, outside services and supplies totaling $33,138, and other charges totaling $9,885. 2. The District generally requires new development projects to construct the necessary domestic water infrastructure to serve proposed developments. 3. The District’s financial resources are limited, as their primary sources of income are through connection and user fees, which are generally not sufficient to cover any major repairs or improvements to the District’s water system. Recovering such costs through the ratepayers of the community is not feasible since the average household incomes within the community are well below the current poverty level. 4. Due to the District’s limited financial resources, the District is forced to seek alternative sources of financing major improvements or repairs to its water system, as they did in the late 1990s. Obtaining outside funds (including partial grant/loan programs) for local projects often requires the District to enter into long-term debt obligations (agreements). 4) Cost Avoidance Opportunities 1. The District avoids excessive overhead costs by operating with a part-time staff, which provides adequate levels of service to the small community. The District also avoids unnecessary costs by contracting out professional services including engineering, legal services, and other consulting services. 2. It would not be fiscally feasible for the District to expand its SOI in the foreseeable future, as there is currently undeveloped land within the current District Boundary that, when developed, will rely on domestic water service available from the District. The District currently has no plans to expand its SOI. 3. The preparation of a water master plan could help the District avoid unnecessary costs associated with the construction of emergency system improvements to meet demands. Master planning also emphasizes “smart growth” practices by making infrastructure available where development is likely to occur. Teviston Community Service District MSR Page 8-2 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 4. Infrastructure priority should be given to development proposals within the current District Boundary. As land within the District Boundary becomes “built-out”, the District can consider annexing additional land currently within its SOI. 5) Opportunities for Rate Restructuring 1. The Teviston CSD charges monthly user fees and new connection fees for domestic water service. The District’s monthly base water rate of $30.00 covers a base usage up to 15,000 gallons. Users are charged a metered rate of $1.00 per 1,000 gallons for usage exceeding 15,000 gallons. 2. The District’s base rates were increased from $25.00 to $30.00 in 1998 to help pay off debt incurred by the District to complete a major water system replacement/rehabilitation project in the late 1990s. The project corrected several deficiencies in the water system, indicating that it is in good operating condition. For this reason, further rate increases in the near future are unlikely. 3. While the monthly user fees are among the highest, the new connection fees charged by the Teviston CSD are among the lowest compared to other service providers throughout the County. It is recommended that the District complete a water master plan to address the capital facilities needs associated with additional development within the District and its SOI. Master planning is an excellent tool to substantiate fees to be charged to the development community for necessary capital infrastructure system improvements. 4. Generally, user fees should be used for the operation and maintenance of existing infrastructure (including capital replacement costs), while connection fees should be used for capital capacity improvements necessary to serve new development. 6) Opportunities for Shared Facilities 1. Since the location of the Teviston District Boundary is immediately adjacent to existing rural lands, the opportunity for sharing infrastructure does not readily exist. 2. Opportunities for sharing resources include splitting insurance premiums with nearby Districts requiring related insurance coverage. Also the employment of a grant writer by two or more Districts could potentially benefit the District without incurring the cost of a full time employee. 7) Government Structure Options 1. There are no other service providers immediately adjacent to the Teviston CSD SOI indicating that the potential for duplication of services is not present. For this reason, it is logical that the Teviston CSD adequately plan for and assume domestic water service within its SOI Boundary. 2. There are no foreseeable conditions that would indicate that development within the District’s SOI would result in a change in government structure. 3. Prior to development within its SOI area the District should complete master planning to address the infrastructure needs of affected areas and funding mechanisms to meet those needs. Teviston Community Service District MSR Page 8-3 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 4. The District will need to continually expand and improve its domestic water infrastructure to accommodate development within its current District Boundary and SOI areas zoned for development. 8) Evaluation of Management Efficiencies 1. Based upon information made available, it appears as if the provisions of domestic water service are managed efficiently, meeting the needs of the community and ratepayers. 2. The Teviston CSD is governed by a five member Board of Directors elected at large from within its boundaries that is responsible for setting policy and general administrative procedures. 3. The District currently operates with two part-time staff members, which are available to respond to emergency situations during non business hours. 9) Local Accountability and Governance 1. The District complies with the Brown Act open meeting law by holding regularly scheduled meetings in which the public is invited. Regularly scheduled meetings are held on the second Thursday of each month at 6:00 p.m. at the District office. Agendas for Board meetings are posted on-site at the District office. 2. The District adopts budgets and rate changes at hearings where the public is notified and invited. 3. The District should work with the Tulare County Resource Management Agency (RMA) and/or Tulare County LAFCO to have information regarding District affairs posted on the Tulare County RMA and/or LAFCO website. The District could provide information such as meeting times and locations, budgets, rates, ordinances, agendas, completed/upcoming projects, and other District affairs to Tulare County for posting on the County (RMA and/or LAFCO) websites. Teviston Community Service District MSR Page 8-4 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 8.0 TEVISTON COMMUNITY SERVICE DISTRICT 8.0.1 Background The requirement for Local Agency Formation Commissions (LAFCO) to conduct reviews of local municipal services was established with the passage of AB 2838, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. The bill passed the legislature, and was signed into law by Governor Davis on September 26, 2000. Municipal Service Reviews (MSRs) provide LAFCOs with an additional tool to fulfill their statutory responsibilities of promoting orderly growth and development, preserving the States finite open space and agricultural land resources, and working to ensure that high quality public services are provided to all Californians in the most efficient and effective manner. MSRs are a requirement of State annexation law and are required to be completed before the consideration of a Sphere of Influence (SOI) amendment or once every five years when a SOI amendment is not being considered. In July 2003, the Tulare County Local Agency Formation Commission (LAFCO) Board adopted a Municipal Service Review (MSR) exemption policy, which identifies the agencies that would be subject to a review and the extent of that review. The agencies in Tulare County were divided into three (3) categories: agencies subject to a full comprehensive study; agencies subject to a questionnaire study; and agencies exempt from a MSR study. The Teviston Community Service District (CSD) is subject to a full comprehensive study. The policy further identifies that the services subject to review shall be: • Police protection • Fire protection • Water and wastewater • Solid waste collection and disposal • Streets and traffic circulation • Power generation and distribution • Health Care Teviston, an unincorporated community in Tulare County, is located in the southwest portion of the County, southwest of Porterville. Teviston is an agriculturally oriented service community surrounded on the north, west and south by lands in agricultural production and on the east by scattered rural residential, agricultural, and vacant land. The Teviston CSD, formed in November 1956, has a primary function of planning, constructing, and maintaining the domestic water system for the community. Domestic water service is the only service provided by the Teviston CSD that is subject to a MSR. Teviston is located along State Route (SR) 99 between the communities of Earlimart and Pixley. The Tulare County/Kern County Line is located approximately 10 miles south of Teviston. The current District Boundary and the currently adopted SOI for the Teviston CSD are illustrated on Figure 8-1. Teviston Community Service District MSR Page 8-5 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 FIGURE 8-1 – TEVISTON CSD BOUNDARY AND SOI Source: Tulare County GIS Database (July 2004) Teviston Community Service District MSR Page 8-6 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 The following excerpt from the Tulare County LAFCO website (www.co.tulare.ca.us/lafco/info.asp) defines a SOI and the purpose it serves. A “Sphere of Influence” is the physical boundary and service area that a local governmental agency is expected to serve. Establishment of this boundary is necessary to determine which governmental agencies can provide services in the most efficient way to the people and property in any given area. The Sphere of Influence requirement also works to discourage urban sprawl by preventing overlapping of jurisdictions and duplication of services. The following discussions address the nine legislative factors required by the Cortese-Knox-Hertzberg Act; 1) Growth and population, 2) Infrastructure needs and deficiencies, 3) Financial constraints and opportunities, 4) Cost avoidance opportunities, 5) Opportunities for rate restructuring, 6) Opportunities for shared facilities, 7) Government structure options, 8) Evaluation of management efficiencies, and 9) Local accountability and governance. Teviston Community Service District MSR Page 8-7 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 8.1 GROWTH AND POPULATION The purpose of this section is to present historical and projected growth patterns and population projections to establish a baseline for the evaluation of the service needs of Teviston. 8.1.1 Historical Data The Census Bureau, on a decennial basis, identifies and provides detailed information on all incorporated Cities along with several smaller unincorporated communities (termed Census Designated Places – CDPs). Teviston is neither classified as a City or a CDP by the Census 2000, but is instead classified as a Small Place. Census 2000 data provides Small Place Profiles that provide limited information for small residential settlements within the County. The following information was obtained from the Small Place Profile for the Teviston community: • January 2000 Population = 757 • Total Households as of January 2000 = 195 • Average Household Occupancy = 3.9 persons/household Since the District currently serves only 99 dwelling units with domestic water, the Census 2000 Small Place Profile likely covers a significantly larger area than the current District Boundary. It is likely that residents outside of the current District Boundary obtain water from private wells. According to a Preliminary Engineering Report prepared for the Teviston CSD (Roberts Engineering, November 1995), in 1995, the District served 86 dwelling units, 1 school, 1 community center, and 4 churches. Currently, the District serves 99 dwelling units, 1 school, 1 community center, and 4 churches. An increase of 13 dwelling units (served by the District) between 1995 and 2004 can be used to approximate an increase in population over the same period of approximately 50 residents. The Preliminary Engineering Report referenced previously indicates a year 1995 District population of 313 residents, indicating a current population of approximately 363 residents. Based upon this information, an annual average growth rate for the Teviston community is estimated at 1.5%. The unincorporated areas of Tulare County grew from a population of 133,222 in 1990 to a population of 141,150 in 2000, corresponding to an average annual growth rate of approximately 0.6%. It is likely that the Teviston community will continue to grow at an average annual rate between 1% and 2% depending upon land use zoning, and other policies established by the Tulare County General Plan and other factors. Using an average annual growth rate between 1% and 2% the Teviston CSD could expect a year 2025 District population between 450 and 550. Based upon discussions with District staff, the community has not experienced any significant growth in the last 5 years; however, a new 14-unit subdivision is currently under review by the District. 8.1.2 Written Determinations 1. Available data indicates that Teviston had a January 2005 population of approximately 363 residents. 2. It is likely that the Teviston community will continue to grow at an average annual rate between 1% and 2% depending upon land use zoning, and other policies established by the Tulare County General Plan and other factors. At these rates, the Teviston CSD could expect a year 2025 District population between 450 and 550. 3. Based upon discussions with District staff, Teviston has not experienced any significant growth in the last 5 years however a 14-unit subdivision is currently under review by the District. Teviston Community Service District MSR Page 8-8 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 8.2 INFRASTRUCTURE NEEDS AND DEFICIENCIES The purpose of this section is to evaluate the infrastructure needs and deficiencies of the Teviston CSD in terms of availability of resources, capacity to deliver services, condition of facilities, service quality, and levels of service. 8.2.1 Domestic Water Service The Teviston CSD is responsible for providing domestic water service within the District’s Boundary. Teviston’s water system includes a distribution system consisting of 2, 4, and 6-inch pipelines, 2 wells, and two 5,000-gallon pneumatic pressure tanks. The wells are capable of delivering a combined source flow of approximately 900 gallons per minute (GPM). The two wells provide an ample clean water supply requiring no chlorination or treatment. The locations of the two wells (identified as north and south wells) are identified below. • North Well – West side of Road 132 between Avenue 80 and Avenue 84 • South Well – North side of Avenue 80 between Drive 130 (Frontage Road) and Road 132 The north well is the primary well, and the south well comes online as necessary to meet peak summer demands or to fight the rare fire in Teviston. The south well was drilled in 1959, and the north well was added in 1978. The District’s water supply has not been supplemented since 1978. The District indicated that the community water system currently supports 105 connections including 99 residential connections, 1 school connection, 4 church connections, and 1 connection to the community center. In the early to mid 1990s, the District’s water system was suffering multiple leaks and breakages costing the District valuable resources to repair. In some cases, leaks and breakages remained un-repaired causing potential health hazards to the residents in the community. The Preliminary Engineering Report Water Rehabilitation Project (Roberts Engineering, November 1995) was prepared for the Teviston CSD to address the problems with the District’s water system, and recommend improvements including the identification of funding sources. In 1998, the District completed the following improvements as outlined in the Preliminary Engineering Report Water Rehabilitation Project: • Construction of new 6-inch PVC water lines, including new lines to loop system, and replacement of old deteriorating pipelines. • Installation of fire hydrants throughout system. • Installation of water meters for all connections to the system. • Installation of meters at each well site. • Rehabilitation of the north well pump including new bowls, suction pipe and strainer, and new line and line shaft bearings to improve the overall pump efficiency. The Teviston CSD has billed under a metered water system since 1998, which encourages water conservation. Prior to improvements to the District’s water system (in 1994), as indicated in the Preliminary Engineering Report, the average per capita water usage for the District was calculated to be 297 gallons per capita day (GPCD), approximately 98% more than that of the normal average of 150 GPCD for similar small communities. The Preliminary Engineering Report concluded that the excess usage was most likely due to a combination of leakage and customer over usage. It is likely that the Teviston Community Service District MSR Page 8-9 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 improvements to the District’s water system (pipeline repairs and metering) significantly reduced the average per capita usage. Present water usage data has been requested from the District; however, this data was not provided for this review. Due to the absence of this data, the degree to which the water system improvements have reduced the average per capita consumption cannot be quantified. Furthermore, it is difficult to draw conclusions regarding the additional capacity that the improved water system can handle without present water usage data. The Preliminary Engineering Report estimates that the two wells have adequate water supply to support a population of approximately 460 residents, or approximately 125 EDUs at a dwelling unit occupancy rate of 3.7 persons per household. It is recommended that the District plan for future water system improvements as the current system reaches its capacity, perhaps through a master plan, or updated water system study. Potential funding sources should also be identified during the planning process. Tulare County Improvement Standards require that the construction of water source facilities shall comply with the requirements of Bulletin No. 74, “Water Well Standards” prepared by the State of California Department of Water Resources. The Tulare County Improvement Standards also establish specific requirements for quantity and quality of water to be delivered to a system. Some of these requirements are summarized below. • The quantity of water delivered to the distribution system within a subdivision from all source and storage facilities for a period of two hours shall be the maximum domestic demand plus a fire flow quantity of not less than 500 GPM for single family residential, 1,500 GPM for multi-family residential, commercial, and light manufacturing, and 2,500 GPM for heavy manufacturing. • For systems up to 625 customer units (equivalent dwelling units) the domestic quantity shall not be less than Q = 100 + 25 * √N, and Q = 100 + N for more than 625 customer units at sufficient pressure to provide a minimum pressure of 25 PSI to each lot served; where Q equals the rate of flow in GPM delivered from the combined source facilities to the distribution system, and N equals the total number of customer units where each customer unit is equivalent to one for a single family dwelling on a normal subdivision lot. Other types of development shall be assigned appropriate customer unit values by the Engineer as experience with the distribution system or locality indicates. • The minimum source and domestic demand storage design requirements shall be in accordance with Plate No. WS-11 of Section IV of the Tulare County Improvement Standards. • The quality of water supplied for human consumption shall conform to Sections 3, 4 and 5 of the latest United States Public Health Service Drinking Water Standards. Samples will be taken and tests made by the County Department of Health Services for bacteriological determination of potability. • Chemical and physical tests for potability shall be performed by a commercial laboratory certified by the State Department of Health Services for performance of chemical and physical analysis and the costs thereof shall be borne by the sub-divider. Assuming 105 equivalent dwelling units (EDUs), in order to meet Tulare County Improvement Standards the Teviston CSD water system would need to be capable of delivering a combined flow rate (from all source and storage facilities) of 857 GPM (500 GPM fire flow and 357 GPM domestic demand) for a Teviston Community Service District MSR Page 8-10 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 period of two hours while maintaining a minimum pressure of 25 PSI to each lot served. The District’s water system is capable of delivering a source flow of 900 GPM, and includes pneumatic pressure tanks for storage. 8.2.2 Written Determinations 1. Teviston’s water supply is derived from two existing deep underground wells that provide an ample clean water supply requiring no chlorination or treatment. The two wells have a total maximum production efficiency of approximately 900 GPM. 2. The Teviston CSD water system supports 105 total connections including 99 residential connections, 4 church connections, 1 school connection, and 1 connection to the community center. 3. In 1998, the District completed several improvements to its water system including replacing old deteriorating water lines, construction of new water lines, installation of fire hydrants throughout the system, installation of meters for all connections, and improvements to the north well site. 4. The Preliminary Engineering Report Water System Rehabilitation Project (Roberts Engineering, November 1995) estimates that the two wells have adequate water supply to support a population of approximately 460 residents, or approximately 125 EDUs at a dwelling unit occupancy rate of 3.7 persons per household. 5. It is recommended that the District plan for future water system improvements as the current system reaches it’s capacity, perhaps through a mater plan, or updated water system study. Potential funding sources should also be identified during the planning process. 6. Assuming 105 equivalent dwelling units (EDUs), in order to meet Tulare County Improvement Standards the Teviston CSD water system would need to be capable of delivering a combined flow rate (from all source and storage facilities) of 857 GPM (500 GPM fire flow and 357 GPM domestic demand) for a period of two hours while maintaining a minimum pressure of 25 PSI to each lot served. The District’s water system is capable of delivering a source flow of 900 GPM, and includes pneumatic pressure tanks for storage, indicating that the system currently meets the requirements of the Tulare County Improvement Standards. Teviston Community Service District MSR Page 8-11 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 8.3 FINANCING OPPORTUNITIES AND CONSTRAINTS The purpose of this section is to evaluate the capability of the Teviston CSD to finance needed improvements and services. 8.3.1 Annual Budget LAFCO should consider the ability of the District to pay for improvements or services associated with annexed sites. This planning can begin at the SOI stage by identifying what opportunities there are to identify infrastructure and maintenance needs associated with future annexation and development, and identifying limitations on financing such improvements, as well as the opportunities that exist to construct and maintain those improvements. The Teviston CSD provided data regarding estimated expenditures for fiscal year 2003-04. However, no data was provided related to available resources or estimated revenues. Therefore a comprehensive evaluation of the District’s financial state cannot be made at this time. During fiscal year 2003-04, the District had expenditures totaling $52,808, which covers salaries and employee benefits for part time staff totaling $9,785, outside services and supplies totaling $33,138, and other charges totaling $9,885. Other charges include bond agent fees and repayment of long term debts (bonds and other) including interest and principal. The District generally requires new development projects to construct the necessary domestic water infrastructure to serve proposed developments. The District’s financial resources are limited, as their primary sources of income are through connection and user fees, which are generally not sufficient to cover any major repairs or improvements to the District’s water system. Recovering such costs through the ratepayers of the community is not feasible since the average household incomes within the community are well below the current poverty level. For this reason, the District is forced to seek alternative sources of financing major improvements or repairs to its water system, as they did in the late 1990s. Obtaining outside funds (including partial grant/loan programs) for local projects often requires the District to enter into long-term debt obligations (agreements). 8.3.2 Written Determinations 1. During fiscal year 2003-04, the District had expenditures totaling $52,808, which covers salaries and employee benefits for part time staff totaling $9,785, outside services and supplies totaling $33,138, and other charges totaling $9,885. 2. The District generally requires new development projects to construct the necessary domestic water infrastructure to serve proposed developments. 3. The District’s financial resources are limited, as their primary sources of income are through connection and user fees, which are generally not sufficient to cover any major repairs or improvements to the District’s water system. Recovering such costs through the ratepayers of the community is not feasible since the average household incomes within the community are well below the current poverty level. 4. Due to the District’s limited financial resources, the District is forced to seek alternative sources of financing major improvements or repairs to its water system, as they did in the late 1990s. Obtaining outside funds (including partial grant/loan programs) for local projects often requires the District to enter into long-term debt obligations (agreements). Teviston Community Service District MSR Page 8-12 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 8.4 COST AVOIDANCE OPPORTUNITIES The purpose of this section is to identify practices or opportunities that may help to eliminate unnecessary costs. 8.4.1 Fiscal Structure The District has adequate staff resources and administrative capabilities to provide the needed level of services to the residents within its Boundary. The District avoids excessive overhead costs by operating with a part-time administration, which provides adequate levels of service to the small community of less than 500 people. The District also avoids unnecessary costs by contracting out professional services including engineering, legal services, and other consulting services. If the SOI were expanded in the future, the District would assume fiscal responsibilities to construct or maintain the domestic water infrastructure associated with the SOI and any territories that were annexed. LAFCO should consider the relative burden of new annexations to the District when it comes to its ability to provide domestic water service, as well as capital maintenance and replacements required as a result of expanding the District Boundary. It would not be fiscally feasible for the District to expand its SOI in the foreseeable future, as there is currently undeveloped land within the current District Boundary that, when developed, will rely on domestic water service available from the District. The District currently has no plans to expand its SOI. Opportunities exist at the time of annexation and development to introduce alternative methods of construction and maintenance of public or semi-public infrastructure to serve the future SOI/annexation areas. The preparation of a water master plan could help the District avoid unnecessary costs associated with the construction of emergency system improvements to meet demands. Master plans identify infrastructure improvements that will be needed in the future, including an improvement timeline that would allow the District adequate time to set aside and/or obtain funding for those future improvements before the absence of such improvements begins to delay or halt proposed development. Master plans also identify funding sources for their implementation. Master planning also emphasizes “smart growth” practices by making infrastructure available where development is likely to occur. Infrastructure priority should be given to development proposals within the current District Boundary. As land within the District Boundary becomes “built-out”, the District can consider annexing additional land currently within its SOI. 8.4.2 Written Determinations 1. The District avoids excessive overhead costs by operating with a part-time staff, which provides adequate levels of service to the small community. The District also avoids unnecessary costs by contracting out professional services including engineering, legal services, and other consulting services. 2. It would not be fiscally feasible for the District to expand its SOI in the foreseeable future, as there is currently undeveloped land within the current District Boundary that, when developed, will rely on domestic water service available from the District. The District currently has no plans to expand its SOI. 3. The preparation of a water master plan could help the District avoid unnecessary costs associated with the construction of emergency system improvements to meet demands. Master planning also emphasizes “smart growth” practices by making infrastructure available where development is likely to occur. Teviston Community Service District MSR Page 8-13 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 4. Infrastructure priority should be given to development proposals within the current District Boundary. As land within the District Boundary becomes “built-out”, the District can consider annexing additional land currently within its SOI. Teviston Community Service District MSR Page 8-14 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 8.5 OPPORTUNITIES FOR RATE RESTRUCTURING The purpose of this section is to identify opportunities to positively impact rates without decreasing service levels. 8.5.1 Fee Structure The Teviston CSD installed meters and started billing under a metered water system in 1998. The last rate increase passed by the District was also in 1998, when residential base rates were increased from $25.00 to $30.00. The District currently charges a monthly base rate for domestic water service depending on connection type. For residential connections the base monthly rate is $30.00 for the first 15,000 gallons; for business connections the base monthly rate is $55.00 for the first 25,000 gallons; and for church connections the base monthly rate is $20.00 for the first 10,000 gallons. After the base usage, the District charges $1.00 for each additional 1,000 gallons regardless of the connection type. Table 8-1 shows a comparison of water rates and connection fees for other domestic water service providers throughout the County. The table also shows the relationship between monthly service charges and average household incomes for the respective communities. Since some of the service providers charge a metered rate for water, it is necessary to calculate an average monthly bill based upon a specific amount of usage taken as 2,005 cubic feet, or approximately 15,000 gallons, per month for this analysis. TABLE 8-1 COMPARISON OF WATER RATES Average Service Provider Sample Monthly Bill Connection Fee Household Rate/Income Ratio Income Earlimart PUD $12.50 $1,500 $1,775/mo. 0.70% Ivanhoe PUD $9.50 $1,700 $2,171/mo. 0.44% Pixley PUD $20.00 $2,000 $1,942/mo. 1.03% Teviston CSD $30.00 $800 $2,014/mo. 1.49% Tipton CSD $24.00 $2,800 $2,198/mo. 1.09% Alpaugh JPA $55.00 $1,500 $1,974/mo. 2.79% Cutler PUD $18.00 $1,500 $2,028/mo. 0.89% Orosi PUD $19.08 $2,400 $2,533/mo. 0.75% Lemon Cove SD $10.01 $500 $2,361/mo. 0.42% London CSD $18.00 $1,400 $1,807/mo. 1.00% Lindsay-Strathmore ID $14.187 T&M $2,096/mo. 0.68% Poplar CSD $25.00 $1,750 $2,043/mo. 1.22% Richgrove CSD NA NA $1,907/mo. NA Springville PUD $23.42 $2,800 $2,023/mo. 1.16% Strathmore PUD $43.30 $1,150 $2,096/mo. 2.06% Terra Bella ID $12.438 $2,908 $2,109/mo. 0.59% Woodville PUD $27.28 $2,000 $2,123/mo. 1.28% Average $23.17 $1,780 $2,080/mo. 1.11% Notes: 1) Fee information obtained from service providers 2) Average household income based upon Census 2000 data 3) Rate/Income ratio calculated by dividing sample monthly bill by average household income 4) Sample monthly bill is calculated for a typical single family dwelling 5) NA=Not Available 6) T&M=Time and Material basis 7) Based on an average of four separate rates charged by the Lindsay-Strathmore Irrigation District 8) Based on potable water service provided by the Terra Bella Irrigation District 9)Richgrove CSD and Lindsay-Strathmore ID were omitted from the average calculations Teviston Community Service District MSR Page 8-15 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 As indicated in Table 8-1, the monthly water rates charged by the Teviston CSD are among the highest compared to other domestic water service providers throughout the County. The base rates were increased from $25.00 to $30.00 in 1998, to help pay off debt incurred by the District to complete a major water system replacement/rehabilitation project in the late 1990s. Since the project corrected several of the deficiencies in the water system, it is in good operating condition. For this reason, further rate increases in the near future are unlikely. The cost of domestic water service within Teviston equates to approximately 1.49% of the average household income within the community. While the monthly user fees are among the highest, the new connection fees charged by the Teviston CSD are among the lowest compared to other service providers throughout the County. It is recommended that the District complete a water master plan to address the capital facilities needs associated with additional development within the District and its SOI. Master planning is an excellent tool to substantiate fees to be charged to the development community for necessary capital infrastructure system improvements. Generally, user fees should be used for the operation and maintenance of existing infrastructure (including capital replacement costs), while connection fees should be used for capital capacity improvements necessary to serve new development. The District has historically reliied upon grant/loan programs to implement major repairs or improvements to its water system. 8.5.2 Written Determinations 1. The Teviston CSD charges monthly user fees and new connection fees for domestic water service. The District’s monthly base water rate of $30.00 covers a base usage up to 15,000 gallons. Users are charged a metered rate of $1.00 per 1,000 gallons for usage exceeding 15,000 gallons. 2. The District’s base rates were increased from $25.00 to $30.00 in 1998 to help pay off debt incurred by the District to complete a major water system replacement/rehabilitation project in the late 1990s. The project corrected several deficiencies in the water system, indicating that it is in good operating condition. For this reason, further rate increases in the near future are unlikely. 3. While the monthly user fees are among the highest, the new connection fees charged by the Teviston CSD are among the lowest compared to other service providers throughout the County. It is recommended that the District complete a water master plan to address the capital facilities needs associated with additional development within the District and its SOI. Master planning is an excellent tool to substantiate fees to be charged to the development community for necessary capital infrastructure system improvements. 4. Generally, user fees should be used for the operation and maintenance of existing infrastructure (including capital replacement costs), while connection fees should be used for capital capacity improvements necessary to serve new development. Teviston Community Service District MSR Page 8-16 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 8.6 OPPORTUNITIES FOR SHARED FACILITIES The purpose of this section is to evaluate opportunities for the Teviston CSD to share facilities and resources, thereby increasing efficiency. 8.6.1 Shared Facilities Since the location of the Teviston District Boundary is immediately adjacent to existing rural lands, the opportunity for sharing infrastructure does not readily exist. Currently the Teviston CSD is the only water service provider in the immediate area. Opportunities for sharing resources include splitting insurance premiums with nearby districts requiring related insurance coverage. Also the employment of a grant writer by two or more districts could help District’s obtain grant/loan funding for major repair/improvement projects, without incurring the cost of a full-time employee. Special District’s often employ engineers to write loan/grant proposals for major projects, which can be cost prohibitive for the District. 8.6.2 Written Determinations 1. Since the location of the Teviston District Boundary is immediately adjacent to existing rural lands, the opportunity for sharing infrastructure does not readily exist. 2. Opportunities for sharing resources include splitting insurance premiums with nearby Districts requiring related insurance coverage. Also the employment of a grant writer by two or more Districts could potentially benefit the District without incurring the cost of a full time employee. Teviston Community Service District MSR Page 8-17 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 8.7 GOVERNMENT STRUCTURE OPTIONS The purpose of this section is to consider the advantages and disadvantages of various government structures to provide public services. 8.7.1 Development within SOI Areas One of the most critical elements of LAFCO’s responsibilities is in setting logical service boundaries for communities based on their capability to provide services to affected lands. According to the LAFCO Municipal Service Review Guidelines, elimination of overlapping boundaries that confuse the public and cause service inefficiencies should be considered to avoid unnecessary increases in the cost of infrastructure. Currently there are no foreseeable conditions that would indicate that development within the District’s SOI would result in a change in government structure. Prior to development within its SOI area, the District should complete infrastructure planning – including master plans – to address the infrastructure needs of affected areas and funding mechanisms to meet those needs. The District will need to continually expand and improve its domestic water infrastructure to accommodate development within its current District Boundary and SOI areas zoned for development. 8.7.2 Written Determinations 1. There are no other service providers immediately adjacent to the Teviston CSD SOI indicating that the potential for duplication of services is not present. For this reason, it is logical that the Teviston CSD adequately plan for and assume domestic water service within its SOI Boundary. 2. There are no foreseeable conditions that would indicate that development within the District’s SOI would result in a change in government structure. 3. Prior to development within its SOI area the District should complete master planning to address the infrastructure needs of affected areas and funding mechanisms to meet those needs. 4. The District will need to continually expand and improve its domestic water infrastructure to accommodate development within its current District Boundary and SOI areas zoned for development. Teviston Community Service District MSR Page 8-18 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 8.8 EVALUATION OF MANAGEMENT EFFICIENCIES The purpose of this section is to consider the management structure of the Teviston CSD. 8.8.1 Organizational Structure Based upon a review of information provided by the Teviston CSD, it appears as if the provision of domestic water service is managed efficiently, meeting the needs of the small community and ratepayers. The Teviston CSD has accounting and finance functions, current personnel regulations and resolutions. The District undergoes annual audits in compliance with auditing standards. The Teviston CSD is governed by a five-member Board of Directors elected at large from within its boundaries that is responsible for setting policy and general administrative procedures. The District currently operates with two part-time staff members and contracts out for other services, including engineering, legal counsel, accounting, and other consulting services. The District office operates between the hours of 8 A.M. and 11:00 A.M. Tuesday through Thursday, with part-time personnel providing various functions of the District. Also, the District’s answering message provides the public with the operational hours of the District and contact information in case of emergencies. 8.8.2 Written Determinations 1. Based upon information made available, it appears as if the provisions of domestic water service are managed efficiently, meeting the needs of the community and ratepayers. 2. The Teviston CSD is governed by a five member Board of Directors elected at large from within its boundaries that is responsible for setting policy and general administrative procedures. 3. The District currently operates with two part-time staff members, which are available to respond to emergency situations during non business hours. Teviston Community Service District MSR Page 8-19 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01 8.9 LOCAL ACCOUNTABILITY AND GOVERNANCE The purpose of this section is to evaluate the accessibility and levels of public participation associated with the agency’s decision-making processes. 8.9.1 Public Access and Information Methods LAFCO may consider the agency’s record of local accountability in its management of community affairs as a measure against the ability to provide adequate services to the SOI and annexation areas. The Teviston CSD has a five member Board of Directors elected by voters residing within the District Boundary. Regularly scheduled Board meetings, which are open to the public, are held on the second Thursday of each month at 6:00 p.m. at the District office located at 12934 Avenue 80 in Teviston. Agendas for Board meetings are posted and notices provided consistent with public meeting requirements (i.e., the Brown Act) including posting on-site. The District adopts budgets and rate changes at hearings where the public is notified and invited. The District should work with the Tulare County Resource Management Agency (RMA) and/or Tulare County LAFCO to have information regarding District affairs posted on the Tulare County RMA and/or LAFCO website. The District could provide information such as meeting times and locations, budgets, rates, ordinances, agendas, completed/upcoming projects, and other District affairs to Tulare County for posting on the County’s (RMA and/or LAFCO) website. It would make sense to post information regarding District affairs on County websites, since Teviston is an unincorporated community within Tulare County, and there is a mutual interest in the community. The internet is a relatively low-cost yet powerful method of involving the general public/customers/ratepayers in District affairs. Greater dissemination of information can lead to greater interest in attending Board meetings and participating in elections. It also allows the public, some of whom are not physically able to attend Board meetings, to follow District activities remotely from their home or business. 8.9.2 Written Determinations 1. The District complies with the Brown Act open meeting law by holding regularly scheduled meetings in which the public is invited. Regularly scheduled meetings are held on the second Thursday of each month at 6:00 p.m. at the District office. Agendas for Board meetings are posted on-site at the District office. 2. The District adopts budgets and rate changes at hearings where the public is notified and invited. 3. The District should work with the Tulare County Resource Management Agency (RMA) and/or Tulare County LAFCO to have information regarding District affairs posted on the Tulare County RMA and/or LAFCO website. The District could provide information such as meeting times and locations, budgets, rates, ordinances, agendas, completed/upcoming projects, and other District affairs to Tulare County for posting on the County’s (RMA and/or LAFCO) website. Teviston Community Service District MSR Page 8-20 Tulare County LAFCO MSR G1_8 Teviston Jan06.DOC/55-7301-01