LAFCO
MSR G1 9 Tipton Jan06
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CHAPTER 9 – TIPTON CSD MUNICIPAL SERVICE REVIEW
EXECUTIVE SUMMARY
This section provides an overview of the written determinations of the Tipton 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 Tipton CSD MSR identifies the following written
determinations:
Written Determinations
1) Growth and Population
1. The CDP Boundary for Tipton is generally coterminous with the current District Boundary.
2. Census 2000 data indicates that Tipton had a population of 1,790 as of January 2000, while
the Tipton Community Plan, adopted in 1978, projected a year 2000 population between
3,625 and 3,840, which was based upon an average annual growth rate of 5%.
3. Between 1990 and 2000, Tipton experienced an average annual population growth rate of
approximately 2.6%, compared to 0.6% for the unincorporated areas of Tulare County.
4. It is likely that the Tipton community will continue to grow at an average annual rate between
2% and 3% depending upon land use zoning established by the Tulare County General Plan
and other factors. Using an average annual growth rate between 2% and 3%, the Tipton
community would reach an estimated year 2025 population between 2,900 and 3,750.
2) Infrastructure Needs and Deficiencies
Domestic Water
1. Tipton’s water supply is derived from two operational underground wells that provide an
ample, excellent water supply requiring no chlorination or treatment. The two wells have a
total maximum production efficiency of approximately 1,500 GPM.
2. The Tipton CSD also has two wells that are currently inactive; one is currently non-
operational due to oil contamination and the other has been abandoned as a result of nitrate
contamination.
3. The Tipton CSD water system supports 554 total service connections (58 commercial
connections and 496 residential connections).
4. The Tipton CSD recently stared requiring water meters to be installed for all new
development projects although the District currently continues to charge a flat rate for water
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service. Billing on a flat rate schedule for water service does not promote water conservation,
which is becoming a critical issue within Tulare County, as the water table in the region is
overdrawn due to extended drought periods and increased pumping for domestic use.
5. The District’s wells produced 188.727 million gallons in 2003, with a maximum monthly
production of 28.855 million gallons occurring in August, corresponding to a maximum day
demand of 0.931 MGD.
6. It is recommended that LAFCO complete a comprehensive review of any water system
planning reports prior to any SOI updates to ensure that proper facilities planning has taken
place for any proposed SOI expansion area.
7. Assuming 560 equivalent dwelling units (EDUs) in order to meet Tulare County
Improvement Standards, the Tipton CSD water system would need to be capable of
delivering a combined flow rate (from all source and storage facilities) of 2,200 GPM (1,500
GPM fire flow and 700 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 1,500 GPM, indicating that the system falls short of meeting the
Tulare County Improvement Standards. The District Engineer indicated that a new well is
going out for bid, and will be online in the near future. An additional well will likely bring
the water system into compliance with the Tulare County Improvement Standards.
8. A capacity calculation performed in accordance with General Order 103, published by the
California Public Utilities Commission, indicates that the District’s water system is operating
at or near its capacity.
9. The District’s budget for fiscal year 2004-05 indicates that the District received a grant/loan
in the amount of $1,833,865. The District’s 2004-05 budget allocates funds for several water
system improvements including well drilling, water line replacement, a pipeline replacement
program, and maintenance and improvements to existing well sites.
10. The District does not currently have a water system master plan. The District Engineer
indicated that there is no need for a water master plan.
Sanitary Sewer
1. The sanitary sewer system for the Tipton community currently supports 554 total connections
(58 commercial connections and 496 residential connections).
2. The District operates a WWTF that provides secondary treatment of wastewater and is
located west of the community. The WWTF is operated under the provisions of Order No.
85-170 issued by the California RWQCB, which prescribes that the monthly average daily
discharge shall not exceed 0.40 MGD.
3. Treated effluent from two one-acre evaporation/percolation ponds is used to flood irrigate 40
acres of land owned and controlled by the District.
4. Based upon information contained in the Wastewater User Charge Survey Report FY 2004-
05 (CalEPA – State Water Resources Control Board, May 2005), the average dry weather
flow at the WWTF is approximately 0.190 MGD resulting in an excess capacity of
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approximately 210,000 GPD, which could support an estimated additional 600 equivalent
dwelling units.
5. It is anticipated that the District’s WWTF will be operating at or near its permitted capacity
within a 20-year planning period (approximately year 2025). The District has not received
any grants for the construction of wastewater facility improvements. It is recommended that
the District research State and Federal grants and/or loans that may be available to help
finance improvements to the District’s WWTF, including the installation of a flow meter.
Clean Water Grants, State Revolving Fund Loans, and Small Community Grants are
examples.
6. The District does not currently have a sewer system master plan. The District Engineer
indicated that there is no need for a sewer master plan.
3) Financing Constraints and Opportunities
1. The District prepares a comprehensive and thorough annual budget that clearly describes the
services provided to residents and the funds expended for those services.
2. The District’s operating budgets (excluding reserve funds) for fiscal year 2004-05 totaled
$206,670 for sanitary sewer and $2,469,320 for water service. The District’s budget included
contingency funds of $10,000 for sanitary sewer and domestic water service, respectively.
3. A review of the District’s budget indicates that the District is in stable financial condition.
The District’s available resources cover the annual operating expenses of the District
including reserve allocations and contingency appropriations.
4. It is likely that development within the District’s SOI will rely on infrastructure available
from the District. Preparation and implementation of master plans would increase the
District’s preparedness when development within its SOI is proposed.
5. During fiscal year 2004-05, the District received a grant/loan totaling $1,833,865 to construct
improvements to its water system, including the implementation of a pipeline replacement
program.
6. There are no apparent financial constraints limiting the ability of the District to serve existing
and future residents.
4) Cost Avoidance Opportunities
1. Each year, the District’s budget is reviewed with the District Board, District Engineer, and
General Manager to ensure that the District continues to operate within the limits of its
financial resources.
2. The District has adequate staff resources to provide the needed level of services to the
residents within its boundaries. The District also avoids unnecessary costs by contracting out
professional services including engineering, legal services, and other consulting services.
3. The District should continue to work with the development community to fund the
construction of water and sewer infrastructure improvements that would serve new
development sites. The District requires development projects to pay connection fees for
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domestic water and sanitary sewer service, which are currently set at $2800 and $1050 per
EDU, respectively.
5) Opportunities for Rate Restructuring
1. The Tipton CSD charges monthly user fees and new connection fees for water and sewer.
The District’s fiscal year 2004-05 budget estimates revenues of $181,000 and $134,000 to be
generated from water and sewer customer sales, respectively.
2. The District has opportunities to restructure its water rates to be billed under a metered usage
system. Metering would also serve as a water conservation measure.
3. The District should periodically review its monthly user fees and connection fees to ensure
that quality service will continually be provided to existing and future residents. The District
Engineer indicated that water and sewer rates will be increased in the near future.
5) Opportunities for Shared Facilities
1. Since the location of the Tipton 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 sole cost of a full
time employee.
6) Government Structure Options
1. There are no other service providers immediately adjacent to Tipton’s SOI indicating that the
potential for duplication of services is not present. For this reason, it is logical that the Tipton
CSD adequately plan for and assume water and sewer 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. The District and/or County could also require developers to prepare specific plans
prior to approving development within the District’s SOI.
4. The District should continually expand and improve its water and sewer infrastructure to
accommodate new development within its current District Boundary and SOI areas zoned for
development with developer assistance.
7) Evaluation of Management Efficiencies
1. Based upon information made available, it appears as if the provisions of sanitary sewer
service and domestic water service are managed in a cost effective, efficient manner, meeting
the needs of the community and ratepayers.
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2. The Tipton CSD is governed by a five member Board of Directors elected at large from
within its boundaries, which is responsible for setting policy and general administrative
procedures.
3. The District currently operates with two full-time staff members and contracts out for other
services, including engineering, legal counsel, and other consulting services.
4. The District’s answering message provides contact information in case of emergencies.
District staff is available to respond to emergency situations during non-office hours.
8) 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 first
Tuesday of each month at 7:00 p.m. 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.
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9.0 TIPTON COMMUNITY SERVICE DISTRICT
9.0.1 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 Tipton Community Service District 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
Tipton, an unincorporated community in Tulare County, is located in the southwest portion of the County,
south of Tulare along State Route (SR) 99. The Tipton Community Service District (CSD), formed in
1959, has a primary function of providing domestic water and sanitary sewer service to residents within
the community. Domestic water and sanitary sewer collection, treatment, and disposal are the primary
services provided by the Tipton CSD that are subject to a MSR.
Tipton is located approximately 8 miles south of Tulare. The community is square in shape, and is
bisected in a north-south direction by SR 99 and the Union Pacific Railroad tracks, which divides the
community into two approximately equal sized areas. Tipton is an agriculturally oriented service
community surrounded on all sides by lands in agricultural production, scattered rural residential uses,
and vacant land.
Cities and communities surrounding Tipton include Tulare to the north, Pixley to the south, and the
communities of Woodville and Poplar to the east. The current District Boundary and the currently
adopted SOI for the Tipton CSD are illustrated on Figure 9-1.
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FIGURE 9-1 – TIPTON CSD BOUNDARY AND SOI
Source: Tulare County GIS Database (July 2004)
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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.
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9.1 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 Tipton.
9.1.1 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). Each census, community profiles are developed and provide a wide range of information
pertaining to population, demographics, housing information, household data, education and employment,
income and poverty, and historical trends. The CDP Boundary for Tipton is generally coterminous with
the current District Boundary. Census 2000 data indicates that Tipton had a population of 1,790 as of
January 2000. The Tipton Community Plan (Tulare County Planning Department, 1978) projected a
population between 3,625 and 3,840 for the year 2000, which was based upon an average annual growth
rate of 5%. Census 2000 data indicates that the projections contained in the Tipton Community Plan were
significantly higher than the actual growth that has occurred in the community. The Tulare County
Resource Management Agency is having a comprehensive update to the Tipton Community Plan (which
was initially adopted in 1978) prepared to address the future needs of the community relating to growth,
land use, housing, and public services.
Census 1990 data indicates that Tipton had a population of 1,383 in 1990 corresponding to an average
annual growth rate, between 1990 and 2000, of approximately 2.6%. 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 anticipated that Tipton will continue to grow
at an average annual rate between 2% and 3% depending upon land use zoning and other policies
established by the Tulare County General Plan and/or the Tipton Community Plan. Using an average
annual population growth rate between 2% and 3%, the Tipton community would reach an estimated year
2025 population between 2,900 and 3,750.
9.1.2 Written Determinations
1. The CDP Boundary for Tipton is generally coterminous with the current District Boundary.
2. Census 2000 data indicates that Tipton had a population of 1,790 as of January 2000, while
the Tipton Community Plan, adopted in 1978, projected a year 2000 population between
3,625 and 3,840, which was based upon an average annual growth rate of 5%.
3. Between 1990 and 2000, Tipton experienced an average annual population growth rate of
approximately 2.6%, compared to 0.6% for the unincorporated areas of Tulare County.
4. It is likely that the Tipton community will continue to grow at an average annual rate between
2% and 3% depending upon land use zoning established by the Tulare County General Plan
and other factors. Using an average annual growth rate between 2% and 3%, the Tipton
community would reach an estimated year 2025 population between 2,900 and 3,750.
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9.2 INFRASTRUCTURE NEEDS AND DEFICIENCIES
The purpose of this section is to evaluate the infrastructure needs and deficiencies of the Tipton CSD in
terms of availability of resources, capacity to deliver services, condition of facilities, service quality, and
levels of service.
9.2.1 Domestic Water
Tipton’s water supply is derived from two active underground wells. The District has two additional
wells which are currently inactive; one is currently non-operational due to oil contamination, and the
other has been abandoned as a result of nitrate contamination. The two wells currently in use (referred to
as well #2 and well #4) provide high quality water requiring no chlorination or treatment. Well #2 can
produce water at a rate of 700 gallons per minute (GPM), and well #4 can produce water at a rate of 800
GPM. Together the wells have a total maximum production efficiency of 1,500 GPM, or 2.16 million
gallons per day (MGD). Wells are located throughout the community at locations identified below.
• Well No. 1A – Northeast corner of the Jayne Avenue and Smith Road intersection (closed).
• Well No. 2 – Northeast corner of the Spencer Avenue and Adams Road intersection.
• Well No. 3 – Southwest corner of the Olive Avenue and Newman Road intersection (closed).
• Well No. 4 – Northeast corner of the Lerda Avenue and Berry Road intersection.
The community water system currently supports 554 total service connections including 58 commercial
connections and 496 residential connections. The Tipton CSD recently started requiring water meters to
be installed for all new development projects although the District currently continues to charge a flat rate
for water service. Billing on a flat rate schedule for water service does not promote water conservation,
which is becoming a critical issue within Tulare County; the water table in the region is overdrawn due to
extended drought periods, and increased pumping for domestic use. Based upon results other District’s
have experienced by going to a metered water rate schedule, it is likely that metering will cause the usage
to decrease. The total water production for each well by month for year 2003 is shown in Table 9-1
below.
TABLE 9-1
TIPTON CSD GROUNDWATER WELL PRODUCTIONS (YEAR 2003)
Month Well #2 Well #4
January 7.139 mg 0.031 mg
February 7.293 mg 0.055 mg
March 8.925 mg 0.720 mg
April 9.131 mg 1.067 mg
May 11.569 mg 9.121 mg
June 13.423 mg 13.031 mg
July 9.373 mg 13.895 mg
August 11.814 mg 17.041 mg
September 8.265 mg 10.376 mg
October 13.159 mg 5.826 mg
November 8.288 mg 0.091 mg
December 9.045 mg 0.049 mg
Total Annual Production 117.424 mg 71.303 mg
Notes: 1) mg = million gallons
2) Source: Tipton CSD
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As indicated in Table 9-1, in 2003 well #2 produced high volumes of water throughout the year
(indicating that it functions as the primary well), while well #4 produced high volumes of water for six
months of the year (May – October indicating that it functions as the secondary well, and comes online as
needed to meet fire flow and/or peak flow demands). The maximum production occurred in the month of
August and totaled 28.855 million gallons, or approximately 88.6 acre-feet. The District indicated that
engineering reports and evaluations of the water system are prepared and updated by Keller-Wegley
Engineering, Inc. It is recommended that LAFCO complete a comprehensive review of any water system
planning reports prior to any SOI updates to ensure that proper facilities planning has taken place for any
proposed SOI expansion area.
Tulare County Improvement Standards require that the construction of water source facilities 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 560 equivalent dwelling units (EDUs) in order to meet Tulare County Improvement Standards,
the Tipton CSD water system would need to be capable of delivering a combined flow rate (from all
source and storage facilities) of 2,200 GPM (1,500 GPM fire flow and 700 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 1,500 GPM, indicating that the system falls short of
meeting the Tulare County Improvement Standards. The District Engineer indicated that a new well is
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going out for bid, and will be online in the near future. An additional well will likely bring the water
system into compliance with the Tulare County Improvement Standards.
An estimate of water system capacity can be calculated by using General Order 103, published by the
California Public Utilities Commission. For the estimated water system capacity, the total supply source
available is compared to a calculated total supply source required. Other factors that may affect the
capacity of water systems, including but not limited to, water quality, low pressures, required storage, age
of system, and pipeline restrictions, are not considered. The estimated supply source required is
calculated using the following equation,
Q = (N)*(C)*(F) where,
Required
N = Number of customers served
C = Gallon per minute constant: 5 to 9 for flat rate systems, 2 to 5 for metered systems
F = Factor to reflect diversity (inversely proportional to the number of customers)
Using an N value of 554, a C factor of 8.0, and an F factor of 0.33, the estimated total supply source
required is calculated to be 1,470 GPM. A total supply source available of 1,500 GPM indicates that the
District’s water system is operating at or near its capacity.
The District’s budget for fiscal year 2004-05 indicates that the District received a grant/loan in the amount
of $1,833,865. The District’s 2004-05 budget allocates funds for several water system improvements
including well drilling, water line replacement, a pipeline replacement program, and maintenance and
improvements to existing well sites.
The District does not currently have a water system master plan. The District Engineer indicated that
there is no need for a water master plan.
9.2.2 Sanitary Sewer
The Tipton CSD is also responsible for providing sanitary sewer collection, treatment, and disposal
services to residents within its Boundary. According to District staff, there are currently 554 connections
to the Districts sewer system including 496 residential connections and 58 commercial connections. Raw
sewage is collected in a series of collection pipes ranging in size from 4 to 12 inches and then transported
to a WWTF that is owned and operated by the Tipton PUD.
The District operates a WWTF located west of the community near the southwest quadrant of the Avenue
152/N. Wesling Road intersection. The WWTF is operated under the provisions of Order No. 85-170
issued by the California Regional Water Quality Control Board (RWQCB). The District’s WWTF
provides secondary treatment of wastewater via a clarigester and gravity feed trickling filter. Treated
effluent from the trickling filter flows into two one-acre evaporation/percolation ponds. Pond effluent is
used to flood irrigate 40 acres of land owned and controlled by the District. Order No. 85-170 states that
the estimated design capacity of the plant is 0.48 MGD, but prescribes that the monthly average daily
discharge shall not exceed 0.40 MGD.
Based upon information contained in the Wastewater User Charge Survey Report FY 2004-05 (Cal EPA –
State Water Resources Control Board, May 2005), the average dry weather flow at the WWTF is
approximately 0.190 MGD. The District indicated that there is no flow meter installed at the WWTF, so
flows are only estimated. Available data indicates that the District’s WWTF has an excess capacity of
approximately 210,000 GPD, which could support an estimated additional 600 equivalent dwelling units.
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The District will likely need to increase the hydraulic and/or loading capacity of its WWTF to
accommodate any significant industrial and/or manufacturing operations.
The above evaluations indicate that the WWTF will be operating at or near its capacity within a 20-year
planning period (approximately year 2025), using assumed population growth rates as outlined in section
9.1. Based upon information contained in the Wastewater User Charge Survey Report FY 2004-05 (Cal
EPA – State Water Resources Control Board, May 2005), the District has not received any grants for the
construction of wastewater facility improvements. It is recommended that the District research State and
Federal grants and/or loans that may be available to help finance improvements to the District’s WWTF,
including the installation of a flow meter. Potential grants and loans include US-EPA Clean Water
Construction Grants (CWG), State Revolving Fund Loans (SRF), and State Small Community Grants
(SCG).
The District does not currently have a sewer system master plan. The District Engineer indicated that
there is no need for a sewer system master plan.
9.2.3 Written Determinations
Domestic Water
1. Tipton’s water supply is derived from two operational underground wells that provide an
ample, excellent water supply requiring no chlorination or treatment. The two wells have a
total maximum production efficiency of approximately 1,500 GPM.
2. The Tipton CSD also has two wells that are currently inactive; one is currently non-
operational due to oil contamination and the other has been abandoned as a result of nitrate
contamination.
3. The Tipton CSD water system supports 554 total service connections (58 commercial
connections and 496 residential connections).
4. The Tipton CSD recently stared requiring water meters to be installed for all new
development projects although the District currently continues to charge a flat rate for water
service. Billing on a flat rate schedule for water service does not promote water conservation,
which is becoming a critical issue within Tulare County, as the water table in the region is
overdrawn due to extended drought periods and increased pumping for domestic use.
5. The District’s wells produced 188.727 million gallons in 2003, with a maximum monthly
production of 28.855 million gallons occurring in August, corresponding to a maximum day
demand of 0.931 MGD.
6. It is recommended that LAFCO complete a comprehensive review of any water system
planning reports prior to any SOI updates to ensure that proper facilities planning has taken
place for any proposed SOI expansion area.
7. Assuming 560 equivalent dwelling units (EDUs) in order to meet Tulare County
Improvement Standards, the Tipton CSD water system would need to be capable of
delivering a combined flow rate (from all source and storage facilities) of 2,200 GPM (1,500
GPM fire flow and 700 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 1,500 GPM, indicating that the system falls short of meeting the
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Tulare County Improvement Standards. The District Engineer indicated that a new well is
going out for bid, and will be online in the near future. An additional well will likely bring
the water system into compliance with the Tulare County Improvement Standards.
8. A capacity calculation performed in accordance with General Order 103, published by the
California Public Utilities Commission, indicates that the District’s water system is operating
at or near its capacity.
9. The District’s budget for fiscal year 2004-05 indicates that the District received a grant/loan
in the amount of $1,833,865. The District’s 2004-05 budget allocates funds for several water
system improvements including well drilling, water line replacement, a pipeline replacement
program, and maintenance and improvements to existing well sites.
10. The District does not currently have a water system master plan. The District Engineer
indicated that there is no need for a water master plan.
Sanitary Sewer
1. The sanitary sewer system for the Tipton community currently supports 554 total connections
(58 commercial connections and 496 residential connections).
2. The District operates a WWTF that provides secondary treatment of wastewater and is
located west of the community. The WWTF is operated under the provisions of Order No.
85-170 issued by the California RWQCB, which prescribes that the monthly average daily
discharge shall not exceed 0.40 MGD.
3. Treated effluent from two one-acre evaporation/percolation ponds is used to flood irrigate 40
acres of land owned and controlled by the District.
4. Based upon information contained in the Wastewater User Charge Survey Report FY 2004-
05 (CalEPA – State Water Resources Control Board, May 2005), the average dry weather
flow at the WWTF is approximately 0.190 MGD resulting in an excess capacity of
approximately 210,000 GPD, which could support an estimated additional 600 equivalent
dwelling units.
5. It is anticipated that the District’s WWTF will be operating at or near its permitted capacity
within a 20-year planning period (approximately year 2025). The District has not received
any grants for the construction of wastewater facility improvements. It is recommended that
the District research State and Federal grants and/or loans that may be available to help
finance improvements to the District’s WWTF, including the installation of a flow meter.
Clean Water Grants, State Revolving Fund Loans, and Small Community Grants are
examples.
6. The District does not currently have a sewer system master plan. The District Engineer
indicated that there is no need for a sewer master plan.
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9.3 FINANCING OPPORTUNITIES AND CONSTRAINTS
The purpose of this section is to evaluate the capability of the Tipton CSD to finance needed
improvements and services.
9.3.1 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 which 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 fiscal year 2004-05 budget for the Tipton CSD is organized into two separate funds: one for sanitary
sewer and the other for domestic water. Based upon a review of the District’s fiscal year 2004-05 budget,
the District is in sound financial condition. The District’s budget is well organized, thorough, and clearly
articulates the District’s future financial performance plans. The District prepares a traditional line item
budget for each fund (sewer and water) that is divided into the following categories.
• Fund Balances
• Revenues
• Reserve Funds
• Expenses
o Salaries and Employee Benefits
o Services and Supplies
o Other
o Fixed Assets
o Contingencies
The District adopts the budget each year and it is used as the spending plan for the District. The budget
provides a framework for the District to address the following issues: reserves, revenues, expenditures,
investments, and rates and fees.
The District’s sanitary sewer budget for fiscal year 2004-05 identifies a beginning cash balance of
$316,910 and anticipated revenues of $134,000 to be generated from customer sales, resulting in available
resources of $450,910. Of the total resources available, $244,240 is allocated towards restricted reserves
leaving an operating budget of $206,670. Restricted reserves include funds established by depreciation of
equipment and facilities owned and operated by the District, a wastewater capital reserve fund, and
equipment replacement costs.
After accounting for restricted reserves from the District’s budget, the remaining operating budget of
$206,670 covers salaries and employee benefits totaling $49,950; services and supplies totaling $72,220;
other expenditures including taxes and depreciation totaling $7,500; fixed assets totaling $67,000; and a
contingency appropriation of $10,000. With regard to its sewer fund, the District currently has no long-
term debt requiring repayment.
The District’s water budget for fiscal year 2004-05 identifies a beginning cash balance of $1,243,542 and
anticipated revenues of $2,014,865 ($181,000 generated from customer sales and $1,833,865 in
grants/loans). Of the total resources available $789,087 is in restricted reserves, leaving an operating
budget of $2,469,320. Restricted reserves include funds reserved for well drilling, water line
replacement, and pickup replacement.
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After accounting for restricted reserves from the District’s budget, the remaining operating budget of
$2,469,320 covers salaries and employee benefits totaling $49,950; services and supplies totaling
$126,770; fixed assets totaling $2,282,600; and a contingency appropriation of $10,000. In addition to
customer sales, the District also generates revenue from property tax increments, interest on reserves, late
charges and hand delivered fees, and connection fees. Although the District does not specifically include
these additional revenue sources as a part of their proposed budget, revenues generated from these sources
are reported at the end of the fiscal year.
Reviewing the District’s budget for fiscal year 2004-05 indicates that the District is financially stable in
regard to its water and sewer funds. The District’s available resources cover the annual operating
expenses of the District including reserve allocations and contingency appropriations. In addition to
customer sales, the District also generates revenue from property tax increments, interest on reserves, late
charges, and connection fees. Although the District does not specifically include these additional revenue
sources as a part of their proposed budget, revenues generated from these sources are reported at the end
of the fiscal year.
It is likely that development within the SOI will rely upon infrastructure available from the District. For
this reason the District should be prepared to accommodate such growth. Preparation and implementation
of master plans would increase the District’s preparedness when development within its SOI is proposed.
The District could potentially obtain funding assistance for master planning by applying for available
State and/or Federal grants.
The District’s financial constraints involve the governmental structure and the desires of the people in the
community to fund certain activities by establishing assessment districts or fees. The laws under which a
Community Service District is governed provide the structure for funding activities. Key revenue sources
for the Tipton CSD include property taxes, sewer and water service, connection fees, interest on reserves,
and pass through monies. One-time revenues, that are pass-through funds, account for the increases and
decreases in revenue from year to year. On the expenditures side, the District budgets for the services paid
for by residents and provides for other expenses using property tax, and if appropriate, restricted reserve
accounts. Key expenditures include personnel, services and supplies, and pass through revenues for
projects.
9.3.2 Written Determinations
1. The District prepares a comprehensive and thorough annual budget that clearly describes the
services provided to residents and the funds expended for those services.
2. The District’s operating budgets (excluding reserve funds) for fiscal year 2004-05 totaled
$206,670 for sanitary sewer and $2,469,320 for water service. The District’s budget included
contingency funds of $10,000 for sanitary sewer and domestic water service, respectively.
3. A review of the District’s budget indicates that the District is in stable financial condition.
The District’s available resources cover the annual operating expenses of the District
including reserve allocations and contingency appropriations.
4. It is likely that development within the District’s SOI will rely on infrastructure available
from the District. Preparation and implementation of master plans would increase the
District’s preparedness when development within its SOI is proposed.
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5. During fiscal year 2004-05, the District received a grant/loan totaling $1,833,865 to construct
improvements to its water system, including the implementation of a pipeline replacement
program.
6. There are no apparent financial constraints limiting the ability of the District to serve existing
and future residents.
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9.4 COST AVOIDANCE OPPORTUNITIES
The purpose of this section is to identify practices or opportunities that may help to eliminate unnecessary
costs.
9.4.1 Fiscal Structure
The Districts budget process is designed to screen out unnecessary costs. A base budget is completed by
the General Manager for review and discussion by the Board of Directors. Each year, the District’s
budget is reviewed with the District Board, District Engineer, and General Manager to ensure that the
District continues to operate within the limits of its financial resources.
The District has adequate staff resources and administrative capabilities to provide the needed level of
services to the residents within its boundaries. The District avoids unnecessary costs by contracting out
professional services including engineering, legal services, and other consulting services.
The District should continue to work with the development community to fund the construction of water
and sewer infrastructure improvement that would serve new development sites. The District requires
development projects to pay connection fees for domestic water and sanitary sewer service, which are
currently set at $2800 and $1050 per EDU, respectively.
If the SOI were expanded in the future, the District would assume the fiscal responsibilities to construct
and maintain the water and sewer 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 water and sewer service, as well as capital maintenance and replacements required as
a result of expanding the District Boundary. The District indicated that it 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.
9.4.2 Written Determinations
1. Each year, the District’s budget is reviewed with the District Board, District Engineer, and
General Manager to ensure that the District continues to operate within the limits of its
financial resources.
2. The District has adequate staff resources to provide the needed level of services to the
residents within its boundaries. The District also avoids unnecessary costs by contracting out
professional services including engineering, legal services, and other consulting services.
3. The District should continue to work with the development community to fund the
construction of water and sewer infrastructure improvements that would serve new
development sites. The District requires development projects to pay connection fees for
domestic water and sanitary sewer service, which are currently set at $2800 and $1050 per
EDU, respectively.
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9.5 OPPORTUNITIES FOR RATE RESTRUCTURING
The purpose of this section is to identify opportunities to positively impact rates without decreasing
service levels.
9.5.1 Fee Structure
The Tipton CSD recently started requiring water meters to be installed for all new development projects
although the District currently continues to charge a flat rate for water service, which does not promote
water conservation. The Tipton CSD charges a monthly flat rate for sewer service. The District’s fiscal
year 2004-05 budget estimates revenues of $181,000 and $134,000 to be generated from water and sewer
customer sales, respectively. Tables 9-2 and 9-3 show a comparison of water and sewer rates and
connection fees, respectively, for surrounding service providers. The tables also show the relationship
between monthly service charges and average household incomes within 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 9-2
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
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As indicated in Table 9-2, the Tipton CSD water rates are comparable to other service providers
throughout the County. The cost of domestic water service within Tipton equate to approximately 1.09%
of the average household income within the community. The Tipton CSD connection fee is among the
highest of other domestic water providers in the County.
TABLE 9-3
COMPARISON OF SEWER RATES
Average
Monthly Sewer Connection
Service Provider Household Rate/Income Ratio3
User Fee (1 EDU)1 Fee1
Income2
Goshen CSD $32.00 $975 $2,359/mo. 1.36%
Earlimart PUD $7.50 $1,000 $1,775/mo. 0.42%
Ivanhoe PUD $9.50 $1,890 $2,171/mo. 0.44%
Pixley PUD $15.00 $1,800 $1,942/mo. 0.77%
Tipton CSD $8.00 $1,050 $2,198/mo. 0.36%
Cutler PUD $22.00 $3,520 $2,028/mo. 1.08%
Orosi PUD $22.97 $1,745 $2,533/mo. 0.91%
Lemon Cove SD $4.50 $500 $2,361/mo. 0.19%
London CSD $21.00 $1,990 $1,807/mo. 1.16%
Poplar CSD $25.00 $1,300 $2,043/mo. 1.22%
Richgrove CSD $18.00 $750 $1,907/mo. 0.94%
Springville PUD $35.06 $3,900 $2,023/mo. 1.73%
Strathmore PUD $14.70 $500 $2,096/mo. 0.70%
Terra Bella SMD $21.00 $500 $2,109/mo. 1.00%
Woodville PUD $17.25 $700 $2,123/mo. 0.81%
Average $18.23 $1,475 $2,098/mo. 0.87%
1) Source: Wastewater User Charge Survey Report FY 2004-05 (CalEPA – SWRCB, May 2005)
2) Source: Census 2000
As indicated in Table 9-3, the Tipton CSD sewer rates are among the lowest compared to other service
providers throughout the County. The cost of sanitary sewer service within Tipton equates to
approximately 0.36% of the average household income within the community. The new connection fees
for sanitary sewer charged by the Tipton CSD are also below average compared to other sewer service
providers in the County. The District Engineer indicated that water and sewer rates will be increased in
the near future.
The District should periodically review its monthly user and connection fees to ensure that quality service
will continually be provided to existing and future residents. The District Engineer indicated that water
and sewer rates will be increased in the near future.
9.5.2 Written Determinations
1. The Tipton CSD charges monthly user fees and new connection fees for water and sewer.
The District’s fiscal year 2004-05 budget estimates revenues of $181,000 and $134,000 to be
generated from water and sewer customer sales, respectively.
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2. The District has opportunities to restructure its water rates to be billed under a metered usage
system. Metering would also serve as a water conservation measure.
3. The District should periodically review its monthly user fees and connection fees to ensure
that quality service will continually be provided to existing and future residents. The District
Engineer indicated that water and sewer rates will be increased in the near future.
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9.6 OPPORTUNITIES FOR SHARED FACILITIES
The purpose of this section is to evaluate opportunities for the Tipton CSD to share facilities and
resources, thereby increasing efficiency.
9.6.1 Shared Facilities
Since the location of the Tipton District Boundary is immediately adjacent to existing rural lands, the
opportunity for sharing infrastructure does not readily exist. Currently the Tipton CSD is the only water
and sewer 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
potentially benefit the District without incurring the sole cost of a full time employee.
9.6.2 Written Determinations
1. Since the location of the Tipton 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 sole cost of a full
time employee.
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9.7 GOVERNMENT STRUCTURE OPTIONS
The purpose of this section is to consider the advantages and disadvantages of various government
structures to provide public services.
9.7.1 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. Currently, there are no
Boundary conflicts with the Tipton CSD and there are no anticipated conflicts in the future that could
affect the District’s SOI. 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 and/or County could also require developers to prepare specific plans prior to
approving development within the District’s SOI. The District should continually expand and improve its
water and sewer infrastructure to accommodate development within its current District Boundary and SOI
areas zoned for development with developer assistance.
9.7.2 Written Determinations
1. There are no other service providers immediately adjacent to Tipton’s SOI indicating that the
potential for duplication of services is not present. For this reason, it is logical that the Tipton
CSD adequately plan for and assume water and sewer 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. The District and/or County could also require developers to prepare specific plans
prior to approving development within the District’s SOI.
4. The District should continually expand and improve its water and sewer infrastructure to
accommodate new development within its current District Boundary and SOI areas zoned for
development with developer assistance.
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9.8 EVALUATION OF MANAGEMENT EFFICIENCIES
The purpose of this section is to consider the management structure of the Tipton CSD.
9.8.1 Organizational Structure
Based upon a review of information provided by the Tipton CSD, it appears as if the provisions of
sanitary sewer service and domestic water service are managed in a cost effective, efficient manner,
meeting the needs of the community and ratepayers. Although the Tipton CSD water rates are among the
highest of surrounding service providers, sewer rates are among the lowest. Implementing a metered
billing system for water could increase the efficiency of the domestic water service provision by reducing
the cost of water to low volume users.
The Tipton CSD has accounting and finance functions, current personnel regulations and resolutions. The
District undergoes annual audits in compliance with auditing standards. The Tipton 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 employees; one
full time clerk and one full time maintenance technician. Typically, the District contracts out for other
services which include engineering, legal counsel, and other consulting services the District is not
equipped to provide independently. The Tipton CSD has the following hours of operation:
• Monday – Thursday: 8:00 a.m. – 3:30 p.m.
• Friday: Closed
The District’s answering message provides the public with the operational hours of the District and with
contact information in case of emergencies. Emergency contact information is also posted on the
District’s office door. District staff is available to respond to emergency situations during non office
hours.
Based upon the District’s 2004-05 water and sewer budget, $20,000 is appropriated for contingencies.
Contingency funds can be used for emergency improvements and/or unforeseen replacement or
rehabilitation costs.
9.8.2 Written Determinations
1. Based upon information made available, it appears as if the provisions of sanitary sewer
service and domestic water service are managed in a cost effective, efficient manner, meeting
the needs of the community and ratepayers.
2. The Tipton CSD is governed by a five member Board of Directors elected at large from
within its boundaries, which is responsible for setting policy and general administrative
procedures.
3. The District currently operates with two full-time staff members and contracts out for other
services, including engineering, legal counsel, and other consulting services.
4. The District’s answering message provides contact information in case of emergencies.
District staff is available to respond to emergency situations during non-office hours.
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9.9 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.
9.9.1 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 Tipton CSD has a five member Board of Directors elected by voters residing within the Districts
Boundary. Regularly scheduled Board meetings, which are open to the public, are held on the first
Tuesday of each month at 7:00 p.m. at the District office located at 263 South Graham Road in Tipton.
Special meetings may be called by giving 24 hour notice at the request of the District’s President with the
concurrence of at least one other member of the board, or at the request of any three members of the
board.
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 Tipton 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.
9.9.2 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 first
Tuesday of each month at 7:00 p.m. 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.
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