MSR G2 5 Lemon Cove Apr06

CHAPTER 5 – LEMON COVE SANITARY DISTRICT MUNICIPAL SERVICE REVIEW EXECUTIVE SUMMARY This section provides an overview of the written determinations of the Lemon Cove Sanitary District 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 Lemon Cove Sanitary District MSR identifies the following written determinations: Written Determinations 1) Growth and Population 1. Between 1990 and 2000, Lemon Cove experienced an average annual population growth rate of approximately 2.5%, compared to 0.6% for the unincorporated areas of Tulare County. 2. Assuming no development constraints, it can be expected that Lemon Cove will experience growth at an average annual rate between 2% and 3%, indicating the community would reach a year 2025 population between 500 and 650 residents. 3. The District’s water system serves approximately 160 residents indicating that there are additional residents within the County Census Boundary, and District SOI, which are not currently provided domestic water by the Lemon Cove Sanitary District. 4. Consistent with the Urban Boundaries element of the Tulare County General Plan, the Lemon Cove UAB is, for the most part, coterminous with the District’s SOI. 2) Infrastructure Needs and Deficiencies Domestic Water 1. The Lemon Cove Sanitary District operates a water supply and distribution system under the jurisdiction of the Tulare County Environmental Health Services Division, which is responsible for the administration and enforcement of the Safe Drinking Water Act involving those systems in Tulare County with less than 200 connections. 2. The District’s water supply and distribution system, which includes a 30,000 gallon storage tank, booster pump, and a 4,000 gallon pressure tank, supports approximately 50 active connections. 3. The water system has no permanently installed treatment at this time, and there is no backup water supply on the District’s system. Lemon Cove Sanitary District MSR Page 5-1 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 4. The District’s water system is fully metered, which is indicative of the District’s desire to promote water conservation, and continue to provide effective water service to its residents. 5. According to the District’s 2004 Consumer Confidence Report, water samples taken in December 2004 contained nitrate levels of 55 mg/L, which exceeds the maximum contaminant level (MCL) of 45 mg/L. The Lemon Cove Sanitary District has been issued a compliance order (No. 04-95) to address the elevated nitrate levels. 6. Assuming 50 equivalent dwelling units (EDUs), in order to meet Tulare County Improvement Standards the Lemon Cove Sanitary District water system would need to be capable of delivering a combined flow rate (from all source and storage facilities) of 780 GPM (500 GPM fire flow, and 280 GPM domestic demand) for a period of two hours while maintaining a minimum pressure of 25 PSI to each lot served; 7. The water system storage volume of 34,000 gallons would be capable of delivering a source flow of approximately 280 GPM for a period of two hours, indicating that the pumping efficiency of the District’s only well would need to be 500 GPM in order to meet the requirements of the Tulare County Improvement Standards. Prior to granting any SOI expansions, it is recommended that LAFCO verify that there is adequate water system capacity to meet any anticipated increased demands. It is also recommended that the District work to develop a backup water supply. 8. The District would need to expand its water supply and distribution system to support any significant development projects proposed within its SOI. Sanitary Sewer 1. The Lemon Cove Sanitary District is also responsible for providing sanitary sewer service to residents within its Boundary. It is assumed that there are 50 connections to the District’s sewer system, the same number of connections to their water system. 2. The District owns and operates a WWTF located approximately 0.7 miles north of the community. The WWTF is operated under the provisions of Waste Discharge Requirements Order No. 94-348, issued by the RWQCB. 3. Order No. 94-348 prescribes that the monthly average dry weather discharge flow shall not exceed 20,000 GPD. According to 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 12,000 GPD. 4. Using a demand of 310 GPD per connection, it is estimated that the District’s sanitary sewer treatment and disposal capabilities would allow for approximately 25 additional connections (equivalent dwelling units) to the system. 5. The District would need to expand the capacity of it’s WWTF to support any significant development project’s proposed within its SOI. Lemon Cove Sanitary District MSR Page 5-2 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 3) Financing Constraints and Opportunities 1. The District’s operating budgets (excluding restricted reserves for fiscal year 2004-05 totaled $43,870 for domestic water, and $22,041 for sanitary sewer. Available funds were allocated to services and supplies or fixed assets. 2. The District had no funds allocated to contingency appropriations for its water or sewer funds during fiscal year 2004-05. It is recommended that the District allow for contingency appropriations to cover any unforeseen costs which may arise. 3. A review of the District’s expenses indicates that no fiscal resources are allocated towards salaries and employee benefits, indicating that the District operates with volunteer staffing. 4. It is likely that development within the District’s SOI will rely on infrastructure available from the District. To increase its preparedness when such development is proposed, it is recommended that the District prepare and implement water and sewer system master plans. 5. Due to the District’s limited financial resources, it is recommended that the District work with the development community to construct infrastructure improvements that would increase the capacity of the District’s water and sewer systems. Master planning infrastructure out to the District’s SOI Boundary would provide a baseline for the infrastructure needs within its SOI, in addition to identifying any existing deficiencies. 4) Cost Avoidance Opportunities 1. The District avoids unnecessary costs by operating with volunteer staffing. The District does not employ an engineer, but uses contracted consulting engineers only when absolutely necessary. The District uses County Legal Counsel if necessary. 2. It is recommended that the District work with federal, state, and local government, and the development community to secure funding for the construction of water and sewer infrastructure improvements that would serve new development sites as a way of avoiding unnecessary costs. 3. Master planning could help the District avoid unnecessary costs by allowing the District sufficient time to set aside funding needed for future capacity improvements that would allow for development within the community. 4. The District could also avoid unnecessary costs associated with the maintenance of capital infrastructure by promoting development in infill areas, and areas where infrastructure is already in place. 5) Opportunities for Rate Restructuring 1. The Lemon Cove Sanitary District charges monthly user fees and connection fees for water and sewer. The District’s fiscal year 2004-05 budget estimates revenues of $4,270 to be generated from water and sewer customer sales. Lemon Cove Sanitary District MSR Page 5-3 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 2. The monthly user fees and connection fees charged by the Lemon Cove Sanitary District for water and sewer service are significantly below average compared to other water and sewer service providers in the County. 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. Any rate increases should be substantiated and adopted through a public hearing process. The District currently bills under a metered rate structure for domestic water service, which promotes water conservation. 4. Generally, user fees should be used for the operation and maintenance of existing infrastructure while connection fees should be used for the construction of new infrastructure to accommodate new development. It is recommended that the District consider re- evaluating its fee structure to segregate costs associated with provision of infrastructure to accommodate new development. 6) Opportunities for Shared Facilities 1. Since the location of the Lemon Cove District Boundary is immediately adjacent to existing rural lands, the opportunity for sharing infrastructure does not readily exist. 7) Government Structure Options 1. 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. 2. Any change in organization should be completed in accordance with LAFCO policies and procedures. 3. The District should continually expand and improve its domestic water and sanitary sewer infrastructure to accommodate development within its current District Boundary and SOI areas zoned for development. 8) Evaluation of Management Efficiencies 1. The Lemon Cove Sanitary District is governed by a five member Board of Directors elected at large from within its boundaries and is responsible for setting policy and general administrative procedures. 2. The District currently operates with volunteer staff. The District does not have a District office, and Board meetings are held in the Office Managers home. 3. District representatives can be contacted by phone. District personnel should be available to respond to emergencies during non office hours. 4. The District’s fiscal year 2004-05 budget did not allow for contingency appropriations. It is recommended that the District allow for contingency allocations to cover any unforeseen costs that may arise. Lemon Cove Sanitary District MSR Page 5-4 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 9) Local Accountability and Governance 1. Regularly scheduled meetings are held on the second Tuesday of each month at the Office Manager’s home. 2. 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. Lemon Cove Sanitary District MSR Page 5-5 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 5.0 LEMON COVE SANITARY DISTRICT 5.0.1 Background The requirement for LAFCO to conduct reviews of local municipal services was established with the passage of AB 2838 known as 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. MSRs provide LAFCO 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 Tulare County LAFCO adopted an MSR exemption policy that 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 an MSR study. The Lemon Cove Sanitary 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 Lemon Cove, an unincorporated community in Tulare County, is located in the northern portion of the County, approximately four miles southeast of Woodlake and eleven miles northeast of Visalia. The Lemon Cove Sanitary District, which was formed in December 1950, has a primary function of providing sanitary sewer and domestic water service for the community. Sanitary sewer and domestic water service are the primary services provided by the Lemon Cove SD that are subject to an MSR. Lemon Cove is an agriculturally oriented service community surrounded by lands in agricultural production, vacant lands, and scattered residential homes. State Route 198 and State Route 216 provide primary access to the cities of Visalia and Woodlake, respectively. Cities and communities surrounding Lemon Cove include Visalia to the southwest; Woodlake to the northwest; and the community of Three Rivers to the northeast. The Tulare County/Fresno County Line is located approximately 10.5 miles north of Lemon Cove. The current District Boundary and the currently adopted SOI for the Lemon Cove Sanitary District are illustrated on Figure 5-1. Figure 5-1 also shows the Lemon Cove Urban Area Boundary (UAB). Lemon Cove Sanitary District MSR Page 5-6 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 FIGURE 5-1 – LEMON COVE SD BOUNDARY, SOI, AND URBAN AREA BOUNDARY (UAB) Source: Tulare County GIS Database Lemon Cove Sanitary District MSR Page 5-7 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.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. Lemon Cove Sanitary District MSR Page 5-8 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 5.1 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 Lemon Cove. 5.1.1 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). In 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. Census 2000 data indicates that Lemon Cove had a population of 298 as of January 2000. Census 1990 data indicates that Lemon Cove had a population of 232 corresponding to an average annual growth rate between 1990 and 2000 of approximately 2.5%. 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%. Assuming no development constraints, it is likely that the Lemon Cove community will continue to grow at an average annual rate between 2% and 3%. Using an average annual growth rate between 2% and 3%, the Lemon Cove community would reach a year 2025 population between 500 and 650 residents. Based upon information contained in the Sanitary Survey Report for the Lemon Cove Sanitary District (County of Tulare Health and Human Services Agency, 2001), the District’s water system serves a population of approximately 160 residents. This is an indication that there are additional residents within the County Census Boundary, and District SOI, which are not currently provided domestic water by the Lemon Cove Sanitary District. 5.1.2 Planning Boundaries In addition to a SOI, which is defined by LAFCO as the “…physical boundary and service area that a local government agency is expected to serve…” an urban area boundary (UAB) has been established and designates the Lemon Cove urban area. Figure 5-1 shows the District Boundary and SOI in comparison to the District’s UAB. The UAB is, for the most part, coterminous with the external SOI boundary of the District. The Tulare County General Plan contains an Urban Boundaries Element which establishes goals for designating realistic planning areas around cities and unincorporated communities which could be used to help determine boundaries for community service districts and County service areas, in areas where differing levels of service are required, and within which corporate annexations may take place. The following are excerpts from the County of Tulare General Plan Policy Summary Section 1UB.C.1 – Unincorporated Communities Policies. “Urban Development Boundaries are established around the following unincorporated communities in the County to serve as official urban planning areas for these communities: Cutler-Orosi, Ducor, Earlimart, East Orosi, Goshen, Ivanhoe, Lemon Cove, London, Pixley, Plainview, Poplar-Cotton Center, Richgrove, Strathmore, Terra Bella, Tipton, Traver, Woodville, Alpaugh, and Springville.” Lemon Cove Sanitary District MSR Page 5-9 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 “A land use plan is to be developed for each community with an Urban Development Boundary, specifying desired densities and land use categories, with particular attention to defining suitable areas for the full range of urban development and rural residential development. Such plans shall include the entire area within the Boundary and shall recognize the short and long term ability of each community to provide necessary urban services within its Urban Development Boundary.” Furthermore, the County of Tulare General Plan Policy Summary Sections 1UB.F.1. and 1UB.F.2. set forth policies with regard to “Boundary Consistency”, and “Review and Revision of Boundaries.” Excerpts from these sections of the County General Plan Policy Summary relating to special districts are reiterated below. “In areas where special districts provide rural as well as urban services, LAFCo should distinguish between “urban” and “rural” service areas for the purpose of establishing Spheres of Influence for such districts. If an unincorporated community is served by a special district, the Urban Development Boundary should be consistent with the district’s “urban” Sphere of Influence.” “County census boundaries should be as consistent as possible with Urban Development Boundaries.” “Urban Area Boundaries and Urban Development Boundaries shall be reviewed at least once every five years to determine if boundary changes are justified, or if additional boundaries are needed for communities not included herein. However, a review may be conducted at any time on request of the affected city or agency.” As indicated on Figure 5-1, the Lemon Cove UAB is, for the most part, coterminous with the external SOI boundary of the District. The County census boundary is bounded by the railroad tracks to the north and west, and S.R. 198 to the east, while the District’s UAB includes areas east of S.R. 198, and does not include areas south of the railroad tracks southwest of town. Generally, the census boundary covers the urbanized area of the community. 5.1.3 Written Determinations 1. Between 1990 and 2000, Lemon Cove experienced an average annual population growth rate of approximately 2.5%, compared to 0.6% for the unincorporated areas of Tulare County. 2. Assuming no development constraints, it can be expected that Lemon Cove will experience growth at an average annual rate between 2% and 3%, indicating the community would reach a year 2025 population between 500 and 650 residents. 3. The District’s water system serves approximately 160 residents indicating that there are additional residents within the County Census Boundary, and District SOI, which are not currently provided domestic water by the Lemon Cove Sanitary District. 4. Consistent with the Urban Boundaries element of the Tulare County General Plan, the Lemon Cove UAB is, for the most part, coterminous with the District’s SOI. Lemon Cove Sanitary District MSR Page 5-10 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 5.2 INFRASTRUCTURE NEEDS AND DEFICIENCIES The purpose of this section is to evaluate the infrastructure needs and deficiencies of the Lemon Cove Sanitary District in terms of availability of resources, capacity to deliver services, condition of facilities, service quality, and levels of service. 5.2.1 Domestic Water The Lemon Cove Sanitary District is responsible for providing domestic water service within the District’s Boundary. The water system is regulated by the Tulare County Environmental Health Services Division which has been granted primacy by the California Department of Health Services. The Division is responsible for the administration and enforcement of the Safe Drinking Water Act involving those systems in Tulare County with less than 200 connections. There are approximately 50 active domestic water service connections within the District. The District’s water system consists of a single well with a two horsepower submersible pump, a 30,000 gallon storage tank, booster pump, a 4,000 gallon pressure tank, and the water distribution system. The water system has no permanently installed treatment at this time. In addition, there is no backup water supply on the District’s system. According to the Sanitary Survey Report completed by the County of Tulare Health and Human Services Agency, the water system appears adequate to meet the needs of the Sanitary District. The County Health Department is unaware of any complaints concerning water shortages or pressure problems. Fire hydrants on the District’s system are used to fill tanker type fire trucks with no apparent negative effect to the system. The water system extends south at the intersection of Highway 198 and Avenue 324 ending with a fire hydrant in front of the Lemon Cove Campground. The District agreed to supply a newer hydrant in front of the Sequoia Union School. The school itself has its own separate permitted water supply. The public water system is not cross-connected or inter-connected with any other water supply. The fire hydrants are part of the water system, but the water lines do not interconnect with the public water systems at the Sequoia Union School or the Lemon Cove-Sequoia Campground. Items that were brought to the attention of the operator to bring the water system into compliance during the 2001 inspection by the County Health Department included repairing the leak at the turbine pressure tank site. According to the District’s 2004 Consumer Confidence Report, water samples taken in December 2004 contained nitrate levels of 55 mg/L, which exceeds the maximum contaminant level (MCL) of 45 mg/L. The Lemon Cove Sanitary District has been issued a compliance order (No. 04-95) to address the elevated nitrate levels, which exceed the current maximum contaminant level of 45 mg/L. The District’s water system is fully metered. The District’s implementation of a metered water rate structure is indicative of the District’s desire to promote water conservation, and continue to provide effective water service to its residents. For single family dwelling connections, the District charges a base rate of $3.00 per month and $0.35 for each 100 cubic feet delivered. 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 Lemon Cove Sanitary District MSR Page 5-11 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 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 50 equivalent dwelling units (EDUs), in order to meet Tulare County Improvement Standards the Lemon Cove Sanitary District water system would need to be capable of delivering a combined flow rate (from all source and storage facilities) of 780 GPM (500 GPM fire flow, and 280 GPM domestic demand) for a period of two hours while maintaining a minimum pressure of 25 PSI to each lot served; The water system storage volume of 34,000 gallons would be capable of delivering a source flow of approximately 280 GPM for a period of two hours, indicating that the pumping efficiency of the District’s only well would need to be 500 GPM in order to meet the requirements of the Tulare County Improvement Standards. The pumping efficiency of the District’s well is unknown. Prior to granting any SOI expansions, it is recommended that LAFCO verify that there is adequate water system capacity to meet any anticipated increased demands. It is also recommended that the District work to develop a backup water supply. 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. For the Lemon Cove Sanitary District, the total supply source available is not known, and therefore only the total supply source required is calculated. The estimated supply source required is calculated using the following equation, Lemon Cove Sanitary District MSR Page 5-12 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 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 50, a C factor of 5.0, and an F factor of 0.98, the estimated total supply source required is calculated to be 245 GPM for the Lemon Cove Sanitary District. The District would need to expand its water supply and distribution system to support any significant development projects proposed within its SOI. 5.2.2 Sanitary Sewer The Lemon Cove Sanitary District is also responsible for providing sanitary sewer service to residents within its Boundary. Although not verified by District staff, it is estimated that there are approximately 50 connections to the District’s sanitary sewer system, the same number of connections to the District’s domestic water system. Raw sewage is collected and transported to a wastewater treatment and disposal facility (WWTF) located approximately 0.7 miles north of Lemon Cove that is owned and operated by the Lemon Cove Sanitary District. The District obtained a Clean Water Grant in 1974 to make improvements to the District’s sewage collection and treatment system. The WWTF was designed to eliminate an open ditch disposal system which passed through town and citrus groves to an irregular shaped pond which at various times overflowed to the Kaweah River. A single 185 foot wide, 300 foot long, 4.5 foot deep bentonite sealed oxidation pond was constructed and planned disposal was by discharge to approximately 40 acres of adjacent pasture for non-milking cattle. The oxidation pond was later divided into two cells. The District has not discharged to the pasture since the facility was constructed, since the flow has not exceeded the evaporation and percolation capacity of the treatment pond. The District’s WWTF is operated under the provisions of Waste Discharge Requirements Order No. 94- 348, issued by the California Regional Water Quality Control Board (RWQCB), Central Valley Region. Order No. 94-348 prescribes that the monthly average dry weather discharge flow shall not exceed 20,000 GPD. According to 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 12,000 GPD. Using a demand of 310 GPD per connection, it is estimated that the District’s sanitary sewer treatment and disposal capabilities would allow for approximately 25 additional connections (equivalent dwelling units) to the system. Although there is remaining treatment capacity, other factors need to be considered such as the District’s sewage collection system which could also be a limiting factor to the total capacity of the District’s sewage system. The District would need to expand the capacity of it’s WWTF to support any significant development project’s proposed within its SOI. 5.2.3 Written Determinations Domestic Water 1. The Lemon Cove Sanitary District operates a water supply and distribution system under the jurisdiction of the Tulare County Environmental Health Services Division, which is responsible for the administration and enforcement of the Safe Drinking Water Act involving those systems in Tulare County with less than 200 connections. Lemon Cove Sanitary District MSR Page 5-13 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 2. The District’s water supply and distribution system, which includes a 30,000 gallon storage tank, booster pump, and a 4,000 gallon pressure tank, supports approximately 50 active connections. 3. The water system has no permanently installed treatment at this time, and there is no backup water supply on the District’s system. 4. The District’s water system is fully metered, which is indicative of the District’s desire to promote water conservation, and continue to provide effective water service to its residents. 5. According to the District’s 2004 Consumer Confidence Report, water samples taken in December 2004 contained nitrate levels of 55 mg/L, which exceeds the maximum contaminant level (MCL) of 45 mg/L. The Lemon Cove Sanitary District has been issued a compliance order (No. 04-95) to address the elevated nitrate levels. 6. Assuming 50 equivalent dwelling units (EDUs), in order to meet Tulare County Improvement Standards the Lemon Cove Sanitary District water system would need to be capable of delivering a combined flow rate (from all source and storage facilities) of 780 GPM (500 GPM fire flow, and 280 GPM domestic demand) for a period of two hours while maintaining a minimum pressure of 25 PSI to each lot served; 7. The water system storage volume of 34,000 gallons would be capable of delivering a source flow of approximately 280 GPM for a period of two hours, indicating that the pumping efficiency of the District’s only well would need to be 500 GPM in order to meet the requirements of the Tulare County Improvement Standards. Prior to granting any SOI expansions, it is recommended that LAFCO verify that there is adequate water system capacity to meet any anticipated increased demands. It is also recommended that the District work to develop a backup water supply. 8. The District would need to expand its water supply and distribution system to support any significant development projects proposed within its SOI. Sanitary Sewer 1. The Lemon Cove Sanitary District is also responsible for providing sanitary sewer service to residents within its Boundary. It is assumed that there are 50 connections to the District’s sewer system, the same number of connections to their water system. 2. The District owns and operates a WWTF located approximately 0.7 miles north of the community. The WWTF is operated under the provisions of Waste Discharge Requirements Order No. 94-348, issued by the RWQCB. 3. Order No. 94-348 prescribes that the monthly average dry weather discharge flow shall not exceed 20,000 GPD. According to 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 12,000 GPD. 4. Using a demand of 310 GPD per connection, it is estimated that the District’s sanitary sewer treatment and disposal capabilities would allow for approximately 25 additional connections (equivalent dwelling units) to the system. Lemon Cove Sanitary District MSR Page 5-14 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 5. The District would need to expand the capacity of it’s WWTF to support any significant development project’s proposed within its SOI. Lemon Cove Sanitary District MSR Page 5-15 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 5.3 FINANCING OPPORTUNITIES AND CONSTRAINTS The purpose of this section is to evaluate the jurisdictions capability to finance needed improvements and services. 5.3.1 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 fiscal year 2004-05 budget for the Lemon Cove Sanitary District is organized into two separate funds: one for sanitary sewer and the other for domestic water. The District prepares a traditional line item budget for each fund (sewer and water) that is divided into the following categories. • Fund Balances • Estimated Revenues • Estimated Expenditures o Services and Supplies o Equipment 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 contingency appropriations. The District’s water and sewer funds for fiscal year 2004-05 identify beginning cash balances of $43,870 and $55,293, respectively. The sewer fund allocates $33,252 to restricted reserves (presumably for WWTF operations). After accounting for restricted reserves, the District has $43,870 in total available resources for the water fund, and $22,041 in total available resources for the sewer fund. For the water fund, the total available resources are allocated as follows: $36,302 to services and supplies and $14,000 to equipment (fixed assets). For the sewer fund, the total available resources are allocated as follows: $20,946 to services and supplies, and $5,000 to equipment (fixed assets). The District has no funds allocated to contingency appropriations for its water or sewer funds. It is recommended that the District allow for contingency appropriations to cover any unforeseen costs which may arise. In addition, no resources are allocated towards salaries and employee benefits, indicating that the District operates with volunteer staffing. It is likely that development within the SOI will rely on infrastructure available from the District. For this reason the District should be prepared to accommodate such growth. The preparation and implementation of water and sewer system master plans would increase the District’s preparedness when development within its SOI is proposed. The District could potentially obtain funding assistance by applying for available State and/or Federal grants to prepare, and potentially implement, master plans. Due to the District’s limited financial resources, it is recommended that the District work with the development community to construct infrastructure improvements that would increase the capacity of the District’s water and sewer systems. Master planning infrastructure out to the District’s SOI Boundary would provide a baseline for the infrastructure needs within its SOI, in addition to identifying any existing deficiencies. Lemon Cove Sanitary District MSR Page 5-16 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 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. Key revenue sources for the Lemon Cove Sanitary District include modest levels of property tax increments, interest on reserves, customer user fees, and connection fees. 5.3.2 Written Determinations 1. The District’s operating budgets (excluding restricted reserves for fiscal year 2004-05 totaled $43,870 for domestic water, and $22,041 for sanitary sewer. Available funds were allocated to services and supplies or fixed assets. 2. The District had no funds allocated to contingency appropriations for its water or sewer funds during fiscal year 2004-05. It is recommended that the District allow for contingency appropriations to cover any unforeseen costs which may arise. 3. A review of the District’s expenses indicates that no fiscal resources are allocated towards salaries and employee benefits, indicating that the District operates with volunteer staffing. 4. It is likely that development within the District’s SOI will rely on infrastructure available from the District. To increase its preparedness when such development is proposed, it is recommended that the District prepare and implement water and sewer system master plans. 5. Due to the District’s limited financial resources, it is recommended that the District work with the development community to construct infrastructure improvements that would increase the capacity of the District’s water and sewer systems. Master planning infrastructure out to the District’s SOI Boundary would provide a baseline for the infrastructure needs within its SOI, in addition to identifying any existing deficiencies. Lemon Cove Sanitary District MSR Page 5-17 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 5.4 COST AVOIDANCE OPPORTUNITIES The purpose of this section is to identify practices or opportunities that may help to eliminate unnecessary costs. 5.4.1 Fiscal Structure The District has adequate staff resources and administrative capabilities to provide the needed level of services to the residents within its boundaries. The District avoids unnecessary costs by operating with volunteer staffing. The District does not employ an engineer, but uses contracted consulting engineers only when absolutely necessary. The District also has no legal counsel, but if necessary, uses County Counsel. The District requires new development projects to pay connection fees in order to mitigate impacts to the District’s infrastructure, currently set at $500 per equivalent dwelling unit (EDU) for both new water and sewer connections. It is recommended that the District work with the development community to fund the construction of water and sewer infrastructure improvements that would serve new development sites as a way of avoiding unnecessary costs. The preparation of water and sewer system master plans 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 typically identify funding sources for their implementation. If the SOI were expanded in the future, the District would assume fiscal responsibilities to construct or maintain the sewer and domestic water infrastructure associated with the SOI and any territories that were annexed. LAFCO should consider the relative financial and operational 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. 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. 5.4.2 Written Determinations 1. The District avoids unnecessary costs by operating with volunteer staffing. The District does not employ an engineer, but uses contracted consulting engineers only when absolutely necessary. The District uses County Legal Counsel if necessary. 2. It is recommended that the District work with federal, state, and local government, and the development community to secure funding for the construction of water and sewer infrastructure improvements that would serve new development sites as a way of avoiding unnecessary costs. 3. Master planning could help the District avoid unnecessary costs by allowing the District sufficient time to set aside funding needed for future capacity improvements that would allow for development within the community. 4. The District could also avoid unnecessary costs associated with the maintenance of capital infrastructure by promoting development in infill areas, and areas where infrastructure is already in place. Lemon Cove Sanitary District MSR Page 5-18 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 5.5 OPPORTUNITIES FOR RATE RESTRUCTURING The purpose of this section is to identify opportunities to positively impact rates without decreasing service levels. 5.5.1 Fee Structure The Lemon Cove Sanitary District currently bills its customers under a metered system and charges a monthly flat rate for sewer service. The District’s fiscal year 2004-05 budget estimates revenues of $4,270 to be generated from water and sewer customer sales. Tables 5-1 and 5-2 show a comparison of water and sewer rates and connection fees, respectively, for all applicable service providers being reviewed. 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 5-1 LEMON COVE SD COMPARISON OF WATER RATES Average Household Service Provider Sample Monthly Bill Connection Fee Income Rate/Income Ratio 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 Lemon Cove Sanitary District MSR Page 5-19 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 As indicated in Table 5-1, the Lemon Cove Sanitary District charges monthly rates that are significantly below average compared to surrounding domestic water service providers. The cost of domestic water service within Lemon Cove equates to approximately 0.42% of the average household income within the community. The Lemon Cove Sanitary District connection fee is also significantly below average compared to other domestic water service providers throughout the County. TABLE 5-2 LEMON COVE SD COMPARISON OF SEWER RATES Average Monthly Sewer Connection Household Service Provider User Fee (1 EDU)1 Fee1 Income2 Rate/Income Ratio 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 (Cal EPA – SWRCB, May 2005) 2) Source: Census 2000 As indicated in Table 5-2, the Lemon Cove Sanitary District charges monthly rates that are significantly below average compared to surrounding sanitary sewer service providers. The cost of sanitary sewer service within Lemon Cove equates to approximately 0.19% of the average household income within the community. The Lemon Cove Sanitary District connection fee is also significantly below average compared to other sanitary sewer service providers throughout the County. 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. Often it is necessary to increase user fees and/or connection fees to keep pace with cost of living increases and rising material and construction costs. Any rate increases should be substantiated and adopted through a public hearing process. The District currently bills under a metered rate structure for domestic water service, which promotes water conservation. Generally, user fees should be used for the operation and maintenance of existing infrastructure while connection fees should be used for the construction of new infrastructure to accommodate new development. It is recommended that the District consider re-evaluating its fee structure to segregate costs associated with provision of infrastructure to accommodate new development. Lemon Cove Sanitary District MSR Page 5-20 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 5.5.2 Written Determinations 1. The Lemon Cove Sanitary District charges monthly user fees and connection fees for water and sewer. The District’s fiscal year 2004-05 budget estimates revenues of $4,270 to be generated from water and sewer customer sales. 2. The monthly user fees and connection fees charged by the Lemon Cove Sanitary District for water and sewer service are significantly below average compared to other water and sewer service providers in the County. 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. Any rate increases should be substantiated and adopted through a public hearing process. The District currently bills under a metered rate structure for domestic water service, which promotes water conservation. 4. Generally, user fees should be used for the operation and maintenance of existing infrastructure while connection fees should be used for the construction of new infrastructure to accommodate new development. It is recommended that the District consider re- evaluating its fee structure to segregate costs associated with provision of infrastructure to accommodate new development. Lemon Cove Sanitary District MSR Page 5-21 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 5.6 OPPORTUNITIES FOR SHARED FACILITIES The purpose of this section is to evaluate opportunities for a jurisdiction to share facilities and resources, thereby increasing efficiency. 5.6.1 Shared Facilities Since the location of the Lemon Cove District Boundary is immediately adjacent to existing rural lands, the opportunity for sharing infrastructure does not readily exist. Currently the Lemon Cove Sanitary District is the only water and sewer service provider in the immediate area. 5.6.2 Written Determinations 1. Since the location of the Lemon Cove District Boundary is immediately adjacent to existing rural lands, the opportunity for sharing infrastructure does not readily exist. Lemon Cove Sanitary District MSR Page 5-22 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 5.7 GOVERNMENT STRUCTURE OPTIONS The purpose of this section is to consider the advantages and disadvantages of various government structures to provide public services. 5.7.1 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. Tulare County LAFCO has adopted specific policies for reviewing proposals for a change in organization, reorganization, incorporations, dissolution and other proposals processed by Tulare County LAFCO. Tulare County LAFCO policy C-1 identifies factors and standards to be considered in review proposals including additional requirements for City annexations, standards for annexation to special districts, standards for the formation of special districts, and standards for City incorporation. Tulare County LAFCO policy C-2 outlines general procedures for changes in boundaries or organization to be processed by LAFCO. Generally, proposals for changes in boundaries, formations, or changes of organization can be submitted for the consideration of LAFCO by petition of the registered voters or affected landowners; however, prior to the circulation of any petition, a “Notice of Intent to Circulate” must be presented to the LAFCO Executive Officer. A proposal may also be initiated by a resolution adopted by the governing body of any related public body (county, city or special district). The proposal must be submitted on forms available from the LAFCO staff office, or on the LAFCO website, along with the applicable number of maps, legal descriptions, and filing fees to cover the proposal submitted. 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 with developer assistance. 5.7.2 Written Determinations 1. 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. 2. Any change in organization should be completed in accordance with LAFCO policies and procedures. 3. The District should continually expand and improve its domestic water and sanitary sewer infrastructure to accommodate development within its current District Boundary and SOI areas zoned for development. Lemon Cove Sanitary District MSR Page 5-23 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 5.8 EVALUATION OF MANAGEMENT EFFICIENCIES The purpose of this section is to consider the management structure of the jurisdiction. 5.8.1 Organizational Structure Based upon a review of information provided by the Lemon Cove Sanitary District, it appears that the provisions of sanitary sewer and domestic water service are managed in an efficient manner, meeting the needs of the community and ratepayers. The District undergoes annual audits in compliance with auditing standards. The Lemon Cove Sanitary District 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 operates with a part time (volunteer) office manager, and has no paid staff. The District does not have a District office, and Board meetings are held in the Office Managers home located at 24439 Pogue Avenue in Lemon Cove. District representatives can be contacted by phone. District personnel should be available to respond to emergencies during non office hours. Based upon the District’s 2004-05 budgets, no funding was appropriated for contingencies. It is recommended that the District allow for contingency allocations to cover any unforeseen costs that may occur. Contingency funds can be used for emergency improvements and/or unforeseen replacement or rehabilitation costs. 5.8.2 Written Determinations 1. The Lemon Cove Sanitary District is governed by a five member Board of Directors elected at large from within its boundaries and is responsible for setting policy and general administrative procedures. 2. The District currently operates with volunteer staff. The District does not have a District office, and Board meetings are held in the Office Managers home. 3. District representatives can be contacted by phone. District personnel should be available to respond to emergencies during non office hours. 4. The District’s fiscal year 2004-05 budget did not allow for contingency appropriations. It is recommended that the District allow for contingency allocations to cover any unforeseen costs that may arise. Lemon Cove Sanitary District MSR Page 5-24 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01 5.9 LOCAL ACCOUNTABILITY AND GOVERNANCE The purpose of this section is to evaluate the accessibility and levels of public participation associated with the Lemon Cove Sanitary District’s decision-making processes. 5.9.1 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 Lemon Cove Sanitary District has a five member Board of Directors elected by voters residing within the Districts Boundary. Regularly scheduled Board meetings are held on the second Tuesday of each month at the Office Manger’s home, located at 24439 Pogue Avenue in Lemon Cove. 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 the County websites, since Lemon Cove 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. 5.9.2 Written Determinations 1. Regularly scheduled meetings are held on the second Tuesday of each month at the Office Manager’s home. 2. 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. Lemon Cove Sanitary District MSR Page 5-25 Tulare County LAFCO MSR G2_5 Lemon Cove Apr06.DOC/55-7301-01