San Diego Local Agency Formation Commission

Transcription

1 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission REGULAR MEETING AGENDA SAN DIEGO COUNTY LOCAL AGENCY FORMATION COMMISSION MONDAY, DECEMBER 3, 2018, 9:00 A.M. COUNTY ADMINISTRATION CENTER ROOM PACIFIC HIGHWAY SAN DIEGO, CALIFORNIA 9:00 A.M. CALL TO ORDER BY CHAIR ROLL CALL PLEDGE OF ALLEGIANCE AGENDA REVIEW The Chair will consider requests to remove or rearrange items on the agenda. RECOGNITION OF SERVICE The Commission will recognize the services of the following members: Commissioner Bill Horn Commissioner Lorie Zapf Commissioner Alternate Lorie Bragg SPECIAL PRESENTATIONS The Commission will hear from invited guests of the Chair and/or Executive Officer. PUBLIC COMMENT Opportunity for members of the public to speak to the Commission on any subject matter within the Commission s jurisdiction, but not an item on today s agenda. Each speaker s presentation may not exceed 3 minutes. (Please note for items on today s agenda, speakers should fill out a speaker slip and address the Commission when the agenda item is discussed and their name is called.) CONSENT ITEMS All items calendared as consent are considered ministerial or non-substantive and subject to a single motion approval. The Chair will also consider requests to pull an item for discussion. 1. Approval of Meeting Minutes October 1, 2018 (action) The Commission will consider approving summary minutes prepared by LAFCO staff for the October 1, 2018 regular meeting. 1

2 San Diego LAFCO Regular Meeting Agenda December 3, 2018 CONSENT ITEMS CONTINUED 2. Commission Ratification Recorded Payments for September and October 2018 (action) The Commission will consider ratifying payments received and made for the months of September and October These payments cover all recorded transactions for the twomonth period and include $302,012 in total distributions made by the Executive Officer. 3. Budget Update for st Quarter Report (action) The Commission will review a report comparing budgeted and actual transactions for through the first quarter and its projection LAFCO will finish with a modest operating surplus of $14,665 or 1%. The report is being presented to the Commission to accept and file as well as provide direction as needed. 4. Amendment to the Employment Agreement for Executive Officer Keene Simonds (action) The Commission will consider an amendment to its employment agreement with the Executive Officer to increase salary and adjust the vacation leave benefits to conform to County of San Diego vacation accrual policies for executive management. The amendment memorializes approvals made by the Commission at the October 1, 2018 meeting. 5. Approve Support Position and Authorize Letter for California WaterFix (action) The Commission will consider a request from the Southern California Water Coalition to support the California WaterFix and its plan to improve the reliability of statewide water supplies generated through the Sacramento Delta. Staff recommends the Commission proceed with approving a support position as well as authorizing an accompanying letter to local legislators in conjunction with input provided by the San Diego County Water Authority. 6. Progress Report on Workplan (action) The Commission will receive a progress report on accomplishing specific projects established as part of the adopted workplan for The report includes identifying projects already underway through the first five months and is being presented to formally receive and file. 7. Approval of Meeting Schedule for Calendar Year 2019 (action) The Commission will consider approving a schedule for the upcoming calendar year and a recommendation to hold regular meetings each month with the exception of January, July, and September. No special meetings are recommended. 8. Authorize Holiday Office Closure December 24 th through December 28 th (action) The Commission will consider a request by the Executive Officer consistent with past practice to authorize the closure of the LAFCO office for the week of December 24, Proposed Policy Amendment to Rules Appointments to the Personnel Committee (action) The Commission will consider approving amendments to the Rules involving the Personnel Committee to transition the appointment process to an assigned rotation consisting of the Chair, Vice Chair, and Immediate Past Chair. It also authorizes the Chair to fill the seat of the Immediate Past Chair should he or she no longer serve on the Commission. 2 P age 2

3 San Diego LAFCO Regular Meeting Agenda December 3, 2018 CONSENT ITEMS CONTINUED 10. Results of Protest Proceedings County Service Area No. 115 Reorganization; RO14-12 and RO14-13 et al. (information) The Commission will receive the results of the protest hearing conducted for the County Service Area No. 115 Reorganization. The noticed hearing was held by the Executive Officer on November 8th and did not produce any written objections, and as such the approval will proceed and record once all terms are satisfied. 11. Current Proposals and Related Activities (information) The Commission will receive an update on active proposals as well as other related matters pending before LAFCO. Information only 12. Memorandums Special District Websites and Expanded Rules for Attorneys (information) The Commission will receive two memorandums prepared by Commission Counsel regarding new statutes and/or requirements germane to LAFCOs. Information only. 13. Expiring Commissioner Terms in 2019 (information) The Commission will receive a report identifying membership terms that are set to expire in May 2019 and necessitate new appointments and/or reappointments from their designated authorities. This includes a future action by the Commission to appoint/reappoint an alternate public member. Information only. PUBLIC HEARING ITEMS Public hearing items require expanded public notification per provisions in State law or voluntarily placed by the Executive Officer to facilitate broader discussion. 14. First Reading Proposed Comprehensive Fee Schedule Update (discussion) The Commission will review a proposed comprehensive fee schedule update as part of a first-reading and highlighted by transitioning to fixed charges based on proposal type. The establishment of a composite hourly staff rate and assignment of set staff hours for most proposals further underlies the transition. The proposed update is being presented for feedback and ahead of initiating public review before returning for action in February BUSINESS ITEMS Business items involve regulatory, planning, or administrative items that do not require a hearing. 15. Results of Protest Proceedings and Related Items Julian-Cuyamaca Fire Protection District Reorganization; RO18-09 et al. (action) The Commission will receive the results of the protest hearing conducted for the Julian- Cuyamaca Fire Protection District Reorganization and consider taking related actions. The noticed protest hearing was held by the Executive Officer on October 16, 2018 and produced written objections necessitating an election. It is recommended the Commission formalize the results of the protest through an ordering resolution requesting the Board of Supervisors call an election along with making recommendations on date and type. It is also recommended the Commission approve an impartial analysis to appear on the ballot. 3 P age 3

4 San Diego LAFCO Regular Meeting Agenda December 3, 2018 BUSINESS ITEMS CONTINUED 16. Proposed Lake Henshaw Change of Organization Annexation to the Vista Irrigation District; DA18-11 (action) The Commission will consider a change of organization proposal filed by the Vista Irrigation District to annex three unimproved and unincorporated parcels totaling approximately 88.2 acres. The affected territory is located near Lake Henshaw in northeast San Diego County and lies outside of the Vista ID sphere of influence. The purpose of the proposal is to provide cost-savings to Vista ID by eliminating property tax obligations for the affected territory. Staff recommends approval of the proposal without modifications and without amendment to the sphere of influence. Standard terms are also recommended. The County of San Diego Assessor s Office identifies the subject parcels as , , and Chair and Vice Chair Appointments for 2019 (action) The Commission will consider officer appointments and select a Chair and Vice Chair for Report from CALAFCO Annual Conference (information) The Commission will receive a report from Commissioners Hanson, MacKenzie, and Vanderlaan on their overnight travel and attendance at the CALAFCO Annual Conference held in Yosemite on October 3-5, Verbal report only. CLOSED SESSION Closed session items are calendared by Commission Counsel. 19. Conference with Legal Counsel Existing Litigation: Pursuant to Government Code Section (d)(1): Southcott et al. v. Julian-Cuyamaca Fire Protection District, et al., San Diego Superior Court Case No CU-WM-CTL; Fourth District Court of Appeal Case No. D Conference with Legal Counsel Anticipated Litigation: Pursuant to Government Code Section (d)(2): Significant exposure to litigation involving two potential cases. EXECUTIVE OFFICER REPORT COMMISSIONER ANNOUNCEMENTS REQUESTS FOR FUTURE ITEMS ADJOURNMENT TO NEXT MEETING February 4, 2019 Attest to Posting: Tamaron Luckett Executive Assistant Any person with a disability under the Americans with Disabilities Act (ADA) may receive a copy of the agenda or a copy of all the documents constituting the agenda packet for a meeting upon request. Any person with a disability covered under the ADA may also request a disability-related modification or accommodation, including auxiliary aids or services, in order to participate in a public meeting. Please contact the LAFCO office at least three (3) business days prior to the meeting for any requested arraignments or accommodations. 4 P age 4

5 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono December 3, 2018 TO: FROM: San Diego Commissioners Tamaron Luckett, Executive Assistant AGENDA REPORT Consent Action SUBJECT: Approval of Meeting Minutes Monday, October 1, 2018 SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will receive minutes prepared for the last meeting held on Monday, October 1, The minutes are being presented for formal approval with any desired corrections or clarifications as requested by the Commission. BACKGROUND The Ralph M. Brown Act was enacted by the State Legislature in 1953 and established standards for the public to attend and participate in meetings of local government bodies. The Brown Act requires and among other items public agencies to maintain written minutes for qualifying meetings. DISCUSSION 1 This item is for San Diego LAFCO to consider approving summary minutes for the October 1, 2018 regular meeting. Attendance at these meetings follows. All members were present on October 1 st with the exception of Bill Wells, Chris Cate (alternate), and Greg Cox (alternate). 5

6 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 1 Approval of Meeting Minutes for October 1, 2018 ANALYSIS The attached summary minutes for the October 1, 2018 regular meeting accurately reflect San Diego LAFCO s actions as recorded by staff. An audio recording of the meeting has also been posted on the Commission s website. RECOMMENDATION It is recommended San Diego LAFCO approve the draft minutes prepared for the October 1, 2018 regular meeting with any desired corrections or clarifications. This action is provided as Alternative Action One in the proceeding section. ALTERNATIVES FOR ACTION The following alternatives are available to San Diego LAFCO: Alternative One (recommended): Approve the draft minutes prepared for the October 1, 2018 regular meeting with any desired corrections or clarifications. Alternative Two: Continue to the next regular meeting and provide direction as needed. PROCEDURES This item has been placed on the agenda as part of the consent calendar. Accordingly, a successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation as provided unless otherwise specified by the Commission. Respectfully, Tamaron Luckett Executive Assistant Attachment: 1) Draft Meeting Minutes for October 1, P age 6

7 Agenda Item No. 1 Attachment One DRAFT MINUTES SAN DIEGO LAFCO October 1, 2018 REGULAR MEETING CALL TO ORDER There being a quorum present, the meeting was convened at 9:00 a.m. by Chair MacKenzie. ROLL CALL The Commission Clerk performed the roll call for the October 1, 2018 meeting. Roll was recorded as follows: Regulars Present: Alternates Present: Members Absent: Catherine Blakespear, City of Encinitas Bill Horn, County of San Diego Dianne Jacob, County of San Diego Jo MacKenzie, Vista Irrigation District (CHAIR) Ed Sprague, Olivenhain Municipal Water District (VICE CHAIR) Andy Vanderlaan, Public Lorie Zapf, City of San Diego Lorie Bragg, City of Imperial Beach (Voting) Judy Hanson, Leucadia Wastewater District Harry Mathis, Public Bill Wells, City of El Cajon Chris Cate, City of San Diego Alternate Greg Cox, County of San Diego Alternate Additionally, the following staff members were present at the dais during roll call: Executive Officer Keene Simonds; Commission Counsel Holly Whatley; Chief Policy Analyst Robert Barry; and Executive Assistant Tamaron Luckett. Commissioner Zapf arrived at 9:05 a.m. PLEDGE OF ALLEGIANCE Commissioner Jacob led the Commission in the Pledge of Allegiance. AGENDA REVIEW Chair MacKenzie asked the Executive Officer if there were requests to remove or rearrange items on the agenda. The Executive Officer noted no agenda revisions were needed. Chair MacKenzie announced the Commission would proceed with the agenda as presented. 7

8 San Diego LAFCO Draft Minutes October 1, 2018 PUBLIC COMMENT Chair MacKenzie asked the public seated in audience if anyone would like to address the Commission on an item that is not related to agenda. Without any speaker slips or seeing anyone approach the dais Chair MacKenzie ended the public comment period. CONSENT ITEMS Item 1 Approval of Meeting August 6, 2018 and September 10, 2018 Item presented on the consent calendar for action. Item involves draft minutes prepared for the Commission s August 6 th and September 10 th meetings. Recommendation to approve. Item 2 Commission Ratification Recorded Payments for July and August 2018 Item presented on the consent calendar for action. Item involves ratification of recorded financial payments received and distributed for July 1 st through August 31 st. Payments totaled $257,943. Recommendation to approve. Item 3 End of Year Budget Report for Fiscal Year Item presented on the consent calendar for action. Item involves end of year budget report and transactions for Report identifies LAFCO finished the fiscal year with an operating surplus of $150,011 while also cancelling the budgeted use of reserves in the amount of $220,000; resulting in a net savings of $370,011. Recommendation to approve. Item 4 Proposed Camino Largo 8 Reorganization Concurrent Annexation to City of Vista and Detachment from the Vista Fire Protection District RO18-08 Item presented on the consent calendar for action. Item involves a proposal by the City of Vista to annex 9.3 acres with a concurrent detachment from the Vista Fire Protection District. The affected territory comprises one residential parcel identified as Recommendation to approve without modifications and with standard terms. Item 5 Proposed Austin Drive-Moth Change of Organization Annexation to the San Diego County Sanitation District DA18-12 Item presented on the consent calendar for action. Items involves a landowner proposal to annex 0.90 acres to the San Diego County Sanitation District comprising one residential parcel identified as and a portion of the adjacent right-of-way on Montemar Drive in Spring Valley. Recommendation to approve with a modification to add a 0.10-acre portion of the adjacent public-right-away on Austin Drive. Standard terms also recommended. 2 Page 8

9 San Diego LAFCO Draft Minutes October 1, 2018 CONSENT ITEMS CONTINUED Item 6 Policy Adoption Conduct of Protest Hearings Item presented on the consent calendar for action. Item involves establishing a policy for conducting protest proceedings and includes discretionary standards and allowances in delegating responsibilities to the Executive Officer as well as receiving and valuing written protests. Recommendation to approve. Item 7 Progress Report on Workplan Item presented on the consent calendar for action. Item involves progress of specific projects established as part of the adopted workplan for The report identifies projects that LAFCO have initiated or underway. Recommendation to receive and file. Item 8 Current Proposals and Related Activities Item presented on the consent calendar for information only. Item summarizes an update on active and pending proposals on file with the Commission and other related matters pending before LAFCO. No action; information only. Item 9 Legislative Report Item presented on the consent calendar for information only. Item summarizes a report on the pending close of the legislative session with respect to bills that directly or indirectly impact LAFCOs. No action; information only. Commissioner Sprague motion to approve staff recommendation for consent items No. 1 through 9. Commissioner Bragg second. Chair MacKenzie asked for a roll call of vote for the motion on Items 1 through 9. The Commission Secretary recorded the following votes: AYES: Blakespear, Bragg, Horn, Jacob, MacKenzie, Sprague, Vanderlaan and Zapf NOES: None ABSENT: Cate, Cox, and Wells ABSTAIN: None The Secretary confirmed the motion was approved Page 9

10 San Diego LAFCO Draft Minutes October 1, 2018 PUBLIC HEARING ITEMS Item 10 Proposed Reorganizations and Associated Sphere Amendments (a) County Service Area No. 115 Reorganization No. 1 for San Miguel Consolidated Fire Protection District and (b) County Service Area No. 115 Reorganization No. 2 for Lakeside Fire Protection District RO14-12 et al. and RO14-13 et al. Chair MacKenzie introduced the proposal. The Executive Officer summarized the two distinct proposals filed by Lakeside Fire Protection District and San Miguel Consolidated Fire Protection District underlying the combined public hearing. The Executive Officer noted the reorganization proposals were initially filed as competing actions to dissolve County Service Area (CSA) No. 115 and annex the approximate 441 acre unincorporated affected territory to their respective agencies in step with assuming fire protection and emergency medical service responsibilities. The Executive Officer stated LAFCO staff has administratively combined the two proposals for processing with the concurrence of both applicants and their subsequent agreement to modify and coordinate the proposals to divide the annexation into equal halves based on assessed value. The resulting combined reorganization proposal generally divides the annexation along Pepper Drive with lands to the north going to Lakeside Fire Protection District and lands to the south going to San Miguel Consolidated Fire Protection District. The Executive Officer recommended the Commission proceed with the modified action as described along with conforming sphere of influence amendments and specified terms as provided in a revised resolution presented on the dais and made available to the audience. The Executive Officer added protest proceedings would apply should the Commission approve the modified action. Commission Counsel followed the Executive Officer s overview and addressed the revised resolution and confirmed both applicants were notified and accepted the revisions. Chair MacKenzie opened the public hearing and noted two speaker slips were received from the applicants. San Miguel Consolidated Fire Protection District Fire Chief Don Butz and Lakeside Fire Protection District Fire Chief Criss Brainard sequentially addressed the Commission and outlined their support for the staff recommendation to approve the modified action. Both speakers thanked the Commission s Ad Hoc Committee members Jacob, Vanderlaan, Sprague, and MacKenzie for their leadership in helping moving this project forward as well as recognizing the contributions of former LAFCO staff members Mike Ott and Joe Serrano. Both also confirmed their counsels had reviewed the revised resolution and were agreeable to the changes presented. Chair MacKenzie invited anyone else in the audience to address the Commission on this matter. 4 Page 10

11 San Diego LAFCO Draft Minutes October 1, 2018 PUBLIC HEARING ITEMS CONTINUED County Fire Chief Tony Mecham approached the dais and stated the County supports the reorganization. Seeing no others approach the dais, Chair MacKenzie closed the public hearing and asked if there was any discussion from the Commission. Commissioner Jacob commented the item has come a long way and she is pleased to see Lakeside and San Miguel Consolidated Fire Protection Districts now collaborating and coming to an agreement in assuming fire protection and emergency medical services for the affected territory. Commissioner Jacob added her appreciation to LAFCO staff for the report and stated it is important for LAFCO to continue to do its job and revisit service conditions within the affected territory as part of the next scheduled municipal service review of the agencies in Fiscal Year Commission Jacob added Measure A is on the ballot this November to lock in the Fire Authority in the County Charter and is another step in demonstrating the County s commitment in providing fire protection to the unincorporated areas Commissioner Jacob concluded her comments by making a motion to approve the revised resolution and the staff recommendation for Alternative One. Commissioner Vanderlaan second. Seeing no others approach the dais or further discussion from the Commission, Chair MacKenzie closed the public hearing and asked for a roll call of vote for the motion. The Commission Secretary recorded the following votes: AYES: Blakespear, Bragg, Horn, Jacob, MacKenzie, Sprague, Vanderlaan and Zapf NOES: None ABSENT: Cate, Cox, and Wells ABSTAIN: None The Secretary confirmed the motion was approved 8-0. Commissioner Vanderlaan asked the Chair for indulgence to make a few final comments with the item now completed. Commissioner Vanderlaan extended his appreciation to Commissioners Jacob and Horn and the rest of the County Board of Supervisors for their leadership in improving fire protection in the unincorporated areas. Commissioner Vanderlaan added his appreciation to County Fire Authority Director Herman Reddick and his team for implementing the Board of Supervisor s vision as well as the contributions of LAFCO s own John Traylor. 5 Page 11

12 San Diego LAFCO Draft Minutes October 1, 2018 PUBLIC HEARING ITEMS CONTINUED Item 11 Proposed North Avenue Estates Reorganization Annexation to City of Escondido and Concurrent Detachments from County Service Area No. 135 (regional communications) and the Deer Springs Fire Protection District RO18-06 et al. Chief Policy Analyst Robert Barry summarized the reorganization proposal filed by the City of Escondido to annex approximately 17.9 acres of unincorporated territory with concurrent detachments from Deer Springs Fire Protection District and County Service Area No. 135 (regional communications). Mr. Barry stated the primary purpose of the reorganization is to facilitate a planned 34-lot residential subdivision known as North Avenue Estates. Mr. Barry noted an earlier version of the proposal had been conditionally approved by the Commission in August 2008, but subsequently terminated before recordation as a result of Escondido objecting to a special approval term to address potential development impacts on adjacent septic systems along Laurashawn Lane. Mr. Barry added changes to the current development plan include sufficient revisions to remedy the earlier concerns and staff is recommending approval of the reorganization without modifications or special terms. Mr. Barry detailed Deer Springs Fire Protection District opposes the reorganization with representatives in attendance to speak to their concerns. Mr. Barry also detailed several adjacent landowners on Laurashawn Lane have submitted written objections given continued concerns about grading impacts on their septic systems. Commissioner Sprague asked about the grading approval plans along the portion of Laurashawn Lane. Mr. Barry noted the project is 40 feet away from the property lines. City of Escondido Planning Director Bill Martin approached the dais at Chair MacKenzie s request and added no grading will occur along the open space area created as a buffer between the planned development and the property lines along Laurashawn Lane. Chair MacKenzie asked who is responsible of the maintenance in the open space area. Mr. Martin noted it is the responsibility of the homeowners association per the City s own approval Chair MacKenzie opened the public hearing and noted ten speaker slips were received from the members of the audience. The following speaker representing an organization or group addressed the Commission: Robert E. Osby, President, Deer Springs Fire Protection District; opposes the reorganization 6 Page 12

13 San Diego LAFCO Draft Minutes October 1, 2018 PUBLIC HEARINT ITEMS CONTINUED The following individual speakers addressed the Commission: Casey Johnson, developer and real party of interest; supports the reorganization David Ferguson, developer and real party of interest; supports the reorganization Rodney Jones, Homeowner; supports the reorganization but concerned about impacts to septic systems along Laurashawn Lane Robert Scolomayer; supports the reorganization Having no more speaker slips, Chair MacKenzie noted for the record LAFCO received five speaker slips of individuals in the audience that did not wish to speak but did want to register their positions in favor of the reorganization. Seeing no others approach the dais Chair MacKenzie closed the public hearing. Chair MacKenzie invited comments from the Commission. Commissioner Jacob noted that it has been ten years and property owner Mr. Jones raised some issues about the septic systems and what will occur with the development and these issues were addressed to the Commission. Commissioner Jacob asked if it s within LAFCOs authority to provide protection to the homeowners along Laurashawn Avenue if issues occur with the septic systems or if the developer could assist with fees to be drawn upon to extend the sewer line. Commission Counsel noted the options are within the City s planning land use and development for an agreement and LAFCO has no direct authority. Commissioner Horn reminded the Commission was only approving the reorganization and not the project itself; Escondido is responsible for addressing the details of the development and grading-related issues. Commissioner Horn added he understands that Deer Springs Fire Protection District will be losing money with the detachment, but he is more concerned about public safety and concurs with the staff report that Escondido is best positioned to serve the affected territory going forward. Commissioner Horn stated he supports the staff recommendation to approve the reorganization as presented and encouraged the adjacent landowners on Laurashawn to work with the City of Escondido on a long-term solution to establish wastewater services for their homes. Commissioner Horn made a motion to approve the staff recommendation to approve the reorganization. Commissioner Vanderlaan second. Commissioner Vanderlaan thanked Mr. Obsy for his comments and noted the financial hardship faced by Deer Springs Fire Protection District as a result of the reorganization is unfortunate, but is unavoidable given the local conditions noted in the report. 7 Page 13

14 San Diego LAFCO Draft Minutes October 1, 2018 PUBLIC HEARING ITEMS CONTINUED Commissioner Sprague noted he supports staff recommendation and asked if the residents along Laurashawn Lane have failing sceptic systems can LAFCO administratively assist the residents. Mr. Barry noted LAFCO have a process for landowners for failing septic system issues which LAFCO can administratively approve or provide a contractual service agreement. Seeing no other comments from the Commission, Chair MacKenzie called for a vote. The Commission Secretary recorded the following votes: AYES: Blakespear, Bragg, Horn, Jacob, MacKenzie, Sprague, Vanderlaan, and Zapf NOES: None ABSENT: Cate, Cox, and Wells ABSTAIN: None The Secretary confirmed the motion was approved 8-0. BUSINESS ITEMS Item 12 Designation of Labor Negotiators Item presented on the business calendar for action. Commission Counsel summarized the item as procedural and need for the Commission to designate representatives for purposes of negotiating the salary and benefits for the Executive Officer should the Commission proceed into closed session. Commission Counsel recommended Chair MacKenzie and Commissioner Vanderlaan be designated as the labor negotiators given they have overseen the performance review of the Executive Officer to date. Commissioner Jacob motion to approve the recommendation as presented by Commission Counsel. Commissioner Sprague second. Chair MacKenzie asked for a roll call of vote for the motion on Item 12. The Commission Secretary recorded the following votes: AYES: Blakespear, Bragg, Horn, Jacob, MacKenzie, Sprague, Vanderlaan, and Zapf NOES: None ABSENT: Cate, Cox, and Wells ABSTAIN: None The Secretary confirmed the motion was approved Page 14

15 San Diego LAFCO Draft Minutes October 1, 2018 BUSINESS ITEMS CONTINUED Item 13 Executive Officer Compensation Item presented on the business calendar for action. Commission Counsel advised the Commission they could immediately take up the item or return to it after closed session Commissioner Sprague suggested the Commission proceed with the item and stated he was prepared to make a motion. Commissioner Jacob agreed. Commission Sprague motioned for the Commission to approve the Executive Officer s request for a 5% increase in salary retroactive to August 6, Commissioner Vanderlaan second. Chair MacKenzie noted the Executive Officer was also seeking an adjustment to this vacation accrual to be consistent with the benefit package provided to County management. Commissioner Sprague amended his motion to include both the 5% salary increase and vacation accrual adjustment consistent with County management retroactive to August 6 th. Commissioner Vanderlaan agreed and seconded the amended motion. Commissioner Blakespear requested discussion. Commissioner Blakespear noted she supports the adjustments to the Executive Officer s compensation, but wanted to convey the need for the Executive Officer to be mindful of operational costs going forward. Commissioner Jacob commended the Executive Officer for his services and accomplishments over the last year in helping raise LAFCO to the next level, and supports the compensation adjustments. Other Commissioners followed with similar comments. Chair MacKenzie asked for a roll call of vote for the motion on Item 13. The Commission Secretary recorded the following votes: AYES: Blakespear, Bragg, Horn, Jacob, MacKenzie, Sprague, Vanderlaan, and Zapf NOES: None ABSENT: Cate, Cox, and Wells ABSTAIN: None The Secretary confirmed the motion was approved 8-0. Commission Counsel Whatley noted that a formal contractual amendment will be presented on the consent calendar at the next meeting memorializing the approved changes. 9 Page 15

16 San Diego LAFCO Draft Minutes October 1, 2018 CLOSED SESSION Chair MacKenzie adjourned the regular meeting to closed session at 10:40 a.m. to discuss items 14 and 15 as specified in the agenda with the other two 16 and 17 no longer needed. Item 14 Conference with Legal Counsel Existing Litigation: Pursuant to Government Code Section (d)(1): Southcott et al. v. Julian-Cuyamaca Fire Protection District, et al., San Diego Superior Court Case No CU-WM- CTL; Fourth District Court of Appeal Case No. D Item 15 Conference with Legal Counsel Anticipated Litigation: Pursuant to Government Code Section (d)(2): Significant expose to litigation involving one case. Item 16 Public Employee Performance Evaluation Pursuant to California Government Code Section 54957(b) Employee: Keene Simonds, Executive Officer Item 17 Conference with Labor Negotiators Pursuant to California Government Code Section Agency designated representatives: Jo MacKenzie and Andrew Vanderlaan Unrepresented Employee: Executive Officer The Commission reconvened into open session at 10:45 a.m. with Commission Counsel reporting no actions were taken on items 14 and 15. (Items 16 and 17 were dropped. Also Commissioner Zapf was excused and did not participate in the closed session items.) EXECUTIVE OFFICER REPORT The Executive Officer made the following comments: - LAFCO will be holding protest proceedings for the approved reorganization of the Julian-Cuyamaca Fire Protection District on Tuesday, October 16, 2018 at 10:00 a.m. at the County Operations Center. - Several members of LAFCO will be attending the CALAFCO Annual Conference in Yosemite scheduled for October 3-5 th and will report back at the next meeting. 10 Page 16

17 San Diego LAFCO Draft Minutes October 1, 2018 COMMISSIONER ANNOUNCEMENTS REQUEST FOR FUTURE ITEMS No announcements or requests for future items were made from the Commissioners. ADJOURNMENT TO NEXT REGULAR MEETING There being no further business to come before the Commission, the meeting was adjourned by Chair MacKenzie at 10:58 a.m. until December 3, 2018 upon approval by the Commission. Attested TAMARON LUCKETT EXECUTIVE ASSISTANT 11 Page 17

18 San Diego LAFCO Draft Minutes October 1, 2018 Page Blank for Photocopying 12 Page 18

19 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water December 3, AGENDA REPORT Consent Action Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer Erica Blom, Administrative Assistant Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono SUBJECT: Commission Ratification Recorded Payments for September and October 2018 SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will review a report identifying all payments received and made for the months of September and October These payments cover all recorded transactions for the two-month period and include $302,012 in total distributions made by the Executive Officer with 70% tied to reimbursements to the County of San Diego for payroll, rent, overhead, and information technology services. The payments are being presented to the Commission for ratification and provide related direction to staff proceeding forward. BACKGROUND Adopted Policies Accounting Procedures San Diego LAFCO s policies provide broad direction to the Executive Officer to establish and maintain appropriate accounting controls for all financial transactions on behalf of the Commission. These policies specify the Executive Officer shall ensure accounting controls conform to standard procedures commonly enlisted by local governmental agencies and continually evaluate and enact changes as needed. Purchasing allowances are specified and include bid procedures for transactions at or above $10,000 and separate Commission approval for transactions at or above $125,

20 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 2 Payment Ratification for September and October 2018 DISCUSSION This item is for San Diego LAFCO to consider ratification of all made and received payments recorded by the Executive Officer between September 1 st and October 31 st. A detailing of these transactions is provided in Attachments One (September) and Two (October). Should the Commission have any questions or request additional documentation it would be appropriate to either continue the item or provide clarifying direction to staff going forward. ANALYSIS The recorded payments made by the Executive Officer for the months of September and October 2018 total $302,012 with 70% or $208,963 tied to expenditures with the County of San Diego. This includes covering payroll obligations, office rent, overhead, and information technology services. Professional services represent nearly all of the remaining expenditures during the two-month period and tallied $83,444 and includes onsite staff support as well as legal. Recorded revenues for the period totaled $112,715 and predominately tied to collecting remaining agency contributions for RECOMMENDATION It is recommended San Diego LAFCO proceed with ratifying the payments received and made by the Executive Officer for the months of September and October This action is provided as Alternative Action One in the proceeding section. ALTERNATIVES FOR ACTION The following alternatives are available to San Diego LAFCO through a single motion: Alternative One (recommended): Ratify the recorded payments received and made by the Executive Officer between September 1 st and October 31 st as shown in Attachments One and Two. Alternative Two: Continue to the next regular meeting and provide direction to staff as needed. Alternative Three Take no action. 1 1 Payment ratifications are not required under LAFCO policy, but are presented to the Commission as part of a best practice to inform the public of the agency s transactions. 2 P age 20

21 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 2 Payment Ratification for September and October 2018 PROCEDURES This item has been placed on San Diego LAFCO s agenda as part of the consent calendar. A successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation unless otherwise specified by the Commission. Respectfully, Keene Simonds Executive Officer Attachments: 1) Recorded Payments September ) Recorded Payments October P age 21

22 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 2 Payment Ratification for September and October 2018 Page is Blank for Photocopying 4 P age 22

23 SAN DIEGO LAFCO Expenses by Vendor Detail September 2018 Agenda Item No. 2 Attachment One Payable Receivable Party Date Account Amount Purpose Type Funding Account E Advantage Car Rental E Amazon E Ambius E ARCC E AT&T Mobility E Billing Hostway E Chase Design Inc. E Claim Jumper E Colantuono, Highsmith & Whatley E County of San Diego E Culligan of San Diego E Dieu Ngu E Dropbox E Earl John Traylor E GIS Surveyors Inc. E Harry Ehrlich E Julian Times News 9/19/ Out of County Travel Travel JT Rental Car for Fire Meeting in El Dorado County credit card SDCCU Visa Credit Card 9/2/ Office Expense Amazon Prime Monthly Payment debit card 3558 SDCCU Checking 9/2/ Office Expense Office Supplies debit card 3558 SDCCU Checking /27/ Office Expense Monthly Office Plants Service (August) check 3558 SDCCU Checking 9/27/ Office Expense Monthly Office Plants Service (September) check 3558 SDCCU Checking /17/ Publications/Legal NOE Fee for Julian-Cuyamaca FPD (RO18-09) check 3558 SDCCU Checking 9/17/ Publications/Legal NOE Fee for Julian-Cuyamaca FPD (RO18-09) Sphere Amendments check 3558 SDCCU Checking /27/ Telecommunications Monthly Cell Phone KS, RB & LZ check 3558 SDCCU Checking 9/5/ E Professional Services Web & Doc Support Monthly Website Support check 1026 Wells Fargo Checking /17/ E Professional Services Web & Doc Support 1, Logo Design Services electronic 1000 County Account (44595) 9/7/ Office Expense Debriefing KS, Chair, Vice Chair & Counsel credit card SDCCU Visa Credit Card 9/26/ B Professional Services 18, Legal Services electronic 1000 County Account (44595) 9/1/ Office Lease 6, Office Rent electronic 1000 County Account (44595) 9/1/ Mail/Postage ISF 3, Mail/Postage Services electronic 1000 County Account (44595) 9/1/ Vehicle Maintenance Vehicle Maintenance Services electronic 1000 County Account (44595) 9/1/ Vehicle Fuel 0.00 Vehicle Fuel electronic 1000 County Account (44595) 9/1/ Vehicle Lease Vehicle Lease electronic 1000 County Account (44595) 9/1/ et al. Communications (IT) Services 10, County IT Services (ITRACK) electronic 1000 County Account (44595) 9/1/ B County Overhead Costs 12, County Services A-87 1st Quarter electronic 1000 County Account (44595) 9/7/ et al. Employee Payroll 36, Payroll Pay Period electronic 1000 County Account (44595) 9/21/ et al. Employee Payroll 36, Payroll Pay Period electronic 1000 County Account (44595) 9/5/ Equipment Rental 4.50 County Surcharge Xerox electronic 1000 County Account (44595) 9/28/ Stores Unallocated Office Supplies Office Depot Order electronic 1000 County Account (44595) 9/28/ Special Department 5, SANGIS License FY18-19 electronic 1000 County Account (44595) 9/28/ Professional Services 4, ESRI License FY18-19 electronic 1000 County Account (44595) 9/28/ B Professional Services Special Counsel Services County Counsel Services electronic 1000 County Account (44595) 116, /28/ Office Expense Monthly Water Service check 3558 SDCCU Checking 9/10/ D Professional Services GIS Support 5, GIS Consultant Services electronic 1000 County Account (44595) 9/17/ D Professional Services GIS Support 5, GIS Consultant Services electronic 1000 County Account (44595) 11, /9/ Office Expense Monthly Cloud Service debit card 3558 SDCCU Checking 9/14/ F Professional Services Local Govt Services 4, Consultant Services (Fire) electronic 1000 County Account (44595) 9/24/ Non-Travel/In-County Mileage Reimbursement check 3558 SDCCU Checking 4, /10/ D Professional Services GIS Support 5, Consultant Services (GIS) Dieu Ngu electronic 1000 County Account (44595) 9/10/ G Professional Services Legislation 1, Consultant Services Legislation Support electronic 1000 County Account (44595) Page 1 of 2 23

24 SAN DIEGO LAFCO Expenses by Vendor Detail September 2018 Payable Receivable Party Date Account Amount Purpose Type Funding Account. E Kahn's Cave Grill & Tavern E Leaf & Cole LLP E Linda Zambito E Los Angeles Times E Peterson Donut E Planetizen E Renato Rodriguez E San Diego Union Tribune E Southwest Airlines E Tenaya Lodge Hotel E Unlimited Conferencing E Xerox 9/4/ Publications/Legal PHN for Julian-Cuyamaca FPD (RO18-09) check 1026 Wells Fargo Checking /7/ Investigative KS and RM Lunch Analyst Recruitment credit card SDCCU Visa Credit Card 9/10/ H Professional Services Accounting 5, Consultant Services Accounting Services electronic 1000 County Account (44595) 9/26/ H Professional Services Accounting 7, Consultant Services Accounting Services electronic 1000 County Account (44595) 12, /17/ Office Expense Travel Reimbursement Julian check 3558 SDCCU Checking 9/4/ Office Expense Office Newspaper Subscription check 1026 Wells Fargo Checking /10/ Office Expense 2.00 ATM Fee for Peterson Donut debit card 3558 SDCCU Checking 9/10/ Office Expense Refreshments for Commission Meeting at CAC debit card 3558 SDCCU Checking /5/ Investigative Advertisement for Analyst Recruitment credit card SDCCU Visa Credit Card 9/26/ Office Expense Refreshments for Commission Meeting at CAC check 3558 SDCCU Checking 9/25/ Publications/Legal 1, (2) PHNs (Pankey OAS18-04; JCFPD RO18-09) check 3558 SDCCU Checking 9/17/ Out of County Travel Airfare Flight for Fire Meeting in El Dorado County (JT) credit card SDCCU Visa Credit Card 9/18/ Out of County Travel Accommodations (Deposit) Oct CALAFCO Annual Conference (KS) credit card SDCCU Visa Credit Card 9/18/ Out of County Travel Accommodations (Deposit) Oct CALAFCO Annual Conference (JH) credit card SDCCU Visa Credit Card 9/18/ Out of County Travel Accommodations (Deposit) Oct CALAFCO Annual Conference (DB) credit card SDCCU Visa Credit Card /16/ Office Expense Conference Calling Services for CALAFCO Session debit card 3558 SDCCU Checking 9/7/ Equipment Rental Xerox Rental electronic 1000 County Account (44595) EXPENSE TOTAL 175, R Cash R City of Carlsbad R County of San Diego R Vallecitos WD R Valley Center MWD 9/6/ Miscellaneous Revenue 2.20 Cash back from ATM ay Petersons Donuts cash 3558 SDCCU Checking 9/6/ Miscellaneous Revenue LAFCO Procedures Guide check 3558 SDCCU Checking 9/28/ Interest & Dividends 2, Interest Payment to Accountant electronic 1001 General Fund (46725) 9/28/ Interest & Dividends Interest Payment to Accountant electronic 1002 Special Projects Fund (46726) 9/28/ Interest & Dividends Interest Payment to Accountant electronic 1003 Jurisdictional Projects Fund (46727) 9/28/ LAFCO Apportionment 40, LAFCO Apportionment Collections electronic 1000 County Account (44595) 44, /24/ Service to Property Owner 4, LAFCO Processing Fees (DA18-15) check 3558 SDCCU Checking 9/6/ Miscellaneous Revenue Recording & PHN Fees (OAS18-04) check 3558 SDCCU Checking REVENUE TOTAL 48, Page 2 of 2 24

25 SAN DIEGO LAFCO Expenses by Vendor Detail October 2018 Agenda Item No. 2 Attachment Two Payable Receivable Party Date Account Amount Purpose Type Funding Account E Abdullah Popal E Alamo Car Rental E Amazon E ARCC E AT&T Mobility E Best Western E Billing Hostway E Chili's E Claim Jumper E Costco E County of San Diego E Culinart (COC Cafeteria) E Culligan of San Diego E Dieu Ngu E Dropbox 10/5/ Non-Travel/In-County Transportion Cab ride from airport after CALAFCO Conference credit card SDCCU Visa Credit Card 10/5/ Out of County Travel Transportion Rental Car for CALAFCO Annual Conference credit card SDCCU Visa Credit Card 10/1/ Office Expense Amazon Prime Monthly Payment debit card 3558 SDCCU Checking 10/15/ Minor Equipment 1, Office Equipment Ergonomic Enhacements credit card SDCCU Visa Credit Card 1, /12/ Publications/Legal NOE Fee for CSA No. 115 (RO14-12; RO14-13) check 3558 SDCCU Checking 10/12/ Publications/Legal NOE Fee Austin Dr. (DA18-12) check 3558 SDCCU Checking 10/12/ Publications/Legal NOE Fee Pankey (OAS18-04) check 3558 SDCCU Checking 10/16/ Publications/Legal NOD Fee Camino Largo (RO18-08) check 3558 SDCCU Checking 10/16/ Publications/Legal NOD Fee North Avenue Estates (RO18-06) check 3558 SDCCU Checking /10/ Telecommunications Monthly Cell Phone Bill KS, RB & LZ check 3558 SDCCU Checking 10/4/ Out of County Travel Accommodations Oct CALAFCO Annual Conference (KS; RB & LZ) credit card SDCCU Visa Credit Card 10/15/ E Professional Services Web & Doc Support Monthly Website Support check 3558 SDCCU Checking 10/3/ Out of County Travel CALAFCO Annual Conference (Staff Lunch 10/2/18) credit card SDCCU Visa Credit Card 10/1/ Office Expense Debriefing KS, Chair, Vice Chair & Counsel credit card SDCCU Visa Credit Card 10/11/ Office Expense Debriefing KS and RM (Analyst Recruitment) credit card SDCCU Visa Credit Card /23/ Non-Travel/In-County Staff Lunch 1st Quarter Review debit card 3558 SDCCU Checking 10/1/ Office Lease 6, Rent electronic 1000 County Account (44595) 10/1/ Mail/Postage ISF 4, Mail/Postage Services electronic 1000 County Account (44595) 10/1/ Vehicle Maintenance Vehicle Maintenance Services electronic 1000 County Account (44595) 10/1/ Vehicle Fuel Vehicle Fuel electronic 1000 County Account (44595) 10/1/ Vehicle Lease Vehicle Lease electronic 1000 County Account (44595) 10/1/ et al. Communications (IT) Services 9, County IT Services (ITRACK) electronic 1000 County Account (44595) 10/5/ et al. Employee Payroll 35, Payroll Pay Period electronic 1000 County Account (44595) 10/19/ et al. Employee Payroll 36, Payroll Pay Period electronic 1000 County Account (44595) 10/1/ Equipment Rental 3.37 County Surcharge Xerox electronic 1000 County Account (44595) 10/1/ Stores Unallocated County Surcharge Office Depot Order electronic 1000 County Account (44595) 10/3/ Stores Unallocated Office Supplies Office Depot Order electronic 1000 County Account (44595) 10/3/ Stores Unallocated County Surcharge Office Depot Order electronic 1000 County Account (44595) 10/31/ Stores Unallocated Office Supplies Office Depot Order electronic 1000 County Account (44595) 92, /15/ Office Expense SDAC Refreshments (From FY17-18; 6/15/18) check 1026 Wells Fargo Checking /17/ Non-Travel/In-County 6.14 KS and LZ Breakfast Meeting debit card 3558 SDCCU Checking /12/ Office Expense Monthly Water Service check 3558 SDCCU Checking 10/3/ D Professional Services GIS Support 5, GIS Consultant Services electronic 1000 County Account (44595) 10/12/ D Professional Services GIS Support 5, GIS Consultant Services electronic 1000 County Account (44595) 10/26/ D Professional Services GIS Support 5, GIS Consultant Services electronic 1000 County Account (44595) 16, /9/ E Professional Services Web & Doc Support Monthly Cloud Service debit card 3558 SDCCU Checking Page 1 of 3 25

26 SAN DIEGO LAFCO Expenses by Vendor Detail October 2018 Payable Receivable Party Date Account Amount Purpose Type Funding Account E Earl John Traylor E Gourmet Island E HP E J Muirs Tavern E Jersey Mikes E Lakeside FPD E Mom's Pie House E Narrow Gauge Inn E North County FPD E Peterson Donut E Renato Rodriguez E Rubio's E Target E Tenaya Lodge Hotel E The Godfather Restaurant E The Prado At Balboa Park E Unlimited Conferencing E Vons E Xerox 10/1/ Non-Travel/In-County Mileage Reimbursement check 3558 SDCCU Checking 10/1/ Non-Travel/In-County Business Reimbursement check 3558 SDCCU Checking 10/12/ F Professional Services Local Govt Services 7, Consultant Services (Fire) electronic 1000 County Account (44595) 7, /9/ Non-Travel/In-County KS & RM Lunch (Analyst Recruitment) credit card SDCCU Visa Credit Card 10/12/ Minor Equipment KS Computer Monitor credit card SDCCU Visa Credit Card 10/5/ Out of County Travel Staff Lunch Leaving CALAFCO Conference credit card SDCCU Visa Credit Card 10/19/ Non-Travel/In-County Lunch Meeting with Fire Authority (Future Proposals) debit card 3558 SDCCU Checking 10/26/ Out of County Travel CALAFCO Annual Conference (Speaker Per Diem) check 3558 SDCCU Checking 10/12/ Non-Travel/In-County KS and LZ Meeting with Wynola WD debit card 3558 SDCCU Checking 10/12/ Out of County Travel CALAFCO Annual Conference (Cancelation Fee for Two Rooms) debit card 3558 SDCCU Checking 10/1/ Out of County Travel CALAFCO Annual Conference (Speaker Per Diem for Travel/Stay) check 3558 SDCCU Checking 10/1/ Office Expense 2.00 ATM Fee for Peterson Donut debit card 3558 SDCCU Checking 10/1/ Office Expense Refreshments for Commission Meeting at CAC debit card 3558 SDCCU Checking /9/ Office Expense Refreshments for Commission Meeting at CAC (August & October) check 3558 SDCCU Checking 10/31/ Non-Travel/In-County Training with Vision for New Website; KS, LZ, and DN debit card 3558 SDCCU Checking 10/23/ Non-Travel/In-County Staff Lunch 1st Quarter Review credit card SDCCU Visa Credit Card 10/2/ Out of County Travel CALAFCO Annual Conference (Staff Dinner 10/2/18) credit card SDCCU Visa Credit Card 10/3/ Out of County Travel CALAFCO Annual Conference (Staff Dinner 10/3/18) credit card SDCCU Visa Credit Card 10/5/ Out of County Travel CALAFCO Annual Conference (Staff Lunch 10/5/18) credit card SDCCU Visa Credit Card 10/5/ Out of County Travel Accommodations Oct CALAFCO Annual Conference (KS) credit card SDCCU Visa Credit Card 10/5/ Out of County Travel Accommodations Oct CALAFCO Annual Conference (JH) credit card SDCCU Visa Credit Card 10/5/ Out of County Travel Accommodations Oct CALAFCO Annual Conference (JM) credit card SDCCU Visa Credit Card 10/5/ Out of County Travel Accommodations Oct CALAFCO Annual Conference (Don Butz) credit card SDCCU Visa Credit Card 10/5/ Out of County Travel Accommodations Oct CALAFCO Annual Conference (EB & LZ) credit card SDCCU Visa Credit Card 10/5/ Out of County Travel Accommodations Oct CALAFCO Annual Conference (RB) debit card 3558 SDCCU Checking 3, /17/ Office Expense Protest Hearing Debriefing KS and HW debit card 3558 SDCCU Checking 10/26/ Office Expense KS Meeting with Former LAFCO EO (JM) debit card 3558 SDCCU Checking 10/15/ Telecommunications Conference Calling Services for CALAFCO Session debit card 3558 SDCCU Checking 10/23/ Non-Travel/In-County Birthday Cake; LZ, RB, and EB credit card SDCCU Visa Credit Card 10/10/ Equipment Rental Xerox Rental electronic 1000 County Account (44595) EXPENSE TOTAL 126, Page 2 of 3 26

27 SAN DIEGO LAFCO Expenses by Vendor Detail October 2018 Payable Receivable Party Date Account Amount Purpose Type Funding Account R John Moth R County of San Diego R Rincon del Diablo MWD R Western Pavers Inc. 10/8/ Miscellaneous Revenue Recording Fee (DA18-12) check 3558 SDCCU Checking 10/31/ Interest & Dividends Interest Payment to Accountant electronic 1001 General Fund (46725) 10/31/ Interest & Dividends Interest Payment to Accountant electronic 1002 Special Projects Fund (46726) 10/31/ Interest & Dividends Interest Payment to Accountant electronic 1003 Jurisdictional Projects Fund (46727) 10/31/ LAFCO Apportionment 55, LAFCO Apportionment Collections electronic 1000 County Account (44595) 56, /12/ Miscellaneous Revenue 2, Recording & PHN Fees (RO17-10) check 3558 SDCCU Checking 10/19/ Miscellaneous Revenue Recording & PHN Fees (SA/LPE18-01) check 3558 SDCCU Checking 10/19/ Service to Property Owner 4, LAFCO Proposal Fees (SA/LPE18-01) check 3558 SDCCU Checking 5, REVENUE TOTAL 63, Page 3 of 3 27

28 Page is Blank for Photocopying 28

29 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego December 3, 2018 TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer Erica Blom, Administrative Assistant 3 AGENDA REPORT Consent Action Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono SUBJECT: Budget Update for st Quarter Expenses-to-Actuals and Year End Projections SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will review a report comparing budgeted and actual transactions for through the first quarter. The report projects the Commission is on pace to finish with a modest operating surplus of $14,665 or 1%. Savings in salaries and benefits underlie the projected surplus and pertinently are helping to absorb the fee waiver and associated costs in processing the reorganization proposal involving the Julian-Cuyamaca Fire Protection District. The report is being presented to the Commission to accept and file as well as provide direction as needed. BACKGROUND San Diego LAFCO Prescribed Funding State law mandates operating costs for LAFCOs shall be annually funded among their represented membership categories. San Diego LAFCO s operating costs, accordingly, are divided among four distinct membership categories with the largest apportionment assigned to the County of San Diego at 28.6%. The independent special districts and cities less the City of San Diego are also apportioned funding percentages of 28.6% with individual amounts divided thereafter based on total revenue shares in a given fiscal year. The City of San Diego and based on special legislation providing the City a dedicated seat on LAFCO is responsible for the remaining 14.3% of annual operating costs. 29

30 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 3 Budget Update for Adopted Budget San Diego LAFCO s adopted final budget for totals $1.906 million. This amount represents the total approved operating expenditures for the fiscal year divided between three active expense units: salaries and benefits; service and supplies; and other. A matching revenue total was also budgeted to provide a projected year-end net of $0 and with the purposeful aid of a planned $0.110 million transfer from reserves. Budgeted revenues are divided between four active units: intergovernmental contributions; service charges; earnings; and miscellaneous. The Commission s total fund balance as of July 1, 2018 was $1.619 million. 1 Accounting Practices Budgeted FY19 Budgeted FY19 Budgeted FY19 Beginning FY19 Expenses Revenues Year End Balance Fund Balance $1.906 $1.906 $0 $1.619 amounts in millions San Diego LAFCO practices bottom-line accounting in booking expenses during the fiscal year. The substantive result of this practice means individual line-item accounts may exceed their budgeted total without the need for correcting amendments so long as the overall balance in the affected units (i.e., salaries and benefits, services and supplies, etc.) remain positive. Should a unit s balance exceed its budgeted allocation, however, a correcting amendment is required by the Commission before the end of the fiscal year. DISCUSSION This item is for San Diego LAFCO to receive an update comparison of (a) budget to (b) actual expenses and revenues through the first quarter (September 30 th ). The report provides the Commission the opportunity to track expenditure trends and consider year-end operating projections from the Executive Officer. The report is being presented to the Commission to formally accept and file as well as provide related direction as needed. Summary of Operating Expenses San Diego LAFCO s budgeted operating expense total for is $1.906 million. Actual expenses booked through the first three months totaled $0.442 million. This booked amount represents 23% of the budgeted total with 25% of the fiscal year complete. A breakdown of budget to actual expenses by unit through September 30 th follows. 1 The fund balance total of $1.619 million is pending audit review and includes $300,000 in commitments. These commitments are divided between (a) $125,000 for fire service reorganizations, (b) $75,000 for litigation, (c) $50,000 for CSA No. 115 s reorganization, and (d) $50,000 for general fee waivers. 2 P age 30

31 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 3 Budget Update for Expense Units Adopted Actuals Through 9/30 Percent Expended Unexpended Balance 1) Salaries and Benefits 1,131, , ,862 2) Services and Supplies 770, , ,115 3) Other 5, ,000 Total 1,906, , ,467,977 Actuals through the first quarter of the fiscal year and related analysis suggest San Diego LAFCO is on pace to finish with $1.862 million in total expenses. Should this projection hold the Commission will achieve an unexpended budgeted savings in expenses of $44,669 or 2%. An expanded discussion on budgeted and actuals through the first three months along with year-end projections within the three expense units follow. Expense Unit Salaries and Benefits San Diego LAFCO budgeted $1.131 million in salaries and benefits for with the proceeds largely tied to funding 8.0 fulltime equivalent employees as well as existing retiree obligations. 2 Through the first quarter the Commission s actual expenses within the affected line item accounts totaled $0.217 million or 19% of the budgeted amount with 25% of the fiscal year complete. The proportional savings to date are tied to two budgeted positions (GIS Analyst and Analyst I) remaining vacant through the first three months. Going forward and through the end of the fiscal year it is expected overall actuals in the salaries and benefits unit will total $1.067 million. This projection includes costs tied to filling the two referenced positions by the start of the third quarter as well as covering potential mid-year salary adjustments for non-management. 3 Should this projection hold the Commission will achieve an overall unit savings of $64,175 or 6%. Expense Unit Services and Supplies San Diego LAFCO budgeted $0.770 million in services and supplies for to provide funding for direct support services. The majority of the budgeted funds are dedicated to professional services to cover such items as planning and legal services as well as making reimbursements to the County for office rent, information technology, and general overhead. Through the first quarter the Commission s actual expenses within the affected line item accounts totaled $0.225 million or 29% of the budgeted amount with 25% of the fiscal year complete. Close to one-half of these booked expenses $103,229 involve professional services with more than 25% of this amount directly tied to costs in processing the Julian-Cuyamaca Fire Protection District (FPD) reorganization. 4 Going forward and through the end of the fiscal year it is expected overall actuals in the services and supplies 2 Commission per diem payments are also booked in the salaries account. 3 Any mid-year salary adjustments for non-management would be informed by the pending completion of a class/compensation report by County Human Resources and under the direction of the Executive Officer. 4 San Diego LAFCO incurred close to $40,000 in direct professional service costs in processing the Julian- Cuyamaca FPD reorganization through September 30 th. This amount does not include other direct costs involving notices, mailings, and related materials and booked to other accounts within the unit. 3 P age 31

32 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 3 Budget Update for unit will total $0.792 million with additional details footnoted. 5 Should this projection hold it would produce an overall deficit within the unit of ($22,487) or (3%). Expense Unit Other San Diego LAFCO budgeted $5,000 in two separate units to collectively address equipment depreciation and potential fixed asset purchases in The Commission has not billed any charges through the first quarter. Going forward it is expected actuals will total $2,019 and result in a year-end balance of $2,981 or 60%. Summary of Operating Revenues San Diego LAFCO s budgeted operating revenue total for is $1.906 million. Actual revenues through the first quarter totaled $1.622 million. This amount represents 85% of the budgeted total with 25% of the fiscal year complete. A breakdown of budget to actual revenues within each of the four affected units through September 30 th follows. Revenue Units Adopted Actuals Through 9/30 Percent Collected Outstanding Balance 1) Intergovernmental 1,664,894 1,609, ) Service Charges 125,000 6, ) Earnings 6,800 5, ) Miscellaneous 110, Total 1,906,694 1,621, Actuals through the first quarter and related analysis suggest San Diego LAFCO s year-end revenue totals will tally $1.877 million and result in a moderate shortfall of ($30,004) or (2%). The projected shortfall is entirely attributed to a sizeable reduction in service charges. An expanded discussion on budgeted and actual revenues in the four units through the first three months along with year-end projections follows. Revenue Unit Intergovernmental Fees San Diego LAFCO budgeted $1.665 million in intergovernmental fees in This total budgeted amount was subsequently divided between San Diego LAFCO s four membership categories based on statutory formula. The County of San Diego, independent districts, and cities less San Diego all received apportionments equaling $0.476 million. The remaining amount $0.238 million was apportioned to the City of San Diego. Through the first quarter the Commission s actual revenues collected in this unit totaled $1.664 million and includes all agency contributions with the exception of Rainbow Municipal Water District and City of National City. These remaining contributions are expected to be collected shortly and will result in a zero year-end balance. 5 As referenced, it is projected San Diego LAFCO will finish the fiscal year with $0.792 million in expenses within the Services and Supplies unit. Of this amount, it is further projected $0.140 million or 18% will be directly tied to processing the Julian-Cuyamaca FPD reorganization. 4 P age 32

33 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 3 Budget Update for Revenue Unit Service Charges San Diego LAFCO budgeted $0.125 million in application fees in Through the first quarter the Commission collected $6,710 in application fees and represents less than 1% of the budgeted amount. Markedly, several proposal filings occurred at the end of the prior fiscal year that were otherwise expected during the first quarter of this fiscal year at the time the budget was adopted in April Accordingly, staff anticipates overall actuals in this unit will tally $80,000 and result in a year-end shortfall of ($45,000) or (36%). Revenue Unit Interest San Diego LAFCO budgeted $6,800 in interest earnings in Through the first quarter the Commission collected $5,449 in interest earnings and represents 80% of the budgeted total. Staff anticipates the unit ultimately tallying $21,796 and result in a yearend surplus of $14,996 or 220%. Revenue Unit Miscellaneous San Diego LAFCO budgeted $0.110 million in operating transfers from reserves in This transfer was purposefully budgeted in conjunction with standing practice to use reserves to reduce increases in agency contributions. No transfers were made through the first quarter. A full transfer is expected prior to the fiscal year close. ANALYSIS Activity through the first quarter of the fiscal year shows San Diego LAFCO is generally proceeding advantageously and without the need for any correcting amendments. Savings in salaries and benefits underlie the projected year-end surplus of $14,665 and with other efficiencies is expected to absorb expected overruns in services and supplies. This includes markedly and without necessitating a separate reserve transfer absorbing the Commission s expected $140,000 cost to process the Julian-Cuyamaca FPD reorganization through the end of the year. Should these projections hold the Commission will finish the fiscal year with a fund balance of $1.524 million with the unassigned portion equaling $1.274 million. The next budget update is scheduled for February RECOMMENDATION It is recommended San Diego LAFCO proceed with Alternative One as outlined in the preceding section. 5 P age 33

34 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 3 Budget Update for ALTERNATIVES FOR ACTION The following alternatives are available to San Diego LAFCO: Alternative One (recommended): Accept and file the report as presented. Alternative Two: Continue to a future meeting and provide direction to staff with respect to any additional analysis or information requested. PROCEDURES This item has been placed on the agenda as part of the consent calendar. Accordingly, a successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation as provided unless otherwise specified by the Commission. Respectfully, Keene Simonds Executive Officer Attachment: 1) Operating Budget General Ledger Through September 30, P age 34

35 SAN DIEGO LOCAL AGENCY FORMATION Marin COMMISSION Agenda Item No. 3 Local Agency Formation Commission Regional Service Planning State of Political California Attachment One Subdivision of the State of California ADOPTED OPERATING BUDGET OPERATING EXPENSES FY FY FY FY Salary and Benefit Unit Adopted Actuals Adopted Actuals Adopted Actuals Adopted Actuals Projected FY15 16 FY15 16 FY16 17 FY16 17 FY17 18 FY17 18 FY st Quarter % Expended Year End Totals Accounts Descriptions Salaries and Wages 1,028, ,668 1,073, ,165 1,100, , , , % 641, Retirement SDCERA 153, , , ,780 48, % 233, Retirement OPEB 8,188 9,323 7,256 10,560 2, % 10, Retirement Pension Obligation Bonds 30,851 34,496 27,841 41,598 7, % 39, Payroll Tax (Social and Medicare) 32,921 36,919 35,613 48,958 9, % 47, Group Insurance (Health) 66,797 69,440 74,615 96,958 20, % 92, Unemployment Insurance , % 3,130 1,028, ,912 1,073, ,759 1,100, ,078 1,131, , % 1,067,429 Services and Supplies Unit Accounts Descriptions Telecommunications ,266 2, , Vehicle Maintenance 2,000 1,150 2,000 1,456 2, , , Vehicle Fuel 500 1,274 1,500 1,096 1, , Memberships 9,000 7,577 10,107 8,107 15,000 11,328 13,000 9, , Miscellaneous , Office: General 1,000 1,000 1,000 15,253 8, , Office: Postage Office: Printing 2,000 7,194 7, ,500 10,000 1, , Office: Books and Guidelines 2, ,000 2,000 3,609 2,000 1, Office: Drafting/Engineering Office: Stores Unallocated 15,000 13,974 17,500 10,806 18,000 13,140 17,500 3, , Office: County Mail Services 8,000 9,228 9,500 8,220 9,000 10,037 9,000 7, , Professional Services: Consultants 427, , , , , , , , , Publications and Legal Notices 2, , ,500 7,085 5,000 2, , Leases: Equipment 1,166 5,996 4,779 4,000 5,498 6,500 1, , Leases: Office Space 75,000 73,875 77,000 75,722 80,000 79,789 79,880 19, , Special Expenses: County Overhead 126, , , , ,000 47, ,000 17, , Special Expenses: New Hire Backgrounds Special Expenses: Minor Equipment 1,000 1,000 1,000 1,164 1, , Computer Training 2,000 2,000 2,000 2, Travel and Training In County ,301 5, , Employee Auto 10,000 9,084 10,000 8,802 10,000 8,724 10,000 2, , Travel and Training Out of County 1,000 1,000 1,000 14,390 10,000 10, , Reimbursements: Network 33,500 28,905 33,500 29,140 31,500 27,137 30,000 6, , Reimbursements: Data Center 50,546 54,901 51,000 52,403 45,000 48,214 45,000 7, , Reimbursements: Financial Systems 6,000 22,671 6,000 20,940 20,000 18,888 20,000 7, , Reimbursements: Desktop Computing 40,200 27,079 40,200 28,248 27,700 47,462 25,000 8, , Reimbursements: Help Desk 2,500 5,058 2,500 4,531 2,500 3,154 3, , Reimbursements: Catalog Equipment 41,310 20, ,480 27,121 51,000 23,973 45,000 12, , Reimbursements: Vehicle Lease 2, , ,000 1,986 2, , , , , , , , , , ,577 Other Units Accounts Descriptions Equipment Depreciation 2,500 2,019 2,500 2,019 2,500 2,019 2,500 2, Fixed Assets 2,500 1,500 2,500 2,500 5,000 2,019 4,000 2,019 5,000 2,019 5,000 2, EXPENSE TOTALS 1,896,977 1,646,625 1,979,064 1,764,521 1,986,899 1,668,632 1,906, , ,862,024

36 OPERATING REVENUES FY FY FY FY Intergovernmental Unit Adopted Actual Adopted Actual Adopted Actuals Adopted Actuals Projected FY15 16 FY15 16 FY16 17 FY16 17 FY17 18 FY17 18 FY st Quarter % Collected Year End Totals Accounts Descriptions Agency Apportionments 1,394,946 1,394,946 1,578,564 1,577,636 1,635,099 1,635,099 1,664,894 1,609, ,664,894 1,394,946 1,394,946 1,578,564 1,577,636 1,635,099 1,635,099 1,664,894 1,609, ,664,894 Service Charges Unit Accounts Descriptions Applicant Fees 125,000 76, , , , , ,000 6, ,000 Earnings Unit Accounts Descriptions 125,000 76, , , , , ,000 6, , Interests and Dividends 5,500 5,500 6,800 15,535 6,800 5, ,796 Miscellaneous Unit Accounts Descriptions 5,500 5,500 6,800 15,535 6,800 5, , Operating Transfer 370, , , , , , , , , , , ,000 REVENUE TOTALS 1,895,811 1,646,456 1,984,064 1,764,353 1,986,899 1,818,643 1,906,694 1,621, ,876,690 OPERATING NET $ (169) $ (168) $ $ 150,011 $ (0.00) $ 14,665 FUND BALANCE JUNE 30th Committed 300, , ,000 Unassigned 1,108,695 1,169,699 1,319,710 $ 1,408,695 $ 1,469,699 $ 1,619,710 audited audited unaudited 36

37 San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District December 3, 2018 TO: FROM: SUBJECT: San Diego Commissioners Holly Whatley, Commission Counsel 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) AGENDA REPORT Consent Action Proposed Amendment to the Employment Agreement for Executive Officer Keene Simonds SUMMARY The San Diego Local Agency Formation (LAFCO) unanimously approved at its October 1, 2018 meeting an amendment to the Employment Agreement Between the San Diego Local Agency Formation Commission and Keene Simonds. The approval increases the salary and changes the vacation leave benefits to conform to existing County of San Diego vacation accrual policies for executive management. The Commission will consider memorializing the earlier actions by authorizing the Chair to execute a proposed amendment. BACKGROUND Executive Officer Employment Agreement 4 Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono San Diego LAFCO ( Commission ) appointed Executive Officer Keene Simonds on August 7, The appointment is at-will and memorialized through an employment agreement that and among other provisions establishes compensation with respect to salary and benefits. The employment agreement requires the Commission conduct a formal evaluation of the Executive Officer s performance at least once each year. The employment agreement also specifies any changes shall be done by amendments approved by the Commission. 37

38 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 4 Amendment to Employment Agreement with Executive Officer Keene Simonds DISCUSSION This item is for San Diego LAFCO to consider authorizing the Chair to execute a proposed amendment to its employment agreement with Executive Officer Keene Simonds. The proposed amendment follows the Commission voting unanimously at its October 1, 2018 meeting to increase Mr. Simonds annual salary by 5% from $160,000 to $168,000, as is consistent with LAFCO Rule No. 6.2 and provisions for the Commission to consider a 5% adjustment after each anniversary date of appointment if the Executive Officer s annual salary is below the approved midpoint. As permitted by the Commission s adopted Personnel Rules, the Commission approved the salary adjustment to be effective on the first day of the first pay period following the Executive Officer s one-year anniversary date. The Commission also voted unanimously to amend Mr. Simonds annual vacation accrual allowances to be consistent with executive management benefits provided by the County of San Diego, with this accrual adjustment to retroactive to his starting date. The proposed amendment is provided as Attachment One. ANALYSIS The changes to salary and benefits provided by the proposed amendment are within existing budget appropriations. RECOMMENDATION It is recommended San Diego LAFCO authorize the Chair to execute the proposed amendment consistent with Alternative One in the proceeding section. This action would be consistent with the Commission actions on October 1, ALTERNATIVES FOR ACTION The following alternatives are available to San Diego LAFCO through a single motion: Alternative One (recommended): Authorize the Chair to execute the propose amendment as provided as Attachment One. Alternative Two: Continue to the next regular meeting and provide direction to Counsel as needed. Alternative Three: Take no action. 2 P age 38

39 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 4 Amendment to Employment Agreement with Executive Officer Keene Simonds The Commission may refuse to approve the amendment, request changes to the amendment, or give other appropriate direction on this subject. PROCEDURES This item has been placed on the agenda as part of the consent calendar. Accordingly, a successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation as provided unless otherwise specified by the Commission. Respectfully, Holly Whatley Commission Counsel Attachment: 1) Proposed Amendment No. 1 to Employment Agreement 3 P age 39

40 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 4 Amendment to Employment Agreement with Executive Officer Keene Simonds Page Blank for Photocopying 4 P age 40

41 FIRST AMENDMENT TO EMPLOYMENT AGREEMENT Agenda Item No. 4 Attachment One RECITAL On October 3, 2018 the San Diego Local Agency Formation Commission unanimously approved amending the Employment Agreement originally entered into between the San Diego Local Agency Formation Commission (hereafter LAFCO ) and Keene Simonds ( Executive Officer ) on September 11, Such approved amendments followed the Executive Officer s annual performance review and are made as permitted by Paragraph 19 of the Employment Agreement. The Parties agree as follows: AMENDMENTS 1. Paragraph 4 ( Compensation ), subparagraph A is hereby amended in its entirety to read as follows: A. Effective as of the first day of the first pay period following the Executive Officer s one-year anniversary date September 11, 2017, the Executive Officer s annual salary shall be $168,000 and as otherwise provided in section 6.20 of LAFCO s Personnel Rules ( Rules ). 2. Paragraph 7 ( Vacation Leave ), subparagraph A is hereby amended in its entirety to read as follows: A. Executive Officer shall be afforded vacation benefits provided for Executive Management per San Diego County s Compensation Ordinance Section Vacation. At present, this affords 15 days per year for employees with one to four years service, 20 days per year for employees with five to 14 years service, and 25 days per year to employees with 15 years of service and over. Accruals are credited on a biweekly basis and available for use as it is accrued. The effective date of this vacation accrual formula is retroactive to the start date of the Executive Officer s employment with LAFCO on September 11, 2017 and is intended to adjust the Executive Officer s vacation benefits from the inception of his employment to be consistent with the executive management vacation benefits afforded County of San Diego executive management employees. 3. All other recitals, paragraphs, subparagraphs and clauses of the Agreement remain unchanged by this First Amendment to Employment Agreement

42 EXECUTIVE OFFICER Dated: Keene Simonds LAFCO Dated: Jo MacKenzie, Chair Approved as to form: Holly O. Whatley LAFCO Attorney Dated: Attest: Tamaron Luckett LAFCO Clerk Dated:

43 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono December 3, 2018 TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer SUBJECT: Approve Support Position and Authorize Letter California WaterFix Project SUMMARY AGENDA REPORT Consent Action The San Diego Local Agency Formation Commission (LAFCO) will consider a request from the Southern California Water Coalition to support the California WaterFix and its plan to improve the reliability of statewide water supplies generated through the Sacramento Delta. This plan includes constructing two underground tunnels to reroute water deliveries in the Delta around sensitive habitat before connecting to the California Aqueduct in the Central Valley at an estimated capital cost of $16.7 billion with pertinently two-thirds expected to be covered by users in Southern California. Staff is recommending the Commission proceed with approving a support position as well as authorizing an accompanying letter to local legislators for reasons detailed and in conjunction with input provided by the San Diego County Water Authority. BACKGROUND California WaterFix California WaterFix is an approximate $17 billion infrastructure project supported by the Governor s Office. The project s underlying aim is to improve the volume and reliability of water supplies generated in the Sierra Nevada mountains and conveyed through the Sacramento Delta to agricultural and urban users in Central and Southern California. The project is marked by constructing two underground tunnels to bypass the central Delta basin and reconnect with the California Aqueduct in the Central Valley. Project costs will 5 43

44 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 5 Authorize Support Position and Letter for California WaterFix be entirely borne from State Water Project and Central Valley Project contractors and their subcontractors and ultimately covered through customer water rates. Metropolitan Water District of Southern California and San Diego County Water Authority The Metropolitan Water District of Southern California ( MWD ) is the single largest contractor of the State Water Project and Central Valley Project. MWD notably is a wholesale provider and subcontracts its supplies to other providers (wholesale and retail) or members in the region. This includes subcontracting water supplies through its own infrastructure to the San Diego County Water Authority (SDCWA), which in turn wholesales to its own local member agencies and most prominently the City of San Diego. In April 2018, MWD took Board action to support California WaterFix and plan therein to construct two underground conveyance tunnels to reroute fresh water supplies around the central Delta Basin. MWD also agreed to contribute up to two-thirds or $11 billion towards the estimated project cost, and in doing so cover potential funding shortfalls should agricultural users in the Central Valley choose not to participate. MWD s approval, however, was not unanimous with its two largest member agencies City of Los Angeles and SDCWA voting against the project and specifically in opposition to assuming agriculture s costs. Request from Southern California Water Coalition San Diego LAFCO received a written request in September 2018 from the Southern California Water Coalition ( Coalition ) to take an official support position on California WaterFix and authorize sending an accompanying letter to local legislators. 1 The request followed a biannual meeting of the six Southern California LAFCOs held on August 13 th that included a presentation from MWD on the status on the California WaterFix project. As part of the ensuing discussion, Charley Wilson Commissioner from Orange LAFCO and Executive Director of the Coalition commented on the harmonizing aspects of the project with LAFCOs directive to support current and future growth in California. After further discussion, including considering a joint-letter approach, it was agreed individual LAFCOs in the region should take up the topic and consider taking their own support position. The Coalition followed up with sending written requests to all six regional LAFCOs to consider issuing support letters to legislators. All five other region LAFCOs have subsequently approved support positions at recent meetings. A copy of the written request received by San Diego LAFCO is provided as Attachment One. 1 The Coalition s website describes its organization, as a "nonprofit, nonpartisan public education partnership dedicated to informing Southern Californians about our water needs and our state's water resources through measured advocacy. 2 P age 44

45 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 5 Authorize Support Position and Letter for California WaterFix DISCUSSION This item is for San Diego LAFCO to consider the request received from the Coalition to approve a support position on California WaterFix. The Commission will also relatedly consider authorizing staff to issue a support letter for the project to local legislators. ANALYSIS Staff has discussed the request with several stakeholders and believes a support position for California WaterFix is appropriate and affirmatively reflects San Diego LAFCO s interests and duties to facilitate orderly public works projects to accommodate current and future growth. Staff believes it is equally appropriate for the Commission to tailor its support for this otherwise statewide project to address unique local conditions. Accordingly, and in support of the position taken by the San Diego County Water Authority Board of Directors, it would be prudent for the Commission to condition support on a responsive allocation of costs of the project by MWD as volumetric conservation, or supply charges, to its member agencies. RECOMMENDATION It is recommended San Diego LAFCO approve the request received from the Coalition and provide its support for the California WaterFix project. This recommendation would be accommodated by taking the actions outlined in the succeeding section as Alternative One. ALTERNATIVES FOR ACTION The following alternatives are available to San Diego LAFCO: Alternative One (recommended): a) Approve a support position for California WaterFix. b) Authorize the Executive Officer to issue support letters on California WaterFix consistent with the policy emphasis identified in the preceding section and/or as requested by the Commission. Alternative Two: Continue consideration of the report to a future meeting and provide direction to staff for more information as needed. Alternative Three: No action. 3 P age 45

46 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 5 Authorize Support Position and Letter for California WaterFix PROCEDURES This item has been placed on the San Diego LAFCO s agenda as part of the consent calendar. A successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation unless otherwise specified by the Commission. Respectfully, Keene Simonds Executive Officer Attachment: 1) Request to San Diego LAFCO from the Southern California Water Coalition 4 P age 46

47 Agenda Item No. 5 Attachment One August 28, 2018 San Diego Local Agency Formation Commission Executive Officer Simonds Keene 9335 Hazard Way, Suite 200 San Diego, CA Dear Executive Officer Keene, On August 13, 2018, the Southern Region LAFCO members met and had a detailed presentation on the need for and benefits of modernizing the state s aging water delivery system responsible for more than 30 percent of Southern California s fresh water supply. In a landmark decision in July, water leaders at the Metropolitan Water District of Southern California (MWD) voted to finance up to 64.6 percent of California WaterFix, the $17 billion twin tunnels project that is critically needed to upgrade the infrastructure that moves the state s backbone supply of water to Southern California. MWD also was among the founding members of the Joint Powers Authority created to manage the project s design and construction. Since that time, momentum to enhance the state s water system has grown substantially, fueled by resounding support from a broad, Southern California-based coalition of diverse interests including local cities, counties, water agencies, business, industry, labor, agriculture and nonprofits. Public support for the project is also strong. A recent poll by the Public Policy Institute of California (PPIC) found that 78 percent of Californians think WaterFix is important for the future quality of life and economic vitality of the state. On behalf of the millions of Southern Californians represented through the Local Agency Formation Commissions throughout the region, it is apparent that local government is responsible to ensure the establishment of an appropriate, sustainable, and logical municipal level government structure for the distribution of efficient and effective public services. By modernizing and upgrading the state s aging water delivery system, California WaterFix will provide a secure, reliable and affordable water supply, which is necessary as we perform statemandated municipal service reviews. Absent this solution, future changes in local water supply development could have a significant impact in providing long-term improvements in the delivery of municipal water services. As the representative agencies responsible for effective and efficient delivery of municipal services, we think it s prudent for your commission to consider lending its voice in support of this necessary project and to support our jurisdictions in demonstrating a reliable water supply into the future. 47

48 As such, I would recommend the following statement for serious consideration and action in support of a reliable water future for Southern California by your commission. Respectively, Charles Wilson Executive Director and CEO Southern California Water Coalition Proposed Statement On behalf of the millions of Southern Californians represented through the San Diego Local Agency Formation Commission responsible to ensure the establishment of an appropriate, sustainable, and logical municipal level government structure for the distribution of efficient and effective public services, we support the modernization of the state s aging water delivery system through California WaterFix as part of an all the above strategy to ensure a reliable water supply for our region s future. Roughly 30 percent of the water that flows out of taps in Southern California comes from Northern California via the Sacramento-San Joaquin Delta. But the Delta's delivery system is antiquated, a problem compounded both by a declining ecosystem and 1,100-mile levee system that are increasingly vulnerable. California WaterFix is a comprehensive solution proposed by state and federal agencies to ensure our state has a reliable water supply for many years to come. It would modernize the decades-old delivery system through the building of three new intakes in the northern Delta along with two tunnels to carry water to the existing aqueduct system in the southern Delta. We further believe that California WaterFix will provide LAFCO and its stakeholders the opportunity to demonstrate vision and leadership in tackling one of our region s most important issues and facilitate necessary seeds for future changes in local water supply development leading to a long-term improvement in the delivery of municipal water services. 48

49 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego Dianne Jacob, Supervisor County of San Diego December 3, 2018 TO: San Diego Commissioners FROM: Keene Simonds, Executive Officer SUBJECT: Progress Report on Workplan 6 AGENDA REPORT Consent Action Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will receive a progress report on accomplishing projects included as part of the adopted workplan for This includes noting through the first five months of the fiscal year close to 60% of all projects are underway with several nearing completion. Projects nearing completion include two priority proposals (Julian- Cuyamaca Fire Protection District and County Service Area No. 115) as well as a comprehensive fee schedule update, new agency website, and filling budgeted positions. The report is being presented to the Commission to formally receive and file as well as request amendments for future consideration. BACKGROUND Workplan San Diego LAFCO s ( Commission ) current fiscal year workplan was adopted at a noticed public hearing held on April 2, The workplan includes 25 projects and divided into two distinct categories statutory and administrative with one of three priority rankings: high; moderate; or low. The underlying intent of the workplan is to serve as an active management tool to allocate Commission resources in a transparent manner over the corresponding 12 month period. Further, while it is a stand-alone document, the workplan should be reviewed in relationship to the adopted operating budget given the planned goals and activities are facilitated and/or limited accordingly. 49

50 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 6 Progress Report on Workplan DISCUSSION This item provides San Diego LAFCO with its regular status update on the 25 targeted projects established for the fiscal year with specific emphasis on the top ten ; the projects that represent the highest priority activities to complete during the fiscal year. 1 All projects are assigned one of four status assignments ranging from pending to complete. The item is being presented for the Commission to formally receive and file while also providing the membership the opportunity to discuss and request amendments for future consideration. A copy of the workplan along with status assignments is provided as Attachment One. ANALYSIS San Diego LAFCO is generally proceeding as planned and has initiated work on 14 of the projects included in the adopted workplan and represents more than one-half or 56% of the total through the first five months of the fiscal year. This includes nearing completion on several projects with the expectation they will be done or at least substantively done within the next few months and marked by a fee schedule update, new agency website, logo design, and filling two budgeted positions (GIS Analyst and Analyst I). Work is also nearing completion on two high priority reorganization proposals involving the Julian-Cuyamaca Fire Protection District and County Service Area No Progress on the scheduled municipal service reviews, however, has moderately fallen behind schedule in step with the referenced timing in filling the analyst positions any may need to carry into the next fiscal year. RECOMMENDATION It is recommended San Diego LAFCO receive and file the item with the invitation to discuss and/or request revisions for future consideration. This recommendation would be accommodated by taking the actions outlined in the succeeding section as Alternative One. ALTERNATIVES FOR ACTION The following alternatives are available to San Diego LAFCO: Alternative One (recommended): Receive and file the report as presented. Alternative Two: Continue consideration of the report to a future meeting and provide direction to staff for more information as needed. 1 The presentation of a progress report on the workplan is a new practice at San Diego LAFCO as of the fiscal year. It is intended to provide the Commission a real-time update on priority projects and as needed make revisions. 2 P age 50

51 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 6 Progress Report on Workplan PROCEDURES This item has been placed on the San Diego LAFCO s agenda as part of the consent calendar. A successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation unless otherwise specified by the Commission. Respectfully, Keene Simonds Executive Officer Attachment: 1) Workplan with Notations 3 P age 51

52 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 6 Progress Report on Workplan Page Blank for Photocopying 4 P age 52

53 San Diego Local Agency Formation Commission Regional Service Planning Subdivision of the State of California Agenda Item No. 6 Attachment One Workplan Final Introduction: Local Agency Formation Commissions (LAFCOs) operate under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2001 ( CKH ) and are delegated broad regulatory and planning responsibilities by the Legislature to oversee the formation and subsequent development of local government agencies and their municipal service areas. Common regulatory functions include approving boundary change and outside service requests. Common planning functions include preparing studies to independently evaluate the availability, performance, and need for urban services and establishing spheres of influence which are the Legislature s version of urban growth boundaries and gatekeepers to future boundary changes for all cities and special districts. All regulatory and planning activities undertaken by LAFCOs may be conditioned and must be consistent with policies and procedures. Objective: This document represents San Diego LAFCO s ( Commission ) formal Workplan. The Workplan draws on the recommendations of the Executive Officer as vetted and approved by the Commission. The Workplan is divided into two distinct categories statutory and administrative with one of three priority rankings: high; moderate; or low. The underlying intent of the Workplan is to serve as a management tool to allocate Commission resources in an accountable and transparent manner over the 12-month period. Further, while it is a stand-alone document, the Workplan should be reviewed in relationship to the adopted operating budget given the planned goals and activities are facilitated and or limited accordingly. Additionally, and as needed, the Commission reserves discretion to amend the Workplan during the fiscal year to address changes in resources and or priorities as needed as well as to carry-forward projects into subsequent years. Executive Summary: The Workplan continues to guide the Commission to prioritize resources in addressing statutory duties and responsibilities. Most notably, this includes allocating sufficient resources to process several prominent reorganizations as well as initiating a new round of municipal service reviews beginning in the mid-county region. Notable new administrative projects include completing a job class/salary schedule review and fee schedule update as well as designing a new website and transitioning to e-agenda packets. A limited number of projects have also been identified as low priorities with the policy intention for the Commission to address such as updating the application packet and establishing social media polices and protocols as resources allow. 53

54 San Diego LAFCO Workplan Priority Level Type Project Key Issues Status 1 High Statutory Exiting Proposals on File Priority Julian-Cuyamaca FPD, CSA No. 115, and San Marcos (Highlands) Near Completion 2 High Statutory Expected Proposals Priority Escondido (Safari Highlands), Vista (Lomas Verdes), Rincon (Harmony Grove South and Valiano) Pending 3 High Administrative Targeted LAFCO Presentations Engage stakeholders; emphasis on informing stakeholders ahead of MSR work Underway 4 High Administrative Fill Budgeted Positions Recruitments for three new analysts and related training and development Near Completion 5 High Administrative Job Class and Salary Review Specific to non-executive positions; first review in 10 years; focus on alignment and retention Near Completion 6 High Statutory MSR SOI City of Escondido Region Per Study Schedule; includes Escondido, Deer Springs FPD, and Rincon del Diablo MWD Underway 7 High Statutory MSR SOI City of San Marcos Region Per Study Schedule; includes San Marcos, San Marcos FPD, and Vallecitos WD Pending 8 High Statutory MSR SOI City of Vista Region Per Study Schedule; Includes Vista, Vista ID, Vista FPD, and Buena Sanitation Pending 9 High Administrative Policy Reviews: Reserves and Ag Protection Explore and pursue changes to reflect best practices and membership preferences Pending 10 High Administrative Fee Schedule Update First update since early 2000s; ensure appropriate cost-recovery and establish hourly staff rates Near Completion 11 Moderate Administrative MOU Update with County Existing MOU from 1974; update to reflect current agency relationships/needs Pending 12 Moderate Administrative E-Agenda Packets Simplify agenda packet production and reduce material (paper, ink, etc.) consumption Underway 13 Moderate Statutory MSR SOI Julian Region Per Study Schedule; includes Julian-Cuyamaca FPD, Julian CSD, and several others Underway 14 Moderate Administrative Bookkeeping Services Quality insurance measure; reconcile statements and create scaled chart of accounts for LAFCO Near Completion 15 Moderate Administrative Audit Best practice; follow up on previous audit recommendations (Item No. 14) Near Completion 16 Moderate Administrative Website Update Design and launch new website; simplify and improve content management system Near Completion 17 Moderate Statutory MSR SOI SD County Sanitation District Includes multiple community wastewater service areas Pending 18 Moderate Administrative CALAFCO Southern LAFCOs Participate and provide leadership within CALAFCO and in southern region Underway 19 Moderate Administrative Digital Archiving 2.0 Restart project to digitize LAFCO records; incorporate online public access (Item No. 16) Pending 20 Low Administrative Agency Logo Branding; establish agency logo for use on letterhead and other communications Near Completion 21 Low Administrative Informational Report on SGMA Focus in North County; examine State Groundwater Management Act implementation issues Pending 22 Low Statutory Informational Report on JPAs Follow up to SB 1266 and requirement for municipal-serving JPAs to file with LAFCOs Pending 23 Low Administrative Update Application Packet Streamline existing packet to be more user-friendly; address new statutory requirements Pending 24 Low Administrative Local Agency Directory User-friendly publication identifying and summarizing local governmental agencies and services Pending 25 Low Administrative Social Media Policies and Protocols Expand outreach to capture alternate media forums Pending 54

55 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas December 3, 2018 TO: San Diego Commissioners 7 AGENDA REPORT Consent Action Bill Horn, Supervisor County of San Diego Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono FROM: Keene Simonds, Executive Officer Tamaron Luckett, Executive Assistant SUBJECT: Approval of Meeting Schedule for Calendar Year 2019 SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will consider approving a meeting schedule for the upcoming calendar year. Based on anticipated workload it is recommended the Commission approve regular meetings for each month with the exception of January, July, and September. No special meetings are proposed. It is also noted an alternate meeting place will be needed for one or more meetings due to pending renovations at the County of San Diego s Administration Center. Staff is currently exploring options and will work with the Chair in confirming an alternate meeting location and will provide notice as affected dates approach. BACKGROUND Scheduling Meetings Policy and Practice San Diego LAFCO s adopted policy provides the Commission shall hold regular meetings every month on the first Monday unless provided otherwise due to holidays and/or anticipated lack of business. The policy also provides all regular meetings of the Commission be held at 9:00 a.m. in the County of San Diego Administrative Center at 1600 Pacific Highway, Room 302 in San Diego. It is also the practice of the Commission to review its upcoming workload each December and formally approve a meeting schedule for the upcoming calendar 55

56 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 7 Meeting Schedule for Calendar Year 2019 year. Special meetings are also scheduled either in advance by the Commission as part of the annual calendar or as needed or through the Chair; examples of the former include holding retreats or topic-specific workshops. DISCUSSION This item is for San Diego LAFCO to consider approving a formal meeting schedule for the upcoming calendar year. This includes considering anticipated workload and need therein for scheduling either regular and/or special meetings over the course of the calendar year. Also and implicitly this item serves as an opportunity for the Commission to review its policies on scheduling and holding meetings and request a particular item return for future consideration. ANALYSIS San Diego LAFCO s adopted workplan coupled with current/expected proposal activities suggests it would be appropriate to schedule regular meetings for each month with the exceptions of January, July, and September. This also includes moving the April meeting back one week from its normal day to avoid overlap with Cesar Chavez Day. Creating the three off months in the regular meeting calendar, markedly, would provide staff the welcome opportunity to invest additional time in focusing on the municipal service reviews and associated community outreach. Knowingly excluding these three months from the regular meeting schedule at the start of the calendar year also helps provide predictability with respect to keeping the other nine regular meeting dates by reducing the potential for cancelations. No special meetings are proposed at this time. Should the need for a special meeting develop staff will work with the Chair to schedule a time/place and in consultation with Commissioners. On a related matter, San Diego LAFCO has been informed the availability of the regular meeting place Room 302 in the County Administration Center will be closed for renovations at some point during the calendar year. This renovation is part of a larger undertaking in which the County will be concurrently renovating the Board Chambers, which has typically served as an alternative meeting place for the Commission. These renovations, pertinently, will likely require the Commission to hold one or more of its regular meetings in 2019 outside of the County Administration Center. Staff will work with the Chair in selecting an alternate meeting location and will provide notice as affected dates approach. RECOMMENDATION It is recommended San Diego LAFCO schedule regular meetings for each month with the exception of January, July, and September. This action is provided as Alternative Action One in the proceeding section. 2 P age 56

57 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 7 Meeting Schedule for Calendar Year 2019 ALTERNATIVES FOR ACTION The following alternatives are available to San Diego LAFCO: Alternative One (recommended): Approve regular meeting dates on the following dates in 2019: - Monday, February 4 th - Monday, March 4 th - Monday, April 8 th (second Monday) - Monday, May 6 th - Monday, June 3 rd - Monday, August 5 th - Monday, October 7 th - Monday, November 4 th - Monday, December 2 nd Alternative Two: Continue to the next regular meeting and provide direction to staff as needed. Alternative Three: Take no action. PROCEDURES This item has been placed on San Diego LAFCO s agenda as part of the consent calendar. A successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation unless otherwise specified by the Commission. Respectfully, Keene Simonds Executive Officer 3 P age 57

58 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 7 Meeting Schedule for Calendar Year 2019 Page is Blank for Photocopying 4 P age 58

59 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas December 3, 2018 TO: San Diego Commissioners 8 AGENDA REPORT Consent Action Bill Horn, Supervisor County of San Diego FROM: Keene Simonds, Executive Officer Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono SUBJECT: Authorize Holiday Office Closure December 24 th through December 28 th SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will consider a request by the Executive Officer to authorize closing the office for the week of December 24 th. The request is consistent with past Commission practice. BACKGROUND Adopted Policy Regular Business Hours San Diego LAFCO s adopted policy provides the Commission shall maintain regular business hours between 8:00 a.m. to 5:00 p.m. Monday through Friday less any holidays observed by the County of San Diego. DISCUSSION This item is for San Diego LAFCO to consider approving a request to close the office for the upcoming holiday season starting on Monday, December 24 th and extending through Friday, December 28 th. Staff would take vacation and/or other compensatory time-off during this period. 59

60 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 8 Holiday Office Closure ANALYSIS The requested action is consistent with past San Diego LAFCO practice and would result in the office closing for four business days with the other day also closed as a national holiday (December 25 th.) Approval would produce cost-savings by staff drawing down on their compensatory balances during a period when minimal business activity is typically transacted. The Executive Officer will check voice-messages and during this period and can respond to any time-sensitive matters as needed. RECOMMENDATION It is recommended San Diego LAFCO approve a holiday office closure for the Christmas break. This action is provided as Alternative Action One in the proceeding section. ALTERNATIVES FOR ACTION The following alternatives are available to San Diego LAFCO: Alternative One (recommended): Authorize the LAFCO office to be closed on the following dates: - Monday, December 24 th - Wednesday, December 26 th - Thursday, December 27 th - Friday, December 28 th Alternative Two: Take no action. PROCEDURES This item has been placed on San Diego LAFCO s agenda as part of the consent calendar. A successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation unless otherwise specified by the Commission. Respectfully, Keene Simonds Executive Officer 2 P age 60

61 San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego December 3, 2018 TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer SUBJECT: Proposed Policy Amendment to Rules Appointments to the Personnel Committee 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) AGENDA REPORT Consent Action SUMMARY 9 The San Diego Local Agency Formation Commission (LAFCO) will consider approving amendments to the Rules involving the Personnel Committee. The proposed amendments would transition the appointment process for the Personnel Committee to an assigned rotation consisting of the Chair, Vice Chair, and Immediate Past Chair. It also authorizes the Chair to fill the seat of the Immediate Past Chair should he or she no longer serve on the Commission. The amendments aim to simplify the appointment process and provide predictability and continuity in the Personnel Committee going forward. Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono BACKGROUND Adopted Rules Personnel Committee San Diego LAFCO s adopted Rules were initially established in 1975 and prescribe the Commission s administrative policies and procedures. This includes establishing a Personnel Committee under Section 1.11 consisting of no less than three members that are appointed by the Commission and delegated two specific and grievance-related tasks. The first task is to consider reconsideration requests filed by employees with respect to their performance reviews performed by the Executive Officer (Section 6.7). The second task is to consider appeals filed by employees with respect to discipline issued by the Executive Officer involving suspension, demotion, or termination (Section 6.12). 61

62 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 9 Policy Amendments to Rules for the Policy Committee Appointments DISCUSSION This item is for San Diego LAFCO to consider proposed amendments to its adopted Rules specific to appointments to the Policy Committee and codified under Section The proposed amendments include three distinct changes as detailed below. Existing policy specifies the composition of the Policy Committee shall include no less than three members. It is proposed the policy be amended to specify three members. Existing policy specifies the Commission shall appoint members to the Policy Committee. It is proposed the policy be amended to transition appointments to an assigned rotation consisting of the Chair, Vice Chair, and Immediate Past Chair. It is proposed the policy be amended to authorize the Chair to make an appointment to fill the seat on the Personnel Committee assigned to the Immediate Past Chair should they no longer be on the Commission. A copy of the proposed amendments in track-change is provided in Attachment One. ANALYSIS The proposed amendments to the Rules serve to simplify the appointment process for the Personnel Committee and provide predictability and continuity in its membership going forward. It also relatedly and markedly helps to ensure the Personnel Committee is readily available to perform its delegated tasks to consider employee appeals under the Rules when needed and within the prescribed timelines established under State and local policy. RECOMMENDATION It is recommended San Diego LAFCO proceed with the proposed amendments to its adopted Rules involving the appointment process for the Policy Committee. This action is provided as Alternative Action One in the proceeding section. ALTERNATIVES FOR ACTION The following alternatives are available to San Diego LAFCO: Alternative One (recommended): Amend Rules Section 1.11 consistent with the changes show in Attachment One effective immediately. Alternative Two: Continue to the next regular meeting and provide direction to staff as needed. Alternative Three: Take no action. 2 P age 62

63 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 9 Policy Amendments to Rules for the Policy Committee Appointments PROCEDURES This item has been placed on San Diego LAFCO s agenda as part of the consent calendar. A successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation unless otherwise specified by the Commission. Respectfully, Keene Simonds Executive Officer Attachment: 1) Proposed Amendments to Rules Section 1.11 Track-Change Shown 3 P age 63

64 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 9 Policy Amendments to Rules for the Policy Committee Appointments Page is Blank for Photocopying 4 P age 64

65 RULES SAN DIEGO LOCAL AGENCY FORMATION COMMISSION Agenda Item No. 9 Attachment One ARTICLE I ORGANIZATION 1.1 Chairperson 1.2 Term 1.3 Chairperson, Duties 1.4 Vice Chairperson, Duties 1.5 Chairperson, Vacancy 1.6 Vice Chairperson, Vacancy 1.7 Clerk (Administrative Assistant) 1.8 Executive Officer 1.9 Special Districts Advisory Committee 1.10 Cities Advisory Committee 1.11 Personnel Committee 1.12 Adoption and Update of Rules 1.1 CHAIRPERSON - At the first regular meeting of each calendar year, the members of the Commission shall by vote select a chairperson and vice chairperson who shall be Commission members. 1.2 TERM - The chairperson and vice chairperson shall each serve for a term of one year, unless otherwise specified by a vote of the Commission. 1.3 CHAIRPERSON, DUTIES - The duties of the chairperson shall be to: 1. Preside at all meetings of the Commission; 2. Maintain order and decorum; 3. Determine the order of business, with the Commission's consent; 4. Execute payment of claims and expenses, as necessary; 5. Approve or modify, on behalf of the Commission, an impartial analysis of a ballot proposition prepared by the Executive Officer; 6. Represent the Commission to citizen groups and other public agencies. 1 65

66 1.4 VICE CHAIRPERSON, DUTIES - In the absence of the chairperson, the vice chairperson shall have the duties of the chairperson. 1.5 CHAIRPERSON, VACANCY - In the event the position of chairperson becomes vacant, the vice chairperson shall become chairperson for the unexpired term, and a new vice chairperson shall be selected by vote of the Commission. 1.6 VICE CHAIRPERSON, VACANCY - In the event the position of vice chairperson becomes vacant, a new vice chairperson shall be selected by vote of the Commission. 1.7 CLERK (ADMINISTRATIVE ASSISTANT) - There is hereby established the position of clerk (administrative assistant) to the Commission. The duties of the clerk shall be to: 1. Attend and take minutes of each Commission meeting; 2. Prepare and publish all required legal notices, documents and certificates. 1.8 EXECUTIVE OFFICER - There is hereby established the position of Executive Officer. The duties of the Executive Officer shall be to: 1. Execute the policies and directives of the Commission; 2. Conduct and perform the day-to-day business of the Commission; 3. Execute payment of claims and expenses, consistent with Commission policy and directives; 4. Prepare and present the annual budget; 5. Prepare the agenda for each meeting of the Commission; 6. Act as custodian of all official books, records, documents, and correspondence of the Commission; 7. Represent the Commission, as directed; 8. Perform such other duties as may be assigned by the Commission. 9. Appoint Commission employees; 10. Administratively approve out-of-agency service agreements, if all conditions of approval have been met in accordance with Government Code Section 56133, and the applicant has satisfactorily demonstrated the existence of public health, safety, or welfare impacts. The Executive Officer is required to inform the Commission at the next available LAFCO meeting about any administratively approved service agreements; 2 66

67 11. Approve his/her own expense claims (e.g., general, travel, or non-travel) up to $500 for any single claim, consistent with Commission budget policy and direction. The Executive Officer is required to submit a summary of all self-approved claims and to the full Commission on a quarterly basis. Beginning in FY and every fiscal year thereafter, the Executive Officer is authorized to engage the services of an outside auditor to review applicable expenditure accounts of the Commission. The estimated cost and scope of the outside audit will be addressed in the Commission s annual budget; and 12. Approve step adjustments after above-standard employee performance evaluations, consistent with LAFCO budget policy and Commission direction (See also section 6.8). 1.9 SPECIAL DISTRICTS ADVISORY COMMITTEE - The Commission recognizes the Special Districts Advisory Committee as a body to provide information on matters affecting independent special districts in San Diego County. Information about meeting location, agendas, schedules, selection of members, and other matters is contained in the Rules of the Special District Advisory Committee and Independent Special District Selection Committee CITIES ADVISORY COMMITTEE - The Commission establishes the ad hoc Cities Advisory Committee to provide information and advice, related to matters affecting cities in San Diego County. The Committee functions in an ad hoc capacity and may be temporarily activated by the Executive Officer, Commission, or a majority of the Cities in the County. Information about meeting location, agendas, schedules, selection of members, and other administrative matters is contained in the Rules of the Cities Advisory Committee PERSONNEL COMMITTEE - The Commission establishes the Personnel Committee to review matters relating to the Personnel Rules outlined in Section 6. The Committee shall be composed of at least three members of the Commission and is appointed by the Commissionconsisting of the Chair, Vice Chair, and Immediate Past Chair. The Chair shall make an appointment to fill the Immediate Past Chair seat on the Personnel Committee should the Immediate Past Chair no longer be on the Commission ADOPTION AND UPDATE OF LAFCO RULES - The Rules shall be regularly reviewed and updated, as necessary. Adoption, amendment, or update of the Commission s Rules generally requires Commission approval. However, technical changes and updates, including but not limited to revising code section references or reflecting changes to applicable county ordinances or policies may be administratively incorporated into the Rules by the Executive Officer. The Commission shall be informed of all technical changes to the Rules. 3 67

68 Adoption History: Article I, Sections 1.1 to 1.12 Adopted June 30, 1975 Amended August 2, 1993 Amended December 6, 1993 Amended March 7, 1994 Amended April 4, 1994 Re-affirmed and adopted December 4, 2000 Comprehensively Updated and re-adopted March 3, 2008 Amended November 5, 2012 (Sec. 1.8) 4 68

69 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water December 3, AGENDA REPORT Consent Information Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer John Traylor, Project Manager SUBJECT: Results of Protest Proceedings County Service Area No. 115 Reorganization (RO14-12 and RO14-13 et al.) SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will receive the results of the protest hearing conducted for the County Service Area No. 115 Reorganization. The noticed hearing was held by the Executive Officer on November 8 th and did not produce any written objections from landowners or registered voters. The Commission s approval, accordingly, to transfer fire protection and emergency medical service responsibilities in the Pepper Drive area from the County to Lakeside and San Miguel Consolidated Fire Protection Districts (FPDs) will be ordered once all terms are satisfied. BACKGROUND Proposal Filings In March 2015, San Diego LAFCO received two separate and competing proposals from San Miguel Consolidated FPD and Lakeside FPD. Both proposals requested LAFCO approval to dissolve County Service Area (CSA) No. 115 and annex the affected territory in its entirety to the respective agencies in step with assuming fire and related emergency medical services. The affected territory is adjacent to the Cities of Santee and El Cajon and spans approximately 441 acres in size with 2,496 current registered voters. The applicants however and with the aid of a Commission Ad Hoc Committee (Jacob, MacKenzie, Sprague, and Vanderlaan) subsequently agreed to a joint-approach to modify and coordinate their reorganization proposals to divide the affected territory post dissolution of CSA No. 115 into equal annexation halves based on assessed value. 69

70 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 10 Results of Protest Proceedings for the CSA No. 115 Reorganization Commission Action On October 1, 2018, San Diego LAFCO held a combined public hearing to consider the two proposals filed by Lakeside and San Miguel Consolidated FPDs. The Commission proceeded to approve coordinated modifications to both proposals to (a) dissolve CSA No. 115 and concurrently (b) annex the northern portion of the affected territory to Lakeside FPD and (c) annex the southern portion of the affected territory to San Miguel Consolidated FPD. 1 The Commission also delegated protest hearings to the Executive Officer as allowed under policy. DISCUSSION This information item is for San Diego LAFCO to receive the results of the protest hearing delegated to the Executive Officer involving the Commission s earlier approval of the CSA No. 115 Reorganization as required under policy. The protest hearing was held on November 8, 2018 and produced no written submittals from affected landowners or registered voters objecting to the reorganization approval. A confirming resolution ordering the reorganization has been executed by the Executive Officer, and the proceedings will become final once the applicants satisfy all remaining terms necessary to record a certificate of completion. ANALYSIS The CSA No. 115 Reorganization has cleared its last substantive threshold. All remaining actions necessary to record the boundary changes are ministerial. 2 RECOMMENDATION Receive the item for information purposes only. ALTERNATIVES FOR ACTION This item is being presented for information only; no action. 1 2 Conforming sphere of influence amendments were also approved consistent with the staff recommendation. San Diego LAFCO policy directs the Executive Officer to proceed and issue an ordering resolution at the conclusion of the protest hearing process so long as the results do not require the proposal to be terminated or confirmed by an election. The Executive Officer is also responsible for informing the Commission of the protest results resulting in an action being ordered at the next regular meeting. (Policy on Conducting Protest Hearings Section 4(h). 2 P age 70

71 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 10 Results of Protest Proceedings for the CSA No. 115 Reorganization PROCEDURES This item has been placed on the San Diego LAFCO s agenda as part of the consent calendar. A successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation unless otherwise specified by the Commission. Respectfully, Keene Simonds Executive Officer 3 P age 71

72 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 10 Results of Protest Proceedings for the CSA No. 115 Reorganization Page Blank for Photocopying 4 P age 72

73 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego December 3, 2018 TO: FROM: San Diego Commissioners Robert Barry, Chief Policy Analyst Linda Zambito, Analyst I 11 AGENDA REPORT Consent Information Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono SUBJECT: Current Proposals and Related Activities SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will receive a report summarizing active proposals on file with the Commission. This includes two new filings made with LAFCO since the last report was presented at the October 1 st meeting. The report also identifies notable pending proposals that are expected to be submitted in the near term. The item is for information only and satisfies LAFCO s reporting requirement under Government Code BACKGROUND LAFCO Proceedings LAFCO proceedings for consideration of proposed changes of organization or reorganizations which include incorporations, formations, annexations, detachments, mergers, consolidations, and service power activations or divestures may be initiated by landowner/voter petitions or resolutions by local agencies. LAFCOs may also initiate proposals specific to forming, consolidating, or dissolving special districts if consistent with the recommendations of approved municipal service reviews. Following submittal, proposals are reviewed for completeness and status letters are sent to applicants within 30 days. If proposals require additional information they are deemed incomplete and the status letters will itemize needed information. Once proposals are deemed complete they are scheduled for hearing. Proposals involving outside service extension requests follow separate proceedings and may be administratively approved by the Executive Officer if addressing documented public health or safety threats. 73

74 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 11 Current Proposal Activity DISCUSSION This item is being presented for information only and identifies all active proposals currently on file with San Diego LAFCO. The report also and for telegraphing purposes of future workload identifies pending proposals staff anticipates being filed with LAFCO in the near term. A summary of active and pending proposals follows and further detailed in Attachment One. Active Proposals There are 26 active proposals currently on file with San Diego LAFCO as of date. The active proposals range in scope from pre-hearing to post-hearing with the latter category representing items already approved by the Commission, but awaiting the completion of conducting authority proceedings (i.e., protest) or terms. Pending Proposals There are five potential new and substantive proposals staff expects to be submitted to San Diego LAFCO in the near-term from local agencies based on ongoing discussions with proponents. 1 Three of these pending proposals involve city annexations in North County to accommodate relatively large subdivision projects and involve Safari Highlands (Escondido), Sager Ranch (Escondido), and Rancho Lomas Verdes (Vista). The other two pending proposals involve unincorporated residential development projects west of the City of Escondido Valiano (Eden Hills) and Harmony Grove Village South and would require annexations to one or more special districts. ANALYSIS San Diego LAFCO remains active in processing over two dozen jurisdictional change proposals and outside service requests. This includes several substantive actions and highlighted by continuing to work on post-hearing activities tied to the Julian-Cuyamaca Fire Protection District and County Service Area No. 115 reorganizations. Other substantive items that are nearing hearing before the Commission include the Alpine Fire Protection District Island and County Service Area No. 135 Island reorganizations; both of which are expected to be presented at the February 2019 meeting. Most recently, the following two proposals have been filed with the Commission since the October 1 st report: Stonemark Estates Reorganization City of Vista Nordahl Road-Diaz Change of Organization Vallecitos Water District 1 Staff uses discretion in listing pending proposals and limits notice to only activities to be initiated by a local governmental agency. Pending proposals to be initiated by landowners and/or registered voters are not disclosed until an actual filing is made. 2 P age 74

75 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 11 Current Proposal Activity RECOMMENDATION This item is presented for information only. It is recommended the Commission review the report with the invitation to discuss and ask questions of staff. ALTERNATIVES FOR ACTION This item is being presented for information only; no action. PROCEDURES This item has been placed on the San Diego LAFCO s agenda as part of the consent calendar. A successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation unless otherwise specified by the Commission. On behalf of staff, Linda Zambito Analyst I Attachment: 1) Active Proposals, December 3, P age 75

76 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 11 Current Proposal Activity Page is Blank for Photocopying 4 P age 76

77 SAN DIEGO LAFCO PROPOSAL SUMMARY File Number Proposal Name Affected Agencies ACTIVE PROPOSALS PENDING COMMISSION ACTION Project Manager Proposal Summary Agenda Item No. 11 Attachment One 1 DA08-10 Avocado Way-Potter Annexation Vallecitos WD (Annexation) Robert Barry Proposed annexation to Vallecitos WD to obtain sewer service for two existing residences along Avocado Way. Proposal application submitted in March 2008, but deemed incomplete in April 2008 status letter. A new status letter was sent to the applicant in January 2018 stating the proposal will be considered abandoned unless notified otherwise. The current property owner has responded and conveyed their interest to proceed with the annexation. Ongoing discussions with Vallecitos WD as of Spring RO08-09 South Mollison Ave-Snyder Reorganization City of El Cajon (Annexation) Robert Barry Proposed annexation to the City of El Cajon. The annexation area includes approximately 1.25 acres and is subject to a proposed multi-family residential project. Proposal application submitted in May 2008, but deemed incomplete in June 2008 status letter. A new status letter was sent in January 2018 to the applicant, new property owner, and City stating the proposal will be considered abandoned unless notified otherwise. No response to date. 3 RO08-15 SA08-15 Crestlake Estates Reorganization San Diego County SD (Annexation) Lakeside FPD (Annexation) CSA 69 (Annexation) Robert Barry The proposed reorganization would provide sewer services to an approved Tentative Map allowing the development of 60 single-family residences. Proposal application submitted in May 2008, but deemed incomplete in June 2008 status letter. A new status letter was sent to the applicant in February 2018 stating the proposal will be considered abandoned unless notified otherwise. No response to date. 4 DA12-02 Lorch Annexation Borrego WD (Annexation) Robert Barry Annexation of approximately 9.4 acres to the Borrego Water District to provide water service to one parcel. The site is within the adopted sphere. Proposal application submitted in March 2012, but deemed incomplete in April 2012 status letter. A new status letter was sent in January 2018 stating the proposal will be considered abandoned unless notified otherwise. Borrego WD responded to the letter and has reinitiated discussions with the landowner regarding possible service terms. 5 RO06-17 Tobacco Road Reorganization City of Escondido (Annexation) Robert Barry In 2006, LAFCO approved two out of service agreements to allow the City of Escondido to provide sewer service to two residences with failing septic systems located along Tobacco Road. The agreements between the City and landowners required the annexation of the two parcels. To implement this condition, a reorganization including six other parcels was submitted to LAFCO in March 2006, but deemed incomplete in April 2006 status letter. A new status letter was sent in January 2018 stating the proposal will be considered abandoned unless notified otherwise. Two of the affected landowners have responded to the letter and are now working with the City in proceeding forward in determining if the other landowners are interested/willing to proceed with the annexation at this time. December 3,

78 SAN DIEGO LAFCO PROPOSAL SUMMARY File Number Proposal Name Affected Agencies Project Manager Proposal Summary 6 DA16-10 CSA 17 Harmony Grove Annexation CSA 17 (Annexation) Linda Zambito Proposal submittal required as cross-condition of the Rancho Santa Fe Fire Protection District Reorganization: Dissolution of CSA No. 107 (Elfin Forest/Harmony Grove). This involves requiring the initiation of the annexation of approximately 3,600 acres to CSA 17 for ambulance service. Proposal application submitted in May 2016, but deemed incomplete in June 2016 status letter. The CSA 17 Advisory Committee has opposed the annexation. A negotiated property tax exchange agreement is also necessary. LAFCO staff met with the applicant in August 2018 to provide assistance. 7 RO16-11 Rancho Hills Annexation Rancho Santa Fe CSD (Annexation) Robert Barry Proposed annexation to Rancho Santa Fe CSD to establish sewer service to a portion of a 37- lot residential subdivision titled Rancho Hills. A concurrent latent power expansion for Olivenhain MWD is needed to accommodate sewer to the remaining project site. Proposal application submitted in October 2016, but deemed incomplete in November 2016 status letter. Applicant has requested the proposal processing be placed on hold. Staff has remained in contact with the applicant and is awaiting their confirmation to proceed. 8 SA16-13 RO16-13 Windmill Construction Reorganization City of La Mesa (annexation) San Miguel FPD (Detachment) CSA 135 (Detachment) Robert Barry Proposal submitted as an outside service extension request with the City of La Mesa. The proposal has transitioned into a reorganization as a City condition of service to develop a single residential lot of approximately 0.15 acre. The City of La Mesa has initiated a General Plan Amendment to expand their planning boundaries and establish a land use designation for the affected territory. Proposal application submitted in October 2016, but deemed incomplete in November 2016 status letter. Staff has remained in contact with the applicant and working to address outstanding information needed to complete administrative review. 9 DA16-15 SA16-15 Alpine Islands Annexation Alpine FPD (Annexation) CSA 135 LP Fire Area (Latent Powers Divesture) Robert Barry Proposal involves the annexation of approximately 6,600+ acres of remaining nonjurisdictional lands within Alpine FPD s existing sphere and as part of the continued drawdown following dissolution of Rural FPD. Proposal application submitted in September 2016, but application deemed incomplete in November 2016 status letter. Alpine FPD continues to negotiate a property tax exchange agreement with the County. The application remains incomplete while the negotiation continues. 10 SA16-20 LP16-20 CSA 135 Islands Reorganization CSA 135 LP Fire Area (Latent Powers Expansion/Divestiture) Alpine FPD (Annexation) Lakeside FPD (Annexation) SMCFPD (Annexation) Robert Barry Proposal involves annexation of remaining unserved islands within Heartland area and reorganization of local fire service territory among six agencies: CSA 135; Alpine FPD; Lakeside FPD; Ramona MWD; Bonita-Sunnyside FPD and San Miguel FPD. Reorganization proposal submitted by resolution of the San Diego County Fire Authority and involves the expansion of CSA No. 135 s latent powers to provide fire protection and emergency medical services to three unincorporated and unserved island areas totaling approximately 21,048 acres. A concurrent amendment to add the affected territory to CSA No. 135 s sphere of influence is also required to accommodate the proposed action. The proposal application is incomplete and pending receipt of additional documentation and information from the applicant to complete staff s analysis. The proposal also requires a negotiated property tax exchange agreement. December 3,

79 SAN DIEGO LAFCO PROPOSAL SUMMARY File Number Proposal Name Affected Agencies Project Manager Proposal Summary 11 SA17-07 RO17-07 San Marcos Highlands Reorganization City of San Marcos (Annexation) San Marcos FPD (Annexation) Vista FPD (Detachment) Vallecitos WD (Sphere Amendment, Annexation) Vista ID (Detachment) Robert Barry Proposal involves annexation of approximately 125 acres 189-SFR development to the City of San Marcos. Proposal submitted by resolution of the City of San Marcos and involves annexation of approximately 125 acres to the City with concurrent reorganizations between the San Marcos FPD and the Vista FPD for fire protection services, and between the Vallecitos WD and Vista ID for the provision of sewer and water services. The City of San Marcos has approved development plans and environmental review for the referenced development titled San Marcos Highlands. The City s approvals included a condition requiring the City and the County to execute a habitat protection agreement with State and Federal agencies for the proposal area. The submitted proposal application is incomplete pending receipt of additional documentation including the referenced habitat document and information from the applicant to complete staff s analysis. 12 SA18-07 OAS18-07 Carmichael Drive Wyman Contractual Service Agreement (City of La Mesa) Robert Barry Proposal involves an outside service extension for the City of La Mesa to provide sewer service to one developed single-family lot. The purpose of the request is to allow the landowner to proceed with an intensity improvement to develop an accessory workshop unit, which exceeds the permitted capacity of the onsite septic system. The affected territory lies outside La Mesa s sphere of influence. The submitted proposal application is incomplete pending additional analysis. 13 DD18-10 Pala Detachment San Luis Rey MWD (Detachment) Robert Barry Proposed by petition of the landowners is a detachment of approximately acres from the San Luis Rey Municipal Water District. The proposal area includes 11 unincorporated parcels that are owned by the Pala Band of Mission Indians, but are not part of the Pala Reservation area. The submitted proposal application is incomplete and pending receipt of additional documentation and information from the applicant to complete staff s analysis. 14 RO18-13 SA18-13 Pauma Valley Fire Reorganization County Service Area No. 135 (Divest Fire & EMS) (LP expansion; sphere amendment) Linda Zambito Proposal submitted in August 2018 by resolution from Pauma Valley MWD, Yuima MWD, Mootamai MWD and CSA No. 135, involves the divesture of fire and EMS to CSA No. 135, and requires a latent power expansion and sphere amendment. The submitted proposal application is incomplete and pending receipt of additional documentation and information from the applicant to complete staff s analysis. 15 DA18-14 Andreiko-Glaucus St. Annexation Leucadia Wastewater District Linda Zambito Proposal submitted by resolution from Leucadia Wastewater District and involves the annexation of an approximately 0.34 acre lot. The submitted proposal application is incomplete and pending receipt of additional documentation and information from the applicant to complete staff s analysis. 16 DA18-15 Menchaca-St. Paul St Annexation Vallecitos Water District Linda Zambito Proposal submitted in September 2018 by resolution from Vallecitos Water District, involves the annexation of an approximately 1.59 acre lot. The submitted proposal application is incomplete and pending receipt of additional documentation and information from the applicant to complete staff s analysis. December 3,

80 SAN DIEGO LAFCO PROPOSAL SUMMARY File Number Proposal Name Affected Agencies Project Manager Proposal Summary 17 DA18-11 Lake Henshaw Annexation Vista Irrigation District (ID) Linda Zambito Proposal submitted by resolution of the Vista ID involves annexation of three unincorporated parcels that make up a portion of the Lake Henshaw watershed. The three parcels totaling 88.1 acres are owned by Vista ID and the District wishes to annex the parcels to eliminate the property tax obligations. The affected territory lies outside the sphere. The submitted proposal application is incomplete and scheduled for consideration by the Commission as part of the December 3 rd 2018 meeting. 18 RO18-16 Stonemark Estates Reorganization City of Vista (Annexation) Buena SD (Detachment) Vista FPD (Detachment) Robert Barry Proposal submitted in October 2018 by resolution from the City of Vista, involves the annexation of an approximately acres and concurrent detachment from Buena Sanitation and Vista Fire Protection. The submitted proposal application is incomplete and pending receipt of additional documentation and information from the applicant to complete staff s analysis. 19 CO18-17 DA18-17 Nordahl Road-Diaz Change of Organization Vallecitos Water District Robert Barry Proposal submitted in October 2018 by landowner petition, involves the annexation of an approximately 3.8 acre lot. The submitted proposal application is incomplete and pending receipt of additional documentation and information from the applicant to complete staff s analysis. ACTIVE POST COMMISSION ACTION 20 RO14-12 RO14-13 CSA 115 Reorganization San Miguel FPD (Annexation) Lakeside FPD (Annexation) CSA 115 (Dissolution) John Traylor LAFCO received competing proposals from Lakeside and San Miguel Consolidated FPDs in March 2015 to dissolve CSA No. 115 and concurrently annex the 440 acre affected territory to each FPD. The affected territory lies outside of each FPD s sphere. LAFCO proceeded to establish special sphere study areas for both FPDs to include the CSA No. 115 boundary with the FPDs amending their filings into a joint-proposal to divide the annexation of the affected territory generally along Pepper Drive. The proposal was approved by the Commission at the October 1, 2018 meeting with a subsequent protest hearing held on November 8, No protest was received, and the reorganization is pending recordation upon terms being satisfied. 21 DA18-12 Austin Drive Moth Annexation to the San Diego County Sanitation District Linda Zambito Proposal submitted by petition from the landowner John S. Moth to annex 1 parcel and adjacent public right-of-way of approximately 0.90 acres that lies within the unincorporated community of Spring Valley into San Diego County Sanitation District (SDCSD). The affected territory already lies in SDCSD s primary sphere and jurisdictional boundary. The proposal was approved by the Commission at the October 1, 2018 meeting and pending recordation upon terms being satisfied. December 3,

81 SAN DIEGO LAFCO PROPOSAL SUMMARY File Number Proposal Name Affected Agencies Project Manager Proposal Summary 22 RO18-08 Camino Largo Reorganization (City of Vista) Linda Zambito Proposal involves annexation of one parcel totaling approximately 9.3 acres to the City of Vista with concurrent detachment from Vista Fire Protection District. The purpose of the proposal is to facilitate an 8-lot single-family residential subdivision consistent with the City s adopted tentative map. The affected territory lies within the City s sphere. The proposal was approved by the Commission on October 1, 2018 and is now pending recordation once all terms are satisfied. 23 RO18-06, RO13-04, RO13-39, & RO15-15 North Avenue Estates Reorganization City of Escondido (Annexation) CSA 135 (Detachment) Deer Springs FPD (Detachment) Robert Barry Proposal involves annexation of a 34-lot residential development to the City of Escondido. Affected territory spans five parcels totaling acres of unincorporated territory located within the Escondido sphere of influence with concurrent detachments from the Deer Springs Fire Protection District (FPD) and CSA No Three subject parcels are presently developed with single-family residences and receive sewer from Escondido through earlier approved outside service extensions. The remaining two parcels are undeveloped and subject to the referenced development of 34 single-family residences. The proposal was approved by the Commission on October 1, 2018 meeting and is now pending recordation once all terms are satisfied. 24 RO18-09 Julian Cuyamaca Fire Protection District Reorganization Julian Cuyamaca FPD (Dissolution) County Service Area No. 135 (Fire) (LP expansion; sphere amendment) John Traylor Reorganization involves dissolution of the approximate 52,100 acre Julian-Cuyamaca FPD and concurrent authorization for CSA No. 135 to assume fire protection and emergency medical services for the approximate 51,800 acre affected territory. The submitted proposal is incomplete and pending receipt of additional documentation and information from the applicant to complete staff s analysis. The proposal was approved by the Commission on September 10, 2018 with a subsequent protest hearing held on October 16, Protest from registered voters is sufficient to require an election and is separately addressed as part of Agenda Item No LP18-01 SA18-01 Connemara Drive-Trinh Latent Powers Expansion Olivenhain MWD (Service-Specific Sphere Amendment; Latent Sewer Power Expansion) Linda Zambito Proposal involves expansion of Olivenhain MWD s activated wastewater LP area to serve an approximately 0.30 acre portion of 17-acre unincorporated parcel to accommodate a new single-family home. An amendment to the OMWD wastewater service-specific sewer sphere to include the proposal area is also required. The proposal was approved by the Commission on June 4, 2018 and is now pending recordation once all terms are satisfied. 26 SS17-10 LP17-10 RO17-10 Rincon del Diablo MWD LP Sewer Activation/Harmony Grove Village Reorganization Rincon Del Diablo (Service-Specific Sphere Establishment; Latent Power Activation) San Diego County SD (Detachment) Robert Barry This reorganization proposal was submitted by resolution of the Rincon del Diablo Municipal Water District (MWD) and involves activation of the MWD s latent power for sewer service within the approximate 450 acre Harmony Grove Village (HGV) service area of the San Diego County Sanitation District (SD). The HGV is presently located within the MWD s service area and sphere of influence for water service. The proposed reorganization would detach the HGV area from the San Diego County SD, establish a service-specific sphere of influence for the detachment area, and activate the MWD s latent sewer power to assume responsibility for the provision of sewer service within the HGV. The proposal was approved by the Commission on June 4, 2018 and is now pending recordation once all terms are satisfied. December 3,

82 SAN DIEGO LAFCO PROPOSAL SUMMARY File Number Proposal Name Affected Agencies Project Manager Proposal Summary PENDING PROPOSAL SUBMITTALS 27 Pending Safari Highlands Reorganization City of Escondido Robert Barry This anticipated reorganization proposal is currently undergoing development and environmental review by the City of Escondido with an expected submittal to LAFCO later in The anticipated proposal involves annexation of approximately 1,098 acres to the City for the primary purpose of developing a 550-lot residential subdivision. All of the affected territory lies outside the current City sphere. Due to the scope of the proposal area a comprehensive update of the City s sphere is warranted along with preparing the supporting municipal service review document. These and issues have been communicated to the City and are currently under joint-review with other stakeholders. 28 Pending Rancho Lomas Verde Reorganization City of Vista Robert Barry This anticipated reorganization involves annexation of approximately 300 acres to the City of Vista and concurrent detachments from CSA 135 and the Vista FPD to facilitate a 153-lot residential development. Close to three-fourths of the project area lies outside the current City sphere. Due to the scope of the proposal area a comprehensive update of the City s sphere is warranted along with preparing the supporting municipal service review document. These and issues have been communicated to the City and are currently under joint-review with other stakeholders. 29 Pending Sager Ranch Reorganization City of Escondido Robert Barry This anticipated reorganization involves annexation of approximate 1,800 acres to the City of Escondido and concurrent detachments from CSA 135 and the Valley Center FPD. The reorganization would facilitate the development of approximately 200 acres to include 203 residential units and a 225-room resort. Portions of the project area lies outside the current City sphere. Due to the scope of the proposal area a comprehensive update of the City s sphere is warranted along with preparing the supporting municipal service review document. These and issues have been communicated to the City and are currently under joint-review with other stakeholders. 30 Pending Valiano Specific Plan (TM-5575) Robert Barry This anticipated reorganization involves the Eden Hills project and specific to accommodating sewer services (among a variety of options) for the planned development of approximately 239 acres to include 326 residential units. 31 Pending Harmony Grove Village South (TM-626) Robert Barry This anticipated reorganization involves the Harmony Grove Village South project and specific to accommodating sewer services (among a variety of options) for the planned development of approximately 111 acres to include 453 residential units. December 3,

83 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego December 3, 2018 TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer Holly Whatley, Commission Counsel 12 AGENDA REPORT Consent Information Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono SUBJECT: Commission Counsel Memorandums Special District Websites and Expanded Rules for Attorneys SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will receive two memorandums prepared by Commission Counsel. The first memorandum addresses the new statutory requirements enacted by the Legislature requiring all independent special districts to now maintain websites and include certain baseline information. Additional requirements are also established for healthcare districts. The second memorandum addresses changes enacted by the California Supreme Court to expand existing disclosure requirements for attorneys to now apply when appearing before certain quasi-legislative bodies including LAFCOs. The memorandums are being presented to the Commission for information. DISCUSSION This item is for San Diego LAFCO to receive memorandums from Commission Counsel regarding recent changes that indirectly affect LAFCOs. This includes the requirement for all independent special districts to now maintain websites with added standards for healthcare districts as well as expand disclosure requirements for attorneys appearing before LAFCOs. The memorandums are attached and have been prepared at the request of the Executive Officer for information only. ANALYSIS See the attached memorandums. 83

84 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 12 Commission Memorandums: Special District Websites and New Rules for Attorneys Before LAFCO ALTERNATIVES FOR ACTION This item is being presented for information only. RECOMMENDATION It is recommended San Diego LAFCO receive the item provide direction to staff as needed. PROCEDURES This item has been placed on the San Diego LAFCO s agenda as part of the consent calendar. A successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation unless otherwise specified by the Commission. Respectfully, Keene Simonds Executive Officer Attachments: 1) Commission Counsel Memorandum: AB 2019 and SB 929: Requirements for Healthcare Districts and Independent Special District Websites 2) Commission Counsel Memorandum: Implications of the New Rules of Professional Conduct Governing the Practice of Law for the LAFCOs Public Hearings 2 P age 84

85 790 E. Colorado Boulevard, Suite 850 Pasadena, CA Main: (213) FAX: (213) Agenda Item No. 12 Attachment One David J. Ruderman (530) MEMORANDUM TO: FROM: CC: RE: Keene Simonds, Executive Officer San Diego County LAFCO David J. Ruderman, Assistant General Counsel Michael G. Colantuono, General Counsel Holly O. Whatley, Assistant General Counsel FILE NO: DATE: October 12, 2018 AB 2019 and SB 929: Requirements for Health Care District and Independent Special District Websites As the Legislative Session draws to a close, Governor Brown has signed two bills that impose requirements on health care districts and independent special districts. AB 2019 imposes increased transparency requirements on health care districts to ensure public access through the Internet. In addition, the bill sets an affordable housing mandate and bankruptcy procedures. SB 929 broadly requires independent special districts to establish and maintain websites to better connect the public with relevant information about the agency. BACKGROUND AB In September, 2017, Assembly Bill 1728 set specific requirements for Local Health Care Districts (HCD) to improve transparency. 1 Under AB 1728, HCDs were required to adopt an annual budget in a public meeting, maintain a website with contact information for the district, and adopt policies to guide the grant-making and assistance-giving process. The bill s author explained that the bill was meant to ensure greater transparency and accountability for healthcare districts by providing easy access to basic information. 2 Assembly Bill 2019 continues what AB 1729 began, setting clearer guidelines and more substantial requirements for HCDs website, grant-making and housing efforts. 1 Assem. Bill No ( Reg. Sess). 2 Assem. Com. on Local Government, com. on Assem. Bill 1728 ( Reg. Sess.)

86 Keene Simonds, Executive Officer October 12, 2018 Page 2 SB 929. In 2017, the Little Hoover Commission released a report titled Special Districts: Improving Oversight and Transparency. 3 One of the report s recommendations was to require all special districts to establish and maintain websites with key information. Before Senate Bill 929 was implemented, special districts were encouraged, but not required, to maintain a website. For example, the Brown Act requires special districts to publish meeting agendas online if the district has a website. 4 SB 929 makes this legislative preference a mandate requiring special districts maintain and use a websites for such purposes. ASSEMBLY BILL 2019 LOCAL HEALTH CARE DISTRICTS Assembly Bill 2019 creates several requirements for HCDs. 5 Affordable Housing. First, for any housing an HCD builds using the designbuild process, the HCD must impose affordability restrictions for at least 20 percent of residential units that last at least 55 years. 6 The thresholds AB 2019 imposes do not apply when the HCD is located within a jurisdiction that imposes a greater number of affordable units by local ordinance. It also does not apply to housing an HCD constructs for workforce housing, or to provide care to the elderly, disabled adults or individuals with dementia. 7 Website Publication. Second, AB 2019 requires HCDs to maintain websites with substantially more information than previously mandated under AB AB 2019 mandates that HCD websites include: 1. The adopted budget; 2. A list of current board members; 3. Information on public meetings, including publication of meeting agendas at least 72 hours before they are held, as required by the Brown Act; 4. Municipal service reviews or special studies conducted by a LAFCO, if available; 5. Recipients of grant funding or assistance; 3 Little Hoover Commission, Special Districts: Improving Oversight and Transparency, Report No. 239, Aug Gov. Code, Stats. 2018, ch. 257, Id. at 2 (adding Health & Saf. Code, ). 7 Ibid. 8 Id. at 3 (amending Health & Saf. Code, 32139)

87 Keene Simonds, Executive Officer October 12, 2018 Page 3 6. Audits of the district s accounts and records; 7. Annual financial reports provided to the California Controller; 8. District policy for providing assistance and grant funding; and 9. Any other information the board deems relevant. 9 Grant-Making Processes. Third, under AB 2019, HCDs must create several policies for providing assistance or grant funding if the district uses its funds in that way. 10 Currently, HCDs must have policies to provide assistance or grant funding that ensure funding is spent consistent with the grant application and the district s mission. AB 2019 requires HCDs that provide grants to develop several additional policies. HCDs must adopt specific strategies to ensure grants are spent as required under the grant application and HCD s mission, including a grant contract terms and conditions, fiscal and programmatic monitoring by the district, and reporting to the district. 11 The bill also sets additional grant-related requirements for HCDs, including: 1. A plan for distributing grant funds for each fiscal year; 2. A process for providing, accepting and reviewing grant applications; and 3. A prohibition against individual meetings between grant applicants and staff, officers or board members outside of the established grant awards process. 12 Finally, AB 2019 requires that HCDs have guidelines in place by January 1, 2020 to govern when to provide awards to underserved individuals and communities; how to evaluate financial need; when to provide grants to prior recipients; and when to sponsor charitable events, among other categories. 13 Bankruptcy Notice. Finally, if an HCD files for bankruptcy, the HCD s board of directors must provide written notice to its LAFCO within 10 business days of filing for bankruptcy Ibid. 10 Ibid. 11 Ibid. 12 Ibid. 13 Ibid. 14 Id. at 4 (adding Health & Saf. Code, 32140)

88 Keene Simonds, Executive Officer October 12, 2018 Page 4 SENATE BILL 929 The authors of Senate Bill 929 describe it as a transparency bill intended to fix the problem that consumers may be unaware of what their local special district does or even how to contact them. 15 The bill requires independent special districts to create websites, populate them with specific information, and continually update them beginning in While SB 929 does not apply to LAFCOs, CALAFCO supported this bill because it should make coordination between LAFCOs and independent special districts easier. 17 Information Requirements. Under SB 929, all independent special districts must create a website with the district s contact information. In addition, all districts must conform to any other legal requirements applicable to their districts website. These requirements vary based on the type of district, but will broadly include: 1. A catalog of enterprise systems, defined as a software application or computer system that collects, stores, exchanges, and analyzes information that the agency uses, and the data collected; 2. Financial transaction reports filed with the State Controller; 3. Annual compensation of elected officials, officers and employees (or a link to the Controller s Government Compensation site); and 4. Meeting agendas at least 72 hours in advance of the meeting, in accordance with requirements of the Brown Act. 18 Local Health Care Districts websites must also include the information described in Assembly Bill Hardship Exemption. Special districts may exempt themselves from the website requirements if the district s board of directors adopts a resolution with detailed findings on why a hardship prevents it from establishing or maintaining a website. 19 SB 929 does not clearly state what constitutes a valid hardship, but it includes (a) inadequate access to broadband capabilities and (b) limited financial or staff resources. Notably, SB 929 provides that it is not a state-mandated program and therefore the 15 Sen. Rules Com., Off. Of Sen. Floor Analyses, Analysis of Sen. Bill No. 929 ( Reg. Sess.). 16 Stats. 2018, ch. 408, 2, 3 (adding Gov. Code, , ). 17 Pamela Miller, CALAFCO, letter to Senator Mike McGuire re Sen. Bill 929 ( Reg. Sess.) May 17, Stats. 2018, ch. 408, 3 (adding Gov. Code, ). 19 Ibid

89 Keene Simonds, Executive Officer October 12, 2018 Page 5 district is not entitled to state funds for creating or maintaining the website. 20 The resolution is valid for one year, at which point the district must either adopt a new hardship resolution or meet AB 929 s website requirements. 21 HOW THIS AFFECTS YOUR COMMISSION Assembly Bill 2019 and Senate Bill 929 both impose requirements on special districts to improve transparency and public access via the Internet to basic information about the special districts activities. The bills will facilitate communication between LAFCOs and the independent special districts within their territory by providing access to contact and other required information. And for HCDs, the legislation will ensure LAFCOs receive timely notice of bankruptcy filings. If you would like more information regarding the issues discussed in this memo, please contact David Ruderman at (530) or DRuderman@chwlaw.us, or Michael Colantuono at (530) or MColantuono@chwlaw.us, or Holly Whatley at (213) or HWhatley@chwlaw.us. 20 Id. at Ibid

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91 420 Sierra College Drive, Suite 140 Grass Valley, CA Main: (530) Fax: (530) Agenda Item No. 12 Attachment Two Michael G. Colantuono (530) MEMORANDUM TO: Keene Simonds, Executive Officer FILE NO: FROM: Michael G. Colantuono, General Counsel DATE: October 9, 2018 CC: RE: Holly O. Whatley, Assistant General Counsel Implications of the New Rules of Professional Conduct Governing the Practice of Law for the LAFCO s Public Hearings The California Supreme Court has approved a comprehensive reorganization of the state s Rules of Professional Conduct governing the practice of law in California. The rules take effect November 1, Most pertinent to San Diego LAFCO, the amended rules define tribunal to include any administrative body acting in a quasijudicial capacity. This will include some actions of the Commission, including CEQA findings. The effect of this definition is to require attorneys but not others to be candid in presentations to tribunals and to avoid gifts and ex parte (i.e., outside the hearing and the presence of other interested parties) contacts with decision makers except as permitted by a policy adopted by the tribunal. LAFCO may take no action in response to these rules, other than make note of them. Alternatively, the Commission might adopt a policy on ex parte contacts to reestablish a level playing field between lawyers and others. Such a policy might ban ex parte contacts, allow them if disclosed by the policy maker or private party, or allow them if the policy maker discloses them only if he or she relies on information obtained in an ex parte contact (this last option is our advice even apart from the new Rules of Professional Conduct). If you, or management staff, wish to consider such a policy further, please let me know and we can assist in drafting or reviewing it. SUBSTANCE OF THE AMENDMENTS There are a number of substantive changes to the Rules of Professional Conduct. The most important addition for local government is the adoption of a new definition of tribunal. A tribunal is:

92 October 9, 2018 Page 2 (i) A court, an arbitrator, an administrative law judge, or an administrative body acting in an adjudicative capacity and authorized to make a decision that can be binding on the parties involved; or (ii) a special master or other person* to whom a court refers one or more issues and whose decision or recommendation can be binding on the parties if approved by the court. 1 (Terms followed by asterisks in the Rules are defined elsewhere in the Rules.) This new definition includes local government bodies, such as the Commission, acting in a quasijudicial capacity. Local government can either act as a quasi judicial or legislative body. LAFCO acts in a legislative capacity when it creates rules that apply to all future cases. 2 Quasi judicial action applies legislation to specific facts. LAFCOs commonly act in a quasi judicial capacity when they make CEQA determinations. LAFCO also acts as a quasi judicial body when it makes certain employment determinations, including disciplinary actions. LAFCOs predominantly act in a legislative capacity, including when making findings. The Rules new definition of tribunal has two noteworthy consequences. Rule 3.3 (Duty of Candor) requires that attorneys not to make false statements to a tribunal. Rule 3.5 (Contact with Judges, Officials, Employees and Jurors) prohibits ex parte communications between lawyers and judges, officials or staff members of a quasi judicial administrative forum, except as permitted under the forum s rules of procedure. This includes any contacts that directly or indirectly give or lend anything of value to a judge, official, or employee of a tribunal. 3 Rules 3.3 and 3.5 mean that attorneys and non attorneys operate under different restrictions. Lawyers may appear in front of local government bodies to represent a client s interests. They may also appear as private citizens, concerned about local issues like a land use development in their neighborhood. In either case, the amended rules set different requirements for attorney and non attorney participation in local government. The rules may be a trap for the unwary as the distinction between legislation and adjudication in the local government context is not always obvious and many attorneys 1 Amended Rule 1.0.1, subd. (m) of the Rules of Professional Conduct. 2 Patterson v. Central Coast Regional Com. (1976) 58 Cal.App.3d 833, Amended Rule 3.5, subd. (a) of the Rules of Professional Conduct

93 October 9, 2018 Page 3 who may wish to participate in LAFCO policy making may have little knowledge of this law. IMPACT ON THE LAFCO While LAFCO should understand the implications of Rule 3.3, there is little action that it can take to level the playing field between attorneys and non attorneys as to the duty of candor and, from a public policy perspective, there may be no need to do so. Candor is expected of all who address the Commission. LAFCO can remind participants that certain hearings are quasi judicial in nature, and therefore that the duty of candor applies. It can request that participants always engage with the forum in an open and honest way. Attorneys, however, will be subject to discipline by the State Bar under Rule 3.3 that does not apply to non attorneys. To avoid weaponizing these new rules (i.e., encouraging non lawyers to complain of a lawyer s lack of candor in LAFCO hearings merely because the lawyer takes a different view than the complainant), it may be best to avoid publicizing this new rule. Rule 3.5, however, allows cities to adopt ex parte and gift rules that apply equally to attorneys and non attorneys. LAFCO has several options. First, LAFCO can choose to not adopt any rule. Due Process already limits ex parte communications in all quasijudicial actions. We recommend policy makers disclose ex parte contacts that provide information on which decision makers rely at the hearing so all parties to a hearing can know what evidence is to be relied upon an have opportunity to comment on it. 4 Beyond this, however, LAFCO might choose not to regulate ex parte communications. Gifts and campaign contributions to individual policy makers are governed by the Political Reform Act and other law and LAFCO might choose to rely on that background law, too. However, if LAFCO decides not to adopt a rule, then attorneys alone will be prohibited from engaging in ex parte communications and there will be an undeveloped playing field in civic affairs. If LAFCO chooses to adopt a policy, it will likely be wise to reference, and defer to, the Political Reform Act and other state laws governing gifts. As to ex parte contacts, LAFCO has a range of options. It can adopt a blanket ban on ex parte contacts. A wholesale ban may be difficult to implement when there are regular, frequent and informal contacts with elected officials (as when you run into constituents at 4 Flagstad v. City of San Mateo (1957) 145 Cal.App.2d

94 October 9, 2018 Page 4 community events or in the grocery store). In other communities, some have expressed concern that ex parte communication bans limit valuable sources of information, restrict access to elected officials and make public meetings unbearably long (because residents cannot speak to commissioners at any other time about quasi judicial matters). 5 Finally, LAFCO can adopt a rule that limits attorney and non attorney ex parte contacts. LAFCO may, for example, adopt the California Administrative Procedure Act, which prohibit any contacts unless there is notice and an opportunity for all parties to participate in the communication. 6 That is likely overkill for a small town. LAFCO can also approve a rule that allows all ex parte communications, restricted only by due process requirements. This would negate the uneven application of Rule 3.5, and applies as if LAFCO had adopted no rule at all. A middle option would be to allow ex parte contacts but require they always be disclosed by the resident or by the policy maker. It can be difficult, however, to discuss a policy on ex parte contacts without creating the implication LAFCO is trying to keep some of its policy makers discussions with constituents secret. 7 If you would like more information on issues discussed in this memo, or assistance in creating an ex parte communication policy, please contact Michael Colantuono at (530) or MColantuono@chwlaw.us, or Holly Whatley at (213) , or HWhatley@chwlaw.us. 5 Christensen and Weikel, How a Ban on Ex Parte Communications by the Coastal Commission Could Change the Balance of Power, Los Angeles Times (May 14, 2016). 6 Gov. Code The Administrative Procedure Act does not apply to local government bodies unless expressly adopted. 7 For example, Los Angeles Mayor Eric Garcetti faced criticism for not barring ex parte meetings between developers and city planning commissioners. Reyes, Garcetti Bans Private Meetings Between Developers and Planning Commissioners, Los Angeles Times (March 9, 2017)

95 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego December 3, 2018 TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer Tamaron Luckett, Executive Assistant 13 AGENDA REPORT Consent Information Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono SUBJECT: Expiring Commissioner Terms in 2019 SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will receive a report identifying membership terms that are set to expire on May 6, 2019 and necessitate new appointments and/or reappointments. The report is being presented to the Commission for information only. BACKGROUND Commission Composition State law prescribes the composition of San Diego LAFCO shall include 13 Commissioners and divided between eight regular and five alternate members. Members are drawn from five membership categories as detailed below. Three members are appointed by the County of San Diego Board of Supervisors and divided between two regulars and one alternate. All three members must be on the Board of Supervisors. Three members are appointed by the City Selection Committee (mayors) and divided between two regulars and one alternate. All three members must be on a city council. City of San Diego as the largest municipality in San Diego County is not eligible for appointment in this category. 95

96 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 13 Expiring Commissioner Terms in 2019 Two members are appointed by the City of San Diego Council as a result of being the largest municipality in San Diego County. The members are divided between a regular and alternate and must be on the City Council. Three members are elected by the Independent Special District Committee (board presidents) and divided between two regulars and one alternate. All three members must be on an independent special district. Two members of the general public are appointed by the other four membership categories on the Commission and divided between a regular and alternate. The two members must be residents in San Diego County. All seats on the Commission are four-year terms. 1 Terms go with the seat and not the Commissioner. Accordingly, if a Commissioner leaves LAFCO early, the successor appointee assumes the unexpired term. DISCUSSION This item is being presented for information only and identifies the six terms on San Diego LAFCO that are set to end on May , and as such require new appointments and/or reappointments under State law. These six expiring terms are listed below. Regular Members Bill Horn, County Catherine Blakespear, City Ed Sprague, District Alternate Members Lorie Bragg, City Judy Hanson, District Harry Mathis, Public A complete listing of all Commissioner terms is provided as Attachment One. ANALYSIS San Diego LAFCO is responsible under State law for conducting the election for the two special district terms (Sprague and Hanson) scheduled to expire in LAFCO is also responsible for appointing or reappointing the expiring term of the alternate public member (Mathis). Staff will commence work on these two activities shortly as detailed in the accompanying footnote. 2 Overseeing the appointments for the other expiring terms (Blakespear, Bragg, and Horn) is the responsibility of the County Clerk with the latter two also requiring interim placements given these members are leaving LAFCO in December. 1 2 Reference to Government Code Section The special district elections will take approximately 120 days for San Diego LAFCO to process and will be coordinated with the Special District Advisory Committee. Options for the alternate public member will be presented to the Commission at the February meeting. 2 P age 96

97 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 13 Expiring Commissioner Terms in 2019 RECOMMENDATION This item is presented for information only. It is recommended the Commission review the report with the invitation to discuss and ask questions of staff. ALTERNATIVES FOR ACTION This item is being presented for information only; no action. PROCEDURES This item has been placed on the San Diego LAFCO s agenda as part of the consent calendar. A successful motion to approve the consent calendar will include taking affirmative action on the staff recommendation unless otherwise specified by the Commission. Respectfully, Keene Simonds Executive Officer Attachment: 1) Commissioner Terms 3 P age 97

98 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 13 Expiring Commissioner Terms in 2019 Page is Blank for Photocopying 4 P age 98

99 GENERAL DISTRIBUTION SAN DIEGO LAFCO COMMISSIONER ROSTER OFFICERS 2018 CHAIRWOMAN: JO MACKENZIE VICE CHAIRMAN: ED SPRAGUE Agenda Item No. 13 Attachment One REGULAR MEMBERS County Representatives * Supervisor Bill Horn 1600 Pacific Hwy., Room 335 San Diego, CA (619) * Supervisor Dianne Jacob 1600 Pacific Hwy., Room 335 San Diego, CA (619) City Representatives Mayor Catherine Blakespear City of Encinitas 505 S. Vulcan Avenue Encinitas, CA (760) Mayor Bill Wells City of El Cajon 200 Civic Center Way El Cajon, CA (619) City of San Diego Representatives * Councilmember Lorie Zapf 202 C Street, MS 10A San Diego, CA (619) ALTERNATE MEMBERS County Alternate 05/19 * Supervisor Greg Cox 1600 Pacific Hwy., Room 335 San Diego, CA (619) /20 City Alternate 05/19 Mayor Pro Tem Lorie Bragg City of Imperial Beach 825 Imperial Beach Blvd Imperial Beach, CA (619) /21 City of San Diego Alternate 5/21 * Councilmember Chris Cate 202 C Street, MS 10A San Diego, CA (619) /20 5/19 5/21 Special Districts Representatives Jo Mackenzie Vista Irrigation District 1391 Engineer St Vista, CA (619) Ed Sprague Olivenhain Municipal Water District 1966 Olivenhain Road Encinitas, CA (760) Public-at-Large Representatives Andrew Vanderlaan 9335 Hazard Way, Suite 200 San Diego, CA (858) Special Districts Alternate 05/20 Judy Hanson Leucadia Wastewater District 1960 La Costa Avenue Carlsbad, CA (858) /19 Public-at-Large Alternate 05/21 Harry Mathis 9335 Hazard Way, Suite 200 San Diego, CA (858) /19 05/19 * = Appointment reviewed annually by appointing authority. 99

100 Page Blank for Photocopying 100

101 San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member December 3, 2018 TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) AGENDA REPORT Business Discussion SUBJECT: First Reading Proposed Comprehensive Fee Schedule Update SUMMARY 14 Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono The San Diego Local Agency Formation Commission (LAFCO) will review a proposed comprehensive fee schedule update as part of a first-reading and ahead of formal action at a future meeting. The proposed update is highlighted by transitioning the fee schedule emphasis from variable charges based on acreage to fixed charges based on proposal type as measured by the type of environmental review needed and whether protest applies. The establishment of a composite hourly staff rate and assignment of set staff hours for most proposals further underlies the transition. Other notable changes proposed include implementing a municipal service review maintenance fee and preauthorizing fee reductions involving and among others annexations to address failed septic and groundwater systems. The substantive effect of the proposed update is the overall levelling of fees in step with synching to current review standards and proportionally improving cost-recovery. The proposed update is being presented for feedback and ahead of initiating public review before returning for action in February BACKGROUND San Diego LAFCO s ( Commission ) current fee schedule structure was established in 1972 and last updated in The fee schedule emphasizes variable fees for most jurisdictional changes based on the affected territory s acreage size. (Incorporations, formations, and consolidations are assigned flat fees irrespective of acreage.) Acreage tiers determine fee amounts and commence with a minimum charge of $2,660 for any single jurisdictional change involving 0.50 acres or less of affected territory. The fee schedule 101

102 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 14 Comprehensive Fee Schedule Update: First Reading also authorizes the Executive Officer to administratively reduce or waive fees based on financial hardships and/or proposal consistency with prior LAFCO recommendations. The existing fee schedule is provided as Attachment One. DISCUSSION This item is for San Diego LAFCO to review and provide feedback on a proposed comprehensive update to the fee schedule. The item is drawn from the adopted workplan to revisit the fee schedule given the document has remained unchanged for over 10 years and interests therein to ensure an appropriate level of cost-recovery is achieved and ease of implementation. It also relatedly provides the Commission the opportunity to evaluate the fee schedule to effectuate policy priorities in either encouraging or discouraging certain jurisdictional changes in proceeding forward. The item is being presented as part of firstreading and ahead of staff initiating a 45-day public review and comment period before returning with or without changes for action in February Proposed Fee Schedule Update Staff has conducted a comprehensive review of San Diego LAFCO s current fee schedule consistent with the adopted workplan and identifies three substantive changes for Commission consideration. These three substantive changes involve transitioning the fee schedule emphasis from variable charges based on acreage to fixed charges based on proposal type, establishing a municipal service review maintenance fee, and revising fee reduction and waiver allowances. Other and relatively less substantive changes are also proposed and range in scope from formatting to delineating standards in charging for general research inquiries. An expanded discussion on the proposed changes follows. Transition to Fixed Fees Based on Proposal Type The current fee schedule emphasizes variable fees based on the acreage size of the affected territory and premised on the connection the larger the affected territory the additional staff time needed to process the underlying action. This structure was implemented as part of the original fee schedule adoption in 1972 and continues to be used by other LAFCOs and typically in conjunction with collecting an initial deposit to bill for time and material. It is proposed the Commission transition the fee schedule to emphasize fixed fees based on proposal type as measured by the level of environmental review needed and whether protest applies. (The former category is further distinguished between LAFCO serving as lead or responsible agency. 1 ) This transition would directly connect the two factors that now primarily influence processing time and further enabled by establishing a composite hourly staff rate and assigning a set number of staff hours for most proposals as detailed below. 1 LAFCOs serve one of two distinct roles in considering proposals potential environmental impacts under the California Environmental Quality Act (CEQA). LAFCOs act as responsible agency when responding to initiating actions by cities or special districts and tasked therein to consider the agencies CEQA analysis and make its own independent findings. LAFCOs act as lead agency when either initiating their own actions or in response to landowner or voter petitions and tasked therein in making stand-alone CEQA findings. 2 P age 102

103 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 14 Comprehensive Fee Schedule Update: First Reading - Establishment of a Composite Hourly Staff Rate It is proposed the Commission establish a composite hourly staff rate of $122 as part of the updated fee schedule. This amount has been calculated to reflect current and proportional direct (labor) and indirect (overhead) costs incurred by LAFCO in processing proposals and weighted to correspond with the typical time expended by individual staff positions. The establishment of the composite hourly rate directly informs the transition to fixed fees by proposal type as detailed above as well as enables staff to charge for additional time needed in processing complex projects and general research inquires. The calculation used in developing the composite hourly staff rate is provided in Attachment Two. - Assign Set Number of Staff Hours by Proposal Type It is proposed the Commission assign a predetermined number of total staff hours needed to process most jurisdictional changes within the two referenced proposal type categories (i.e., level of environmental review and whether protest applies). The assigned staff hours reflect existing statute requirements and the level of analysis currently performed and produces a range of time demands from initiation to completion of 50 hours for basic actions to 95 hours for more complex actions. The assigned total is multiplied by the composite hourly staff rate to produce the fixed fee payable by the applicant. Further, and importantly, additional staff time needed to process exceedingly complex proposals could now be readily recovered by billing additional staff hours extending beyond the baseline allocation. The calculation used in developing the set number of staff hour assignments based on proposal type is provided in Attachment Three. Establish a Municipal Service Review Maintenance Fee It is proposed the Commission establish a maintenance fee to help contribute to the ongoing costs to LAFCO in preparing municipal service review reviews every five years. The nexus in establishing the maintenance fee is tied to municipal service reviews statutory role in informing LAFCOs understanding the level and adequacy of local governmental services in conjunction with making related city and district sphere of influence determinations; the latter serving as direct conduits in allowing jurisdictional changes to proceed forward. 2 The maintenance fee would be similar in intent to general plan maintenance fees commonly utilized by counties and cities and is proposed to be equal to 5% of the baseline applicant fee. Certain exemptions would apply and most notably for jurisdictional proposals that necessitate their own concurrent municipal service reviews and sphere of influence updates With limited exceptions, all jurisdictional changes must be consistent with the spheres of influence of the subject agencies. The current fee schedule includes a flat $11,000 charge to cover LAFCO costs to prepare a municipal service review and corresponding sphere of influence update if needed in processing a jurisdictional change proposal. This charge is intended to address relatively complex proposals that necessitate their own stand-alone municipal service reviews and sphere of influence updates. It is proposed this fee be amended to include an initial deposit of $18,300 to cover the first 150 staff hours and succeeded by hourly billing thereafter and secured by a refundable deposits as determined by the Executive Officer. 3 P age 103

104 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 14 Comprehensive Fee Schedule Update: First Reading Revise and Expand Fee Reduction and Waiver Allowances The existing fee schedule authorizes the Executive Officer to administratively reduce or waive application charges based on financial hardships and/or in response to earlier Commission recommendations. It is proposed this existing allowance be revised to redirect related requests to the Commission for consideration at public meetings with a recommendation from the Executive Officer. It is also proposed the following fee reduction and waiver allowances be expanded to include the following. - Jurisdictional changes initiated in response to an existing or pending septic or well failure shall receive a 75% fee reduction relative to the charges normally incurred under the fee schedule. Qualifying proposals must have 100% written consent of all affected landowners and confirmation from the County Environmental Health Department verifying an existing or pending failure exists. Additional reductions or waivers would require Commission approval. - Jurisdictional changes that include a qualifying city annexation of an entire island under Government Code shall receive a 50% fee reduction relative to the charges normally incurred under the fee schedule. Additional reductions or waivers would require Commission approval. - Jurisdictional changes that include a qualifying city annexation of a disadvantaged unincorporated community under Government Code 56375(a)(8) shall receive a 50% fee reduction relative to the charges normally incurred under the fee schedule. Additional reductions or waivers would require Commission approval. Other Changes Several other changes are also proposed to the fee schedule update to ease implementation proceeding forward. These other changes are summarized below. - Make explicit all fixed fees for standard jurisdictional changes are non-refundable and no monies will be returned once an application is filed with LAFCO. This provision would be consistent with existing practice. - Establish a provision to provide any member of the public up to two hours of staff time to perform general research at no cost. All general research expended thereafter would be billed at the composite hourly staff rate. This would be new and provide clear direction to staff to recover cost for extended public follow up. - Transition fees for unique jurisdictional changes including district formations, consolidations, and dissolutions from fixed to at-cost. This transition would enable the Commission to begin recovering its actual costs for these timeconsuming projects that otherwise are largely subsidized by LAFCO. 4 4 The Commission would retain the ability to approve a fee reduction or waiver for these type of unique proposals. 4 P age 104

105 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 14 Comprehensive Fee Schedule Update: First Reading - Make explicit all sphere of influence amendments are subject to payment under the fee schedule unless otherwise reduced or waived. This would contrast with the long-standing practice of LAFCO to not charge for sphere amendments involving reductions or eliminations. - Transition reorganization costs from 100% to 65% of the baseline fee for a single standard jurisdictional change. This transition reflects the estimated administrative time expended on a proposal irrespective of the number of jurisdictional changes included in the application. The proposed update is provided as Attachment Four. ANALYSIS The proposed update to San Diego LAFCO s fee schedule represents the first monetary changes to the document in more than 10 years when the fees were uniformly increased by 10% as part of the adopted budgeted for It also represents a structural change in the manner in which the Commission has charged and collected fees since This structural change is highlighted by transitioning from variable fees based on acreage to fixed fees based on proposal type and specifically the level of environmental review needed and whether protest proceedings apply; the latter of which represent the most pertinent influences in the amount of staff time needed in processing applications. Establishing a composite hourly staff rate coupled with assigning a set number of staff hours by proposal type aids this transition and provides the Commission with a clear nexus in matching applicant fees with agency costs. The substantive effect of the proposed update is the overall levelling of fees while providing for improved cost-recovery by synching to the current and increased level of uniform analysis required of all jurisdictional changes under statute. This latter comment is marked by noting the proposed update would have generated $30,479 or 18% more in application fees in compared to the actuals generated under the current schedule and illustrated in Attachment Five. ALTERNATIVES FOR ACTION The proposed fee schedule update is being presented for discussion and feedback only. RECOMMENDATION It is recommended the Commission provide feedback on the proposed fee schedule update ahead of staff circulating the item for public review and returning for action in February The structure itself has remained unchanged since its establishment in P age 105

106 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 14 Comprehensive Fee Schedule Update: First Reading PROCEDURES This item has been placed on the agenda for discussion as part of the business calendar. The following procedures, accordingly, are recommended in the consideration of this item: 1) Receive verbal report from staff unless waived; 2) Invite comments from interested audience members (voluntary); and 3) Discuss item and provide feedback as requested. Respectfully, Keene Simonds Executive Officer Attachments: 1. Existing Fee Schedule 2. Calculation for Composite Hourly Staff Rate 3. Calculation for Fixed Fee Amounts for Standard Jurisdictional Changes - As Responsible Agency - As Lead Agency 4. Proposed Fee Schedule Update 5. Comparison of FY Application Revenue Between Existing and Proposed Fee Schedules 6 P age 106

107 SAN DIEGO LAFCO PROCESSING FEE SCHEDULE * EFFECTIVE JANUARY 1, 2018 Agenda Item No. 14 Attachment One ACRE(S) FEE AMOUNT.50 acre and less $2, acre $3, $4, $4, $5, $6, $7, $9, ($9,060 plus an acreage fee of $90 per 100 acres over 200 acres) $9,060 / $90 Incorporation ($13,750 deposit, plus 60% of actual LAFCO review costs) $13,750+ District Formation $9,650 Consolidation/Merger/Dissolution/Subsidiary District $5,500 Dissolution for Inactivity $695 * The above fees are charged for each jurisdictional change (i.e., annexation, detachment, latent power activation or expansion) and sphere amendment associated with a proposal, and apply to cities and districts. For contractual service agreements, payment of the applicable annexation and/or detachment fees as well as sphere amendment(s) must be made upon submittal of a contractual service agreement application. Proponents shall be responsible for actual hearing notification and mailing costs for public hearing items. SURCHARGE There will be a 30% surcharge for consideration of contractual service agreements. This surcharge is due prior to LAFCO consideration of the related annexation/detachment application. The surcharge does not apply to service agreements involving health or safety concerns where the property is eligible for immediate annexation, or fire protection contracts that receive agreement from all affected public agencies. CITY AND DISTRICT SPHERE OF INFLUENCE UPDATE** FEE AMOUNT Base rate for all city and district sphere update proposals $5,500 Acreage fee for every 100 acres included in the sphere update proposal beyond the current sphere $410 City or district service review $5,500 ** No sphere update or service review processing fee will be charged for sphere updates that involve reaffirmations or minor amendments. The acreage component for district sphere updates may be waived for financial hardship or other circumstances affecting the ability of a district to pay fees. Proposals (e.g., consolidations, dissolutions, etc., deemed consistent with LAFCO objectives will not be charged a processing fee if the applicant pays a sphere update fee and submits a sphere update study and supplemental feasibility report accepted as complete by the Executive Officer. 107

108 REQUEST FOR RECONSIDERATION/TIME EXTENSION FEE AMOUNT Request for reconsideration of LAFCO determination $1,030 Request for extension of time to complete proceedings $350 PETITION FILING FEES In addition to the proposal processing fee, each application submitted by petition will be charged LAFCO s actual costs to verify the signatures. OTHER FEES Applicants are responsible for payment of LAFCO's actual costs associated with conducting authority and protest proceedings. ENVIRONMENTAL REVIEW (P.R.C. Section 21089) CEQA Exemption Actual cost Review of Initial Study and preparation of Negative Declaration, Mitigated Declaration OR determination that EIR is required Actual cost Extended Initial Study (if required). Actual cost Preparation of EIR Actual cost Department of Fish and Game Fee: Effective January 1, 2018 Negative Declaration OR Mitigated Negative Declaration $2, EIR.. $3, Environmental Document pursuant to a Certified Regulatory Program (CRP).. $1, County Clerk Processing Fee. $50.00 INCORPORATION FISCAL ANALYSIS REVIEW FEE AMOUNT Processing of Request for State Controller's Review of an incorporation fiscal analysis $3,990 State Controller's review of fiscal analysis Actual cost PAYMENT OF FEES: Fees are due when proposals are submitted to LAFCO. A supplemental fee may be charged and collected prior to the LAFCO hearing if additional acreage or actions are required. EXCEPTIONS: Fees may be waived or reduced by the Executive Officer if financial hardship is demonstrated, OR if application is in response to a LAFCO condition or recommendation. PRE-APPLICATION CONSULTATION AND SPECIAL STUDY SERVICES: Actual cost for pre-application consultation and special study services beyond the first five hours of service provided. Updated January 1,

109 SAN DIEGO LOCAL AGENCY FORMATION COMMISSION Subdivision of the State of California Regional Service Planning Agenda Item No. 14 Attachment Two COMPOSITE HOURLY STAFF RATE CALCULATION for STEP ONE CALCULATING HOURLY INPUTS Input No. 1 Staff Salaries Budgeted Position Annual Pay Hourly Rate Executive Officer 168, Chief Analyst 110, Staff Analyst I 67, Staff Analyst I 60, GIS Analyst 80, Executive Assistant (Records) 70, Executive Assistant (Accounting) 63, Administrative Assistant 51, , All employees are fulltime at 40 hours per workweek and 2,080 hours per year Pay as of October 22, 2018 Input No. 2 Staff Benefits Budgeted Hourly Benefit Executive Officer Chief Analyst Staff Analyst I Staff Analyst I GIS Analyst Executive Assistant (R) Executive Assistant (A) Administrative Assistant Pension Health Insurance Other Post Employment Benefits Social Security Medicare Workers Compensation Life Insurance Hourly benefit costs are based on 40 hour workweek over a full year (52 weeks) 109

110 Input No. 3 Overhead Budgeted Expense Budgeted Amount Hourly Expense Adjusted Hourly Office Rent 79, County Services Overhead 50, County Services IT & Communications 168, Professional Services 364, Training and Ongoing Education 17, Leases and Contracts 6, Memberships 13, Business Travel 5, Office Equipement and Supplies 50, Publications and Notices 5, Depreciation 5, Miscellaneous 14, , Hourly expense divides budgeted amount by one fulltime employee hour total over one year or 2,080 hours Adjusted hourly represents hourly expense divided by number of budgeted fulltime employees or eight STEP TWO CALCULATING HOURLY RATES PER BUDGETED POSITION Factor Executive Officer Chief Analyst Staff Analyst I Staff Analyst I GIS Analyst Executive Assistant (R) Executive Assistant (A) Administrative Aide Hourly Salary Rate Hourly Benefit Rate Hourly Overhead Rate STEP THREE CALCULATING A WEIGHTED HOURLY STAFF RATE Factor Executive Officer Chief Analyst Staff Analyst I Staff Analyst I GIS Analyst Executive Assistant (R) Executive Assistant (A) Administrative Aide Hourly Staff Rate % Processing Proposal 15.0% 30.0% 21.5% 21.5% 7.0% 2.5% 0.5% 2.0% For purposes of calculating a weighted rate the expected processing time of an analyst which is expected to account for 43% of the total staff time is equally divided between the two budgeted positions at 21.5% Composite Staff Rate $

111 SAN DIEGO LOCAL AGENCY FORMATION COMMISSION Subdivision of the State of California Regional Service Planning Agenda Item No. 14 Attachment Three FIXED APPLICATION FEE CALCULATION LAFCO AS RESPONSIBLE AGENCY Staff Hours Exempt Staff Hours Initial Study Staff Hours Impact Report Phase Process No Protest Protest No Protest Protest No Protest Protest Consultation Initial Consultation with Applicants Prepare and Issue Letter to Applicants Listing Costs and Timelines Receive Applicant Proposal, Create File, and Assign Project Manager Record and Deposit Application Fee Preliminary CEQA Review GIS Mapping of Affected Territory and Agency Boundaries Exam Petition or Resolution for Completeness Prepare and Circulate Review Notice to Agencies within 20 Days Prepare and Issue Property Tax Exchange Notice to Assessor/Auditor Issue Status Letter to Applicant within 30 Days Identify Key Issues Analysis Place Item on Next Available Agenda for Information Purposes Public Review on CEQA Document Analyze Government Code Factors Confirm Property Tax Exchange Approval Prepare Draft Agenda Report Consult with Applicant on Draft Report and Proposed Terms Prepare Mailing Labels and Issue Hearing Notice Finalize Staff Report and Recommendation Prepare and Circulate Certificate of Filing Hearing Commission Meeting Post Hearing Prepare Resolution on Commission Action Prepare and Circulate Status Letter to Applicant on Commission Action Prepare and Record Environmental Determination with County Clerk Schedule and Notice Protest Proceedings Hold Protest Hearing and Make Related Determinations continued 111

112 Staff Hours Exempt Staff Hours Initial Study Staff Hours Impact Report Phase Process No Protest Protest No Protest Protest No Protest Protest Post Hearing Confirm Completion of Terms Continued Prepare and Record Certificate of Completion Request TRA Assignment from County Auditor Prepare and File Boundary Change with State Board of Equalization Receive and File Confirmation from State Update GIS Layers Close Proposal File and Scan File Contents Staff Hour Estimate (rounded) Composite Hourly Staff Rate Proposed Applicant Fee Baseline Charge Single Jurisdictional Change 6, , , , , , Municipal Service Review Maintenance Charge 5% of Baseline $ 6, $ 8, $ 7, $ 8, $ 7, $ 9,

113 SAN DIEGO LOCAL AGENCY FORMATION COMMISSION Subdivision of the State of California Regional Service Planning Agenda Item No. 14 Attachment Three FIXED APPLICATION FEE CALCULATION LAFCO AS LEAD AGENCY Staff Hours Initial Study Staff Hours Impact Report Staff Hours Exempt Plus CEQA Consultant at Cost Plus CEQA Consultant at Cost Phase Process No Protest Protest No Protest Protest No Protest Protest Consultation Initial Consultation with Applicants and Advise on Policy Issues Prepare and Issue Letter to Applicants Listing Costs and Timelines Receive Applicant Proposal, Create File, and Assign Project Manager Record and Deposit Application Fee Preliminary CEQA Review GIS Mapping of Affected Territory and Agency Boundaries Exam Petition/Resolution for Completeness Prepare and Circulate Review Notice to Agencies within 20 Days Prepare and Issue Property Tax Exchange Notice to Assessor/Auditor Issue Status Letter to Applicant within 30 Days Analysis Place Item on Next Available Agenda for Information Purposes Public Review on CEQA Document and Address Comments Analyze Government Code Factors Confirm Property Tax Exchange Approval Prepare Draft Agenda Report Consult with Applicant on Draft Report and Proposed Terms Prepare Mailing Labels and Issue Hearing Notice Finalize Staff Report and Recommendation Prepare and Circulate Certificate of Filing Hearing Commission Meeting Post Hearing Prepare Resolution on Commission Action Prepare and Circulate Status Letter to Applicant on Commission Action Prepare and Record Environmental Determination with County Clerk Schedule and Notice Protest Proceedings Hold Protest Hearing and Make Related Determinations continued 113

114 Staff Hours Initial Study Staff Hours Impact Report Staff Hours Exempt Plus CEQA Consultant at Cost Plus CEQA Consultant at Cost Phase Process No Protest Protest No Protest Protest No Protest Protest Post Hearing Confirm Completion of Terms Continued Prepare and Record Certificate of Completion Request TRA Assignment from County Auditor Prepare and File Boundary Change with State Board of Equalization Receive and File Confirmation from State Update GIS Layers Close Proposal File and Scan File Contents Staff Hour Estimate (rounded) Composite Hourly Staff Rate $ 122 $ 122 $ 122 $ 122 $ 122 $ 122 Proposed Applicant Fee Baseline Charge Single Jurisdictional Change 6, , , , , , Municipal Service Review Maintenance Charge 5% of Baseline $ 6, $ 8, $ 8, $ 10, $ 10, $ 12,

115 SAN DIEGO LOCAL AGENCY FORMATION COMMISSION Subdivision of the State of California Regional Service Planning Agenda Item No. 14 Attachment Four PROPOSED FEE SCHEDULE STANDARD JURISDICTIONAL CHANGES Standard jurisdictional changes include (a) annexations, (b) detachments, (c) latent power establishments, and (d) service power divestitures Single Jurisdictional Change Exemption Initial Study Impact Report Exemption Initial Study Impact Report With Full Consent No Protest Hearing $ 6, $ 7, $ 7, $ 6, $ 8, $ 10, Without Full Consent Protest Hearing $ 8, $ 8, $ 9, $ 8, $ 10, $ 12, Each Additional Jurisdictional Change LAFCO is Responsible Agency LAFCO is Lead Agency Plus Consultant Costs With Full Consent No Protest Hearing $ 4, $ 4, $ 4, $ 4, $ 5, $ 6, Without Full Consent Protest Hearing $ 5, $ 5, $ 6, $ 5, $ 6, $ 7, Fees for all standard jurisdictional changes are fixed and represent reasonable cost estimates for the underlying action(s) based on a number of predetermined staff hours to complete. These fees are non refundable and while not typical or expected may be augmented by one or more deposits when additional time is needed beyond the predetermined staff hour allocation as determined by the LAFCO Executive Officer. OTHER JURISDICTIONAL CHANGES Special District Formation Special District Consolidation or Dissolution Incorporation Billed for time and material starting with a $ 9,150 deposit to cover the first 75 hours Billed for time and material starting with a $12,200 deposit to cover the first 100 hours Billed for time and material starting with a $24,400 deposit to cover first 200 hours Fees for other boundary changes are at cost. These fees require an initial and refundable deposit to cover staff time based on the hourly composite rate. Additional deposits may be required as determined by the Executive Officer. 115

116 OTHER REQUESTS & CHARGES Outside Service Extensions Exemption $ 1, Initial Study $ 2, Impact Report $ 2, Sphere of Influence Amendments Municipal Service Reviews Billed at their corresponding rate for standard boundary changes; applies to expansions, reductions, establishments, and eliminations Billed for time and material starting with a $12,200 deposit to cover the first 100 hours Reconsideration of a Commission Determination $ 2, Time Extension to Complete Proceedings $ General Staff Research $ per hour; first two hours of any general research project waived Scheduling a Special Meeting $ 3, Postage, Mail Supplies, Photocopies, Etc. at cost THIRD PARTY CHARGES County of San Diego Clerk Recorder $ California Department of Fish and Game Filing for a Negative Declaration $ 2, Filing for a Mitigated Negative Declaration $ 2, Filing for an Environmental Impact Report $ 3, State Board of Equalization 0.0 to 1.0 acre $ to 5.0 acres $ to 10.0 acres $ to 20.0 acres $ to 50.0 acres $ 1, to acres $ 1, acres or more 2, $ 116

117 IMPLEMENTING POLICIES Proposals and requests subject to this fee schedule will be deemed incomplete until the appropriate fee has been received by LAFCO. All additional staff time required to process proposals or requests subject to this fee schedule beyond the coverage of the initial fixed fee or collected at cost deposit will be billed at a composite hourly rate of $ Applicants with proposals or requests subject to this fee schedule requiring consultants to prepare environmental or other technical documents will be responsible for all direct costs therein and will be required to provide a dedicated deposit as determined by the Executive Officer. The Executive Officer may stop work on any proposal or request subject to this fee schedule until receipt of a requested fee or deposit. The Commission may reduce or waive fees if a financial hardship is demonstrated and/or if the proposal or request is in response to a LAFCO condition or recommendation. Requests must be made in writing. Pre authorized reductions follow. a) Jurisdictional changes that include a qualifying city annexation of an entire "island" under Government Code shall receive a 50% fee reduction relative to the charges normally incurred under the fee schedule. Additional reductions or waivers require Commission approval. b) Jurisdictional changes that include a qualifying city annexation of a disadvantaged unincorporated community under Government Code 56375(a)(8) shall receive a 50% fee reduction relative to the charges normally incurred under the fee schedule. Additional reductions or waivers would require Commission approval. c) Jurisdictional changes initiated in response to an existing or pending septic or well failure shall receive a 75% fee reduction relative to the charges normally incurred under the fee schedule. Qualifying proposals mush have 100% written consent of all affected landowners and confirmation from the County Environmental Health Department verifying an existing or pending failure exists. Additional reductions or waivers would require Commission approval. 117

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119 SAN DIEGO LOCAL AGENCY FORMATION COMMISSION Subdivision of the State of California Regional Service Planning Agenda Item No. 14 Attachment Five PROPOSED FEE SCHEDULE COMPARISON OF FEE COLLECTION IN FY Fee Under No. Date Received Proposal Name File No. Fee Proposed Update 1 8/31/2017 San Marcos Highlands Reorganization RO17 07 $ 35, $ 37, /20/2017 Harmony Grove Village Reorganization LPA17 10 $ 27, $ 27, /29/2017 Tri City Healthcare Reorganization RO17 09 $ 25, $ 25, /11/2018 Trinh Reorganization RO18 01 $ 5, $ 12, /23/2018 Sanford Street McLean Annexation DA18 02 $ 2, $ 6, /30/2018 Lakeside Rodeo Mapleview Street Annexation DA18 03 $ 4, $ 6, /31/2018 Pankey Contractual Agreement SA/OAS18 04 $ 6, $ 8, /20/2018 Hymettus Avenue Zinser Annexation DA18 05 $ 2, $ 6, /22/2018 North Avenue Estates Reorganization RO $ 14, $ 16, /17/2018 Carmichael Drive Wyman Contractual Agreement OAS/SA18 07 $ 4, $ 8, /17/2018 Camino Largo 8 Reorganization RO18 08 $ 8, $ 17, /19/2018 Pala Band of Mission Indians Detachment DD18 10 $ 21, $ 12, /7/2018 Lake Henshaw Annexation DA18 11 $ 6, $ 6, /25/2018 Austin Drive Moth Annexation DA18 12 $ 3, $ 6, $ 168,019 $ 198,488 Difference: $ 30, % 119

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121 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego December 3, 2018 TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer John Traylor, Project Manager 15 AGENDA REPORT Business Action Dianne Jacob, Supervisor County of San Diego Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono SUBJECT: Results of Protest Proceedings and Related Actions Julian-Cuyamaca Fire Protection District Reorganization (RO18-09) SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will receive the results of the protest hearing conducted for the Julian-Cuyamaca Fire Protection District Reorganization and consider taking related actions. The noticed protest hearing was held by the Executive Officer on October 16, 2018 and produced written objections from both landowners and registered voters with the latter category necessitating an election to confirm the Commission s earlier approval of the reorganization. The Commission is now tasked with taking actions to formalize the results of the protest through an ordering resolution requesting the County of San Diego Board of Supervisors call an election along with making recommendations on election date and type. The Commission must also approve an impartial analysis to appear on the ballot. BACKGROUND Proposal Filings In April 2018, San Diego LAFCO received a proposal from the Julian-Cuyamaca Fire Protection District (FPD) to dissolve and cease all corporate powers subject to requested terms. The requested terms included concurrent approval to designate the County Fire Authority through County Service Area (CSA) No. 135 as the successor agency. CSA No. 135 and through the Board of Supervisors filed a supporting application in May 2018 to expand its established latent power area for fire protection and emergency medical services and consent therein to serving as the successor agency. 121

122 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 15 Results of Protest Proceedings for the Julian-Cuyamaca FPD Reorganization Commission Action On September 10, 2018, San Diego LAFCO held a public hearing to consider the jointreorganization proposal filed by Julian-Cuyamaca FPD and CSA No The Commission proceeded to approve the joint-reorganization proposal and concurrently (a) dissolve Julian- Cuyamaca FPD and (b) expand CSA No. 135 s established latent power area for fire protection and emergency medical services to include the affected territory. 1 Specified terms applied and the Commission delegated protest hearings to the Executive Officer. DISCUSSION This item is for San Diego LAFCO to receive the results of the protest hearing delegated to the Executive Officer involving the Commission s earlier approval of the Julian-Cuyamaca FPD Reorganization and consider taking related actions. The protest hearing was held on October 16, 2018 and produced written objections from both landowners and registered voters with the latter category necessitating an election to confirm the reorganization. The Commission, accordingly, is tasked now with taking two distinct actions to (a) adopt a resolution for filing with the Board of Supervisors ordering the reorganization subject to an election along with recommendations on date and type and (b) approve an impartial analysis for the resulting ballot measure. Additional details follow. Protest Results Landowners and Registered Voters San Diego LAFCO staff worked with the County Assessor s Office and Registrar of Voters to validate written submittals received and not withdrawn from landowners and registered voters, respectively, following the closure of the protest hearing held on October 16 th. The results of the validation process are summarized below. Landowner Protest As of the date of the protest hearing, there were 4,809 legal parcels within the affected territory with a combined assessed land value of $736,584,333. At the conclusion of the protest hearing, the County Assessor s Office validated 63 landowners of these legal parcels representing a cumulative assessed land value of $5,976,157 had filed protest with LAFCO. 2 These validated amounts represent 1.3% and 0.8% of the respective totals and are below the 25.0% threshold to require an election and the 50.0% threshold to terminate the proceedings. 1 2 Conforming sphere of influence amendments were also approved consistent with the staff recommendation. The County Assessor s Office invalidated 53 other landowner protest submittals received by the close of the protest hearing on the basis of being duplicates, parcels not in service area, no date listed, no proposal information listed, or a signature from a non-verified owner. 2 P age 122

123 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 15 Results of Protest Proceedings for the Julian-Cuyamaca FPD Reorganization Registered Voter Protest As of the date of the protest hearing, there were 2,410 registered voters within the affected territory. At the conclusion of the protest hearing, the Registrar of Voters validated 626 registered voters had filed protest with LAFCO. 3 This validated amount represents 26.0% of the total and surpasses the 25.0% threshold to require an election, but is below the 50.0% threshold to terminate the proceedings. Required Actions Ordering Resolution and Impartial Analysis The protest results for registered voters necessitates San Diego LAFCO adopt a resolution ordering the Julian-Cuyamaca FPD Reorganization subject to an election. The resolution serves to certify the results of the protest hearing and request the County Board of Supervisors call an election pursuant to State law. 4 It is also the opportunity for the Commission to provide recommendations to the Board of Supervisors with respect to specifying the date and type of election as further detailed in the accompanying footnote. 5 The protest hearing results also task San Diego LAFCO with preparing an impartial analysis of the ballot measure given the underlying action (i.e., reorganization) is within the jurisdiction of the Commission. The impartial analysis must be approved by the Commission at a public meeting prior to the deadline set by the Registrar of Voters and will appear on the ballot with or without arguments for or against the action that are submitted to and selected by the Registrar of Voters. The impartial analysis must be no more than 500 words, exclusive of a general description of the boundaries of the affected territory. Given the Commission historically does not meet in January, and because we do not yet know what deadline the Registrar of Voters might set, it is appropriate to proceed now with the impartial analysis. ANALYSIS The Julian-Cuyamaca FPD Reorganization and the underlying action approved by San Diego LAFCO to transfer fire protection and emergency medical services in the affected territory to the County Fire Authority now requires voter approval. This outcome was recognized as a distinct possibility by the Commission in approving the reorganization proposal on September 10 th and tracks with the membership s collective statements encouraging the community to participate in the decision-making. Proceeding forward as expeditiously as possible also tracks with the Commission s earlier statements, and as such it is recommended the Commission request the Board of Supervisors call a special election at the earliest possible date March 11, 2019 and ahead of the baseline scenario of waiting to the The Registrar of Voters invalidated 177 other registered voter protest submittals received by the close of the protest hearing on the basis of being duplicates, not residing in the service area, no date listed, no proposal information listed, or a signature from a nonverified owner. Reference to Government Code Section 57000(d) Once an election is called by the Board of Supervisors, there is a minimum 88 day period before an election can be held to confirm a LAFCO approved action (Government Code 57132). Unless provided otherwise, the election shall be held on the next established election date calendared under State law: March 3, Election type varies between mailed ballots and polling precincts. 3 P age 123

124 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 15 Results of Protest Proceedings for the Julian-Cuyamaca FPD Reorganization next general primary date of March 3, This option serves to lessen the governance challenge that now exists with a new JCFPD Board assuming office but statutorily obligated to maintain the status quo until voters decide whether to confirm or reject the proceedings. It is also recommended the Commission request the special election be done by mail ballot in contrast to opening one or more polling precincts. This option would help to facilitate broader community participation in the election and is markedly less expensive than opening one or more polling precincts as detailed in the accompanying footnote. 6 RECOMMENDATION Staff recommends San Diego LAFCO proceed with certifying the results of the protest hearing and adopt the attached draft resolution ordering the reorganization subject to an election for formal filing with the County Board of Supervisors. It also and as detailed in the preceding section includes Commission recommendations to hold the election by mail ballot and as early as possible and no less than 100 days from notifying the Registrar of Voters. Approving an impartial analysis now is also recommended. These recommendations are consistent with the actions outlined in the following section as Alternative One. ALTERNATIVES FOR ACTION The following alternative actions are available and can be accomplished a single motion: Alternative One (recommended): (a) Certify the results of the protest hearing held on October 16, 2018 for the Julian- Cuyamaca FPD Reorganization and adopt the attached draft resolution ordering the reorganization subject to an election with recommendations on date and type. (b) Approve the impartial analysis on the Julian-Cuyamaca FPD Reorganization prepared by Commission Counsel in consultation with the Executive Officer for submittal to the Registrar of Voters with any desired changes by the Commission. Alternative Two: Continue the item to a future meeting and provide direction to staff for any additional information as requested. 6 The approximate cost to hold an all mail-ballot election for the reorganization is $50,000. The approximate cost to hold a polling precinct election for the reorganization is $95,000. The approximate cost to hold the reorganization election as part of the next primary (March 3, 2020) is $5,000-10,000. San Diego LAFCO is responsible for all costs as part of an earlier approved fee waiver. 4 P age 124

125 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 15 Results of Protest Proceedings for the Julian-Cuyamaca FPD Reorganization PROCEDURES FOR CONSIDERATION This item has been placed on the agenda as part of the business calendar. The following procedures, accordingly, are recommended in the consideration of this item: 1) Receive verbal report from staff unless waived; 2) Invite comments audience members (voluntary); and 3) Discuss item and consider action on recommendation. On behalf of staff, Keene Simonds Executive Officer Attachments: 1) Draft Resolution Ordering the Julian-Cuyamaca FPD Reorganization Subject to an Election for Filing with the County Board of Supervisors 2) Impartial Analysis on the Julian-Cuyamaca FPD Reorganization for Filing with Registrar of Voters 5 P age 125

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127 RESOLUTION OF THE SAN DIEGO LOCAL AGENCY FORMATION COMMISSION REQUESTING THE SAN DIEGO COUNTY BOARD OF SUPERVISORS DIRECT THE COUNTY ELECTIONS OFFICIAL TO CONDUCT AN ELECTION OF THE REGISTERED VOTERS OF THE JULIAN-CUYAMACA FIRE PROTECTION DISTRICT TO CONFIRM THE SAN DIEGO LOCAL AGENCY FORMATION COMMISSION S ORDER RO18-09 ET AL. DISSOLVING THE JULIAN-CUYAMACA FIRE PROTECTION DISTRICT AND DESIGNATING COUNTY SERVICE AREA NO. 135 AS SUCCESSOR Agenda Item No. 15 Attachment One WHEREAS, on April 10, 2018, the Board of the Julian-Cuyamaca Fire Protection District ( District ) adopted a Resolution of Application to dissolve the District, Resolution No ( Resolution ); and WHEREAS, the District submitted the Resolution of Application to the San Diego Local Agency Formation Commission ( Commission ) on April 11, 2018; and WHEREAS, the District s application requests dissolution and cession of all corporate powers within its approximate 52,000 acre jurisdictional boundary subject to certain terms, including concurrent Commission approval to transfer fire protection and emergency medical service responsibilities to the County of San Diego and its Fire Authority through County Service Area ( CSA ) No. 135; and WHEREAS, On May 15, 2018, the San Diego County Board of Supervisors, acting on behalf of CSA No. 135, filed a supporting resolution of application with the Commission requesting expansion of CSA No. 135 s existing latent power fire protection and emergency medical service area to include the affected territory; and WHEREAS, the application filings by the District and County were complementary and processed by the Commission as a joint-reorganization proposal; and WHEREAS, on September 10, 2018, Commission adopted RO18-09 et al., approving the joint reorganization proposal to dissolve the District, expand CSA No. 135 s existing latent powers to include the affected territory and designate CSA No. 135 as the successor agency, subject to the outcome of a protest hearing; and WHEREAS, Commission provided landowners and registered voters with notice of the protest hearing on September 17, 2018; and WHEREAS, on October 16, 2018 Commission conducted a protest hearing and received 803 signed written protests; and WHEREAS, Commission submitted the written protests to the San Diego County Registrar of Voters on October 19, 2018 to verify the 803 signatures submitted; and WHEREAS, the Registrar of Voters certified the results of the verification to the Commission on November 5, 2018, finding 177 signatures to be invalid and 626 signatures to be valid, which Certification is attached as Exhibit A; and 1 P age

128 WHEREAS, the 626 valid written protests amount to 26% of the District s total registered voters which exceed the 603 protest, or 25% voter, threshold required to trigger an election of the voters; and NOW, THEREFORE, BE IT RESOLVED, the Commission hereby finds, determines, and orders the following: 1. The October 16, 2018 protest hearing yielded the following protest counts as validated by the County Assessor as to landowners and the County Registrar of Voters as to the registered voters: a. Landowner Protest: As of the date of the protest hearing, there were 4,809 legal parcels within the affected territory with a combined assessed land value of $736,584,333. At the conclusion of the protest hearing, the County Assessor s Office validated 63 protests from landowners of these legal parcels representing a cumulative assessed land value of $5,976,157. These validated amounts represent 1.3% of the total landowners and 0.8% of the combined assessed value and are below the 25.0% threshold to require an election and the 50.0% threshold to terminate the proceedings. b. Registered Voter Protest: As of the date of the protest hearing, there were 2,410 registered voters within the affected territory. At the conclusion of the protest hearing, the Registrar of Voters validated protests from 626 registered voters. This validated amount represents 26.0% of the total registered voters and surpasses the 25.0% threshold to require an election, but is below the 50.0% threshold to terminate the proceedings. 2. The Commission certifies the results of the protest proceedings as detailed in Paragraph 1 above, and under Government Code Section 57000(d), the Commission determines that an election must be conducted and requests the San Diego County Board of Supervisors direct the County elections official to conduct the necessary election. 3. The question put to the voters should be phrased as required by Government Code Section 57133(g) for reorganizations as follows: Shall the order adopted on September 10, 2018, by the San Diego Local Agency Formation Commission (Resolution No. RO18-09 et al.) ordering the reorganization affecting the Julian-Cuyamaca Fire Protection District and County Service Area No. 135 and providing for the dissolution of the Julian-Cuyamaca Fire Protection District, the expansion of County Service Area No. 135 s existing latent powers in the affected territory, and designating County Service Area No. 135 as the successor agency to the dissolved district be confirmed subject to the terms and conditions specified in the order? 4. Per Government Code Section 57000(e)(1), the Board of Supervisors is requested, within 45 days from the date of this Resolution, to direct the County elections official to conduct the election. 5. The Board of Supervisors has the discretion to determine the date and method of elections consistent with the deadlines set forth in Government Code sections et seq., but the Commission requests the Board consider a special election conducted wholly by mailed ballot on any date, including dates other than an established date authorized by the County elections 2 P age

129 official, as authorized to Government Code Section 57125(b). The Commission further recommends the special election be set for a date no later than 100 days from the date the Board of Supervisors calls the special election. 6. As allowed under Government Code 56107, the Commission authorizes the Executive Officer to make non-substantive corrections to this resolution to address any technical defect, error, irregularity, or omission. PASSED AND ADOPTED by the San Diego County Local Agency Formation Commission on December 3, 2018 by the following vote: AYES: NOES: ABSENT: ABSTAINING: 3 P age

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131 EXHIBIT A 131

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133 Impartial Analysis of Proposition, the Reorganization of Julian-Cuyamaca Fire Protection District and County Service Area No. 135 Agenda Item No. 15 Attachment Two Proposition proposes to confirm San Diego Local Agency Formation Commission s ( LAFCO ) approval of a reorganization to dissolve the Julian-Cuyamaca Fire Protection District ( District ) and designate the County of San Diego and its Fire Authority through County Service Area No. 135 ( CSA No. 135 ) as the successor agency. Affected Territory: The affected territory is the entirety of the District and spans approximately 81 square miles and is located 35 miles to the northeast of the closest incorporated community, City of Poway. The northern half of the affected territory is anchored by the unincorporated community of Julian. The southern half of the affected territory is more rural and includes significant public lands, including the Cuyamaca Rancho State Park. Maps of the affected territory may be viewed online at Vote: A Yes vote means: (1) the District will dissolve and County Fire Authority s professional firefighters will provide fire protection and emergency medical services to the affected territory; (2) the $50 annual parcel tax adopted to pay to construct the fire station will be retired with the County paying the remaining balance; (3) the $50 annual parcel tax adopted in 1984 to fund fire protection services will continue; (4) the existing volunteer firefighters who complete the required medical screening will be offered positions with the County volunteer reserves; and (5) a three-member advisory committee of District residents will provide feedback to the County about services provided in the area. A No vote means: (1) the District will not dissolve; (2) volunteer firefighters will continue to provide fire protection and emergency medical services to the affected territory; (3) the $50 annual parcel tax adopted in 2006 to pay to construct the fire station will continue; and (3) the $50 annual parcel tax adopted in 1984 to fund fire protection services will continue. Reorganization Applications: On 4/10/18, the District adopted a resolution to apply to dissolve the District. On 5/15/18, the County Board of Supervisors adopted a complementary resolution to expand the CSA No. 135 s sphere of influence and expand its existing powers within the District. The stated reasons for these applications were to: (1) ensure continuity of fire protection and emergency medical services, (2) ensure long-term security of fire protection services to the communities within the District, and (3) eliminate duplication of management, administration, and oversight from operating multiple special districts providing identical service. LAFCO approved the applications on 9/10/18 subject to conditions as stated in RO18-09, which can be viewed at

134 Finances: CSA No. 135 is funded through the County s General Fund. If the reorganization is confirmed, CSA No. 135 would receive approximately $0.300 million in additional funding, twothirds from the transfer of the District s existing property tax apportionments, and the remaining one-third from continuing one of two existing annual special parcel assessments. CSA No. 135 will be assigned all revenues from the District s existing $50 annual parcel tax established in The District s existing $50 annual parcel tax established in 2006 to pay for a fire station s construction will be discontinued as the County will pay the remaining balance on the loan. Landowners within the District will not be charged any new or additional assessments as a result of this reorganization. Governance: The reorganization would dissolve the District s five-member board. The County Board of Supervisors would assume responsibility for providing fire protection and emergency medical services to the District. A three-member Julian-Cuyamaca fire advisory board sub-committee will be created to provide feedback on fire protection services in the affected territory. The above statement is an impartial analysis of Proposition. If you desire a copy of the proposition, please call the elections official's office at (insert telephone number) and a copy will be mailed at no cost to you

135 San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Vista Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas Bill Horn, Supervisor County of San Diego Dianne Jacob, Supervisor County of San Diego December 3, 2018 TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer Linda Zambito, Analyst I 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) AGENDA REPORT Business Action SUBJECT: Proposed Lake Henshaw Change of Organization Annexation to the Vista Irrigation District (File No. DA18-11) Andrew Vanderlaan Public Member Bill Wells, Mayor City of El Cajon Lorie Zapf, Councilmember City of San Diego Alternate Members Lorie Bragg, Councilmember City of Imperial Beach Chris Cate, Councilmember City of San Diego Greg Cox, Supervisor County of San Diego Judy Hanson, Director Leucadia Wastewater District Harry Mathis Public Member Executive Officer Keene Simonds Counsel Michael G. Colantuono SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will consider a change of organization proposal filed by the Vista Irrigation District (ID) to annex three unincorporated and undeveloped parcels totaling approximately 88.2 acres. The affected territory as submitted is located near Lake Henshaw in northeast San Diego County and lies outside of the Vista ID sphere of influence. The purpose of the proposal is to provide cost-savings to Vista ID by eliminating property tax obligations for the affected territory. Staff recommends approval of the proposal without modifications and without amendments to the sphere of influence for reasons detailed. Standard terms are also recommended. BACKGROUND Applicant Request Affected Territory as Proposed San Diego LAFCO has received a proposal from Vista ID requesting approval to annex three unincorporated and undeveloped parcels totaling approximately 88.2 acres and divided between two distinct and noncontiguous areas. All three subject parcels lie within the Lake Henshaw watershed and owned by Vista ID. Area A comprises two of the three parcels and collectively totals 71.4 acres and located near the unincorporated community of Warner Springs and Highway 79. Area B comprises one parcel approximately 16.7 acres in size located east of Highway 79 along Matagual Road. The subject parcels are identified by the County of San Diego Assessor s Office as , , and

136 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 16 Lake Henshaw Change of Organization Affected Territory - Three unincorporated parcels that are divided between two distinct areas: Area A comprises two parcels totaling 88.2 acres Area B comprises one parcel totaling 16.7 acres - All three parcels are owned by Vista ID and part of the Lake Henshaw watershed Subject Agencies The proposal involves one subject agency: Vista ID. 1 subject agency follows. A summary description of the lone Vista ID is an independent special district in northern San Diego County and spans approximately 33 square miles. Vista ID encompasses the majority of the City of Vista along with portions of the Cities of Escondido, Oceanside, and San Marcos. It is authorized to provide one municipal service: potable water. Vista ID was formed in 1923 and presently provides potable water service to approximately 129,000 residents. In 1946, Vista ID added the Lake Henshaw watershed to its jurisdiction boundary instep with developing a reliable local water source. Drought conditions and population growth eventually caused Vista ID to secure other sources and in 1954 Vista ID became a member of the San Diego County Water Authority to take advantage of imports from the California and Colorado River Aqueducts. Vista ID currently delivers approximately 15,300 acre feet of water annually to its customers with approximately one-third drawn from Lake Henshaw. The water system operates over 473 miles of pipe, 12 storage reservoirs, and 7 pumping stations. Vista ID jointly owns the Escondido-Vista Water Treatment Plant and allocated 18 million gallons of the facility s daily capacity. LAFCO established a sphere of influence for Vista ID in 1988 and it presently includes 20,111 non-jurisdictional acres. Vista ID s unrestricted fund balance as of July 30, 2017 totaled $19.2 million, which represents 41% of the total budgeted General Fund expenditures in State law defines subject agency to mean any district or city for which a change or organization or reorganization is proposed. 2 Page 136

137 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 16 Lake Henshaw Change of Organization Affected Local Agencies The affected territory lies within the jurisdictional boundaries of the following local agencies directly subject to San Diego LAFCO. 2 County Service Area No. 135 San Diego County Flood Control District Upper San Luis Rey Resource Conservation District DISCUSSION This item is for San Diego LAFCO to consider approving with or without modifications Vista ID s submitted change of organization proposal to annex the affected territory. The Commission may also consider applying conditions so long as it does not directly regulate land use, property development, or subdivision requirements. Additional discussion with respect to the proposal purpose and Commission focus follows. Proposal Purpose The purpose of the proposal is to provide Vista ID with cost-savings by eliminating further property tax obligations associated with all three subject parcels. The annual tax obligations in for all three subject parcels collectively totaled $2,943. Development Potential As detailed in Appendix A, the affected territory is entirely unincorporated and planned for agricultural and open space uses under the County General Plan. The minimum lot standard for all three subject parcels is 80 acres. These existing land use policies preclude the future division of the affected territory. 3 Commission Focus Three central and sequential policy items underlie the San Diego LAFCO s consideration of the change of organization. These policy items ultimately take the form of determinations and orient the Commission to consider the stand-alone merits of (a) sphere of influence amendments, (b) timing of the change of organization itself, and (c) whether discretionary boundary modifications or approval terms are appropriate. The Commission must consider other relevant statutes in and outside of LAFCO law as detailed. 2 3 State law defines affected local agency as any entity that contains, or would contain, or whose sphere of influence contains or would contain, any territory for which a change or organization is proposed or ordered. The designated Zoning is A-72 (intensive) Agriculture and the General Plan Land Use designation is Rural Lands (RL-80) 1 du/ 80 acre. The subject agency has noted the subject parcels have historically been agricultural but not currently active in agricultural practices. 3 Page 137

138 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 16 Lake Henshaw Change of Organization ANALYSIS The analysis of the proposal is organized into two subsections. The first subsection pertains to evaluating the central issues referenced above regarding the merits of the sphere of influence amendment, timing of the change of organization relative to the factors mandated for review by the Legislature and local policies as well as whether modifications or terms are appropriate. The second subsection considers issues required by other applicable State statutes. This includes making findings under the California Environmental Quality Act (CEQA) and the disposition of protest proceedings per Government Code Section 57002(c). Central Policy Items Item No. 1 Merits of Sphere of Influence Amendments State law specifies all jurisdictional changes approved by San Diego LAFCO shall be consistent with the spheres of influence of the subject agencies. 4 This statutory threshold in most instances would necessitate the Commission amend the proposal to include premising and concurrent sphere amendments to Vista ID to add the affected territory (Areas A and B). The statutory threshold is further prefaced on the Legislature defining spheres to demark the appropriate current and future boundary and service area of the subject agency as determined by the Commission. However, and pertinently, the Commission has established standing and unique practices specific to Vista ID to purposefully exclude jurisdictional lands from the sphere that are not expected to require services, and this includes the adjacent areas in the Lake Henshaw watershed. It would be appropriate to the Commission, accordingly, to continue to exclude the affected territory from the Vista ID sphere irrespective of considering the associated change of organization, and in doing so remain consistent with past local practice. It would also mitigate the Commission need to consider any related sphere amendments to the County Water Authority and Metropolitan Water District of Southern California. 5 Nonetheless, and for the benefit of telegraphing a future policy discussion, this practice should be revisited as part of the next scheduled sphere update for Vista ID later this fiscal year to help ensure overall conformity with Commission goals and objectives. 4 Reference to Government Code Section The Metropolitan Water District of Southern California (MET) is a collective of public agencies that supply imported water to Southern California. Metropolitan member-agencies purchase imported water from MET for resale. The San Diego County Water Authority (SDCWA), as a MET member agency, is the single largest purchaser of imported MET water. SDCWA, which is also a collective of public retail agencies, resells MET water to 24 member agencies in San Diego County for retail distribution.. 4 Page 138

139 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 16 Lake Henshaw Change of Organization Conclusion Sphere of Influence Amendments Sphere of influence amendments are not warranted to accommodate the change of organization based on past practices of San Diego LAFCO to limit the Vista ID sphere to emphasize the need and/or expectation of District services and delivery therein. It is recommended, however and as a telegraphing measure, for the Commission to holistically revisit this practice and consider making changes thereafter if appropriate as part of the scheduled sphere update for Vista ID calendared later this fiscal year. Item No. 2 Merits of the Annexation Timing The timing of the proposed change of organization appears appropriate and highlighted by the analysis of the 17 factors required for consideration under LAFCO law. The majority of the prescribed factors focus on the impacts of the proposed annexation on the service and financial capacities of the receiving agency, Vista ID. No single factor is determinative and the intent is to provide a uniform baseline for LAFCOs in considering all boundary changes in context to the Commission s own adopted policies and practices. A summary of key conclusions generated in the review of these factors for the boundary change proposal follows with a complete analysis provided in Appendix A. Service Needs There are no existing or expected service needs within the affected territory. Nonetheless, annexation of the affected territory to Vista ID represents a logical and orderly expansion of the District s jurisdictional boundary relative to local and practiced conditions. Annexation would expand the Vista ID boundary to include the remaining District-owned lands in the Lake Henshaw watershed that directly account for close to one-third of annual potable supplies delivered to approximately 129,000 residents. Service Capacities and Levels Annexation would not affect service demands or capacities for Vista ID given services are not needed or expected in the affected territory within the foreseeable future. Overall and irrespective of the proposed change of organization, Vista ID has an available and sufficient capacity to accommodate existing and projected demands in the District. Service Funding and Costs Annexation of the affected territory to Vista ID would generate a modest but perennial cost-savings to the District and its ratepayers by eliminating property tax obligations for the three subject parcels presently valued at $2,943 per year. 5 P age 139

140 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 16 Lake Henshaw Change of Organization Conclusion Merits of Change of Organization Timing The timing of the change of organization and annexation therein of the affected territory to Vista ID is warranted. Justification is marked by the preceding analysis and highlighted by appropriately responding to local conditions to consolidate Vista ID s watershed holdings within its jurisdictional boundary. Item No. 3 Merits of Modification and Terms Staff has not identified any potential boundary modifications to the proposal that merit consideration by San Diego LAFCO at this time. (Consideration of a concurrent sphere of influence amendment is addressed earlier in this section.) Applying standard terms also appears appropriate. Conclusion Merits of Modifications and Terms No modifications are merited at this time. Standard conditions are appropriate. Other Statutory Considerations Exchange of Property Tax Revenues California Revenue and Taxation Code Section 99(b)(6) requires the adoption of a property tax exchange agreement by the affected local agencies before LAFCO can consider any jurisdictional change unless an applicable master agreement applies. Towards this end, San Diego LAFCO has confirmed the County of San Diego Board of Supervisors has adopted a master tax exchange applicable to the proposed change of organization. The application of this master agreement will result in a no exchange. 6 Environmental Review Vista ID serves as the lead agency for assessing potential impacts of the proposal under CEQA given the District has initiated the change of organization proceedings. Vista ID has determined the action is a project under CEQA, but exempt from further review given the exemption under 15061(b)(3) which is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Staff independently concurs Vista ID has made an appropriate determination and the Commission as the responsible agency under CEQA should proceed with a concurrent finding. 6 Following LAFCO Commission approval, no further tax obligation should be applied to the subject parcels. 6 P age 140

141 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 16 Lake Henshaw Change of Organization Protest Proceedings Protest proceeding for the change of organization may be waived by San Diego LAFCO should the Commission proceed with an approval under Government Code Section The waiver appropriately applies under this statute given the affected territory is uninhabited as defined under LAFCO law, the lone subject agency is both the applicant and landowner and has provided their written consent to the underlying action. 7 RECOMMENDATION Staff recommends approval of the change of organization consistent with Alternative One as outlined in the proceeding section. Approval provides for the orderly and practiced expansion of the Vista ID jurisdictional boundary to include its watershed holdings in Lake Henshaw for the ultimate benefit of its ratepayers. ALTERNATIVES FOR ACTION The following alternative actions are available to San Diego LAFCO and can be accomplished through a single-approved motion. Alternative One (recommended): a) Accept and incorporate the analysis of the Executive Officer s written report. b) As a responsible agency, make findings consistent with Vista ID as the lead agency and find the project exempt from additional CEQA review under the Class 15061(b)(3). c) Determine protest proceedings are waived under Government Code Section d) Adopt the form of resolution approving the Lake Henshaw Change of Organization to Vista ID (DA18-11) without modifications. e) Term approval on the following conditions being satisfied within 12 months year unless a time extension is requested and approved by the Commission: - Completion of the 30-day reconsideration period under Government Code Submittal of a final map and geographic description of the affected territory as approved by the Commission conforming to the requirements of the State Board of Equalization Tax Services Division. - Payment of any outstanding fees generated in the processing of the proposal pursuant to the LAFCO Fee Schedule. 7 LAFCO law defines uninhabited as territory in which 11 or less residents reside. 7 P age 141

142 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 16 Lake Henshaw Change of Organization Alternative Two: Continue consideration to the next regular meeting and provide direction to staff concerning additional information, as needed. Alternative Three: Disapprove the proposal. This option would preclude a similar proposal being presented to the Commission for a period of no less than one year. PROCEDURES FOR CONSIDERATION This item has been placed on the agenda as part of the business calendar. The following procedures, accordingly, are recommended in the consideration of this item: 1) Receive verbal report from staff unless waived; 2) Invite comments audience members (voluntary); and 3) Discuss item and consider action on recommendation. On behalf of staff, Linda Zambito Analyst I Appendices: A) Analysis of Proposal Review Factors Attachments: 1) Full Vicinity Map 2) Application Materials 8 P age 142

143 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 16 Lake Henshaw Change of Organization APPENDIX A ANALYSIS OF MANDATORY PROPOSAL REVIEW FACTORS GOVERNMENT CODE SECTION a) Population and population density; land area and land use; per capita assessed valuation; topography, natural boundaries, and drainage basins; proximity to other populated areas; the likelihood of significant growth in the area, and in adjacent incorporated and unincorporated areas, during the next 10 years. The affected territory as proposed includes three unincorporated parcels totaling approximately acres. Area A includes two subject parcels (Assessor Parcel , ) and Area B includes one subject parcel ( ) located along Highway 79. The subject parcels are undeveloped and part of the Lake Henshaw watershed with surface flows directed into Lake Henshaw. The Lake Henshaw watershed is a potable water source for Vista ID. The current assessed value of the subject parcels is $294,256. b) The need for organized community services; the present cost and adequacy of governmental services and controls in the area; probable future needs for those services and controls; probable effect of the proposed incorporation, formation, annexation, or exclusion and of alternative courses of action on the cost and adequacy of services and controls in the area and adjacent areas. There is no need for municipal services at this time within the affected territory. The three subject parcels are part of the Lake Henshaw watershed and are uninhabited and undeveloped. Vista ID uses Lake Henshaw as a potable supply reservoir. c) The effect of the proposed action and of alternative actions, on adjacent areas, on mutual social and economic interests, and on local governmental structure. Approving the proposed change of organization would recognize and strengthen existing economic and social ties between Vista ID and affected territory. These ties are drawn from Vista ID s current ownership of the three subject parcels and uses therein to generate runoff as part of its Lake Henshaw watershed. 9 P age 143

144 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 16 Lake Henshaw Change of Organization d) The conformity of the proposal and its anticipated effects with both the adopted commission policies on providing planned, orderly, efficient patterns of urban development, and the policies/priorities set forth in G.C. Section The affected territory lies within the Lake Henshaw watershed and used for generating potable water supplies. Annexation of the subject parcels would conform to existing local conditions to place watershed lands within the service provider boundary. None of the lands qualify as open-space under LAFCO law due to its zoning and does not conflict with G.C. Section e) The effect of the proposal on maintaining the physical and economic integrity of agricultural lands, as defined by G.C. Section The affected territory does not qualify as prime agricultural land under LAFCO law. Specifically, the lands are not used for any of the following purposes: producing an agricultural commodity for commercial purposes; left fallow under a crop rotational program; or enrolled in an agricultural subsidy program. f) The definiteness and certainty of the boundaries, the nonconformance of proposed boundaries with lines of assessment or ownership, the creation of islands or corridors of unincorporated territory, and similar matters affecting the proposed boundaries. LAFCO is in receipt of a draft map and geographic description of the affected territory as proposed that details metes and bounds consistent with the standard of the State Board of Equalization. Approval would be conditioned on a final map and description confirming to the referenced standards. The affected territory does not cross lines of assessment. g) A regional transportation plan adopted pursuant to Section The proposal would not conflict with San Diego Forward, the regional transportation plan established by the San Diego Association of Governments (SANDAG). h) The proposal s consistency with city or county general and specific plans. The County of San Diego designates the affected territory as Rural Lands (RL-80). This designation prescribes a minimum lot size of 80 acres and precludes additional division of any of the three subject parcels proceeding forward. 10 P age 144

145 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 16 Lake Henshaw Change of Organization i) The sphere of influence of any local agency affected by the proposal. No changes will affect the sphere of influence of any local agency. The change of organization is without a sphere amendment is based on past practices of San Diego LAFCO to limit the Vista ID sphere to emphasize the need and/or expectation of District services and delivery therein. j) The comments of any affected local agency or other public agency. Staff provided notice of the proposal to all subject and affected agencies and interested public agencies as required under LAFCO law. No written comments were received. k) The ability of the newly formed or receiving entity to provide the services which are the subject of the application to the area, including the sufficiency of revenues for those services following the proposed boundary change. Information collected and reviewed as part of this proposal indicates Vista ID appears to have established sufficient financial resources and administrative controls. This statement is supported by the following factors. Vista ID s last audit covers and shows the District finished with appropriate liquidity levels with an agency-wide current ratio of 3.83 (i.e., $3.82 in current assets for every $1.00 in current liabilities). Vista ID finished with good capital as evident by a relatively low debt ratio of 18.0% (i.e., only $18.00 out of every $ in net assets are financed.) Vista ID has remained profitable in each of the last three audited fiscal years with an average total margin of 7.67%. The most recent year the operating margin was 2.7%. l) Timely availability of water supplies adequate for projected needs as specified in G.C. Section Approval of the boundary change would not directly and/or adversely affect the timely availability of water supplies. The subject lands are owned and used by Vista ID to generate runoff for storage at Lake Henshaw and subsequent treatment and delivery to ratepayers. 11 P age 145

146 San Diego LAFCO December 3, 2018 Regular Meeting Agenda Item No. 16 Lake Henshaw Change of Organization m) The extent to which the proposal will affect a city or cities and the county in achieving their respective fair shares of the regional housing needs as determined by the appropriate council of governments consistent with Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7. The proposed change of organization would not impact any local agencies in accommodating their regional housing needs given there are no changes in land use authority. Any housing needs current or future associated with the affected territory will remain assigned to the County of San Diego. n) Any information or comments from the landowner or owners, voters, or residents of the affected territory. The affected territory is uninhabited as defined LAFCO law (11 registered voters or less). The landowner supports the annexation as witnessed by the submitted resolution of application in the initiation of the proposal. o) Any information relating to existing land use designations. See earlier analysis concerning Factor H. p) The extent to which the proposal will promote environmental justice. As used in this subdivision, "environmental justice" means the fair treatment of people of all races, cultures, and incomes with respect to the location of public facilities and the provision of public services. There is no documentation or evidence suggesting the proposal will have a measurable effect positive or negative with respect to promoting environmental justice (a)(1) Whether the proposed annexation will be for the interest of the landowners or present or future inhabitants within the district and within the territory proposed to be annex to the district. Approval of the boundary change would be in the best interest of the landowner as it would eliminate further property tax obligations from the District-owned lands. 12 P age 146

147 V PR I Agenda Item No. 16 Attachment One ATE 79 } RD Proposal Area Parcel 1 (APN ) A RTEG CAM O BAN NING RD CAM SAN Proposal Area Parcel 2 (APN ) IGNACIO 79 } LOS COYOTES RD PRIVATE RD Vista ID TE RD PR IVA PR IVA TE RD 9-7 SR SAN FE L IPE RD 15 Proposal Area Parcel 3 (APN ) Map Scale 1:42,000 Pacific Ocean ± DA18-11 San Diego PROPOSED "LAKE HENSHAW ANNEXATION" TO THE VISTA IRRIGATION DISTRICT LAFCO SAN DIEGO 5 8 Proposal Area Vista ID Vista ID SOI SOI = Sphere of Influence This map is provided without warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability and fitness for a particular purpose. Copyright SanGIS. All Rights Reserved.This product may contain information from the SANDAG Regional Information System which cannot be reproduced without the written permission of SANDAG. This product may contain information which has been reproduced with permission granted by Thomas Brothers Maps. G:\GIS\Vicinity_Maps\agendamaps2018\18-11 DA Vista ID reversed.mxd 147 Date: 9/28/2018

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