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, OCTOBER 1, 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. 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 August 6, 2018 and September 10, 2018 (action) The Commission will consider approving summary minutes prepared by LAFCO staff for the June 4, 2018 regular meeting and September 10, 2018 special meeting. 2. Commission Ratification Recorded Payments for July and August 2018 (action) The Commission will consider ratifying payments received and made for the months of July and August These payments cover all recorded transactions for the two-month period and include $257,943 in total distributions made by the Executive Officer. 3. End of Year Budget Report for Fiscal Year (action) The Commission will review an end of year report comparing budget and actual transactions for The report notes the Commission finished the fiscal year with a operating surplus of $150,011 or 8% while also eliminating a budgeted fund balance transfer of $220,000. The report is being presented to accept and file. 1

2 San Diego LAFCO Regular Meeting Agenda October 1, 2018 CONSENT ITEMS CONTINUED 4. Proposed Camino Largo 8 Reorganization Concurrent Annexation to City of Vista and Detachment from the Vista Fire Protection District RO18-08 (action) The Commission will consider a reorganization proposal filed by the City of Vista to annex approximately 9.3 acres of unincorporated territory within its sphere of influence along with a concurrent detachment from the Vista Fire Protection District. The purpose of the proposal is to facilitate the development of an eight-lot residential subdivision. Staff recommends approval without modifications while waiving protest. Standard terms are also recommended. The County Assessor s Office identifies the subject parcel as Proposed Austin Drive-Moth Change of Organization Annexation to the San Diego County Sanitation District DA18-12 (action) The Commission will consider a change of organization proposal filed by a landowner to annex approximately 0.90 acres of unincorporated territory in Spring Valley to the San Diego County Sanitation District. The affected territory lies within the sphere of influence. The purpose of the proposal is to provide wastewater service to an existing single-family residence to replace an aging septic system. Staff recommends approval with modifications while waiving protest. Standard terms are also recommended. The County Assessor s Office identifies the subject parcel as Policy Adoption Conduct of Protest Hearings (action) The Commission will consider establishing a policy on conducting protest proceedings to formalize existing practices and ensure greater consistency in implementation. Provisions include establishing discretionary standards and allowances in delegating responsibilities to the Executive Officer as well as receiving and valuing written protests. Staff recommends approval. 7. 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 month and is being presented to formally receive and file. 8. 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 9. Legislative Report (information) The Commission will receive a report on the close of the recent legislative session with respect to bills that directly or indirectly impact LAFCOs. Information only. PUBLIC HEARING ITEMS Public hearing Items require expanded public notification per provisions in State Law or directives of the Commission or Executive Officer. 2 P age 2

3 San Diego LAFCO Regular Meeting Agenda October 1, 2018 PUBLIC HEARING ITEMS CONTINUED 10. COMBINED PUBLIC HEARING 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. (action) The Commission will consider two distinct reorganization proposals filed by Lakeside Fire Protection District and San Miguel Consolidated Fire Protection District. Staff has administratively combined the two proposals for processing with the concurrence of both agencies and their subsequent agreement to modify and coordinate their requests. The resulting combined proposal seeks dissolution of County Service Area. No. 115 and the proportional annexation of the approximate 441 unincorporated acre affected territory in step with the applicants assuming fire protection and emergency medical services. Staff recommends approval of the combined proposal with conforming sphere of influence amendments. Terms are also recommended. Protest proceedings would apply. A listing all subject parcels comprising the affected territory as identified by the County Assessor s Office is provided as part of the agenda report. 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. (action) The Commission will consider a reorganization proposal filed by the City of Escondido to annex approximately 17.9 acres of unincorporated territory located within its sphere of influence. The proposed reorganization includes concurrent detachments of the affected territory from the Deer Springs Fire Protection District and County Service Area No. 135 (regional communications) in step with Escondido assuming service responsibilities. Staff recommends approval without modifications while waiving protest. Standard terms are also recommended. The County Assessor s Office identifies the five subject parcels as , , , , and BUSINESS ITEMS Business Items involve administrative, budgetary, legislative, or personnel matters and may or may not be subject to public hearings. 12. Designation of Labor Negotiators (action) Pursuant to Government Code Section , the Commission will designate its representatives for purposes of negotiating the salary and benefits for the Executive Officer. Verbal report only. 13. Executive Officer Compensation (action) The Commission will consider salary and benefit adjustments for the Executive Officer in conjunction with the performance review held on August 6, This item is expected to be considered following closed session. Verbal report only. 3 P age 3

4 San Diego LAFCO Regular Meeting Agenda October 1, 2018 CLOSED SESSION 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 Conference with Legal Counsel Anticipated Litigation: Pursuant to Government Code Section (d)(2): Significant exposure to litigation involving one case. 16. Public Employee Performance Evaluation Pursuant to California Government Code (54957(b) Employee: Keene Simonds, Executive Officer 17. Conference with Labor Negotiators Pursuant to California Government Code Section Agency designated representatives: Jo Mackenzie and Andrew Vanderlaan Unrepresented Employee: Executive Officer EXECUTIVE OFFICER REPORT COMMISSIONER ANNOUNCEMENTS REQUESTS FOR FUTURE ITEMS ADJOURNMENT TO NEXT MEETING December 3, 2018 Attest to Posting: Tamaron R. 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 October 1, 2018 TO: FROM: San Diego Commissioners Tamaron Luckett, Executive Assistant AGENDA REPORT Consent Action SUBJECT: Approval of Meeting Minutes August 6, 2018 and September 10, 2018 SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will receive minutes prepared for the last two meetings of the Commission held on Monday, August 6, 2018 and Monday, September 10, 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 August 6, 2018 regular and September 10, 2018 special meetings as recorded by staff. Attendance at these meetings follows. All members were present on August 6 th with the exception of Dianne Jacob, Chris Cate (alternate), and Greg Cox (alternate). All members were present on September 10 th with the exception of Chris Cate (alternate) and Greg Cox (alternate). 5

6 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 1 Approval of Meeting Minutes for August 6, 2018 and September 10, 2018 ANALYSIS The attached summary minutes for the August 6, 2018 regular and September 10, 2018 special meetings accurately reflect the Commission s actions as recorded by staff. RECOMMENDATION It is recommended San Diego LAFCO approve the draft minutes prepared for the August 6, 2018 regular and September 10, 2018 special meetings 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 under a single motion: Alternative One (Recommended) Approve the draft minutes prepared for the August 6, 2018 regular and the September 10, 2018 special meetings 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 Attachments: 1) Draft Meeting Minutes for August 6, ) Draft Meeting Minutes for September 10, P age 6

7 AGENDA ITEM No. 1 Attachment 1 DRAFT MINUTES SAN DIEGO LAFCO August 6, 2018 REGULAR MEETING CALL TO ORDER There being a quorum present, the meeting was convened at 9:03 a.m. by Chair MacKenzie. ROLL CALL The Commission Clerk performed the roll call for the August 6, 2018 meeting. Roll was recorded as follows: Regulars Present: Alternates Present: Members Absent: Catherine Blakespear, City of Encinitas Bill Horn, County of San Diego Jo MacKenzie, Vista Irrigation District (CHAIR) Ed Sprague, Olivenhain Municipal Water District (VICE CHAIR) Andy Vanderlaan, Public Bill Wells, City of El Cajon Lorie Zapf, City of San Diego Lorie Bragg, City of Imperial Beach Judy Hanson, Leucadia Wastewater District Harry Mathis, Public Alternate Chris Cate, City of San Diego Alternate Greg Cox, County of San Diego Alternate Dianne Jacob, County of San Diego Additionally, the following staff were present at the dais side during roll call: Executive Officer Keene Simonds; Commission Counsel Holly Whatley; Chief Policy Analyst Robert Barry; Local Government Analyst I Linda Zambito; and Executive Assistant Tamaron Luckett. PLEDGE OF ALLEGIANCE Commissioner Blakespear 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 Item 9 of the agenda report has been rescheduled for September 10, 2018 as part of a special meeting. With no other changes the Chair announced the Commission would proceed accordingly. 7

8 San Diego LAFCO Draft Minutes August 6, 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 the 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 Minutes June 4, 2018 Item presented on the consent calendar for action. Item involves draft minutes prepared for the Commission s June 4, 2018 meeting. Recommendation to approve. Item 2 Commission Ratification Recorded Payments for May and June 2018 Item presented on the consent calendar for action. Item involves ratification of recorded financial payments received and distributed for May 1 st through June 30 th. Payments made totaled $325,318. Recommendation to approve. Item 3 Job Classification Changes and Related Actions Establishing GIS Analyst Position Item presented on the consent calendar for action. Item involves establishing a Geographic Information Systems (GIS) Analyst position through the revision and update to the vacant Geographic Specialist position. Recommendation to approve. Item 4 Progress Report on Workplan Item presented on the consent calendar for action. Item involves 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 5 CALAFCO Annual Conference Item Item presented on the consent calendar for action. Item involves Commission action to designate a delegate and alternate delegate for the CALAFCO Annual Conference set for October 3 rd -5 th in Yosemite as well as considering city or public member nominations for open seats on the CALAFCO Board. Recommendation to designate Commissioners MacKenzie and Vanderlaan as delegate and alternate, respectively. Recommendation to also authorize Chair to nominate an interested city or public member for the CALAFCO Board ahead of the September 4 th filing deadline. 2 Page 8

9 San Diego LAFCO Draft Minutes August 6, 2018 CONSENT ITEMS CONTINUED Item 6 Results of Protest Proceedings Harmony Grove Village Wastewater Reorganization Item presented on the consent calendar for information only. Item summarizes the protest hearing held on July 11 th for the Harmony Grove Village Wastewater Reorganization. The report noted no written protests were received and the reorganization will proceed. Item 7 Current Proposals and Related Activities Item presented on the consent calendar for information only. Item summarizes active proposals on file with the Commission as well as notable pending proposals that are expected to be submitted in the near term. Report noted one proposal was submitted since June 4, Item 8 Memorandum Enactment of Assembly Bill 1361 Item presented on the consent calendar for information only. Item summarizes the enactment of AB 1361 (Garcia) and the special and expedited LAFCO approvals enacted therein for municipal water districts to provide outside water service to certain qualifying Indian lands by contract or agreement. MOTION: On motion of Commissioner Wells, seconded by Commissioner Vanderlaan, and carried unanimously by the Commissioners present, the Commission took the following actions without discussion: approved recommendations for consent items No. 1 through 8. PUBLIC HEARING ITEMS Item 9 RESCHEDULED FOR SEPTEMBER 10, 2018 Joint-Reorganization and Associated Sphere Amendments Concurrent Dissolution of the Julian-Cuyamaca Fire Protection District and Latent Power Area Expansion of County Service Area No. 135 (County Fire Authority) Ref. No. RO18-09 et al. The Executive Officer noted the item was rescheduled to a special meeting on Monday, September 10, 2018 for reasons detailed in the accompanying memo in the agenda packet. Chair MacKenzie asked if there were any persons in the audience that would like to make a comment on the item with the understanding no action would be taken by the Commission. Seeing no one approach the dais the Chair ended discussion on the item. 3 Page 9

10 San Diego LAFCO Draft Minutes August 6, 2018 PUBLIC HEARING ITEMS CONTINUED... Item 10 Pankey Contractual Wastewater Service Agreement and Sphere of Influence Amendment Valley Center Municipal Water District Ref. No. SA18-04 et al. The public hearing was opened by Chair MacKenzie. Chief Policy Analyst Robert Barry summarized the item and recommendation for the Commission to approve the requested contractual wastewater service agreement between the landowners (Pankey) and Valley Center Municipal Water District as a means to avoid future construction septic impacts associated with an adjacent development (Meadowood). Chair MacKenzie asked the Commission if there were any questions for staff. Commissioner Horn asked for clarification on the party responsible for the cost of extending the public wastewater main to the landowners property. Mr. Barry noted the developers of the property have agreed to cover all costs associated with the extension of services. Chair MacKenzie asked about the status of the grading development plan for the adjacent development given it is the underlying impact necessitating the request to establish an outside wastewater connection for the landowners. Mr. Barry noted the condition of the permit approval for the grading is not final, but is expected and merits proceeding with the approval to help ensure limited impact to the landowners and use of their property. Seeing no one approach the dais, the Chair closed the public hearing, and invited the Commission to make a motion. Commissioner Horn motion to approve the staff recommendation for Alternative One. Commissioner Sprague second. Chair MacKenzie asked for a roll call of vote for the motion on Item 10. The Commission Secretary recorded the following votes: AYES: Commissioners Blakespear, Horn, MacKenzie, Sprague, Vanderlaan, Wells and Zapf NOES: None ABSENT: Commissioners Cate, Cox, and Jacob ABSTAINING: None The Secretary confirmed the motion was approved 7-0 with one absent. 4 Page 10

11 San Diego LAFCO Draft Minutes August 6, 2018 BUSINESS ITEMS Item 11 Request for Proposals Fee Wavier Associated with Joint-Proposal to Transfer Fire Protection and Emergency Medical Services from Mootamai, Pauma, and Yuima Municipal Water Districts to County Service Area No. 135 Item presented on the business calendar for action. Executive Officer summarized the item involves a request from the County of San Diego Fire Authority to waive fees associated with a joint-proposal involving the transfer of fire protection and emergency medical service responsibilities from (a) Mootamai, (b) Pauma, and (c) Yuima Municipal Water Districts to County Service Area No. 135 (Fire Authority). The Executive Officer added the approximate cost of the fee waiver including the potential of holding an election if required is $130,000. The Executive Officer recommended approval given the jointproposal s consistency with an earlier LAFCO recommendation for the agencies to evaluate and pursue opportunities to unify fire protection services in the area. Chair MacKenzie asked the Commission if there were any questions for staff. Commissioner Horn asked for clarification on costs and whether an election was probable. The Executive Officer responded with an outline of key costs to LAFCO in processing the proposal, and noted an election is possible, but not necessarily probable. Chair MacKenzie asked if there were any persons in the audience wanting to speak on the item. Seeing no one approach, the Chair asked the Commission for a motion. Commissioner Wells motion to approve the staff recommendation for Alternative One. Commissioner Zapf second. Chair asked members to signify their vote on the motion with a yes, and the following members responded affirmatively: Blakespear; Horn; MacKenzie; Sprague; Vanderlaan; Wells; and Zapf. Chair responded by reporting the motion was unanimously approved. Following the vote, Commissioner Vanderlaan acknowledged Herman Reddick in the audience as well as Supervisors Horn and Jacob and the other members of the Board of Supervisors for their dedication in establishing the County Fire Authority. (over) 5 Page 11

12 San Diego LAFCO Draft Minutes August 6, 2018 BUSINESS ITEMS Item 12 Legislative Report Item presented on the business calendar for information. Chief Policy Analyst Robert Barry summarized the item and noted the Legislature went into recess on July 6 th and will reconvene on August 6 th. Mr. Barry proceeded to summarize the status of the six bills the Commission had previously taken positions on as well as other legislative items of interest. Commission discussion followed with the Chair concluding the item with direction for staff to return with an update at the next meeting. CLOSED SESSION Chair MacKenzie adjourned the regular meeting to closed session at 9:30 a.m. to proceed with agenda items 13 through 15. The meeting was reconvened at 10:26 a.m. with Counsel Holly Whatley reporting no action was taken for agenda items 13 through 15. EXECUTIVE OFFICER REPORT The Executive Officer made the following comments: - Announced if any Commissioners are interested in attending the CALAFCO Annual Conference on October 3 rd 5 th can still register. - Announced recruitments are still in the process for hiring another Analyst. COMMISSIONER ANNOUNCEMENTS REQUESTS FOR FUTURE ITEMS None ADJOURNMENT TO NEXT REGULAR MEETING Executive Officer announced to the Commission and public the upcoming meetings. - Special Meeting: September 10, Regular Meeting: October 1, 2018 There being no further business to come before the Commission, the meeting was adjourned by Chair MacKenzie at 10:27 a.m. Attest: TAMARON LUCKETT EXECUTIVE ASSISTANT 6 Page 12

13 AGENDA ITEM No. 1 Attachment 2 DRAFT MINUTES SAN DIEGO LAFCO September 10, 2018 SPECIAL MEETING CALL TO ORDER There being a quorum present, the meeting was convened at 9:04 a.m. by Chair MacKenzie. ROLL CALL The Commission Clerk performed the roll call for the September 10, 2018 LAFCO 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 Bill Wells, City of El Cajon Lorie Zapf, City of San Diego Lorie Bragg, City of Imperial Beach Judy Hanson, Leucadia Wastewater District Harry Mathis, Public Alternate Chris Cate, City of San Diego Alternate Greg Cox, County of San Diego Alternate Additionally, the following staff were present at the dais side during roll call: Executive Officer Keene Simonds; Commission Counsel Holly Whatley; Chief Policy Analyst Robert Barry; Local Government Analyst I Linda Zambito; Executive Assistant Tamaron Luckett; GIS/IT Consultant Dieu Ngu; and Consultant John Traylor. Commissioners Bragg and Zapf arrived at 9:10 a.m. PLEDGE OF ALLEGIANCE Commissioner Wells 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. 13

14 San Diego LAFCO Draft Minutes September 10, 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. PUBLIC HEARING ITEMS Item 9 RESCHEDULED FOR SEPTEMBER 10, 2018 Joint-Reorganization and Associated Sphere Amendments Concurrent Dissolution of the Julian-Cuyamaca Fire Protection District and Latent Power Area Expansion of County Service Area No. 135 (County Fire Authority); File No. RO18-09 et al. Chair MacKenzie introduced the item before asking for an overview of the proposal and the staff recommendation from the Executive Officer. The Executive Officer followed with a proposal summary and began by noting the underlying action under consideration is transferring fire protection and emergency medical service responsibilities from the Julian-Cuyamaca Fire Protection District (FPD) to the County of San Diego and its Fire Authority through County Service Area (CSA) No The Executive Officer proceeded to detail the staff recommendation to approve the jointproposal citing four central considerations: consistency under State law; applicability to the Commission s earlier policy determinations in unifying fire services in the unincorporated area; ability to improve implementation through specified terms; and ability for the community to participate in the final decision making through protest proceedings. The Executive Officer concluded his presentation and asked Commission Counsel to address a written request received on the preceding Friday from an attorney representing the Julian Fire Plugs Association requesting the Commission deny or continue the item. Commission Counsel Whatley followed with a summary of the legal issues raised by the attorney for the Julian Fire Plugs Association including references to current litigation and commented no issues were raised that would prelude LAFCO from taking action at the hearing. Chair MacKenzie asked if there were any questions for staff. Seeing none, Chair MacKenzie stated LAFCO would now hear from the two applicants: Julian-Cuyamaca FPD and County Fire Authority followed by audience members. Chair MacKenzie stated each applicant would receive up to 15 minutes to make their presentation. Chair MacKenzie added audience members representing organizations or groups would be given up to seven minutes and individuals speaking for themselves having up to three minutes. 2 Page 14

15 San Diego LAFCO Draft Minutes September 10, 2018 Julian-Cuyamaca FPD Board Members, President Jack Shelver, Aida Tucker, and Kristen Starlin sequentially addressed the Commission and outlined the District s support for the staff recommendation to approve the reorganization. These speakers collectively detailed the Julian-Cuyamaca FPD s service and financial challenges. County Fire Chief Tony Mecham addressed the Commission and outlined the County Fire Authority s support for the staff recommendation to approve the reorganization. Chief Mecham outlined the County Fire Authority s plan of service for the affected territory and detailed benefits to the community in terms of service levels and costs. Chief Mecham added his commitment to work with the Julian volunteer firefighters and reserves going forward. Chair MacKenzie asked if there were any questions from the Commission for the applicants. Commissioner Horn asked Chief Mecham to clarify the need and frequency for air coverage in the Julian area. Chief Mecham responded that air coverage in the area is important given it is a high risk for wildfires, and through CALFIRE this resource and regardless of the reorganization proposal will remain available. Commissioner Sprague asked Chief Mecham to address concerns about the County Fire Authority pulling resources away from Julian during emergency events. Chief Mecham responded that resources of the County Fire Authority and CALFIRE are separate, and while the State moves engines up and down the state, Julian s dedicated paramedic engine stays. Seeing no more questions for the applicants, Chair MacKenzie invited audience members to address the Commission starting with organizations and followed by individuals. The following speakers representing an organization or group addressed the Commission: Patricia Landis, Julian Fire Plugs Association; oppose reorganization Mike Hatch, Firefighters Association of Julian; oppose reorganization Heather Rowell, Julian Cuyamaca Citizens Committee of 100; oppose reorganization David L. Toler, Kumeyaay Land Conservancy; neutral The following individual speakers addressed the Commission: Philip Grimm; support reorganization Lynne Jarman; oppose reorganization Ben Tulloch; support reorganization Toni Harter; oppose reorganization Karen Kiefer; oppose reorganization Barbara Nigro; oppose reorganization Ryan Grothe; oppose reorganization Monica Gallina, oppose reorganization 3 Page 15

16 San Diego LAFCO Draft Minutes September 10, 2018 Patrick Redtz; oppose reorganization Nancy Kramer; oppose reorganization William Everett; oppose reorganization Jacqueline Egan-Barry; oppose reorganization Lori Foss; oppose reorganization Lesley McClelland; oppose reorganization Nick Ketelsen; oppose reorganization Devi Ketelsen; oppose reorganization Thayer Breha; oppose reorganization Ted Grisworld; neutral (attorney for Kumeyaay Land Conservancy) Don Rowan; oppose reorganization Ray Sproat; oppose reorganization Constance Schumit; oppose reorganization Ken Rice; oppose reorganization Allison Shenk; oppose reorganization James Wismer; oppose reorganization Evelina Hatch; oppose reorganization Having no more speaker cards, Chair MacKenzie noted for the record LAFCO received several cards of individuals in the audience that did not wish to speak but did want to register their positions. Chair added of the 21 cards received 15 were in opposition to the reorganization and 6 were in favor of the reorganization. Seeing no others approach the dais Chair MacKenzie closed the public hearing. (Commissioner Lorie Zapf left the meeting at 11:55 am.) Chair MacKenzie invited comments from the Commission. Commissioner Jacob thanked the audience for attending the hearing and addressing LAFCO about their thoughts on the reorganization and the staff recommendation to approve. Commissioner Jacob commented about the value of local control coupled with the need to have adequate funding resources. Commissioner Jacob addressed several comments received during the public testimony. This included detailing the County s commitment to funding fire protection services and plans to sponsor Measure A this November to add fire protection to the County Charter. Commissioner Jacob asked for clarity about approving the staff recommendations in order for the registered voters and property owners to vote on the reorganization. Executive Officer confirmed approval of the reorganization was necessary for the public to get to vote on the topic through protest proceedings; it would not go to the community otherwise. 4 Page 16

17 San Diego LAFCO Draft Minutes September 10, 2018 Commissioner Jacob also asked for clarification on whether there was a need for LAFCO to further address the status of the land at Station No. 56 and the testimony received that it would revert back to a private landowner and not transfer to County Fire Authority. Commission Counsel responded and stated she agreed with County Counsel and the land would transfer to the County Fire Authority should the reorganization proceed, and as such mooted the need to include an approval term. Commissioner Jacob proceeded to make a motion to approve the staff recommendation for Alternative One. Commissioner Horn second. Chair MacKenzie invited other comments from the Commission before proceeding with the motion on the floor. Commissioner Horn noted his experience witnessing fires in San Diego County and the challenges therein before the County Fire Authority was created. Commissioner Horn added the County Fire Authority was the best option for the Julian community based on available resources while adding the community will have the opportunity to decide during protest proceedings. Commissioner Sprague commented that he was disappointed the issue has created a division within the Julian community while also lamenting some of the poor decisions of the prior Julian-Cuyamaca FPD management leading to the reorganization proposal. Commissioner Vanderlaan commented he too was disappointed the issue had caused so much distress in the community, and added it was time the two sides came together. Seeing no other comments, Chair MacKenzie called for a vote. The Commission Secretary recorded the following votes: AYES: Commissioners Blakespear, Horn, Jacob, MacKenzie, Sprague, Vanderlaan, and Wells NOES: None ABSENT: Commissioners Cate, Cox, and Zapf ABSTAINING: None The Secretary confirmed the motion was approved 7-0 and one absent. (over) 5 Page 17

18 San Diego LAFCO Draft Minutes September 10, 2018 CLOSED SESSION Chair MacKenzie noted closed session items listed on the agenda as 2 through 4 will be taken up at the next Commission meeting on October 1, Item 2 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 3 Conference with Legal Counsel Existing Litigation: Pursuant to Government Code Section (d)(1): Southcott et. Al. v. L. Michael Vu, et. Al., Fourth District Court of Appeal Case No. DD Item 4 Conference with Legal Counsel Anticipated Litigation: Pursuant to California Code Section 54956(d)(2): Significant exposure to litigation involving one case. EXECUTIVE OFFICER REPORT The Executive Officer made the following comment: - The protest hearing for the Julian-Cuyamaca FPD reorganization has been tentatively scheduled for October 16, 2018 with confirmation coming shortly. COMMISSIONER ANNOUNCEMENTS REQUESTS FOR FUTURE ITEMS None ADJOURNMENT TO NEXT REGULAR MEETING There being no further business to come before the Commission, the meeting was adjourned by Chair MacKenzie at p.m. until October 1, 2018 upon approval by the Commission. Attested: TAMARON LUCKETT EXECUTIVE ASSISTANT 6 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 Members Catherine Blakespear, Mayor City of Encinitas August 6, 2018 TO: San Diego Commissioners 2 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 Erica Blom, Administrative Assistant SUBJECT: Commission Ratification Recorded Payments for July and August 2018 SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will review a report identifying all payments received and made for the months of July and August These payments cover all recorded transactions for the twomonth period and include $257,943 in total distributions made by the Executive Officer with nearly three-fourths tied to reimbursements to the County of San Diego for payroll, rent, overhead, and technology services. The payments are being presented to the Commission for formal ratification as well as to 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 October 1, 2018 Regular Meeting Agenda Item No. 2 Payment Ratification for July and August 2018 New Reporting System Incorporating Best Practices It is the practice of the Executive Officer to present recorded expense and revenue transactions for formal ratification by San Diego LAFCO. This discretionary reporting is consistent with best practices enlisted by local governmental agencies and addresses interest expressed by Commissioners in establishing additional public documentation on LAFCO s bookkeeping procedures. DISCUSSION This item is for San Diego LAFCO to consider ratification of all made and received payments recorded by the Executive Officer between July 1 st and August 30 th. A detailing of these transactions is provided in Attachments One (July) and Two (August). 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 July and August 2018 total $257,943 with nearly three-fourths or $190,803 tied to expenditures with the County of San Diego. This includes covering payroll obligations, office rent, overhead, and information technology services. Professional services represent the majority of the remaining expenditures during the two-month period and tallied $44,232. Recorded revenues for the period totaled $1,573,523 and predominately apply to collecting 94% of all budgeted 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 July and August 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 July 1 st and August 30 th as shown in Attachments One and Two. 1 San Diego LAFCO budgeted 1,662,483 in new agency contributions in Between July and August, LAFCO received $1,569, P age 20

21 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 2 Payment Ratification for July and August 2018 Alternative Two: Continue to the next regular meeting and provide direction to staff as needed. 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 July ) Recorded Payments August P age 21

22 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 2 Payment Ratification for July and August 2018 Page is Blank for Photocopying 4 P age 22

23 SAN DIEGO LAFCO Expenses by Vendor Detail July 2018 AGENDA ITEM No. 2 Attachment 1 Payable Receivable Party Date Account Amount Purpose Type Funding Account E Alaska Airlines E Amazon E Ambius E APA E AT&T Mobility E Billing Hostway E Chik fil A E County of San Diego E Culligan of San Diego E Dropbox E Earl John Traylor E GIS Surveyors Inc. E Harry Ehrlich E Julian Times News E Kahn's Cave Grill & Tavern E LAZ Parking San Diego E Linda Zambito E Los Angeles Times E Southwest Airlines E Xerox 7/29/ Travel and Training Out of County Airfare Oct CALAFCO Annual Conference (EB) credit card 3558 SDCCU Checking 7/29/ Travel and Training Out of County Airfare Oct CALAFCO Annual Conference (LZ) credit card 3558 SDCCU Checking 7/29/ Travel and Training Out of County Airfare Oct CALAFCO Annual Conference (KS) credit card 3558 SDCCU Checking /2/ Office Expense Amazon Prime Monthly Payment credit card 3558 SDCCU Checking 7/27/ Office Expense Office Supplies First Class Envelopes credit card 3558 SDCCU Checking /31/ Office Expense Monthly Office Plants Maintenance check 1026 Wells Fargo Checking /13/ Travel and Training In County Registration Fees Oct APA Conference (LZ) check 1026 Wells Fargo Checking /13/ Travel and Training In County Registration Fees Oct APA Conference (RB) check 1026 Wells Fargo Checking /30/ Telecommunications Monthly Cell Phone Bill KS, RB & LZ check 1026 Wells Fargo Checking /3/ E Professional Services Web & Doc Support Monthly Website Support check 1026 Wells Fargo Checking /15/ Office Expense LAFCO Staff Lunch End of FY Review credit card 3558 SDCCU Checking 7/1/ Office Lease 6, Rent electronic 1000 County Account (44595) 7/1/ Mail/Postage ISF Mail/Postage Services electronic 1000 County Account (44595) 7/1/ Vehicle Maintenance Vehicle Maintenance Services electronic 1000 County Account (44595) 7/1/ Vehicle Fuel Vehicle Fuel electronic 1000 County Account (44595) 7/1/ Vehicle Lease Vehicle Lease electronic 1000 County Account (44595) 7/13/ et al. Employee Payroll 40, Payroll Pay Period electronic 1000 County Account (44595) 7/27/ et al. Employee Payroll 40, Payroll Pay Period electronic 1000 County Account (44595) 7/30/ Stores Unallocated 2, Office Supplies Office Depot Order electronic 1000 County Account (44595) 90, /30/ Office Expense Monthly Water Service check 1026 Wells Fargo Checking /9/ Office Expense Monthly Cloud Service credit card 3558 SDCCU Checking 7/6/ F Professional Services Local Govt Services 5, Consultant Services (Fire) June 2018 electronic 1000 County Account (44595) 7/13/ Travel and Training In County Mileage Reimbursement check 1026 Wells Fargo Checking , /6/ D Professional Services GIS Support 12, Consultant Services (GIS) Dieu Ngu electronic 1000 County Account (44595) 7/2/ G Professional Services Legislation 1, Consultant Services Legislation Support check 1000 County Account (44595) 7/25/ Publications PHN (Partial Payment) for Julian Cuyamaca FPD check 1026 Wells Fargo Checking /11/ Office Expense Lunch Meeting with EO & HW to Discuss Julian FPD credit card 3558 SDCCU Checking 7/18/ Travel and Training In County Parking KS Presentation to Grand Jury credit card 3558 SDCCU Checking 7/24/ Travel and Training In County Business Reimbursement ESRI Conference check 1026 Wells Fargo Checking /2/ Office Expense Office Newspaper Subscription (Through 9/14/18) check 1026 Wells Fargo Checking /27/ Travel and Training Out of County Airfare Oct CALAFCO Annual Conference (EB) credit card 3558 SDCCU Checking 7/11/ Equipment Rental Xerox Rental electronic 1000 County Account (44595) Page 1 of 2 23

24 SAN DIEGO LAFCO Expenses by Vendor Detail July 2018 Payable Receivable Party Date Account Amount Purpose Type Funding Account EXPENSE TOTAL 113, R County of San Diego 7/31/ Interest & Dividends 1, Interest Payment to Accountant electronic 1001 General Fund (46725) 7/31/ Interest & Dividends Interest Payment to Accountant electronic 1001 Special Projects Fund (46726) 7/31/ Interest & Dividends Interest Payment to Accountant electronic 1001 Jurisdictional Projects Fund (46727) 7/31/ LAFCO Apportionment 856, LAFCO Apportionment Collection electronic 1000 County Account (44595) 858, REVENUE TOTAL 858, Page 2 of 2 24

25 SAN DIEGO LAFCO Expenses by Vendor Detail August 2018 AGENDA ITEM No. 2 Attachment 2 Payable Receivable Party Date Account Amount Purpose Type Funding Account E Alaska Airlines E Amazon E Amtrak E APA E AT&T Mobility E Billing Hostway E CALAFCO E Chase Design Inc. E Chili's E Claim Jumper E Colantuono, Highsmith & Whatley E County of San Diego E CSDA San Diego E Culligan of San Diego 8/9/ Out of County Travel Airfare Oct CALAFCO Annual Conference (JH) credit card 3558 SDCCU Checking 8/9/ Out of County Travel Airfare Oct CALAFCO Annual Conference (JM) credit card 3558 SDCCU Checking 8/10/ Out of County Travel Airfare Oct CALAFCO Annual Conference (RB) credit card 3558 SDCCU Checking 8/12/ Out of County Travel Airfare Oct CALAFCO Annual Conference (LZ) credit card 3558 SDCCU Checking 8/16/ Out of County Travel Airfare Oct CALAFCO Annual Conference (BW) credit card 3558 SDCCU Checking /1/ Office Expense Amazon Prime Monthly Payment credit card 3558 SDCCU Checking 8/20/ Office Expense Office Supplies Classification Folders credit card 3558 SDCCU Checking /10/ Out of County Travel Travel Aug CCL Los Angeles Meeting (RB) credit card 3558 SDCCU Checking 8/10/ Out of County Travel Travel Aug CCL Los Angeles Meeting (KS) credit card 3558 SDCCU Checking 8/10/ Out of County Travel Travel Aug CCL Los Angeles Meeting (JM and AV) credit card 3558 SDCCU Checking 8/12/ Out of County Travel Travel Aug CCL Los Angeles Meeting (LZ) credit card 3558 SDCCU Checking /14/ Memberships APA Annual Membership Fees (LZ) check 1026 Wells Fargo Checking /14/ Memberships APA Annual Membership Fees (RB) check 1026 Wells Fargo Checking /10/ Telecommunications Monthly Cell Phone Bill KS, RB & LZ check 1026 Wells Fargo Checking /15/ E Professional Services Web & Doc Support Monthly Website Support check 1026 Wells Fargo Checking /9/ Out of County Travel Registration Oct CALAFCO Annual Conference (RB) check 1026 Wells Fargo Checking /9/ Out of County Travel Registration Oct CALAFCO Annual Conference (EB) check 1026 Wells Fargo Checking /9/ Out of County Travel Registration Oct CALAFCO Annual Conference (KS) check 1026 Wells Fargo Checking /9/ Out of County Travel Registration Oct CALAFCO Annual Conference (LZ) check 1026 Wells Fargo Checking /9/ Out of County Travel Registration Oct CALAFCO Annual Conference (JM) check 1026 Wells Fargo Checking /9/ Out of County Travel Registration Oct CALAFCO Annual Conference (AV) check 1026 Wells Fargo Checking /23/ Out of County Travel Registration Oct CALAFCO Annual Conference (BW) check 1026 Wells Fargo Checking /23/ Out of County Travel Registration Oct CALAFCO Annual Conference (JH) check 1026 Wells Fargo Checking /23/ Out of County Travel Registration Oct CALAFCO Annual Conference (HW) check 1026 Wells Fargo Checking /15/ Memberships 8, CALAFCO Annual Membership Dues FY18 19 electronic 1000 County Account (44595) 14, /15/ E Professional Services Web & Doc Support 3, Logo Design Services electronic 1000 County Account (44595) 8/2/ Office Expense Meeting with EO & Chair to Discuss Mgt credit card 3558 SDCCU Checking 8/7/ Office Expense Meeting with EO, Chair, Vice Chair & Legal Counsel to Debrief Mgt credit card 3558 SDCCU Checking 8/1/ Out of County Travel Business Travel Reimburesment check 1026 Wells Fargo Checking /1/ Out of County Travel Business Travel Reimburesment check 1026 Wells Fargo Checking /8/ B Professional Services Special Counsel General 8, Consultant Services Special Counsel Services for JCFPD proposal electronic 1000 County Account (44595) 8, /1/ Office Lease 6, Rent electronic 1000 County Account (44595) 8/1/ Mail/Postage ISF 3, Mail/Postage Services electronic 1000 County Account (44595) 8/1/ Vehicle Maintenance Vehicle Maintenance Services electronic 1000 County Account (44595) 8/1/ Vehicle Fuel 0.00 Vehicle Fuel electronic 1000 County Account (44595) 8/1/ Vehicle Lease Vehicle Lease electronic 1000 County Account (44595) 8/1/ et al. Communications (IT) Services 20, County IT Services (ITRACK) electronic 1000 County Account (44595) 8/10/ et al. Employee Payroll 34, Payroll Pay Period electronic 1000 County Account (44595) 8/24/ et al. Employee Payroll 34, Payroll Pay Period electronic 1000 County Account (44595) 8/3/ Stores Unallocated Office Supplies Office Depot Order electronic 1000 County Account (44595) 8/3/ Stores Unallocated County Surcharge Office Depot Order (July) electronic 1000 County Account (44595) 8/6/ Stores Unallocated 4.91 County Surcharge Office Depot Order electronic 1000 County Account (44595) 8/27/ Stores Unallocated Office Supplies Office Depot Order electronic 1000 County Account (44595) 8/28/ Stores Unallocated 2.66 County Surcharge Office Depot Order electronic 1000 County Account (44595) 100, /27/ Non Travel/In County Registration CSDA Dinner Meeting (LZ) check 1026 Wells Fargo Checking /27/ Memberships CSDA Annual Membership Fees FY17 18 check 1026 Wells Fargo Checking /10/ Office Expense Monthly Water Service check 1026 Wells Fargo Checking Page 1 of 2

26 SAN DIEGO LAFCO Expenses by Vendor Detail August 2018 Payable Receivable Party Date Account Amount Purpose Type Funding Account E Dieu Ngu E Dropbox E Earl John Traylor E Julian Times News E LAZ Parking San Diego E Linda Zambito E Minutemen Press E Original Pancake House E Peterson Donut E San Diego Union Tribune E Target E Tenaya Lodge E Unlimited Conferencing E Westin 8/1/ Minor Equipment Office Equipment Reimbursement; Cable for KS Computer check 1026 Wells Fargo Checking /1/ Non Travel/In County Business Reimbursement ESRI Conference check 1026 Wells Fargo Checking /15/ D Professional Services GIS Support 5, Consultant Services (GIS) Dieu Ngu electronic 1000 County Account (44595) 5, /9/ Office Expense Monthly Cloud Service credit card 3558 SDCCU Checking 8/15/ F Professional Services Local Govt Services 6, Consultant Services (Fire) July 2018 electronic 1000 County Account (44595) 8/21/ Non Travel/In County Mileage Reimbursement check 1026 Wells Fargo Checking , /20/ Publications PHN for RO18 09 Julian Cuyamaca FPD check 1026 Wells Fargo Checking /22/ Non Travel/In County Parking ESRI Conference credit card 3558 SDCCU Checking 8/24/ Non Travel/In County Business Reimbursement Meetings check 1026 Wells Fargo Checking /14/ Office Expense Office Supplies 2 LAFCO Return Address Rubber Stamps check 1026 Wells Fargo Checking /23/ Office Expense Office Supplies LAFCO Envelopes (PHNS for JCFPD) check 1026 Wells Fargo Checking /26/ Office Expense Breakfast Meeting with EO & Mike Ott credit card 3558 SDCCU Checking 8/6/ Office Expense 2.00 ATM Fee for Peterson Donuts credit card 3558 SDCCU Checking 8/6/ Office Expense Refreshments for Commission Meeting at CAC credit card 3558 SDCCU Checking /9/ Publications PHN for Harmony Grove Reorganization check 1026 Wells Fargo Checking /10/ Office Expense Office Supplies Cell phone case (KS) credit card 3558 SDCCU Checking 8/30/ Office Expense Office Supplies Raid; Soda for Office Lunch credit card 3558 SDCCU Checking /5/ Out of County Travel Accomidations (Deposit) Oct CALAFCO Annual Conference (RB) credit card 3558 SDCCU Checking 8/5/ Out of County Travel Accomidations (Deposit) Oct CALAFCO Annual Conference (EB & LZ) credit card 3558 SDCCU Checking 8/22/ Out of County Travel Accomidations (Deposit) Oct CALAFCO Annual Conference (JM) credit card 3558 SDCCU Checking /15/ Office Expense Office Supplies Conferece Calling credit card 3558 SDCCU Checking 8/23/ Office Expense Lunch Meeting with EO & HM credit card 3558 SDCCU Checking EXPENSE TOTAL 144, R County of San Diego R Leucadia WWD 8/31/ LAFCO Apportionment 712, LAFCO Apportionment Collections electronic 1000 County Account (44595) 8/27/ Service to Property Owner 2, LAFCO Processing Fees (DA18 14) check 3558 SDCCU Checking REVENUE TOTAL 715, Page 2 of 2

27 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 October 1, 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: End of Year Budget Report for Fiscal Year SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will review an end of year report comparing budget and actual transactions for The report notes the Commission finished the fiscal year with a sizable operating surplus of $150,011 or 8% while also eliminating a budgeted fund balance transfer of $220,000; the substantive result being an overall expense savings of $370,011 or 19%. Reductions in salaries and benefits underlie the referenced savings. 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 the Commission is responsible for the remaining 14.3% of San Diego LAFCO s annual operating costs. 27

28 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 3 End of Year Budget Report for FY2018 FY Adopted Budget San Diego LAFCO s adopted final budget for totaled $1.986 million. This amount represented 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 aid of a planned $0.220 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 which includes restricted, committed, and unassigned as of July 1, 2017 was $1.469 million. Accounting Practices Budgeted Expenses Budgeted Revenues Budgeted Year End Balance Beginning Fund Balance $1.986 $1.986 $0 $1.469 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 before the end of the fiscal year. DISCUSSION This item is for San Diego LAFCO to receive a final comparison of (a) budget to (b) actual expenses and revenues in conjunction with the close of The report provides the Commission the opportunity to review expenditure and revenue trends relative to recent years and provide follow up with staff as needed. The report is being presented to the Commission to formally accept and file. Summary of Operating Expenses San Diego LAFCO s budgeted operating expense total for was $1.986 million. Actual expenses through the end of the year totaled $1.668 million; an amount representing 84% of the budgeted total with an unexpended balance of $0.318 million. A breakdown of budget to actual expenses by unit through the end of the year follows. Expense Units Adopted Actuals Percent Expended Unexpended Balance 1) Salaries and Benefits 1,100, , ,521 2) Services and Supplies 881, , ,765 3) Other 5,000 2, ,981 Total $1,986,899 $1,688,632 84% $318,267 2 P age 28

29 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 3 End of Year Budget Report for FY2018 An expanded discussion on budgeted and actuals through the end of the year follows. Expense Unit Salaries and Benefits The Commission budgeted $1.100 million in salaries and benefits for with the proceeds largely tied to funding 8.0 fulltime equivalent employees as well as existing retiree obligations. Commission per diems are also budgeted within this unit. The Commission s actual expenses within the affected line-item accounts totaled $0.930 million or 85% of the budgeted amount. The resulting unexpended savings is tied to extended vacancies in two of the budgeted staff positions coupled with costreductions in pension contributions associated with new employees. Expense Unit Services and Supplies The Commission budgeted $0.881 million in services and supplies for to provide funding for direct support services necessary to operate San Diego LAFCO. The majority of the budgeted funds were 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. The Commission s actual expenses within the affected line-item accounts totaled $0.736 million or 84% of the budgeted amount. A sizable portion of the unexpended savings is tied to overhead reimbursements paid to the County and marked by reducing work orders tied to the development of an electronic document management system through a County contractor (Wave). This savings coupled with reductions in consultant services pertinently helped to absorb cost overruns in several training and related travel accounts in step with investing in more ongoing education for Commissioners and staff. Expense Unit Other The Commission budgeted $5,000 in two separate units to collectively address equipment depreciation and fixed asset purchases in The Commission s actual expenses within the unit totaled $2,019 or 40% of the budgeted amount and tiredly tied to funding depreciation for LAFCO s two copiers and plot printer. No new fixed assets were purchased during the fiscal year. Summary of Operating Revenues San Diego LAFCO s budgeted operating revenue total for was $1.986 million with $0.220 million to be generated from a fund balance transfer. Actual revenues through the end of the year totaled $1.818 million; an amount representing 92% of the budgeted total with an uncollected balance of $0.168 million. A breakdown of budget to actual revenues by unit through the end of year follows. 3 P age 29

30 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 3 End of Year Budget Report for FY2018 Revenue Units Adopted Actuals Percent Collected Outstanding Balance 1) Intergovernmental 1,635,099 1,635, ) Service Charges 125, , (43,009) 3) Earnings 6,800 15, (8,735) 4) Miscellaneous 220, ,000 Total $1,986,899 $1,818,643 92% $168,256 An expanded discussion on budgeted and actuals through the end of the year follows. Revenue Unit Intergovernmental Fees The Commission budgeted $1.635 million in intergovernmental fees in This total budgeted amount was subsequently divided between San Diego LAFCO s four membership categories with the County of San Diego, independent districts, and cities less San Diego all receiving apportionments equaling $0.467 million. The remaining amount $0.233 million was apportioned to the City of San Diego. All apportioned agency contributions were collected. Revenue Unit Service Charges The Commission budgeted $0.125 million in application fees in The Commission s actual revenues within the unit totaled $0.168 million or 134% of the budgeted amount. This amount is largely tied to collecting application fees for 14 proposals during the fiscal year and represents an overall cost-recovery of 10%. Revenue Unit Earnings The Commission budgeted $6,800 in interest earnings in The Commission s actual revenues within the unit totaled $15,535 or 128% of the budgeted amount. Revenue Unit Miscellaneous The Commission budgeted $0.220 million in operating transfers from the reserve in This transfer was budgeted, notably, to help lower new agency contributions while also subsidizing potential proposal activities given their overall public benefit. No transfers were made through the first nine months. Overall savings in budgeted expenses negated the need to execute the transfer. ANALYSIS San Diego LAFCO finished the fiscal year favorably and without the need for any correcting amendments. This includes generating a sizeable net operating surplus of $0.150 million or 8% while also importantly eliminating a budgeted fund balance transfer of $0.220 million. This latter amount produces an overall expense savings of $0.370 million or 19% and attributed to reduced labor costs given extended position vacancies coupled with decreases in overhead and consultant uses. The resulting change to the cash fund balance and less accrual adjustments is an increase from $1.469 to $1.619 million. 4 P age 30

31 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 3 End of Year Budget Report for FY2018 ALTERNATIVES FOR ACTION The following alternatives are available to the Commission in considering this item: 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. RECOMMENDATION It is recommended the Commission proceed with Alternative One as outlined in the preceding section. 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 Attachments: 1) Operating Budget General Ledger for through June 30, ) Summary of Actual Expenses in Professional Services (Account No ) 5 P age 31

32 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 3 End of Year Budget Report for FY2018 Page Blank for Photocopying 6 P age 32

33 SAN DIEGO LOCAL AGENCY FORMATION COMMISSION Marin Local Agency Formation Commission Regional Service Planning State of California Political Subdivision of the State of California FY Year End Actuals (Cash Basis) OPERATING EXPENSES FY FY FY Salary and Benefit Unit Adopted Actuals Adopted Actuals Adopted Actuals FY15 16 FY15 16 FY16 17 FY16 17 FY17 18 FY17 18 Accounts Descriptions Remaining Balance Salaries and Wages 1,028, ,668 1,073, ,165 1,100, , Retirement SDCERA 153, , , Retirement OPEB 8,188 9,323 7, Retirement Pension Obligation Bonds 30,851 34,496 27, Retirement Social Security 32,921 36,919 35, Group Insurance (Health) 66,797 69,440 74, Unemployment Insurance ,028, ,912 1,073, ,759 1,100, , ,521 15% Services and Supplies Unit AGENDA ITEM No. 3 Attachment 1 Accounts Descriptions Telecommunications ,266 (1,766) 353% Vehicle Maintenance 2,000 1,150 2,000 1,456 2, ,511 76% Vehicle Fuel 500 1,274 1,500 1,096 1, ,099 73% Memberships 9,000 7,577 10,107 8,107 15,000 11,328 3,672 24% Miscellaneous ,001 (5,951) 11902% Office: General 1,000 1,000 1,000 15,253 (14,253) 1425% Office: Postage % Office: Printing 2,000 7,194 7, ,500 7, % Office: Books and Guidelines 2, ,000 2,000 3,609 (1,609) 80% Office: Drafting/Engineering % Office: Stores Unallocated 15,000 13,974 17,500 10,806 18,000 13,140 4,860 27% Office: Mail Services 8,000 9,228 9,500 8,220 9,000 10,037 (1,037) 12% Professional Services: Consultants 427, , , , , ,850 55,650 15% Publications and Legal Notices 2, , ,500 7, % Leases: Equipment 1,166 5,996 4,779 4,000 5,498 (1,498) 37% Leases: Office Space 75,000 73,875 77,000 75,722 80,000 79, % Special Expenses: County Overhead Reimbursements 126, , , , ,000 47, ,174 69% Special Expenses: New Hire Backgrounds (572) n/a Special Expenses: Minor Equipment 1,000 1,000 1,000 1,164 (164) 16% Computer Training 2,000 2,000 2,000 2, % Travel and Training In County ,301 (10,801) 2160% Employee Auto 10,000 9,084 10,000 8,802 10,000 8,724 1,276 13% Travel and Training Out of County 1,000 1,000 1,000 14,390 (13,390) 1339% Reimbursements: Network 33,500 28,905 33,500 29,140 31,500 27,137 4,363 14% Reimbursements: Data Center 50,546 54,901 51,000 52,403 45,000 48,214 (3,214) 7% Reimbursements: Financial Systems 6,000 22,671 6,000 20,940 20,000 18,888 1,112 6% Reimbursements: Desktop Computing 40,200 27,079 40,200 28,248 27,700 47,462 (19,762) 71% Reimbursements: Help Desk 2,500 5,058 2,500 4,531 2,500 3,154 (654) 26% Reimbursements: Catalog Equipment 41,310 20, ,480 27,121 51,000 23,973 27,027 53% Reimbursements: Vehicle Lease 2, , ,000 1,986 1,014 34% 863, , , , , , ,765 16% Other Units Accounts Descriptions Equipment Depreciation 2,500 2,019 2,500 2,019 2,500 2, % Fixed Assets 2,500 1,500 2,500 2, % 5,000 2,019 4,000 2,019 5,000 2,019 2,981 60% EXPENSE TOTALS 1,896,977 1,646,625 1,979,064 1,764,521 1,986,899 1,668, ,267 16% 33

34 OPERATING REVENUES FY FY FY Intergovernmental Unit Adopted Actuals Adopted Actuals Adopted Actuals FY15 16 FY15 16 FY16 17 FY16 17 FY17 18 FY17 18 Remaining Balance Accounts Descriptions Agency Apportionments 1,394,946 1,394,946 1,578,564 1,577,636 1,635,099 1,635,099 0% 1,394,946 1,394,946 1,578,564 1,577,636 1,635,099 1,635,099 0% Service Charges Unit Accounts Descriptions Applicant Fees 125,000 76, , , , ,009 (43,009) 34% Earnings Unit Accounts Descriptions 125,000 76, , , , ,009 (43,009) 34% Interests and Dividends 5,500 5,500 6,800 15,535 (8,735) 128% Miscellaneous Unit Accounts Descriptions 5,500 5,500 6,800 15,535 (8,735) 128% Operating Transfer 370, , , , , % 370, , , , , % REVENUE TOTALS 1,895,811 1,646,456 1,984,064 1,764,353 1,986,899 1,818, ,256 8% OPERATING NET (169) (168) 150,011 FUND BALANCE JUNE 30th 1,408,695 1,469,694 1,619,705 (Cash Basis) 34

35 AGENDA ITEM No. 3 Attachment 2 SAN DIEGO LOCAL AGENCY FORMATION COMMISSION Regional Service Planning State of California Professional Services Account No FY Expense Details through June 30, 2018 Type Vendor Amount Legal Services Colantuono, Highsmith & Whatley PC 53,199 Legal Services County of San Diego 4,273 Consulting Legislative Harry Ehrlich 9,060 Consulting GIS GIS Surevyors, Inc 122,904 Consulting Records Management Casey McGhee 28,405 Consulting Planning Metroplan LLC 43,931 Consulting Fire Protectoin John Traylor 31,064 Others* Variety 28,223 $ 321, ,117 35

36 Blank for Photocopying 36

37 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 October 1, 2018 TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer Linda Zambito, Analyst I 4 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: Proposed Camino Largo 8 Reorganization Concurrent Annexation to the City of Vista and Detachment from the Vista Fire Protection District (RO18-08) SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will consider a reorganization proposal filed by the City of Vista to annex approximately 9.3 acres of unincorporated territory within the City s sphere of influence. The proposed reorganization includes concurrent detachment of the affected territory from the Vista Fire Protection District (FPD). The affected territory is undeveloped with minimal improvements and located at the intersection of Camino Largo and North Santa Fe Avenue. The proposal s purpose is to facilitate the development of the affected territory under Vista s land use authority to include an eight-lot residential subdivision. Staff recommends approval without modifications. Standard terms are also recommended. BACKGROUND Applicant Request Affected Territory as Proposed San Diego LAFCO has received a proposal from the City of Vista (Vista) on behalf of interested landowners (Frank Sohaei and Kyun Tae Kim) requesting approval to annex approximately 9.3 acres of unincorporated territory within the City s sphere of influence. Vista is also seeking concurrent approval to detach the affected territory from Vista FPD with the City set to assume the associated services. As submitted, the affected territory comprises one unincorporated parcel located at the northeast corner of Camino Largo and 37

38 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization North Santa Fe Avenue. The subject parcel previously served as a site for a commercial palm nursery (Choice Nursery) and was improved with ancillary structures. These earlier uses ceased with the closure of the nursery by As detailed in the proceeding sections, the affected territory is subject to a pending development project approved by Vista and contingent on LAFCO proceeding with the approval of the reorganization. The County Assessor s Office identifies the subject parcel as Affected Territory - One unincorporated parcel - Previously used as a commercial nursery (Choice Nursery) - Minimal improvements remain - Subject to a tentative subdivision approval to develop eight SFRs Subject Agencies The proposal involves two subject agencies whose service areas would be affected by the reorganization s associated jurisdictional changes: Vista and Vista FPD. 1 A summary description of both subject agencies follows. Vista is located in northern San Diego County and spans approximately 11,500 acres or 18 square miles. It is bordered by the unincorporated community of Bonsall to the north, City of San Marcos to the east, City of Carlsbad to the south, and City of Oceanside to the west. Vista was incorporated in 1963 and governed by a fivemember at large city council consisting of a directly-elected mayor and four councilmembers. The estimated resident population is 101, Vista provides a full range of municipal services with the notable exception of water, which is provided instead by one of two special districts overlapping the incorporated boundary: Vallecitos and Vista Irrigation. LAFCO established a sphere of influence for Vista in 1978, which was last reviewed and affirmed in 2008 with a larger-than-agency designation to include 547 non-jurisdictional acres. Vista s undesignated fund balance as of June 30, 2017 totaled $0.164 million, which represents 147% of the total budgeted General Fund expenditures in FY State law defines subject agency to mean any district or city for which a change or organization or reorganization is proposed. Reference American Community Survey (ACS); Year Estimates 2 P age 38

39 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization Vista FPD is an independent special district that provides fire protection and emergency medical services within an approximate 19,840 acre or 31 square mile jurisdictional boundary. It is boarded by the east by the Cities of Vista and Oceanside as well as to the south by the City of San Marcos. Vista FPD was formed in 1944 to formalize volunteer fire fighting services in the then-largely rural and agrarian community. In 1970, and following Vista s incorporation in 1963, Vista FPD and the City entered into a joint powers agreement (JPA) to coordinate fire protection services within their respective jurisdictions. This JPA assigned lead agency responsibility to Vista and provided that fire protection assets were to be merged with proportionate City-District ownership. In 2005, Vista purchased Vista FPD s share of assets and the JPA was terminated and replaced with an agreement that and among other items ensures a uniformity of service with the City serving both jurisdictions. LAFCO established a sphere of influence for Vista FPD in The sphere was last reviewed and affirmed in 2008 with a larger-than-agency designation to include 441 non-jurisdictional acres. The undesignated fund balance for Vista FPD as of July 30, 2017 totaled $ million, which represents 342% of the total budgeted General Fund expenditures in FY2018. Affected Local Agencies The affected territory is presently located within the jurisdictional boundaries of the following local agencies directly subject to San Diego LAFCO. 3 Vista FPD * County Service Area No. 135 (regional communications) North County Cemetery District Tri-City Healthcare District Vista Irrigation District Resource Conservation District of Great San Diego County DISCUSSION * Subject to the reorganization This item is for San Diego LAFCO to consider approving with or without modifications Vista s reorganization proposal to annex the affected territory along with the corresponding boundary change to detach from Vista FPD. The Commission may also consider applying conditions of approval for the reorganization so long as it does not directly regulate land use, property development, or subdivision requirements. 4 Additional discussion with respect to proposal purpose and Commission focus follows. 3 4 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 detachment to Vista FPD would necessitate an automatic change to the FPD sphere of influence. This change is considered ministerial give it is tied to the Commission s decision on whether to proceed with the detachment. 3 P age 39

40 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization Proposal Purpose The purpose of the proposal is to facilitate the development of the affected territory into an eight-lot residential subdivision consistent with Vista s pre-zoning and tentative subdivision map approval. 5 Markedly, the development of the affected territory as contemplated necessitates annexation to Vista given the need to establish public wastewater services coupled with the City s prohibition on entering new outside service agreements. The tentative subdivision map and pre-zoning approvals made by Vista are conditioned on LAFCO approval of the reorganization. Development Potential As detailed in Appendix A, the affected territory as proposed is planned for low-density single-family residential under both the County of San Diego and Vista General Plans. This compatibility extends to both the County and Vista in their zoning and prezoning, respectively, with identical minimum lot sizes for the affected territory being 1.0 acres. These standards provide the maximum density of the affected territory under either the land use authority of the County (baseline) or Vista (proposed) is eight lots. 6 Commission Focus The affected territory as proposed is part of a larger area already within Vista s sphere of influence. This existing determination by San Diego LAFCO narrows the Commission s consideration of the reorganization to two central and sequential policy items. These policy items ultimately take the form of new determinations and orient the Commission to consider the stand-alone merits of the (a) timing of the reorganization and (b) whether discretionary boundary modifications or approval terms are appropriate. The Commission must also consider other relevant statutes in and outside of LAFCO law as detailed. ANALYSIS The analysis of the reorganization is organized into two subsections. The first subsection pertains to evaluating the central issues referenced above regarding the timing of the reorganization 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). 5 6 Reference to Vista Planning Commission No / Additional intensity is also available under both land use authorities and marked by the allowance of a detached accessory dwelling unit for each lot. 4 P age 40

41 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization Central Policy Items Item No. 1 Proposed Reorganization Timing The timing of the proposed reorganization appears appropriate and highlighted by the analysis of the 16 factors required for consideration under LAFCO law. The majority of the prescribed factors focus on the impacts of the reorganization on the service and financial capacities of the receiving agency: Vista (emphasis added). 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 The reorganization includes unincorporated territory located within Vista s sphere of influence and contiguous with the City s incorporated territory. Annexation of the affected territory would represent a logical and orderly expansion of Vista s incorporated boundary and would not create islands or corridors. Additional details on service needs follow. - The Commission has previously designated Vista as the appropriate future and long-term land use authority and primary service provider for the affected territory through the long-standing inclusion of the subject parcels within the sphere of influence. Annexation now to Vista memorializes this standing expectation and accommodates the expressed interest of the affected landowners as evident by their written consent to the proceedings. - Vista s approval of an eight-lot residential subdivision for the affected territory helps to quantify the timing of the reorganization and annexation therein to the City is appropriate by synching the boundary changes with a known and pending development action. - Approval would affirmatively respond to the Commission s policy interest to match known and specific development in urbanizing areas with municipal providers with an emphasis in facilitating connections to public wastewater systems when possible. Service Capacities and Levels Vista would assume most municipal service responsibilities for the affected territory upon annexation and highlighted by providing wastewater, fire protection and emergency medical, and law enforcement to the subject parcels. A review of existing capacities and levels indicates Vista has sufficient controls and resources to accommodate demands within the affected territory at their planned and maximum uses. Additional details on service capacities and levels follow. 5 P age 41

42 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization - Wastewater Service: Vista would assume service responsibilities upon reorganization approval. An existing 8-inch lateral connection is planned from the southwest corner of the affected territory to tie into an existing 12-inch wastewater main running along the right-of-way on Camino Largo. No extension of the wastewater main is needed to accommodate services to the affected territory. Wastewater from the project would be collected and conveyed for treatment to Encina Water Pollution Control Facility, which has available capacity to assume projected demands from the affected territory. - Fire Protection and Emergency Medical: Vista would formally assume service responsibilities upon reorganization approval from the Vista FPD with the latter memorialized through a concurrent detachment. This change would have no material impact on service levels given Vista is the existing contract provider for Vista FPD and provides all fire protection and emergency medical field operations within the District. First-response would continue to be provided from Vista Fire Station No. 3, which is located 1.6 miles from the affected territory at 1070 Old Taylor Drive. Response times to the affected territory are estimated to be 4 minutes for priority calls and 6 minutes for non-priority calls. - Law Enforcement: Vista would formally assume service responsibilities upon reorganization approval from County Sherriff. This change would have no material impact on service levels given Vista contracts with County Sherriff to provide law enforcement including patrol and a full range of other services within the City s incorporated boundary. Service Funding and Costs Vista has the financial resources to assume and provide municipal services to the affected territory in support of its planned development. This comment is reflected in the staff analysis of Vista s recent audited statements which shows the City remained profitable in each of the last three audited fiscal years with an average total margin of 13%. Conclusion Merits of Reorganization Timing The timing of the reorganization and transfer therein of land use authority and other specified services to Vista is warranted. Justification is marked by the preceding analysis and highlighted by accommodating the planned development of the affected territory through Vista s land use and service powers. Additional analysis supporting the conclusion is provided in Appendix A. 6 P age 42

43 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization Item No. 2 Modification and Terms Staff has not identified any potential boundary modifications to the proposal that merit consideration by San Diego LAFCO at this time. This includes noting all of the associated public right-of-ways on Camino Largo and North Santa Fe Avenue are already within the Vista incorporated boundary. Applying standard terms appears appropriate. Conclusion Merits of Modifications and Terms No modifications appear warranted. Standard terms are recommended. 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 a jurisdictional change, unless an applicable master property tax transfer agreement is adopted per Revenue and Taxation Code Section 99(d). Vista and the San Diego County Board of Supervisors have previously adopted a master agreement governing the exchange of property taxes associated with various boundary changes. This agreement applies to the reorganization and will provide Vista a property tax transfer of $516 in year-one based on the affected territory s present assessed valuation. 7 Environmental Review Vista serves as the lead agency for assessing potential impacts of the proposal under the California Environmental Quality Act (CEQA) and the State CEQA Guidelines given the City has initiated the reorganization proceedings. Vista has adopted an Initial Study and Final Mitigated Negative Declaration (MND) for the underlying development, which identified potential significant environmental impacts in the categories or biological resources, cultural resources, noise, and mandatory filing of significance. 8 Staff recommends the Commission independently concur with Vista s CEQA determinations and adopt the findings of the MND as a responsible agency. 7 8 The affected territory s current assessed valuation for tax purposes $456,079. Vista also adopted a Mitigation Monitoring and Reporting Program (MMRP) to reduce identified impacts to less-than-significant levels. 7 P age 43

44 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization Protest Proceedings Protest proceeding for the reorganization 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, no subject agency has filed an objection to the waiver, and the landowners have provided their written consent to the underlying actions. 9 RECOMMENDATION Staff recommends approval of the reorganization consistent with Alternative One as outlined in the proceeding section. Approval provides for the planned and orderly development of the affected territory under Vista s urban land use and service powers. ALTERNATIVES FOR ACTION The following alternative actions are available to the Commission and can be accomplished through a single-approved motion. Alternative One Approval (Recommended): a) Accept and incorporate the analysis of the Executive Officer s written report. b) As responsible agency, make findings consistent with Vista as the lead agency and find the project will not have a significant impact through approved mitigation. c) Determine protest proceedings are waived under Government Code Section d) Adopt the form of resolution approving the Camino Largo 8 Reorganization to the City of Vista (RO18-08) as submitted without modifications. Standard terms apply as follows and must be 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. 9 LAFCO law defines uninhabited as territory in which 11 or less residents reside. 8 P age 44

45 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization Alternative Two Continue: Continue consideration to a time-specified regular meeting and provide direction to staff concerning additional information, as needed. Alternative Three Deny: 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 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. On behalf of staff, Linda Zambito Analyst I Appendices: A) Analysis of Review Factors Under Government Code Section Attachments: 1) Vicinity Map 2) Application Materials Resolution of Application 3) Vista s Mitigated Negative Declaration (online only) 9 P age 45

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47 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization APPENDIX A ANALYSIS OF MANDATORY PROPOSAL REVIEW FACTORS GOVERNMENT CODE SECTION ) 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 one unincorporated parcel that totals approximately 9.3 acres (Assessor Parcel ). The parcel is presently undeveloped with a planned eight-lot residential subdivision development. The affected territory was previously and minimally improved as a palm tree nursery. The County Assessor s Office identifies the total assessed value of the affected property and improvements at $456,079. The affected territory is immediately adjacent to the existing Vista jurisdictional boundary that generally comprise small to moderate residential lots. Some intensification within adjacent incorporated boundary may occur in the future consistent with Vista s adopted land use policies, but would not be considered significant in the absence of a City Council amendment to the General Plan. 2) 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. Vista would assume the majority of municipal service responsibilities for the affected territory upon reorganization approval and its anticipated development thereafter. This includes assuming service responsibility from the County involving community planning, roads, and police protection with the associated change in service levels and capacities being considered minimal. Also considered minimal would be the change in fire protection and emergency medical services with Vista formally assuming responsibility from Vista FPD. Water service to the affected territory would remain the responsibility of the Vista Irrigation District and is addressed in more in the following paragraphs. The most notable change in municipal services should the reorganization proceed involves the establishment of wastewater services and is focus of the succeeding analysis. 11 P age 47

48 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization Extending Public Wastewater to Affected Territory Connection to the system is readily available through a private lateral to an existing Vista sewer main located within the adjacent public right-of-way on Camino Largo. It is estimated the average day wastewater flow for the affected territory at maximum buildout (16 units divided between 8 primary and 8 accessory) will be approximately 4,784 gallons per day. This amount represents less than 0.09% of the million gallons of available and remaining daily capacity allocated to Vista through the Encina Water Pollution Control Facility. 3) The effect of the proposed action and of alternative actions, on adjacent areas, on mutual social and economic interests, and on the local governmental structure. The affected territory already lies within Vista s sphere of influence, and as such has established relevant economic and social ties with respect to other services provided by the City (i.e., fire, law enforcement, parks, etc.) Approving the reorganization would recognize these existing ties and formally establish Vista as the single governing body responsible for wastewater services to the affected territory. 4) 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 proposal would not affect the existing pattern of urban development in this portion of Vista. The affected territory does not qualify as open-space under LAFCO law and therefore does not conflict with Government Code Section ) 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 currently 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. 6) 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 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 or create islands or corridors of unincorporated territory. 12 P age 48

49 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization 7) 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). 8) The proposal s consistency with city or county general and specific plans. Vista General Plan and Zoning Ordinance for the site as Residential R-8 (8 du/ac, mid-range 6.5 du/ac). The County of San Diego General Plan (North County Metro Community Planning Area) designates the property as Semi-Rural Residential (1du/1,2,4 acres depending on topography); County zoning is A-70 (1 acre minimum). In 2012, the City of Vista adopted a major update to the General Plan. The City of Vista General Plan 2030 has assigned a Rural Residential (RR) land use designation to the property (1 du/acre depending on topography). LUCI Policy 13-3 of the document states, Prezone property within the SOI to zones that are consistent with the City s designated land uses. As part of the City s approval process for the project, the subject property was pre-zoned as A-1 (Agricultural Zone). 9) The sphere of influence of any local agency which may be applicable to the proposal being reviewed. See earlier analysis concerning Factor No ) The comments of any affected local agency or other public agency. Staff provided notice of the proposal to all subject agencies and other interested public agencies as required under LAFCO law. One comment was received and summarized below. Bonsall Community Sponsor Group (BCSG) provided comments on the proposal on September 5, The comments focused on BCSG having not been included in the initial circulation of the environmental document prepared by Vista as the lead agency. To this end, BCSG provided the following statement to LAFCO: Non-ministerial land use matters, including annexations from the county to surrounding cities, have potential environmental impacts within affected communities, and under CEQA, include community comments/input for this matter that would include the solicitation of comment/community input from the Bonsall Community Sponsor Group relative to the proposed annexation within our community boundary. Failure to solicit comments from the sponsor group on this project is against the basic tenants of CEQA and the project should be submitted and considered by the Bonsall Community Sponsor Group. 13 P age 49

50 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization 11) 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 has established sufficient financial resources and administrative controls therein in extending municipal services to the affected territory without adversely impacting current constituents. This statement is supported by the following factors. Vista s last audit covers and shows the District finished with good liquidity levels with an agency-wide current ratio of 9.87 (i.e., $9.87 in current assets for every $1.00 in current liabilities). Vista finished with good capital as evident by an extremely low debt ratio of 29% (i.e., only $29 out of every $ in net assets are financed.) Vista has remained profitable in each of the last three audited fiscal years with an average total margin of 17.5%. The most recent year the operating margin was 7.7%. 12) Timely availability of water supplies adequate for projected needs as specified in G.C. Section The affected territory (proposed and recommended) already lies within and receives domestic water service from the Vista Irrigation District. Approval would not affect the timely availability of water supplies to the subject lands. 13) 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 proposal would not affect or change the regional housing needs allocation as determined by the State Department of Housing and Community Development and the region s council of governments, the San Diego Association of Governments. The affected territory lies within Vista s sphere of influence, and as such all associated housing units are already assigned to the City. 14 P age 50

51 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 4 Camino Largo 8 Reorganization 14) 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 landowners support the annexation as witnessed by their signature of a consent form and no other comments were provided prior to preparation of this appendix ) Any information relating to existing land use designations. See earlier analysis concerning Factor No ) 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 reorganization will have a measurable effect positive or negative with respect to promoting environmental justice. 10 See Footnote No. 7 for additional discussion on landowners as it relates to the recommended modification to include the adjacent public right-of-way. 15 P age 51

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53 D RR GO PH ER E E RIV RTH NO AGENDA ITEM No. 4 Attachment Attachment11 VI A ST Y L ME W CA NY ON RD SE RO DR Sphere of Influence MELR OSE DR OCEANSIDE BL City of Vista FOOTHILL DR LA VIL TA S I V DR GE VISTA ST RNE OSBO K RD GO AR CR E E TA DR T AV OCEANSIDE EA AF ANT BL City of Vista VE PROPOSED "CAMINO LARGO 8 REORGANIZATION" (CITY OF VISTA) LAFCO SAN DIEGO SU NS E FE OL M IN CA NS RO18-08 Proposal Area A NT SA ± DR S EMERALD DR OSE DR S MELR LAKE Map Scale 1:50,000 DR MONTE VISTA BUEN A 78 } MAR VIS DE N MELR OSE DR SI AN E C O Map Scale 1:5,000 SAN MARCOS Proposal Area City of Vista Sphere of Influence Cities 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\18-08 RO City Vista.mxd 53 Date: 9/17/2018

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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 October 1, AGENDA REPORT Consent Action 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 Linda Zambito, Analyst I SUBJECT: Proposed Austin Drive-Moth Change of Organization Annexation to the San Diego County Sanitation District (DA18-12) SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will consider a change of organization proposal submitted by an interested landowner to annex approximately 0.90 acres of unincorporated territory in Spring Valley to the San Diego County Sanitation District (SDCSD). The affected territory as submitted lies within SDCSD s sphere of influence and comprises one parcel developed with a single-family residence and an adjacent public right-of-way on Montemar Drive. The primary purpose of the proposal is to provide wastewater service to the single-family residence in step with replacing an aging septic system. Staff recommends approval of the change of organization with a modification to add 0.10 acres of an adjacent public rightof-way on Austin Drive. Standard terms are also recommended. BACKGROUND Applicant Request Affected Territory as Proposed San Diego LAFCO has received a proposal from landowner John S. Moth requesting approval to annex approximately 0.90 acres of unincorporated territory in Spring Valley to SDCSD. As submitted, the affected territory includes a single-family residential parcel located at 9707 Austin Drive along with the adjacent public right-of-way on Montemar Drive. The residence is 1,280 square feet in size and includes three bedrooms and two bathrooms. The County Assessor s Office identifies the subject parcel as

60 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 5 Proposed Austin Drive-Moth Change of Organization (San Diego County Sanitation District) Affected Territory - One unincorporated parcel - Spring Valley - Developed with SFR - Currently on septic; already connected to Helix WD Subject Agencies The proposal involves one subject agency, SDCSD. 1 A summary of SDCSD follows. SDCSD is a dependent special district governed by the County Board of Supervisors. It was formed in 2011 as part of a countywide consolidation of dependent sewer districts and provides wastewater services within an approximate 30,080 acre or 47 square mile jurisdictional boundary that comprises several non-contiguous service areas. 2 Administration and operations is provided by County Public Works through its Wastewater Management Section. The estimated resident service population in the SDCSD jurisdictional boundary is 120,000 with close to 92,000 attributed to the Spring Valley service area. Key infrastructure in the Spring Valley service area includes 266 miles of sewer lines and an interceptor that conveys wastewater into the City of San Diego s neighboring collection system and thereafter to the Point Loma Treatment Facility; the latter operated by the Metro Wastewater Joint Powers Authority with SDCSD as a signatory. LAFCO established a sphere of influence for SDCSD in 2011 as part of the formation. The sphere designation for the Spring Valley service area includes 5,793 non-jurisdictional acres and encompasses the affected territory. SDCSD s undesignated fund balance as of July 30, 2017 totaled $51,356,000 which represents 201% of the total budgeted General Fund expenditures in FY2017. Affected Local Agencies The affected territory is presently located within the jurisdictional boundaries of the following local agencies directly subject to San Diego LAFCO State law defines subject agency to mean any district or city for which a change or organization or reorganization is proposed. SDCSD resulted from a reorganization effective July 1, 2011, which: (1) dissolved the Alpine, Julian, Lakeside, and Pine Valley County Sanitation Districts; (2) annexed the former districts territory to the Spring Valley SD; (3) annexed territory within the East Otay Mesa, Harmony Grove, Winter Gardens, and Campo Sewer Maintenance Districts to the Spring Valley SD; and (4) renamed Spring Valley SD as SDCSD. 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. 2 Page 60

61 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 5 Proposed Austin Drive-Moth Change of Organization (San Diego County Sanitation District) DISCUSSION County Service Area No. 128 (San Miguel) County Service Area No. 135 (Regional Communications) San Miguel Consolidated Fire Protection District Helix Water District Metropolitan Water District of Southern California San Diego County Water Authority Grossmont Healthcare District San Diego County Flood Control District This item is for San Diego LAFCO to consider approving with or without modifications the applicant s submitted change of organization proposal to annex the affected territory to SDCSD. The Commission may also consider applying conditions of approval for the change of organization so long as it does not directly regulate land use, property development, or subdivision requirements. Proposal Purpose The primary purpose of the proposal is to provide wastewater service to the single-family residence occupying the affected territory in step with replacing an aging septic system. Annexation and connection to SDCSD would also position the landowner to pursue additional intensity improvements in the future. Development Potential As detailed in Appendix A, the affected territory as proposed is planned for low-density residential uses under the County General Plan with a designation of Semi-Rural Residential. The County similarly zones the affected territory as Rural Residential or RR and prescribes a minimum lot density of 0.5 acres. This standard precludes the parcel within the affected territory from further division and density. This standard does allow for additional intensity through an accessory dwelling unit. 4 The affected territory is not located within any city sphere of influence. Commission Focus The affected territory as proposed is part of a larger area already within the SDCSD sphere of influence for the Spring Valley service area. This existing determination by San Diego LAFCO narrows the Commission s consideration of the proposal to two central and sequential policy items. These policy items ultimately take the form of new determinations and orient the Commission to consider the stand-alone merits of the (a) timing of the change of organization and (b) whether discretionary boundary modifications or approval terms are appropriate. The Commission must also consider other relevant statutes in and outside of LAFCO law as detailed. 4 The maximum size of the accessory dwelling unit for the subject parcel is 640 square feet. 3 P age 61

62 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 5 Proposed Austin Drive-Moth Change of Organization (San Diego County Sanitation District) ANALYSIS The analysis of the reorganization is organized into two subsections. The first subsection pertains to evaluating the central issues referenced above regarding the 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 Proposed Change of Organization Timing The timing of the proposed annexation 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 reorganization on the service and financial capacities of the subject agency, SDCSD. 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 Annexation of the affected territory to SDCSD would represent a logical and orderly expansion of the District s jurisdictional boundary and would not create service islands or corridors. Additional details on service needs follow. - The Commission has previously designated SDCSD as the appropriate future and long-term wastewater provider for the affected territory through its standing inclusion within the District sphere of influence. Annexation now memorializes this standing expectation and accommodates the expressed interest of the affected landowner as evident in their decision to initiate the proceedings. - Annexation of the affected territory to SDCSD for purpose of establishing permanent public wastewater services going forward is consistent with the adopted residential land use policies of the County of San Diego; the current and appropriate land use authority as determined by Commission and memorialized by the lands exclusion in any adjacent cities sphere of influence. 4 P age 62

63 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 5 Proposed Austin Drive-Moth Change of Organization (San Diego County Sanitation District) - There is an existing need for public sewer service to accommodate the current and planned residential use at 9707 Austin Drive given the alternative would be to maintain a private on-site septic system. This alternative among other items would counter the Commission s interest and practice in discouraging private septic systems in developing urban areas. Service Capacities and Levels SDCSD has available and sufficient collection and contracted treatment capacities to accommodate projected service demands within the affected territory and the associated single-family residence at its potential maximum uses without impacting current ratepayers. Service Funding and Costs SDCSD has the financial resources coupled with administrative controls to provide wastewater services to the affected territory in support of its current and planned development without adversely impacting current ratepayers. Conclusion Merits of Change of Organization Timing The timing of the change of organization and annexation therein of the affected territory to SDCSD is warranted. Justification is marked by the preceding analysis and highlighted by appropriately responding to the need for wastewater services within a developing urban area coupled with reflecting available SDCSD capacities. Item No. 2 Modification and Terms Staff believes one modification to the submitted change of organization proposal is appropriate and involves adding an additional 0.10 acres of unincorporated territory comprising the adjacent public right-of-way to the centerline of Austin Drive. This modification follows practice to take in all public right-of-ways whenever possible and does not have a material effect on the applicant and/or subject agency. Applying standard terms also appears appropriate. Conclusion Merits of Modifications and Terms Modifying the proposal to include the adjacent 0.10 acre public right-of-way on Austin Drive is appropriate and helps ensure future boundary continuity going forward. Standard terms are recommended. 5 P age 63

64 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 5 Proposed Austin Drive-Moth Change of Organization (San Diego County Sanitation District) 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. 5 Towards this end, San Diego LAFCO has confirmed the County of San Diego Board of Supervisors has adopted a tax exchange applicable to the proposed change of organization. The application of this master agreement will result in a no exchange. Environmental Review San Diego LAFCO serves as the lead agency for assessing impacts under CEQA given the proposal has been filed by a landowner petition. Staff believes the underlying action i.e., annexation of the affected territory as proposed or as recommended for modification qualifies as a project under CEQA, but is exempt from further review under State CEQA Guidelines Section 15319(a). This exemption and its cross-reference to Section appropriately applies given the affected territory involves an annexation of land already developed to its maximum density under existing land use policies. 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, no subject agency has filed an objection to the waiver, and the landowner has provided their written consent to the underlying action. 6 RECOMMENDATION Staff recommends approval of the change of organization consistent with Alternative One as outlined in the proceeding section. Approval provides for the planned and orderly expansion of SDCSD and its wastewater services consistent with needs and capacities. ALTERNATIVES FOR ACTION The following alternative actions are available to San Diego LAFCO and can be accomplished through a single-approved motion. 5 Jurisdictional change is defined under State law to include latent power expansions. 6 LAFCO law defines uninhabited as territory in which 11 or less residents reside. 6 P age 64

65 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 5 Proposed Austin Drive-Moth Change of Organization (San Diego County Sanitation District) Alternative One (Recommended): a) Accept and incorporate the analysis of the Executive Officer s written report. b) As lead agency, find the change of organization qualifies as a project under CEQA, but exempt from further review under State CEQA Guidelines Section 15319(a). c) Determine protest proceedings are waived under Government Code Section d) Adopt the form of resolution approving the Austin Drive-Moth Change of Organization to San Diego Sanitation District as proposed with modifications (LAFCO No. DA18-12) as described to include an adjacent 0.10 acre portion of Austin Drive to the centerline. Standard terms apply as follows and must be 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. Alternative Two: Continue to a time-specified 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 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. On behalf of staff, Appendices: A) Analysis of Proposal Review Factors Linda Zambito Analyst I Attachments: 1) Vicinity Map 2) Application Materials Petition 7 P age 65

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67 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 5 Proposed Austin Drive-Moth Change of Organization (San Diego County Sanitation District) APPENDIX A ANALYSIS OF MANDATORY PROPOSAL REVIEW FACTORS GOVERNMENT CODE SECTION ) 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 one unincorporated parcel in the Spring Valley community totaling 0.79 acres plus an additional 0.11 acres of an adjacent public right of way segment on Montemar Drive. 7 Staff is recommending the affected territory be modified and expanded to include an additional 0.10 acres representing an adjacent public right of way segment on Austin Drive. The subject parcel is developed with an approximate 1,280 square foot house with three bedrooms and two bathrooms. The application materials identify the residence is currently occupied with two inhabitants. The current assessed value of the subject parcel including land and improvements is $153,441. The affected territory as proposed or recommended lies within a developing urbanresidential area. The majority of the surrounding properties are less than 1.0 acres in size and cannot be further divided under County zoning standards. Several lots with in the area, however, remain either unbuilt or undersized. Accordingly, it is reasonable to assume additional growth within the area will continue through the next 10 year period. (2) 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. The County of San Diego acts as the primary purveyor of general governmental services to the affected territory (proposed or recommended). This includes community planning, roads, street lighting, and law enforcement. Other existing pertinent service providers include the San Miguel Consolidated Protection Fire District (fire and emergency medical), and Helix Water District (domestic water). This proposal affects only wastewater and connection therein involving 9707 Austin Drive and is the focus of the succeeding analysis. 7 The subject parcel is located at 9707 Austin Drive. The County Assessor s Office identifies the subject parcel as P age 67

68 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 5 Proposed Austin Drive-Moth Change of Organization (San Diego County Sanitation District) Extending Public Wastewater to Affected Territory The affected territory at 9707 Austin Drive is currently dependent on an onsite septic system. The age of the septic system is not known, but it is assumed it is at least 30 years old, and as such nearing the end of its useful lifespan. Connection to the wastewater system is readily available through a private lateral to an existing SDCSD main located within the adjacent public right-of-way on Austin Drive It is projected the average day wastewater flow for the affected territory at maximum buildout (two dwelling units) will be approximately 299 gallons per day. This projected amount represents less than 0.005% of the current million gallons of available and remaining daily contracted capacity allocated to Spring Valley by SDCSD. (3) 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 change of organization (proposed or recommended) and annexation therein to SDCSD would recognize and strengthen existing economic and social ties between the District and subject lands. These ties were initially established in 2011 when the Commission included the entire area into SDCSD s sphere of influence, and in doing so signaling the lands would eventually warrant public wastewater service from the District. (4) 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 (proposed or recommended) is developed as conforming uses under the County of San Diego General Plan. The proposal is consistent with the Commission s adopted policies to synch urban type uses which include low density residential uses with urban type services, such as public wastewater. None of the lands qualify as open-space under LAFCO law and therefore does not conflict with Government Code Section (5) The effect of the proposal on maintaining the physical and economic integrity of agricultural lands, as defined by G.C. Section The affected territory (proposed or recommended) 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. 10 P age 68

69 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 5 Proposed Austin Drive-Moth Change of Organization (San Diego County Sanitation District) (6) 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 including possible action to expand the annexation as recommended to add an additional public right-of-way on Austin Drive would be conditioned on a final map and description confirming to the referenced standards. The affected territory (proposed or recommended) does not cross lines of assessment. (7) 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). (8) The proposal s consistency with city or county general and specific plans. The affected territory (proposed or recommended) is entirely designated for relatively low density single-family residential use under the adopted land use policies of the County of San Diego. This includes designating the subject parcel comprising the affected territory as Semi- Rural Residential with an associated zoning standard of Rural Residential; the latter prescribing a minimum lot size of 0.5 acres. These standards preclude the affected territory from further division and development. Intensity improvements are possible, and include the additional of an accessory unit up to a maximum size of 640 square feet based on the size of the existing primary residence. These existing and planned uses are consistent with the proposal s purpose to establish public wastewater services. The proposal does not conflict with San Diego Forward, the regional transportation plan. (9) The sphere of influence of any local agency affected by the proposal. See earlier analysis concerning Factor No. 3. (10) The comments of any affected local agency or other public agency. Staff provided notice of the change of organization to all subject agencies and other interested public agencies as required under LAFCO law. No comments were received. 11 P age 69

70 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 5 Proposed Austin Drive-Moth Change of Organization (San Diego County Sanitation District) (11) 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 the change of organization indicates SDCSD has established sufficient financial resources and administrative controls therein in establishing wastewater service to the affected territory without adversely impacting current ratepayers. This statement is supported by the following factors. SDCSD s last audit covers and shows the District finished with good liquidity levels with an agency-wide current ratio of (i.e., $36.11 in current assets for every $1.00 in current liabilities). SDCSD s finished with high capital as evident by a low debt ratio of 12% (i.e., only $12 out of every $ in net assets are financed). SDCSD s total margin has varied over the last few years and largely the result of implementing various capital improvement projects. SDCSD finished with a positive total margin in at 12%. It is also noted SDCSD will collect annexation and capacity fees from the landowner of the affected territory. The wastewater service fees are calculated to recover the cost to collect, treat and dispose of wastewater as well as to maintain ancillary facilities. SDCSD set its current wastewater service rates for a single family residence at an annual charge of $ per EDU with and additional $11.58 for a 2.9% Metro pass through - totaling $ (12) Timely availability of water supplies adequate for projected needs as specified in G.C. Section The affected territory (proposed and recommended) already lies within and receives domestic water service from the Helix Water District. Approval would not affect the timely availability of water supplies to the subject lands. (13) 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 change of organization (proposed or recommended) would not impact any local agencies in accommodating their regional housing needs. All potential units tied to the lands are already assigned to the County of San Diego by the region s council of governments, San Diego Association of Governments. The boundary change would not affect this assignment. 12 P age 70

71 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 5 Proposed Austin Drive-Moth Change of Organization (San Diego County Sanitation District) (14) Any information or comments from the landowner or owners, voters, or residents of the affected territory. The affected territory (proposed or recommend) is uninhabited as defined LAFCO law (11 registered voters or less). The landowner has initiated the boundary change through a signed petition. 8 No other comments have been received. (15) Any information relating to existing land use designations. See earlier analysis concerning Factor No.8. (16) 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. 17) 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 (proposed or recommended) would be in the best interest of the landowner and surrounding neighborhood as it would allow for the replacement of an aging private septic system with a connection to a public wastewater system. 8 The modification of the affected territory to include an adjacent segment of the public right-of-way on Austin Drive does not affect landowner status as defined under LAFCO law. Specifically, lands owned and/or held in easement by public agencies and used for and among other purposes right-of-ways are defined as non-landowners. 13 Page 71

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73 EL CAJON ER CH 8 LEMON AV SA ME LA FUERTE DR 125 } M PAL LA MESA AV E AS CH T FLE AGENDAITEM ITEMNo. No.54 AGENDA Attachment Attachment12 W CHASE AV MURRAY Sphere of Influence AV GH OR ST LN W IE MOZELL E W Y V AVOCADO A AL RM NO FURY LN GOLF DR 94 } BROADWAY San Diego County SD 94 } CAMPO RD LEMON GROVE MA IN ST TROY ST L IX HE ST A CH MA JA BL INE DR TER TWA L SKY RD PRIVATE RD AUSTIN DR Proposal Area AR EM T N MO DR EY SWEETWATER RESERVOIR MONTEMAR DR Map Scale 1:50,000 LL TA E JAMACHA RD SE DI RA A P VA EL E SWE SAN DIEGO LAMAR ST JAMACHA GRAND AV 125 } ± DA18-12 PROPOSED "AUSTIN DRIVE - MOTH ANNEXATION" TO THE SAN DIEGO COUNTY SANITATION DISTRICT LAFCO SAN DIEGO PR IV A TE RD San Diego County SD CHULA VISTA Map Scale 1:5,000 CHULA VISTA Proposal Area San Diego County SD 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\18-12 DA San Diego County SD.mxd 73 Date: 8/30/2018

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79 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 October 1, 2018 TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer Holly Whatley, Commission Counsel 6 AGENDA REPORT Consent Action Dianne Jacob, Supervisor County of San Diego SUBJECT: Policy Adoption Conduct of Protest Hearings 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 establishing a policy on conducting protest proceedings. Adoption would formalize existing practices and ensure greater consistency in implementation. This includes pertinently establishing discretionary standards and allowances in delegating responsibilities to the Executive Officer as well as receiving and valuing written protests; the latter of which includes accepting s, facsimiles, and other reasonable forms of written protest transmissions within prescribed timelines. Staff recommends approval. BACKGROUND Protest Proceedings San Diego LAFCO s ( Commission ) is tasked under State law to conduct protest proceedings whenever it approves a change of organization or reorganization unless waived under specified conditions. These proceedings provide landowners and registered voters the opportunity to participate in the final decision-making underlying a change of organization or reorganization with the ability to trigger an election (25-50%) or outright terminate (50% + 1). LAFCOs also have some discretion both intentional and by omission in conducting protest hearings. An example of the former (intentional) includes the ability to delegate conducting responsibilities to the Executive Officer. An example of the latter (omission) includes the manner in which protest can be transmitted to LAFCO ahead of the conclusion of the scheduled hearing. 79

80 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 6 Policy Adoption: Conducting Protest Hearings DISCUSSION This item is for San Diego LAFCO to consider establishing a policy on conducting protest hearings to formalize existing practices and address discretionary allowances allowed under State law. The policy has been developed with Commission Counsel and includes addressing the following items. Outlines the ability and tasks therein for the Executive Officer to assume responsibility for conducting protest hearings on behalf of the Commission. Allows written protests to be filed by landowners and registered voters by , faxes, courier, and in person ahead of the scheduled hearing. All advanced protests need to be received by LAFCO by 5:00pm on the preceding day of the hearing. Establishes the date for determining landowner and registered voter eligibility corresponds with the publication date of the protest hearing. A copy of the proposed policy is attached. ANALYSIS The proposed policy provides a clear and sequential outline of protest proceedings at San Diego LAFCO and key discretionary standards authorized by the Commission in implementation. The prompt for the policy follows discussions with Commission Counsel to formalize existing practices and proactively remedy potential future differences with proponents and opponents with respect to receiving and valuing written protests. RECOMMENDATION It is recommended San Diego LAFCO approve the establishment of a new policy on conducting protest hearings as outlined in the proceeding section as Alternative One. ALTERNATIVES FOR ACTION The following alternatives are available to San Diego LAFCO under a single motion: Alternative One (Recommended) (a) Approve the attached Policy on the Conduct of Protest Hearings with any desired changes as identified by the Commission. (b) Direct the Executive Officer to designate the adopted policy as L-112 and authorize staff to proceed with standardized formatting changes. 2 P age 80

81 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 6 Policy Adoption: Conducting Protest Hearings Alternative Two Continue to the next regular meeting and provide direction as needed. Alternative Three No action. 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 Attachments: 1) Proposed Policy on the Conduct of Protest Hearings 3 P age 81

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83 AGENDA ITEM NO. 6 Attachment 1 POLICY FOR THE CONDUCT OF PROTEST HEARINGS 1. Authority to Conduct Protest Hearings Pursuant to Title 5, Division 3, Part 4 of the California Government (commencing with section 57000), the Commission shall conduct all protest hearings and take all other actions required of it to complete proceedings for changes of organization or reorganization, unless the Commission, in its discretion, delegates to the Executive Officer consistent with the provisions of this policy. 2. Delegation at Time of Adoption of Resolution Each time the Commission adopts a resolution making determination approving, with or without conditions, a change of organization or reorganization, the Commission shall also determine whether to conduct the protest hearing or delegate to the Executive Officer. Such a decision of the Commission may be made upon recommendation of the Executive Officer or by motion of a Commission member. 3. Valuation of Written Protests Irrespective of the Commission conducting the protest hearing or delegating to the Executive Officer, the same procedures shall apply in receiving and valuing written protests. These procedures are outlined as Appendix One to this policy. 4. Delegation to Executive Officer If the Commission delegates to the Executive Officer the authority to conduct a protest hearing for an approved change of organization or reorganization, the Executive Officer shall conduct the protest hearing in accordance with Government Code section 57000, et seq., and the following: a) The protest hearing shall be held in a location open to the public and suitable for the conduct of a public hearing; b) The Executive Officer shall provide each Commission member and alternate written notice of the date, time, and location of all protest hearings and any continuances thereof; c) The Executive Officer shall be the hearing officer for the protest hearing; d) The Executive Officer shall conduct the protest hearing consistent with the manner in which the Commission conducts public hearings; 1 P olicy on the Conduct of Protest Hearing 83

84 e) At the protest hearing, the Executive Officer shall hear and receive any oral or written protest, objection or evidence which is presented, or filed, and accept the withdrawal of any protest prior to the close of the hearing; f) The Executive Officer shall cause a record to be made of the protest hearing, and shall preserve as part of the record all written protests, objections and evidence presented or filed at the protest hearing; g) After the protest hearing, the Executive Officer shall cause the protests filed and not withdrawn to be reviewed in accordance with the requirements of Government Code section 57052; h) Should the value of the protests filed and not withdrawn not require an election or termination, the Executive Officer shall proceed and prepare an ordering resolution in accordance with the requirements of Government Code section 57000, et seq. The Executive Officer shall provide notice of the ordering resolution to the Commission at the next regularly scheduled meeting. i) Should the value of the protests filed and not withdrawn either require an election or termination, the Executive Officer shall prepare a report to the Commission and recommend the Commission the adoption of a resolution conformity with the outcome of the protest hearing per Government Code section 57000, et seq. The Executive Officer shall present the report and a draft resolution to the Commission for its consideration at the next regularly scheduled meeting. 5. Commission Action with Respect to Protest Hearings Conducted by Executive Officer The Commission may accept or reject the Executive Officer's recommendations, or make modifications based upon review of the protest hearing record. The Commission may take any other actions prescribed by Government Code section 57000, et seq., for completion of proceedings for a change of organization of reorganization. 6. Limitation on Delegation of Authority to Executive Officer Except as expressly provided for herein, the Commission shall retain its authority pursuant to Government Code section 57000, et seq. This policy however, in no way limits the Commission's ability to expressly delegate other tasks to the Executive Officer to the extent such delegation is authorized by Government Code. Appendix One: 1) Written Valuation Procedures 2 P olicy on the Conduct of Protest Hearing 84

85 Appendix One POLICY FOR THE CONDUCT OF PROTEST HEARINGS Written Valuation Procedures 1. Receipt of Written Protests LAFCO shall write the date and time on all written protests immediately upon receipt. 2. Counting of Written Protests LAFCO will count all written protests received, and not withdrawn prior to the time certain the proceedings are concluded, via any of the following means: U.S. mail received at LAFCO s office by 5:00 p.m. on the business day preceding the protest hearing date; or Courier delivery received at LAFCO s office by 5:00 p.m. on the business day preceding the protest hearing date; or Facsimile (fax) transmission, received at LAFCO s office by 5:00 p.m. on the business day preceding the protest hearing date; or Electronic mail ( ) transmission, received at LAFCO s office by 5:00 p.m. on the business day preceding the protest hearing date; or Hand-delivered to LAFCO s office by the protesting party or his or her dulyauthorized representative received at LAFCO s office by 5:00 p.m. on the business day preceding the protest hearing date; or Hand-delivered to the Commission and/or staff, at the noticed protest meeting of the Commission, by the protesting party or his or her duly-authorized representative, on the protest hearing date and prior to the closing of the protest hearing by the Commission Chair or Acting Chair. LAFCO will not count written protests received via any of the following means: Bearing a date prior to the date of publication of the protest hearing notice; or Delivered to the Commission and/or staff after the closing of the protest hearing by the Commission Chair or Acting Chair. 3 P olicy on the Conduct of Protest Hearing 85

86 3. Valuing Written Protests For purposes of valuing written protests only, any reference in this policy and in the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 to the close of the protest hearing will be construed to mean the close of the final protest hearing, meaning that any continuance of the protest hearing pursuant to Government Code Section 57050(a) will extend during which written protests will be accepted. a) Registered Voter Protest: Data obtained from the County of San Diego Registrar of Voters (ROV) shall determine the total number of registered voters within the boundaries of the affected territory at the time of the noticed protest hearing. Further, for purposes of calculating registered voter protests, LAFCO shall calculate the applicable percentage thresholds based upon the data obtained from the ROV. LAFCO will count written protests from registered voters which include all of the following required information: Address of the property, providing street and number or other designation sufficient to enable the place of residence to be ascertained; and Signature of the registered voter; and Date of signature must be within the period starting with the publication of the protest hearing notice and ending at the time of the closing of the protest hearing by the Commission Chair or Acting Chair. LAFCO will not count written protests from registered voters under any of the following circumstances: The address of the property, or other designation sufficient to enable the place of residence to be ascertained, is not provided; or The signature of the registered voter is not provided; or The date of signature is not provided; or The date of signature is prior to the date of publication of the protest hearing notice; or The date of signature is after the date of the closing of the protest hearing by the Commission Chair or Acting Chair; or 4 P olicy on the Conduct of Protest Hearing 86

87 The written protest is from a registered voter who is not registered to vote within the boundaries of the affected territory; or The written protest was not received consistent with the provisions in Section 1 ( Receipt of Written Protests ), above; or The individual who originally filed the protest withdraws his or her protest, in writing, within the time constraints identified herein; or Any protest which has been disqualified by the ROV, in the event that the Executive Officer refers registered voter protests to the ROV. LAFCO staff will count all valid written protests from registered voters to determine the valuation and outcome. The Executive Officer may, at his or her discretion, refer any registered voter written protests to ROV for verification. b) Landowner Protest: Data obtained from the County of San Diego Assessor Office s current tax rolls shall determine the total number of landowners within the boundaries of the affected territory. Further, for purposes of identifying all landowners and for calculating landowner protests, LAFCO shall calculate the applicable percentage thresholds based upon current tax rolls and the assessed value of land obtained from the Assessor. LAFCO will count written protests from landowners which include all of the following required information: Address of the property, providing street and number or other designation sufficient to enable the location of the property within the affected territory to be ascertained; and Signature of the landowner; and The date of signature must be within the period starting with the publication of the protest hearing notice and ending at the time of the closing of the protest hearing by the Commission Chair or Acting Chair. LAFCO will not count written protests from landowners under the following circumstances: The address of the property, or other designation sufficient to enable the location of the property within the affected territory to be ascertained, is not provided; or 5 P olicy on the Conduct of Protest Hearing 87

88 The signature of the landowner is not provided; or The date of signature is not provided; or The date of signature is prior to the date of publication of the protest hearing notice; or The date of signature is after the date of the closing of the protest hearing by the Commission Chair or Acting Chair; The written protest was not received consistent with the provisions in Section 1 ( Receipt of Written Protests ), above; The individual signing the written protest is different than the owner of record provided by the Assessor based upon the most recent assessment roll, subject to the requirements of the exception identified in Government Code Section 56710(c); or The individual who originally filed the protest withdraws his or her protest, in writing, within the time constraints identified herein. For those properties which are exempt from taxation owned by a public agency, the valuation shall be determined consistent with Government Code Section 56710(a). For those properties held in joint tenancy or tenancy in common, the valuation shall be determined consistent with Government Code Section 56710(b). 4. All Protests in Writing While oral testimony will be considered by the Commission, said testimony will not have any effect on the valuation of protests. Under state law, and this policy, it is only written protests, not later withdrawn in writing, if applicable, that count. 5. Outcomes Government Code Sections through describes whether the Commission considers written protests from registered voters, landowners, or both. Based on the valuation of the applicable protests, these sections dictate which of the following actions the Commission must take: Terminate the proceedings; or Order the change of organization or reorganization subject to an election; or 6 P olicy on the Conduct of Protest Hearing 88

89 6. Results Order the change of organization or reorganization without an election. The Commission may announce results at the conclusion of the protest hearing, or, in the alternative, may postpone the announcement to a future meeting if LAFCO staff needs time to verify and value written protests. 7 P olicy on the Conduct of Protest Hearing 89

90 Page is Blank for Photocopying 90

91 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 October 1, 2018 TO: San Diego Commissioners FROM: Keene Simonds, Executive Officer SUBJECT: Progress Report on Workplan 7 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 specific projects established as part of the adopted workplan for This includes noting through the first three months of the fiscal year more than one-half of the two-dozen plus projects are now underway. This active work is highlighted by a comprehensive fee schedule update and several regional municipal service reviews. The report is being presented to the Commission to receive and file as well as to discuss any related items or request revisions 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 a management tool to allocate Commission resources in an accountable and 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. 91

92 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 7 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 This includes identifying the projects that are now underway and nearing completion. This item is being presented for the Commission to formally receive and file while also providing the membership the opportunity to ask questions and as needed suggest revisions. A copy of the workplan with status notations is attached. ANALYSIS San Diego LAFCO has initiated work on 13 of the projects included in the adopted workplan and represents more than one-half or 52% of the total through the first three months of the fiscal year. Work underway includes seven of the high priority projects and marked by regional municipal service reviews for the San Marcos and Vista regions and a comprehensive fee schedule update; the latter of which is expected to be presented in draft form in December. Other notable projects underway include several bookkeeping activities through our new outside accountant Leaf and Cole to improve financial tracking. LAFCO has also entered into recent agreements with Chris Chase Design and Vision to create an official agency logo and new website design, respectively. 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 92

93 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 7 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 93

94 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 7 Progress Report on Workplan Page Blank for Photocopying 4 P age 94

95 San Diego Local Agency Formation Commission Regional Service Planning Subdivision of the State of California Workplan Final Introduction: AGENDA ITEM No. 7 Attachment 1 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. 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. 95

96 San Diego LAFCO Workplan Priority Level Type Project Key Issues Status 1 High Statutory Reorganizations on File Prominent proposals on file involve Julian-Cuyamaca FPD, CSA No. 115, and San Marcos U 2 High Statutory Expected Reorganizations Escondido (Safari Highlands), Vista (Lomas Verdes), Rincon (Harmony Grove South and Valiano) U 3 High Administrative Targeted LAFCO Presentations Engage stakeholders; emphasis on informing stakeholders ahead of MSR work U 4 High Administrative Fill Budgeted Positions Recruitments for three new analysts and related training and development U 5 High Administrative Job Class and Salary Review Specific to non-executive positions; first review in 10 years; focus on alignment and retention U 6 High Statutory MSR SOI City of Escondido Region Per Study Schedule; includes Escondido, Deer Springs FPD, and Rincon del Diablo MWD P 7 High Statutory MSR SOI City of San Marcos Region Per Study Schedule; includes San Marcos, San Marcos FPD, and Vallecitos WD U 8 High Statutory MSR SOI City of Vista Region Per Study Schedule; Includes Vista, Vista ID, Vista FPD, and Buena Sanitation U 9 High Administrative Policy Reviews: Reserves and Ag Protection Explore and pursue changes to reflect best practices and membership preferences P 10 High Administrative Fee Schedule Update First update since early 2000s; ensure appropriate cost-recovery and establish hourly staff rates U 11 Moderate Administrative MOU Update with County Existing MOU from 1974; update to reflect current agency relationships/needs P 12 Moderate Administrative E-Agenda Packets Simplify agenda packet production and reduce material (paper, ink, etc.) consumption P 13 Moderate Statutory MSR SOI Julian Region Per Study Schedule; includes Julian-Cuyamaca FPD, Julian CSD, and several others U 14 Moderate Administrative Bookkeeping Services Quality insurance measure; reconcile statements and create scaled chart of accounts for LAFCO U 15 Moderate Administrative Audit Best practice; follow up on previous audit recommendations (Item No. 14) P 16 Moderate Administrative Website Update Design and launch new website; simplify and improve content management system U 17 Moderate Statutory MSR SOI SD County Sanitation District Includes multiple community wastewater service areas P 18 Moderate Administrative CALAFCO Southern LAFCOs Participate and provide leadership within CALAFCO and in southern region U 19 Moderate Administrative Digital Archiving Restart project to digitize LAFCO records; incorporate online public access (Item No. 16) P 20 Low Administrative Agency Logo Branding; establish agency logo for use on letterhead and other communications U 21 Low Administrative Informational Report on SGMA Focus in North County; examine State Groundwater Management Act implementation issues P 22 Low Statutory Informational Report on JPAs Follow up to SB 1266 and requirement for municipal-serving JPAs to file with LAFCOs P 23 Low Administrative Update Application Packet Streamline existing packet to be more user-friendly; address new statutory requirements P 24 Low Administrative Local Agency Directory User-friendly publication identifying and summarizing local governmental agencies and services P 25 Low Administrative Social Media Policies and Protocols Expand outreach to capture alternate media forums P Status Notations: C: Completed U: Underway P: Pending 96

97 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 October 1, 2018 TO: FROM: San Diego Commissioners Robert Barry, Chief Policy Analyst Linda Zambito, Analyst I 8 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 three new filings made with LAFCO since the last report was presented at the August 6 th 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. 97

98 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 8 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 24 active proposals currently on file with San Diego LAFCO as of date. The active proposals include 21 that are considered incomplete at this time and require additional information before a hearing date is scheduled. 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 include 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 almost two dozen jurisdictional change proposals and outside service requests. This includes several substantive actions and highlighted by the proposed dissolution of the Julian-Cuyamaca Fire Protection District and concurrent authorization for County Service Area No. 135 to assume service responsibilities for the affected territory going forward. (The referenced proposal was heard during a special meeting on September 10 th and is now under protest proceedings.) Three new proposals have also been filed since the last report was presented on August 6 th. The new proposals are identified below and summarized as part of Attachment One. Pauma Valley Fire Reorganization County Service Area No.135 Andreiko-Glaucus St. Annexation Leucadia Wastewater District Menchaca-St. Paul Drive Annexation 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 98

99 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 8 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, August 6, P age 99

100 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 8 Current Proposal Activity Page is Blank for Photocopying 4 P age 100

101 Proposal Number Proposal Name / Affected Agencies SAN DIEGO LAFCO PROPOSAL SUMMARY Project Lead Proposal Summary AGENDA ITEM No. 8 Attachment 1 ACTIVE INCOMPLETE 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. August 6,

102 SAN DIEGO LAFCO PROPOSAL SUMMARY Proposal Number Proposal Name / Affected Agencies Project Lead Proposal Summary 7 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 December 2017 to provide assistance. The applicant and County staff will be meeting with the goal of finding a solution and completing the application during 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. 9 SA16-13 RO16-13 Windmill Construction Reorganization City of La Mesa (annexation) San Miguel FPD (Detachment) CSA 135 (Detachment) Robert Barry Proposal originally 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. 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 therein addressing outstanding information needs to complete the administrative review. 10 DA16-15 SA16-15 Alpine Islands Annexation Alpine FPD (Annexation) CSA 135 LP Fire Area (Latent Powers Divesture) John Traylor 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. 11 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) John Traylor Proposal involves annexation of remaining unserved islands within Heartland area and reorganization of local fire service territory among four agencies: CSA 135; Alpine FPD; Lakeside 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. August 6,

103 SAN DIEGO LAFCO PROPOSAL SUMMARY Proposal Number Proposal Name / Affected Agencies Project Lead Proposal Summary 12 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 a 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. 13 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. 14 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. 15 RO18-13 SA18-13 Pauma Valley Fire Reorganization County Service Area No. 135 (Divest Fire & EMS) (LP expansion; sphere amendment) John Traylor/ Linda Zambito Proposal submitted 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. 16 DA18-14 Andreiko-Glaucus St. Annexation Leucadia Wastewater District Linda Zambito Proposal submitted by resolution from Leucadia Wastewater District, involves the annexation of an approximately 0.34 acre into LWWD for wastewater connection. The submitted proposal application is incomplete and pending receipt of additional documentation and information from the applicant to complete staff s analysis. 17 DA18-15 Menchaca-St. Paul St Annexation Vallecitos Water District Linda Zambito Proposal submitted by resolution from Vallecitos Water District, involves the annexation of an approximately 1.59 acre into VWD for water and wastewater services. The submitted proposal application is incomplete and pending receipt of additional documentation and information from the applicant to complete staff s analysis. August 6,

104 SAN DIEGO LAFCO PROPOSAL SUMMARY Proposal Number Proposal Name / Affected Agencies Project Lead Proposal Summary 22 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 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 pending receipt of additional documentation and information from the applicant to complete staff s analysis. ACTIVE COMPLETE / PENDING HEARING 6 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 administrative review of the proposal is now complete, and the item is scheduled for hearing on October 1, 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 has been scheduled for Commission consideration to meeting set for October 1st. 20 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 has been scheduled for Commission consideration to meeting set for October 1st. 21 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 has been scheduled for Commission consideration to meeting set for October 1st. August 6,

105 SAN DIEGO LAFCO PROPOSAL SUMMARY Proposal Number Proposal Name / Affected Agencies Project Lead Proposal Summary ACTIVE COMPLETE / PENDING TERMS 18 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 during a special meeting on Monday, September 10 th and currently undergoing protest proceedings. 23 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 at the June 4, 2018 meeting and pending recordation. 24 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 at the June 4, 2018 meeting and pending recordation. PENDING PROPOSAL SUBMITTALS 25 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. August 6,

106 SAN DIEGO LAFCO PROPOSAL SUMMARY Proposal Number Proposal Name / Affected Agencies Project Lead Proposal Summary 26 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. 27 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. 28 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. 29 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. August 6,

107 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 October 1, 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 Robert Barry, Chief Policy Analyst SUBJECT: Legislative Report SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will receive a report from staff on the close of the legislative session with respect to bills of interest to the Commission. This includes an update on the six bills that received Commission positions during the year and headlined by Assembly Bill 2050 Small System Water Authority Act of 2018 and its stillpending provisions to expedite consolidation of non-compliant public or private small drinking water systems into a new public agency. The report is being presented for discussion with the opportunity for the Commission to provide feedback and general direction as needed. BACKGROUND Legislative Resources San Diego LAFCO draws on its active participation with California Association of LAFCOs or CALAFCO in considering legislative matters affecting the Commission s ability to effectively administer its regulatory and planning responsibilities. The CALAFCO Legislative Committee comprises nearly two dozen members across the state including San Diego LAFCO s Chair and Chief Policy Analyst and is tasked with drafting and/or reviewing proposed legislation and related items. San Diego LAFCO relies on the information and analysis generated from the CALAFCO Legislative Committee in making its own position recommendations relative to local needs and interests. 107

108 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 9 Legislative Report Key Legislative Dates The Legislature adjourned to final recess for the legislative session on August 31 st. September 30 th is the last day for the Governor to sign or veto bills passed by the Legislature and in the Governor s possession on or after September 1 st. Any bills enacted on or before October 1 st will take effect on January 1, The Legislature will reconvene on January 2, 2019 for the start of the legislative session. DISCUSSION This item is for San Diego LAFCO to receive an update on the close of the legislative session with respect to bills of interest to the Commission. This includes bills with approved Commission positions and letters issued to the respective authors. The following discussion is intended to aid the review and summarizes (a) current CALAFCO Legislative Committee activities and (b) specific bills of interest as identified by staff, with Commission adopted positions. CALAFCO Legislative Committee CALAFCO s Legislative Committee last met on June 18 th, 2018 to discuss tracked legislation and gather feedback on recent amendments. The Committee has conducted subsequent conference calls to discuss the various tracked legislation as it progresses through the legislative process and to discuss potential priorities heading into the session. Bills of Interest AB 2050 (Caballero) Small System Water Authority Act of 2018 AB 2050 remains pending. It would authorize the State Water Resources Control Board to order formation of a public agency to assume operations of public and/or private water systems that have either less than 3,000 service connections or serve less than 10,000 people and are not in compliance with applicable drinking water standards as of December 31, The affected public/private small water systems would be dissolved and consolidated to form a new type of public agency: a Small System Water Authority (SSWA). The bill requires consolidation of a minimum of five local non-compliant public/private small water systems in order to create a SSWA with sufficient economies of scale to remedy the violations of drinking water standards. Markedly, following the submittal of a formation application and plan for services to LAFCO, the Commission would be required to approve the SSWA formation with discretion limited to imposing conditions. CALAFCO took a support position after the author accepted several amendments. The bill passed through the Legislature and was presented to the Governor on September 5, P age 108

109 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 9 Legislative Report Staff Discussion on AB 2050 The CALAFCO Legislative Committee formed a subcommittee in early 2018 to address concerns regarding AB 2050 s proposed formation of a new type of public agency and to clarify LAFCO s role in the process. CALAFCO worked closely with the author and cosponsors (the California Municipal Utilities Association and the Eastern Municipal Water District) as the bill moved forward. With respect to local impact, as of January 2018, there are 11 small drinking water systems in San Diego County identified as noncompliant with drinking water standards and potentially subject to the AB 2050 consolidation provisions. The 11 affected local drinking water systems include two public agencies: the Decanso Community Services District (CSD) and the Warner Springs Unified School District; and nine private water corporations, including mutual water companies and RV/Mobile Home Parks. (The non-compliant private systems are located in the unincorporated communities of Alpine, Borrego Springs, Guatay, Pauma Valley, and Ramona.) The Commission approved a support position on May 7 th. San Diego LAFCO Position: Support, letter sent to Author Bill Status: Enrolled and presented to the Governor for signature on September 5, 2018 AB 2238 (Aguiar-Curry) Proposal Review Factors: Hazard Mitigation Plans AB 2238 remains pending. It would add a new factor as part of the standard LAFCO review of any boundary change and involves assessing a proposal s conformance with any relevant hazard mitigation plan or safety element of a general plan. CALAFCO took a support position. The bill passed the Legislature and was presented to the Governor for signature on September 10, Staff Discussion on AB 2238 Following the wildfires throughout the state over the past several years, this bill seeks to add another proposal review factor for LAFCO consideration regarding information contained in a local hazard mitigation plan, a safety element of a general plan, and any maps that identify land as a very high fire hazard zone or maps that identify land determined to be in a state responsibility area. As San Diego County has been historically subject to numerous wildfires, this review factor, if approved, may be of interest in regards to local conditions and safety concerns. San Diego LAFCO Position: Watch Bill Status: Enrolled, presented to the Governor for signature on September 10, 2018 AB 2258 (Caballero) Strategic Growth Council Grant Program AB 2258 has been vetoed by the Governor. The bill was sponsored by CALAFCO as a follow up on the 2017 Little Hoover Commission recommendation for the Legislature to provide LAFCOs one-time grant funding for in-depth studies of potential reorganization of local service providers. This bill would have required the Strategic Growth Council (SGC), until January 1, 2024, to establish and administer a LAFCO grant program for the payment of costs associated with preparation of special studies, initiation and completion of actions to 3 P age 109

110 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 9 Legislative Report dissolve inactive districts, development and implementation of reorganization plans, or incentivizing service providers to assist LAFCO in development and implementation of reorganization plans. The bill also proposed changing the protest threshold for LAFCO initiated actions, solely for the purposes of actions funded through the referenced grants. The bill passed the Legislature and was presented to the Governor for signature on September 10 th. The Governor vetoed the bill on September 18 th. Staff Discussion on AB 2258 AB 2258 was a legislative priority for CALAFCO and would have provided grant funding opportunities for local LAFCOs to prepare studies that identify potential service efficiencies and/or determine potential alternatives for improving efficiency and affordability of infrastructure and service delivery. The grant program would have also provided funding for LAFCO-initiated actions based on determinations from such studies. This bill was largely aimed at supporting smaller LAFCOs; many of which operate with minimal funding. The Commission approved a support position for AB 2258 at the May 7 th meeting. San Diego LAFCO: Support, letter sent to Author Bill Status: Vetoed by Governor, September 18, 2018 AB 3254 (ALGC) Omnibus Bill AB 3254 has been signed by the Governor and will become effective on January 1, This bill represents the annual omnibus bill by the Assembly Local Government Committee that addresses, among other items, technical and non-controversial issues in LAFCO law. Notable items in the bill included a focus on definition clean-ups, including affected territory and inhabited territory. The Commission approved a support position at the May 7th meeting. The bill was signed by the Governor on July 2, Staff Discussion on AB 3254 AB 3254 provides needed clarification involving several key terms such as affected territory and will help unify LAFCO interpretations across the state. Appreciation is noted for Los Angeles LAFCO s Paul Novak for managing this item on behalf of the CALAFCO Legislative Committee. San Diego LAFCO Position: Support, letter sent to Author Bill Status: Signed by Governor on July 2, 2018 SB 1215 (Hertzberg) Sewer Systems: Consolidation & Extension of Service SB 1215 remains pending. It proposes to authorize the State Water Resources Control Board (SWRCB) to mandate extension of service or consolidation of wastewater systems - both public and private - under certain circumstances and after making specific findings. The process mirrors the process set forth in SB 88 giving the SWRCB authority to mandate the same for drinking water systems. This bill also proposes to authorize the State Board to set timeline and performance measures to facilitate completion of extension of service of 4 P age 110

111 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 9 Legislative Report drinking water. CALAFCO has taken a watch with concern position. The bill passed the Legislature and was presented to the Governor on September 12, Staff Discussion on SB 1215 This bill would authorize the State Board to order the extension of the provision of sewer service to a disadvantaged community by a city or county within limited discretion to LAFCOs in denying. The bill would also authorize the State Board to order annexation of a disadvantaged community with a receiving sewer system of a special district. San Diego County contains a number of qualifying disadvantaged communities, and as such could be substantively impacted should the bill become law, CALAFCO Position: Watch with Concerns Bill Status: Enrolled, presented to the Governor for signature on September 12, 2018 SB 623 (Monning) Safe and Affordable Drinking Water Fund SB 623 did not make it out of session. The bill proposed to establish the Safe and Affordable Drinking Water Fund and fill gaps in funding for disadvantaged communities and low-income residents without access to safe drinking water. The funding mechanisms would have included: 1) agricultural fees in the context of nitrate contamination in groundwater and 2) fees collected by local water agencies on drinking water meters serving residential, business, industrial and governmental customers. CALAFCO took a watch with concern position. Staff Discussion on SB 623 SB 623 transitioned into a trailer bill and would have imposed a fee (or tax) on water meters to provide a funding source for addressing non-compliant small drinking water systems. The inclusion of the bill as a trailer to the State budget proved concerning to given it avoided the typical review process and avoidance of any committee hearings. Accordingly, the Commission approved an oppose position at the May 7 th meeting. San Diego LAFCO Position: Oppose, letter sent to Author Bill Status: SB 623 was dropped from the Budget Bill that was signed on June 27, 2018 AB 1944 (Garcia) San Luis Rey Valley Groundwater Basin AB 1944 was signed by the Governor on September 5, 2018 and will become effective on January 1, The bill involves the Sustainable Groundwater Management Act (SGMA) and its provisions to require all groundwater basins designated by the Department of Water Resources as high or medium-priority basins subject to critical conditions of overdraft to be managed under a groundwater sustainability plan by January 31, SGMA also provides a definition for groundwater that does not include water beneath the surface that is considered a subterranean stream flowing through known and definite channels. This bill amends SGMA implementation for the the San Luis Rey Valley Groundwater Basin in San Diego County and creates an upper and lower subbasin, and designates both as medium priorities until the Department of Water Resources reassesses 5 P age 111

112 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 9 Legislative Report basin prioritization. The bill also amends SGMA to include the subterranean streams beneath the surface of the ground within the Upper San Luis Rey Valley Groundwater Subbasin as groundwater for the purposes of the Act. Groundwater extracted and used as authorized under an existing appropriative water right is now exempt from a groundwater sustainability plan. CALAFCO took no position. Staff Discussion on AB 1944 As the Upper San Luis Rey Valley Groundwater Subbasin has been previously designated as a subterranean stream, access to that groundwater is subject to the same permitting requirements as diversions from surface water. AB 1944 aligns updated knowledge of groundwater basins and subterranean streams with the requirements of SGMA. The bill is the result of a local effort by stakeholders to better manage the local groundwater basin going forward and ahead of SGMA. The Commission approved a support position at the May 7 th meeting. San Diego LAFCO Position: Support, letter sent to Author Bill Status: Signed by Governor on September 5, 2018 ANALYSIS The second year of the legislative session is nearing completion with a number of tracked bills having been approved by the Legislature and submitted to the Governor for signature or veto. Most of these tracked bills remain pending and await a decision by the Governor with two exceptions: AB 1944 and AB AB 1944 was signed by the Governor and proceeds with helpful and Commission-supported amendments to SGMA to ease implementation in the San Luis Rey groundwater basin in San Diego County. AB 2258 and its provisions to establish a grant program to fund LAFCO studies and actions relating to initiating and completing the dissolution of inactive special districts was vetoed by the Governor. The veto represents a significant setback for CALAFCO given the bill was its top priority, and as such it expended considerable resources in working with stakeholders throughout the session. The remaining tracked bills awaiting action by the Governor have indirect effects for LAFCO, including AB 2050 and its provisions to create an expedited consolidation process for non-compliant public or private small drinking water systems into a new public agency overseen by LAFCO. Staff will provide final status updates on the tracked bills to the Commission at the December 3, 2018 meeting. RECOMMENDATION This item is presented for information only. It is recommended the Commission review the report with the invitation to discuss and provide general direction to staff as needed. 6 P age 112

113 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 9 Legislative Report 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, Robert Barry, AICP Chief Policy Analyst Attachments: 1) CALAFCO Daily Legislative Report, September 19, P age 113

114 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 9 Legislative Report Page Blank for Photocopying 8 P age 114

115 CALAFCO Daily Legislative Report as of Wednesday, September 19, AGENDA ITEM No. 9 Attachment 1 AB 2050 (Caballero D) Small System Water Authority Act of Current Text: Enrollment: 9/5/2018 html pdf Introduced: 2/6/2018 Last Amended: 8/6/2018 Status: 9/5/2018-Enrolled and presented to the Governor at 3 p.m. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would create the Small System Water Authority Act of 2018 and state legislative findings and declarations relating to authorizing the creation of small system water authorities that will have powers to absorb, improve, and competently operate noncompliant public water systems. The bill, no later than March 1, 2019, would require the state board to provide written notice to cure to all public agencies, private water companies, or mutual water companies that operate a public water system that has either less than 3,000 service connections or that serves less than 10,000 people, and are not in compliance, for 4 consecutive quarters, with one or more state or federal primary drinking water standard maximum contaminant levels as of December 31, 2018, as specified. Attachments: CALAFCO Support Letter June 2018 Position: Support Subject: LAFCo Administration, Municipal Services, Water CALAFCO Comments: This bill is sponsored by Eastern Municipal Water District and the CA Municipal Utilities Assoc. The intent is to give the State Water Resources Control Board (SWRCB) authority to mandate the dissolution of existing drinking water systems (public, mutual and private) and authorize the formation of a new public water authority. The focus is on non contiguous systems. The SWRCB already has the authority to mandate consolidation of these systems, this will add the authority to mandate dissolution and formation of a new public agency. LAFCo will be responsible for dissolving any state mandated public agency dissolution, and the formation of the new water authority. The SWRCB's appointed Administrator will act as the applicant on behalf of the state. LAFCo will have ability to approve with modifications the application, and the new agency will have to report to the LAFCo annually for the first 3 years. AB 2238 (Aguiar-Curry D) Local agency formation: regional housing need allocation: fire hazards: local health emergencies: hazardous and medical waste. Current Text: Enrollment: 9/10/2018 html pdf Introduced: 2/13/2018 Last Amended: 8/24/2018 Status: 9/10/2018-Enrolled and presented to the Governor at 3:30 p.m. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 provides the authority and procedures for the initiation, conduct, and completion of changes of organization and reorganization of cities and districts. The act specifies the factors that a local agency formation commission is required to consider in the review of a proposal for a change of organization or reorganization, including, among other things, per capita assessed valuation and the proposal s consistency with city or county general and specific plans This bill would require the commission to consider the assessed valuation rather than per capita assessed valuation. Attachments: CALAFCO Support Letter May 2018 Position: Support Subject: Climate Change, Growth Management CALAFCO Comments: This bill seeks to add another factor for LAFCo consideration in the review of a :31:58 PM]

116 AB 2258 AB 2600 proposal. That factor is information contained in a local hazard mitigation plan, information contained in a safety element of a general plan, and any maps that identify land as a very high fire hazard zone pursuant to Section or maps that identify land determined to be in a state responsibility area pursuant to Section 4102 of the Public Resources Code, if it is determined that such information is relevant to the area that is the subject of the proposal. The bill also adds two non-lafco-related sections pertaining to the update of a housing element. This bill is in response to the rash of wildfires throughout the state over the past several years and the ongoing threat of same as a result of climate change. (Caballero D) Local agency formation commissions: grant program. Current Text: Vetoed: 9/18/2018 html pdf Introduced: 2/13/2018 Last Amended: 8/24/2018 Status: 9/18/2018-Vetoed by Governor. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would require the Strategic Growth Council, until July 31, 2024, to establish and administer a local agency formation commissions grant program for the payment of costs associated with initiating and completing the dissolution of districts listed as inactive, the payment of costs associated with a study of the services provided within a county by a public agency to a disadvantaged community, as defined, and for other specified purposes, including the initiation of an action, as defined, that is limited to service providers serving a disadvantaged community and is based on determinations found in the study, as approved by the commission. Attachments: CALAFCO Support_March 2018 CALAFCO Support_March 2018 Position: Sponsor Subject: Other CALAFCO Comments: This is a CALAFCO sponsored bill following up on the recommendation of the Little Hoover Commission report of 2017 for the Legislature to provide LAFCos one-time grant funding for indepth studies of potential reorganization of local service providers. The Strategic Growth Council (SGC) will administer the grant program. Grant funds will be used specifically for conducting special studies to identify and support opportunities to create greater efficiencies in the provision of municipal services; to potentially initiate actions based on those studies that remove or reduce local costs thus incentivizing local agencies to work with the LAFCo in developing and implementing reorganization plans; and the dissolution of inactive districts (pursuant to SB 448, Wieckowksi, 2017). The grant program would sunset on July 31, The bill also changes the protest threshold for LAFCo initiated actions, solely for the purposes of actions funded pursuant to this new section. It allows LAFCo to order the dissolution of a district (outside of the ones identified by the SCO) pursuant to Section of the Elections code, which is a tiered approach based on registered voters int he affected territory (from 30% down to 10% depending). Amendments taken in Senate Governance & Finance and Natural Resources & Water narrow the scope of the bill to focus on service providers serving disadvantaged communities; requires LAFCo pay back grant funds in their entirety if the study is not completed within two years; and requires the SGC to give preference to LAFCOs whose decisions have been aligned with the goals of sustainable communities strategies. Recent amendments remove the fiscal portion of the bill, which was $1.5 million over 5 years. The bill is now based on an appropriation in the annual Budget Act. CALAFCO will attempt again next year to get the funding into the budget. The grant program will be in place pending the funding. (Flora R) Regional park and open space districts. Current Text: Chaptered: 8/28/2018 html pdf Introduced: 2/15/2018 Last Amended: 6/26/2018 Status: 8/27/2018-Approved by the Governor. Chaptered by Secretary of State - Chapter 218, Statutes of Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered :31:58 PM]

117 AB 3254 SB st House 2nd House Conc. Summary: Current law authorizes proceedings for the formation of a regional park, park and open-space, or openspace district to be initiated pursuant to a petition signed by at least 5,000 electors residing within the proposed district territory and presented to the county board of supervisors, as specified. Existing law also authorizes proceedings for district formation in specified counties to be initiated by resolution of the county board of supervisors adopted after a noticed hearing, and specifies the contents of the resolution. This bill would, in lieu of the petition described above, authorize the formation of a district by the adoption of a resolution of application by the legislative body of any county or city that contains the territory proposed to be included in the district. Attachments: CALAFCO Support_March 2018 Position: Support CALAFCO Comments: This bill would expand the process of initiating the formation of a regional pack and open space district by adding that a local governing body may adopt a resolution proposing to form a new district. This would be in lieu of having a 5,000 signature petition. The LAFCo process remains intact. The intent of this bill is to create an easier way (not to replace but in addition to existing process) to proposed the formation of these types of districts, thereby removing the need for special legislation to do so. The bill is author-sponsored. (Committee on Local Government) Local government organization: omnibus. Current Text: Chaptered: 7/9/2018 html pdf Introduced: 3/14/2018 Last Amended: 5/17/2018 Status: 7/9/2018-Approved by the Governor. Chaptered by Secretary of State - Chapter 86, Statutes of Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (the Act) provides the authority and procedure for the initiation, conduct, and completion of changes of organization, reorganization, and sphere of influence changes for cities and districts, as specified. Current law defines various terms for purposes of that Act, including the terms affected territory and inhabited territory. This bill would revise those definitions to include territory that is to receive extended services from a local agency, and additionally define the term uninhabited territory for purposes of the Act. Attachments: Request Governor Signature_June 2018 CALAFCO Support Position: Sponsor CALAFCO Comments: This is the annual Assembly Local Government Committee Omnibus bill, sponsored by CALAFCO. Amendments are pending to add several items. (Hertzberg D) Provision of sewer service: disadvantaged communities. Current Text: Enrollment: 9/12/2018 html pdf Introduced: 2/15/2018 Last Amended: 8/24/2018 Status: 9/12/2018-Enrolled and presented to the Governor at 5 p.m. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: The Porter-Cologne Water Quality Control Act requires each California regional water quality control board to adopt water quality control plans and to establish water quality objectives in those plans, considering certain factors, to ensure the reasonable protection of beneficial uses and the prevention of nuisance. This bill would, except as provided, authorize the regional board to order the provision of sewer service by a special district, city, or county to a disadvantaged community, as defined, under specified circumstances. By authorizing the regional board to require a special district, city, or county to provide sewer service, this bill would impose a state-mandated local program. Attachments: CALAFCO Coalition Oppose Floor Alert_August 2018 Position: Oppose :31:58 PM]

118 SB 1496 SB 1497 SB 1499 Subject: Disadvantaged Communities, Water CALAFCO Comments: As amended, this bill authorizes the State Water Resources Control Board (SWRCB) to mandate extension of service or consolidation of wastewater systems - both public and private, under certain circumstances. The process mirrors the process set forth in SB 88 giving the SWRCB authority to mandate the same for drinking water systems. However, the bill allows for an extension up to 3 miles with no requirements for annexation of the territory; does not provide a definitive source of funding; does not require those will failing systems to connect to the new system; and charges opt-out fees to those who do not. CALAFCO attempted to work with the author's office on the primary issues of annexation and the allowable extension limit, but were unsuccessful in securing those amendments. As a result, we joined with CASA, CSDA, CSCA, RCRC and the League to oppose. (Committee on Governance and Finance) Validations. Current Text: Chaptered: 6/1/2018 html pdf Introduced: 3/1/2018 Status: 6/1/2018-Approved by the Governor. Chaptered by Secretary of State. Chapter 23, Statutes of Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: This bill would enact the Second Validating Act of 2018, which would validate the organization, boundaries, acts, proceedings, and bonds of the state and counties, cities, and specified districts, agencies, and entities. Attachments: CALAFCO Support March 2018 Position: Support (Committee on Governance and Finance) Validations. Current Text: Chaptered: 6/1/2018 html pdf Introduced: 3/1/2018 Status: 6/1/2018-Approved by the Governor. Chaptered by Secretary of State. Chapter 24, Statutes of Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: This bill would enact the First Validating Act of 2018, which would validate the organization, boundaries, acts, proceedings, and bonds of the state and counties, cities, and specified districts, agencies, and entities.this bill contains other related provisions. Attachments: CALAFCO Support March 2018 Position: Support Subject: LAFCo Administration (Committee on Governance and Finance) Validations. Current Text: Chaptered: 6/1/2018 html pdf Introduced: 3/1/2018 Status: 6/1/2018-Approved by the Governor. Chaptered by Secretary of State. Chapter 25, Statutes of Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: This bill would enact the Third Validating Act of 2018, which would validate the organization, boundaries, acts, proceedings, and bonds of the state and counties, cities, and specified districts, agencies, and entities. Attachments: CALAFCO Support March 2018 Position: Support Subject: LAFCo Administration :31:58 PM]

119 2 AB 2268 (Reyes D) Local government finance: property tax revenue allocations: vehicle license fee adjustments. Current Text: Amended: 4/16/2018 html pdf Introduced: 2/13/2018 Last Amended: 4/16/2018 Status: 5/25/2018-Failed Deadline pursuant to Rule 61(b)(8). (Last location was A. APPR. SUSPENSE FILE on 5/2/2018) Desk Policy Dead Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: for the fiscal year, would require the vehicle license fee adjustment amount to be the sum of the vehicle license fee adjustment amount in the fiscal year, the product of that sum and the percentage change in gross taxable assessed valuation within the jurisdiction of that entity between the fiscal year to the fiscal year, and the product of the amount of specified motor vehicle license fee revenues that the Controller allocated to the applicable city in July 2010 and Attachments: CALAFCO Support Letter May 2018 AB 2491 AB 2501 Position: Support Subject: Tax Allocation CALAFCO Comments: Sponsored by the League, this bill would have reinstated ERAF funding for inhabited annexations. (Cooley D) Local government finance: vehicle license fee adjustment amounts. Current Text: Amended: 4/2/2018 html pdf Introduced: 2/14/2018 Last Amended: 4/2/2018 Status: 5/25/2018-Failed Deadline pursuant to Rule 61(b)(8). (Last location was A. APPR. SUSPENSE FILE on 4/25/2018) Desk Policy Dead Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Would establish a separate vehicle license fee adjustment amount for a city incorporating after January 1, 2012, including an additional separate vehicle license fee adjustment amount for the first fiscal year of incorporation and for the next 4 fiscal years thereafter. This bill contains other related provisions and other existing laws. Attachments: CALAFCO Support March 2018 Position: Support Subject: Tax Allocation CALAFCO Comments: Sponsored by the League, this bill would have reinstated ERAF funding for cities incorporating after (Chu D) Drinking water: state administrators: consolidation and extension of service. Current Text: Enrollment: 9/12/2018 html pdf Introduced: 2/14/2018 Last Amended: 8/24/2018 Status: 9/12/2018-Enrolled and presented to the Governor at 12 p.m. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: The California Safe Drinking Water Act requires the State Water Resources Control Board, before ordering consolidation or extension of service, to fulfill certain requirements, including, among other things, to hold a public meeting, and to establish a reasonable deadline, as prescribed, for a potentially receiving water system and a potentially subsumed water system to negotiate consolidation or another means of providing an adequate supply of affordable, safe drinking water. The act requires the state board to conduct a public hearing at the expiration of the reasonable deadline, as specified. This bill would revise and recast these provisions :31:58 PM]

120 Position: Watch With Concerns Subject: Disadvantaged Communities, Water 3 AB 1577 AB 1889 AB 2019 (Gipson D) California Safe Drinking Water Act: Sativa-Los Angeles County Water District. Current Text: Enrollment: 9/11/2018 html pdf Introduced: 2/17/2017 Last Amended: 8/24/2018 Status: 9/11/2018-Enrolled and presented to the Governor at 4:30 p.m. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: The California Safe Drinking Water Act provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system or a state small water system, serving a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water. This bill would require the state board to order the Sativa-Los Angeles County Water District to accept administrative and managerial services, including full management and control, from an administrator selected by the state board. Attachments: CALAFCO Support Letter June 2018 Position: Support Subject: Disincorporation/dissolution, Water (Caballero D) Santa Clara Valley Water District. Current Text: Chaptered: 9/5/2018 html pdf Introduced: 1/18/2018 Last Amended: 7/3/2018 Status: 9/5/2018-Approved by the Governor. Chaptered by Secretary of State - Chapter 251, Statutes of Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: The Santa Clara Valley Water District Act authorizes the district to impose special taxes at minimum rates according to land use category and size. The district act authorizes the district to provide an exemption from these taxes for residential parcels owned and occupied by one or more taxpayers who are at least 65 years of age, or who qualify as totally disabled, if the household income is less than an amount approved by the voters of the district. This bill would authorize the district to require a taxpayer seeking an exemption from these special taxes to verify his or her age, disability status, or household income, as prescribed. Position: Watch (Aguiar-Curry D) Health care districts. Current Text: Chaptered: 9/5/2018 html pdf Introduced: 2/5/2018 Last Amended: 8/15/2018 Status: 9/5/2018-Approved by the Governor. Chaptered by Secretary of State - Chapter 257, Statutes of Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: The Local Health Care District Law provides for local health care districts that govern certain health care facilities. Each health care district has a board of directors with specific duties and powers respecting the creation, administration, and maintenance of the district. Current law requires the board of directors to establish and maintain an Internet Web site that may include specified information, such as a list of current board members and recipients of grant funding or assistance provided by the district, if any, and to adopt annual policies for providing assistance or grant funding, as specified. This bill would require the board of directors to include specified information, such as the district s policy for providing assistance or grant funding, on the district s Internet Web site. 2:31:58 PM] 120

121 AB 2179 AB 2262 AB 2339 Position: Watch CALAFCO Comments: This bill places a number of statutory requirements on healthcare districts (HCDs). One provision that directly affects LAFCo is the HCDs will be required to notify their respective LAFCo when they file for bankruptcy. (Gipson D) Municipal corporations: public utility service: water and sewer service. Current Text: Enrollment: 9/6/2018 html pdf Introduced: 2/12/2018 Last Amended: 8/15/2018 Status: 9/6/2018-Enrolled and presented to the Governor at 3 p.m. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Current law authorizes a municipal corporation to sell or dispose of any public utility it owns. Current law requires that a resolution authorizing the sale of a public utility be passed by 2/3 of the members of the legislative body of the municipal corporation and be passed by a 2/3 vote of all voters voting at an election to authorize the sale in the ordinance calling the election. Current law establishes an alternative procedure whereby a municipal corporation can lease, sell, or transfer that portion of a water utility used for furnishing water service outside the boundaries of the municipal corporation. This bill would additionally authorize a municipal corporation to utilize the alternative procedures to lease, sell, or transfer that portion of a municipal utility used for furnishing sewer service outside the boundaries of the municipal corporation. Position: Watch Subject: Municipal Services (Wood D) Coast Life Support District Act: urgent medical care services. Current Text: Amended: 4/16/2018 html pdf Introduced: 2/13/2018 Last Amended: 4/16/2018 Status: 8/31/2018-Failed Deadline pursuant to Rule 61(b)(18). (Last location was S. INACTIVE FILE on 8/31/2018) Desk Policy Fiscal Floor Desk Policy Fiscal Dead Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Current law, the Coast Life Support District Act, establishes the Coast Life Support District and specifies the powers of the district. The district is authorized, among other things, to supply the inhabitants of the district emergency medical services, as specified.this bill would additionally authorize the district to provide urgent medical care services. Attachments: CALAFCO Oppose Unless Amended CALAFCO Support as amended Position: Support Subject: LAFCo Administration, Special District Powers CALAFCO Comments: This is a single district bill in which the district is seeking to add the power of providing urgent care (actually to codify powers they have been performing for a number of years). As amended, the bill cleans up the outdated reference to the Act and adds a provision requiring the district to seek LAFCo approval to activate the new power. As a result of these amendments, CALAFCO has removed our opposition and now supports the bill. (Gipson D) Water utility service: sale of water utility property by a city. Current Text: Enrollment: 9/6/2018 html pdf Introduced: 2/13/2018 Last Amended: 8/15/2018 Status: 9/6/2018-Enrolled and presented to the Governor at 3 p.m. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Would authorize the City of El Monte, the City of Montebello, and the City of Willows, until January 1, 2022, to sell its public utility for furnishing water service for the purpose of consolidating its public water system with another public water system pursuant to the specified procedures, only if the potentially :31:58 PM]

122 subsumed water system is wholly within the boundaries of the city, if the city determines that it is uneconomical and not in the public interest to own and operate the public utility, and if certain requirements are met. The bill would prohibit the city from selling the public utility for one year if 50% of interested persons, as defined, protest the sale. Position: Watch Subject: Water SB 522 (Glazer D) West Contra Costa Healthcare District. Current Text: Chaptered: 7/18/2018 html pdf Introduced: 2/16/2017 Last Amended: 1/3/2018 Status: 7/18/2018-Approved by the Governor. Chaptered by Secretary of State. Chapter 133, Statutes of Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Current law provides for the formation of local health care districts and specifies district powers. Under existing law, the elective officers of a local health care district consist of a board of hospital directors consisting of 5 members, each of whom is required to be a registered voter residing in the district and whose term shall be 4 years, except as specified. This bill would dissolve the existing elected board of directors of the West Contra Costa Healthcare District, effective January 1, 2019, and would require the Board of Supervisors of the County of Contra Costa, at its election, to either serve as the district board or appoint a district board, as specified. Position: Watch Subject: Special Districts Governance SB 561 (Gaines R) Fallen Leaf Lake Community Services District: State audit. Current Text: Amended: 6/26/2018 html pdf Introduced: 2/17/2017 Last Amended: 6/26/2018 Status: 8/17/2018-Failed Deadline pursuant to Rule 61(b)(15). (Last location was A. APPR. on 6/28/2018) Desk Policy Fiscal Floor Desk Policy Dead Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Current law requires the county auditor to either perform an audit, or contract with a certified public accountant or public accountant to perform an audit, of the accounts and records of every special district within the county, as specified. Current law authorizes a special district, by unanimous request of its governing board and unanimous approval by the board of supervisors, to replace the annual audit with an audit over a longer period of time or with a financial review, as specified. This bill would require, by August 1, 2019, the California State Auditor to complete an audit of the Fallen Leaf Lake Community Services District that includes, among other things, an analysis of the district s financial condition and ongoing financial viability. Position: Watch Subject: Special Districts Governance SB 623 (Monning D) Water quality: Safe and Affordable Drinking Water Fund. Current Text: Amended: 8/21/2017 html pdf Introduced: 2/17/2017 Last Amended: 8/21/2017 Status: 8/31/2018-Failed Deadline pursuant to Rule 61(b)(18). (Last location was A. RLS. on 9/1/2017) Desk Policy Fiscal Floor Desk Dead Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Would establish the Safe and Affordable Drinking Water Fund in the State Treasury and would provide that moneys in the fund are continuously appropriated to the State Water Resources Control Board. The bill would require the board to administer the fund to secure access to safe drinking water for all Californians, while also ensuring the long-term sustainability of drinking water service and infrastructure. The bill would authorize the state board to provide for the deposit into the fund of federal contributions, voluntary contributions, gifts, grants, bequests, and settlements from parties responsible for contamination of :31:58 PM]

123 drinking water supplies. Position: Watch Subject: Water SB 778 (Hertzberg D) Water systems: consolidations: administrative and managerial services. Current Text: Amended: 7/13/2017 html pdf Introduced: 2/17/2017 Last Amended: 7/13/2017 Status: 8/17/2018-Failed Deadline pursuant to Rule 61(b)(15). (Last location was A. 2 YEAR on 9/1/2017) Desk Policy Fiscal Floor Desk Dead Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Would require, on or before March 1, 2018, and regularly thereafter, as specified, the State Water Resources Control Board to track and publish on its Internet Web site an analysis of all voluntary and ordered consolidations of water systems that have occurred on or after July 1, The bill would require the published information to include the resulting outcomes of the consolidations and whether the consolidations have succeeded or failed in providing an adequate supply of safe drinking water to the communities served by the consolidated water systems. Position: Watch Subject: Municipal Services SB 929 (McGuire D) Special districts: Internet Web sites. Current Text: Chaptered: 9/15/2018 html pdf Introduced: 1/25/2018 Last Amended: 8/16/2018 Status: 9/14/2018-Approved by the Governor. Chaptered by Secretary of State. Chapter 408, Statutes of Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: The California Public Records Act requires a local agency to make public records available for inspection and allows a local agency to comply by posting the record on its Internet Web site and directing a member of the public to the Internet Web site, as specified. This bill would, beginning on January 1, 2020, require every independent special district to maintain an Internet Web site that clearly lists contact information for the special district, except as provided. Because this bill would require local agencies to provide a new service, the bill would impose a state-mandated local program. Attachments: CALAFCO Support letter May 2018 Position: Support SB 1498 (Committee on Governance and Finance) Local Government Omnibus Act of Current Text: Chaptered: 9/17/2018 html pdf Introduced: 3/1/2018 Last Amended: 8/6/2018 Status: 9/17/2018-Approved by the Governor. Chaptered by Secretary of State. Chapter 467, Statutes of Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. 1st House 2nd House Conc. Enrolled Vetoed Chaptered Summary: Current law sets forth various provisions governing cities that reference various officers and employees. This bill would make these references gender neutral. Position: Watch CALAFCO Comments: This is the annual Senate Governance & Finance Committee Omnibus bill. Total Measures: 24 Total Tracking Forms: :31:58 PM]

124 9/19/2018 2:31:02 PM :31:58 PM]

125 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 October 1, 2018 TO: FROM: San Diego Commissioners Keene Simonds, Executive Officer John Traylor, Local Government Consultant 10 AGENDA REPORT Public Hearing 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: COMBINED PUBLIC HEARING Proposed Reorganizations and Associated Sphere Amendments (a) County Service Area No. 115 Reorganization No. 1 for San Miguel Consolidated Fire Protection District (RO14-12 et al.) and (b) County Service Area No. 115 Reorganization No. 2 for Lakeside Fire Protection District (RO14-13 et al.) SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will consider two distinct reorganization proposals filed by Lakeside Fire Protection District (FPD) and San Miguel Consolidated Fire Protection District (FPD). The reorganization proposals were 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. LAFCO has administratively combined the two proposals for processing with the concurrence of both FPDs 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. Staff recommends approval of the combined reorganization proposal and through the individual approval and modification of the two FPD filings with conforming sphere of influence amendments. Terms are also recommended. It is also recommended the existing special sphere of influence study areas for both FPDs involving the affected territory be eliminated. 125

126 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 BACKGROUND Reorganization Requests Competing Proposals In March 2015, San Diego LAFCO received competing proposals from San Miguel Consolidated FPD and Lakeside FPD to dissolve CSA No. 115 and annex the affected territory in its entirety to the respective agencies in step with assuming fire protection and emergency medical services. San Miguel Consolidated FPD was first to file for reorganization on March 22, 2015 and cited its role in serving as first-responder to almost one-quarter of all calls within the affected territory as the primary justification. Lakeside FPD filed its reorganization on March 24, 2015 and cited existing social and economic ties to the affected territory as its primary justification for the reorganization. Both FPDs also cited plans to relocate fire stations closer to the affected territory as further justifications within their respective submittals. Copies of both proposal submittals are attached. Affected Territory The affected territory encompasses approximately 0.69 square miles or 441 unincorporated acres and lies adjacent to the City of Santee to the north and City of El Cajon to the west. The affected territory is generally built-out with a range of residential, commercial, and industrial uses. San Diego LAFCO estimates the total resident population is approximately 4,900 with 2,496 current registered voters. Development within the affected territory is guided by the Lakeside Community Plan. The portion of the affected territory to the west of State Highway 67 is part of a qualifying disadvantaged unincorporated community or DUC. A vicinity map of the affected territory follows. AFFECTED TERRITORY acres in size - Entirely unincorporated - 4,900 estimated residents - 2,496 registered voters - Median age: 33.4 * - Population over 65: 11.4% * - Median HH income: $57,581 * * Data for Census Tract (2016 ACS) 2 P age 126

127 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 Advisory Bodies to LAFCO Stakeholder and Ad Hoc Committees San Diego LAFCO responded to the filing of the competing proposals by establishing a Stakeholder Committee in July 2016 to assist in addressing technical items and marked by advising on appropriate performance measurements in preparing a corresponding municipal service review. Meetings of the Stakeholder Committee were open to the public and initially comprised of representatives from both FPDs and County Fire Authority and later expanded to include the City of Cajon and City of Santee. The Commission also formed an Ad Hoc Committee (Jacob, MacKenzie, Sprague, and Vanderlaan) to advise staff given the complexities in processing the competing proposals. Subsequent Agreement by FPDs Joint-Approach to Divide Annexation of Affected Territory In September 2016 and following feedback from the Stakeholder and Ad Hoc Committees Lakeside and San Miguel Consolidated FPDs agreed in writing to a joint-approach to modify and coordinate their reorganization proposals to divide the affected territory into equal annexation halves based on assessed value. This agreement, which was memorialized in a joint-letter signed by both FPDs and produces the combined reorganization proposal, consents to San Diego LAFCO officially modifying the proposals to divide the annexation of the affected territory generally along Pepper Drive. 1 Lands to the north of Pepper Drive are now mostly proposed for annexation to Lakeside FPD. Lands to the south of Pepper Drive are now mostly proposed for annexation to San Miguel Consolidated FPD. A copy of the joint-letter from both FPDs is attached. A vicinity map showing the annexation areas reflected in the combined reorganization proposal follows. COMBINED REORGANIZATION ANNEXATION AREAS acres generally to the north of Pepper Drive would be annexed to Lakeside FPD acres generally to the south of Pepper Drive would be annexed to San Miguel Consolidated FPD 1 In consultation with LAFCO staff, Lakeside FPD and San Miguel Consolidated FPD chose not to take official action through their boards to modify their resolution of applications on file with San Diego LAFCO. 3 P age 127

128 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 July 2017 LAFCO Meeting Municipal Service Review and Establishment of Special Sphere Study Areas At its July 10, 2017 meeting, San Diego LAFCO received a municipal service review covering CSA No. 115, Lakeside FPD, and San Miguel Consolidated FPD. The document was necessitated under State law to inform the merits of the sphere amendments needed to facilitate the combined reorganization proposal to divide the annexation of the affected territory generally along Pepper Drive. The document was accepted by the Commission and included a range of determinative statements on the agencies abilities to effectively govern, deliver, and finance services for which they were formed. The Commission drew from these determinative statements and concurrently took actions on July 10 th to affirm all three affected agencies existing spheres. The Commission additionally established special sphere study areas for both FPDs to include CSA No The Commission also memorialized recommendations made through the Ad Hoc Committee to focus future staff analysis in addressing the special sphere study areas as detailed in the succeeding section. The Commission further directed staff to return with an update no later than twelve months. June 2018 LAFCO Meeting Update to the Commission At its June 4, 2018 meeting, San Diego LAFCO received a scheduled update from staff on progress made in performing additional analysis on five specific topics identified by the Commission in July 2017 in establishing special sphere study areas for both Lakeside and San Miguel Consolidated FPDs. The update noted three of the five topics were substantively completed and/or finalized and did not require additional review. This involved the confirmation of final modified boundaries and associated property tax exchange agreement, relocation of the San Miguel Consolidated FPD station to 727 East Bradley Avenue, and status of CSA No. 135 as an alternate service provider. The update concluded the remaining two topics remained fluid and merited additional review and involved tracking service calls within CSA No. 115 and San Miguel Consolidated FPD s transition and finances. The Commission responded with direction to staff to prepare a report and formal recommendation on the combined reorganization proposal and associated sphere amendments once it receives a audit from San Miguel Consolidated FPD. Subject Agencies Three subject agencies are included in the combined reorganization proposal: Lakeside FPD; San Miguel Consolidated FPD; and CSA No Summaries of all three agencies follow The special study area designations memorialize the Commission s finding that additional analysis is needed to determine whether either FPD is the appropriate agency to serve the affected territory. State law defines subject agency to mean any district or city for which a change of organization or reorganization is proposed. 4 Page 128

129 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 CSA No. 115 is a dependent special district formed in 1985 and provides fire protection and emergency medical services to an approximate 441 acre jurisdictional boundary adjacent to the Cities of El Cajon and Santee. 4 The jurisdictional boundary is entirely unincorporated with an estimated resident population of 4,900. Governance is provided by the County of San Diego Board of Supervisors with administration delegated to the County Fire Authority. This administrative role presently includes overseeing a four-way contract officially implemented in July 2016 to provide flat payments to the City of El Cajon, City of Santee, Lakeside FPD, and San Miguel Consolidated FPD to respond to dispatched calls within CSA No An annual stand-by fee is also provided to each contracting agency. San Miguel Consolidated FPD is an independent district formed in 1988 and provides fire protection and emergency medical services to an approximate 29,730 acre jurisdictional boundary covering Spring Valley, Grossmont, and Bostonia; the latter being geographically separate from the remainder of the jurisdictional boundary. 6 The jurisdictional boundary is entirely unincorporated with an estimated resident population of 130,000. Governance is provided by a seven-member elected board. San Miguel Consolidated FPD recently reverted back to stand-alone staffing after ending a brief arrangement for operations with CALFIRE. Budgeted staffing in includes 85 full-time equivalent employees with 75 dedicated to public safety positions. Overall budgeted expenses total $ million for Property taxes serve as the primary revenue and expected to account for 83% of all revenues. Lakeside FPD is an independent district formed in 1963 and provides fire protection and emergency medical services to an approximate 28,900 acre jurisdictional boundary anchored by the unincorporated community of Lakeside. The jurisdictional boundary is entirely unincorporated with an estimated resident population of 65,000. Governance is provided by a five-member elected board. Budgeted staffing in includes 57.0 full-time equivalent employees with 53.0 dedicated to public safety positions. Overall budgeted expenses total $16.2 million for Property taxes serve as the primary revenue and expected to account for 72% of all revenues. Affected Local Agencies The affected territory lies within the jurisdictional boundaries of the following local agencies directly subject to San Diego LAFCO: Padre Dam Municipal Water District; CSA No. 69; CSA No. 135 (regional communications); Helix Water District; Resource Conservation District of Greater San Diego County; and San Diego County Flood Control District Previously the area received services from the Santee FPD. Formation purposefully served to preserve the area as unincorporated and exclusion from the merger of the Santee FPD with the City of Santee. From 1985 to 2016, CSA No. 115 contracted exclusively with the City of Santee to provide fire protection and emergency medical services. San Miguel Consolidated FPD s formation was the result of the consolidation of the Grossmont-Mt. Helix and Spring Valley FPDs. San Miguel Consolidated FPD expanded in 1994 through the consolidation and absorption of the East County FPD. State law defines affected local agency as any entity that contains, or would contain, or whose sphere contains or would contain, any territory for which a change of organization is proposed or ordered. Notice of the proposal and hearing were provided to the agencies. 5 P age 129

130 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 DISCUSSION This item is for San Diego LAFCO to consider approving the reorganization proposals filed by Lakeside and San Miguel Consolidated FPDs to dissolve CSA No. 115 and concurrently annex the affected territory to the FPDs. Consideration and the succeeding analysis is premised on the combined reorganization proposal subsequently agreed to by both FPDs to modify and coordinate the annexation of the affected territory post CSA No. 115 dissolution into equal halves generally along Pepper Drive as described. Commission consideration includes whether additional modifications and/or terms are deemed appropriate so long as the latter does not directly regulate land use, property development, or subdivision requirements. Specific approvals underlying the combined reorganization proposal are as follows. Amend Lakeside FPD s sphere of influence to include the northern portion of the affected territory generally south to Pepper Drive. Amend San Miguel Consolidated FPD s sphere of influence to include the southern portion of the affected territory generally north to Pepper Drive. Dissolve CSA No. 115 and name Lakeside FPD and San Miguel Consolidated FPD as the successor agencies as further specified. Annex the northern portion of the affected territory as described to Lakeside FPD. Annex the southern portion of the affected territory as described to San Miguel Consolidated FPD. Additional discussion with respect to proposal purpose and Commission focus follows. Proposal Purpose The underlying purpose of the combined reorganization proposal as communicated by Lakeside and San Miguel Consolidated FPDs in their correspondence with San Diego LAFCO is to enhance fire protection and emergency medical service delivery to the affected territory by formalizing service responsibilities going forward. Approval would replace an existing contract arrangement administered by the County Fire Authority for CSA No. 115 in which four agencies City of El Cajon, City of Santee, Lakeside FPD, and San Miguel Consolidated FPD are dispatched to the affected territory based on closeness and receive reimbursement payments per onsite response. The division of the affected territory generally along Pepper Drive pertinently serves to monetize the annexation areas with respect to providing each FPD an approximate equal share of current property taxes. 6 P age 130

131 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 Commission Focus Three central and sequential policy items are identified by staff for San Diego LAFCO in considering the merits of the combined reorganization proposal. These central policy items are the stand-alone merits of the (a) premising sphere of influence amendments, (b) timing of the reorganization itself, and (c) whether other discretionary modifications and/or terms are appropriate. The Commission must also consider other relevant statutes within and outside of LAFCO law as detailed in the succeeding sections. ANALYSIS The analysis of the combined reorganization proposal is organized into two subsections below. The first subsection considers the three central and sequential policy issues introduced in the preceding section. This pertains to evaluating the merits of the premising sphere of influence amendments, timing of the reorganization and specifically the dissolution of CSA No. 115 and annexations thereafter to Lakeside and San Miguel Consolidated FPDs, and whether other approval modifications and/or terms are appropriate. The second subsection considers other germane issues under LAFCO law or applicable State statutes and highlighted by the California Environmental Quality Act (CEQA). Central Policy Items Item No. 1 Sphere of Influence Amendments The combined reorganization proposal necessitates San Diego LAFCO approve two related sphere of influence amendment actions under Government Code and provisions therein requiring consistency between boundary changes and affected agencies spheres of influence. The first action involves amending and expanding Lakeside FPD s sphere to include the proposed annexation area of land that lies generally north of Pepper Drive in CSA No The second action involves amending and expanding San Miguel Consolidated FPD s sphere to include the proposed annexation area of land that lies generally south of Pepper Drive in CSA No Consideration of both amendment actions is premised on the Commission s statutory task to designate spheres to demark the affected agencies appropriate current and future service areas relative to community benefits and needs as the membership determines. Consideration is further premised on the use of spheres as policy tools by the Commission to inform subsequent decision-making and applicability to known and/or future proposals. 8 8 In 2008, San Diego LAFCO eliminated CSA No. 115 s sphere of influence in step with determining the agency should be dissolved and its services transferred to an alternative provider. Accordingly, no sphere of influence amendments are needed for CSA No P age 131

132 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 Staff believes it would be appropriate for the Commission to proceed and approve both sphere of influence amendments for the cumulative effect of recognizing the FPDs as the best current and future service providers for the respective portions of the affected territory. The merits underlying the sphere amendments draw on three related and relatively equal policy factors. First, the amendments would be consistent with the telegraphing performed earlier by the Commission in including the subject lands as special sphere study areas for both FPDs. This includes marking the appropriate next step given the special sphere study areas have achieved their purpose in facilitating further reorganization discussions among the subject agencies and allowing additional review on germane governance (service, finance, etc.) topics underlying LAFCO s decision-making. Second, and drawing from the analysis detailed in the succeeding sections, both FPDs appear advantageously positioned to immediately assume and raise service levels by incorporating the affected territory into their long-term planning activities. Third, the amendments expedite the elimination of a duplicative special district CSA No. 115 and further clarify the Commission tasking of long-term service responsibilities in the region. Conclusion Merits of Sphere of Influence Amendments Approval of the sphere of influence amendments to proportionally designate Lakeside and San Miguel Consolidated FPDs and not CSA No. 115 as the appropriate current and future provider of fire protection and emergency medical services for the affected territory is warranted. Justification is marked by the preceding analysis and highlighted by emphasizing the role of spheres to facilitate the realignment of local government services in step with their highest and best uses. Additional analysis supporting the conclusion including addressing the topics identified for additional review initially establishing special sphere study areas along with mandatory factors required under LAFCO law is provided as part of Appendix A. Item No. 2 Reorganization Timing The combined reorganization proposal involves three concurrent boundary changes and marked with the dissolution of CSA No. 115 and ceasing all of its corporate powers. Annexations follow and proportionally divide the affected territory between Lakeside FPD and San Miguel Consolidated FPD as the designated successor agencies in line with assuming fire protection and emergency medical service responsibilities going forward. State law emphasizes that San Diego LAFCO consider the timing of the reorganization relative to the need and adequacy of services as well as consistency with various local policies. This latter item notably includes the effects of the reorganization on the Commission s legislative directive to enact orderly and efficient local government. 8 P age 132

133 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 Staff believes the timing of the combined reorganization proposal is appropriate and highlighted by the analysis of the 16 specific factors required for consideration under LAFCO law anytime boundary changes including dissolutions and annexations are proposed. The majority of the prescribed factors focus on the impacts of the combined reorganization proposal on the administrative, service, and financial capacities of the receiving agencies: Lakeside and San Miguel Consolidated FPDs (emphasis added). No single factor is determinative. The analysis also takes into account unique and germane local conditions underlying the proposal, and this includes the topics previously identified by the Commission meriting specific attention in establishing special sphere study areas for both FPDs. A summary of key conclusions generated in the review of these items follows. Service Needs The present and planned land uses of the affected territory are urban and dense in nature and merits organized fire protection and emergency medical services. This need is highlighted by an existing residential population approaching 5,000 and relatively constant service demands as evident over the last three fiscal years. Demands during this period include onsite arrivals averaging 435 annually or 1.2 daily. Service Capacities and Levels Lakeside and San Miguel Consolidated FPDs already and regularly provide service to the affected territory as participants in the four-way contract administered by CSA No This contract was officially implemented in with Lakeside and San Miguel Consolidated FPDs collectively responding on average to 64% of all onsite incidents in CSA No. 115 during the first two years of implementation with individual amounts tallying 38% and 26%, respectively. 9 Further, and since the date both agencies completed their planned relocation of fire stations closer to the affected territory, the FPDs are now responding to 75% of all onsite incidents with three-fifths going to San Miguel Consolidated. 10 It is also reasonable to assume these most recent response rates which are further detailed as an attachment will hold going forward. Other details on service capacities and levels follow. - Lakeside and San Miguel Consolidated FPDs have each averaged between 9,000 and 12,000 onsite incidents over the last few years. Demands in the affected territory are expected to remain constant to the current fiscal quarter and are not expected to equal more than 3% of the FPDs annual demands, and as such not have a substantive impact on existing constituents. - Anticipated average response times from dispatch to the affected territory from Lakeside and San Miguel Consolidated FPDs have been substantively reduced with the agencies recent fire station relocations and both fall under two minutes City of El Cajon has responded to 44% of all onsite incidents in CSA No. 115 since the official commencement of the four-way contract administered by County Fire Authority. City of Santee has responded to less than 1%. The most recent data covers incidents between May 18, 2018 and August 31, 2018 with the former commencing with San Miguel Consolidated FPD opening its Bradley Station. 9 P age 133

134 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No CSA No. 115 has no facilities or equipment to transfer to Lakeside or San Miguel Consolidated FPDs as the successor agencies. Both FPDs attest no new equipment or staffing is needed to formally assume service responsibilities. - Lakeside and San Miguel Consolidated FPDs are readily familiar with the local and unique service characteristics of the affected territory through their standing contract relationship with CSA No Approval would serve to consolidate dispatch services within the affected territory for all fire and medical calls through Heartland Communications; the joint-power authority used by both Lakeside and San Miguel Consolidated FPDs. This would mark an improvement over the current and divided delivery system utilized by CSA No. 115 in which Monte Vista Command Center dispatches fire and Heartland Communication dispatches medical. Service Funding and Costs Lakeside and San Miguel Consolidated FPDs are largely dependent on property taxes to fund their respective fire protection and emergency medical service operations. Approval of the combined reorganization proposal would trigger a negotiated property tax exchange in which the County of San Diego would transfer $0.429 million to the FPDs in step with the annexations and divided in approximate equal halves. Additional details on service funding and costs follow. - Approval would affirmatively transition compensation for Lakeside and San Miguel Consolidated FPDs in providing fire protection and emergency medical services to the affected territory from variable contract reimbursements to relatively set annual property tax proceeds. This transition would provide both FPDs enhanced revenue certainty and aid capital planning efforts going forward. Local Conditions Topics of Interests LAFCO established special sphere of influence study areas for both Lakeside and San Miguel Consolidated FPDs in July 2017 while completing a municipal service review for the region and ahead of taking future action on the combined reorganization proposal. The special study areas include all of the affected territory for both FPDs. The Commission also identified five broad topics of specific interest meriting additional review in further evaluating special study areas and the combined reorganization proposal. These five topics of interest and analysis therein follows. - Confirmation of Annexation Boundaries Property Tax Exchange Lakeside and San Miguel Consolidated FPDs have completed their negotiations on an annexation split of the approximate 441 acre affected territory. The resulting agreement annexes 230 acres generally north of Pepper Drive to Lakeside FPD and 211 acres generally south of Pepper Drive to San Miguel Consolidated FPD. A 10 P age 134

135 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 property tax agreement has been negotiated with all three subject agencies and pending adoption by the Board of Supervisors on September 26, Relocation of San Miguel Consolidated FPD s Station San Miguel Consolidated FPD s initial plan of service accompanying its application to dissolve CSA No. 115 and annex the affected territory included the construction of a new fire station at 1105 Pepper Drive. San Miguel Consolidated FPD subsequently committed in March 2017 to relocate the fire station based on feedback from the Stakeholder and Ad Hoc Committees to secure a more appropriate location and provide better spacing with Lakeside FPD s fire station at 8035 Winter Gardens Boulevard. San Miguel Consolidated FPD proceeded to construct and commence operations at a new fire station at 727 East Bradley Avenue in May The new station is secured through a 10-year lease and includes an approximate 3,255 square foot facility consisting of a 1,575 squarefoot apparatus bay and a 1,680 square-foot living quarter. - Service Responses in CSA No. 115 LAFCO staff has collected service call information within CSA No. 115 starting in and through the August 31, This data was provided by the County Fire Authority and shows Lakeside FPD and San Miguel Consolidated FPD have alternated as the lead first-responders in each of the three fiscal years. In , Lakeside FPD served as the primary first-responder at 43% followed in order by the City El Cajon, San Miguel Consolidated FPD, and City of Santee at 30%, 18%, and 8%, respectively. However, and coinciding with the opening of the Bradley Station in May, San Miguel Consolidated FPD has assumed lead role by responding to 62% of all incidents with El Cajon and Lakeside FPD following closing together. - CSA No. 135 as an Alternate Service Provider LAFCO staff has confirmed CSA No. 135 is a viable alternative to assume fire protection and emergency medical service responsibilities for CSA No This alternative would represent a status-quo and prefaced on maintaining the fourway agreement with City of El Cajon, City of Santee, Lakeside FPD, and San Miguel Consolidated FPD to serve the affected territory with one notable exception. This exception would involve dissolution of CSA No. 115 and consolidation of County Fire Authority s operations into a single service-agent: CSA No This alternative while viable and with its own merit does not facilitate long-term service planning for the affected territory from any of the contracting service providers reflected in the combined reorganization proposal. 11 Should the property tax exchange agreement not be adopted by the Board of Supervisors as scheduled on September 26 th, LAFCO will need to reschedule the hearing on the CSA No. 115 reorganization to a future date. 11 P age 135

136 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No San Miguel Consolidated FPD s Transition and Finances In January 2013, San Miguel Consolidated FPD commenced a contract to staff its fire protection services through CALFIRE. The decision to contract responded to financial challenges and marked by operating deficits and aimed at providing more cost-certainty with respect to labor. In July 2016, however and citing escalating contract costs, San Miguel Consolidated FPD provided notice to CALFIRE it was terminating the arrangement and reassuming stand-alone staffing. San Miguel Consolidated FPD completed its transition back to standalone staffing at the start of the fiscal year. With the preceding in mind, LAFCO staff has evaluated San Miguel Consolidated FPD s financial standing with respect to its ability to sufficiently fund an adequate level of fire protection with stand-alone staffing and relative to the projections made in the municipal service review. This includes staff having now received and evaluated three new years of audited information for , , and ; the latter of which is the first audit covering San Miguel Consolidated FPD s transition back to stand-alone staffing. The recent audits show overall positive trends in most standard measurements and highlighted by finishing with a total margin of 18%. This latter measurement pertinently reversed a three-year downward trend in total margin and attributed to a sizeable reduction in administrative expenses. Other positive measurements include upward trends in liquidity and capital, less pension and related benefit obligations. 12 Conclusion Merits of Reorganization Timing The timing of the combined reorganization proposal and proportional transfer therein of fire protection and emergency medical service responsibilities within the affected territory from CSA No. 115 to Lakeside and San Miguel Consolidated FPDs is warranted. Justification is marked by the preceding analysis and highlighted by the ability of both FPDs to continue to provide timely services to the affected territory with the aid of revenue-certainty to better inform their respective long-term service planning. Additional analysis supporting the conclusion is provided in Appendix B. Item No. 3 Modifications and Terms No further boundary modifications for the combined reorganization proposal have been identified by staff meriting consideration by San Diego LAFCO. 12 San Miguel Consolidated FPD s overall debt ratio finished at 261%. Employee pension obligations with CalPERS underlie the debt and have increased over the last three fiscal years from $23.8 to $36.4 million. The last CalPERS actuarial report identified San Miguel Consolidated FPD s funded ratio at 71%. The debt ratio is reduced to 27% when all pension and related benefit obligations are excluded. 12 P age 136

137 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 Lakeside and San Miguel Consolidated FPDs have submitted a list of negotiated terms for Commission consideration. This includes terming approval and recordation of the combined reorganization on Lakeside FPD making a $400,000 payment to San Miguel Consolidated FPD. This payment is to enhance regional fire and emergency response services and move forward with the combined reorganization proposal as negotiated between the FPDs. Staff has reviewed the terms with Commission Counsel and believes all conform to LAFCO law and appropriate to apply. Additional terms are also recommended by staff and address standard items ranging from covering remaining fees to preparing final maps and descriptions for filing with the State Board of Equalization. Conclusion Merits of Modifications and Terms No further modifications to the combined reorganization proposal appear warranted. Terms are recommended and include all requested conditions negotiated between Lakeside and San Miguel Consolidated FPDs. Standard terms necessary to complete and record the reorganization are also recommended. A detailing of all terms are provided as part of the attached draft resolutions of approval. Other Statutory Considerations Exchange of Property Tax Revenues California Revenue and Taxation Code (RTC) Section 99(b)(6) requires the adoption of a property tax exchange agreement by the affected local agencies before LAFCOs can consider jurisdictional changes. Markedly, and pertinent to this joint-reorganization proposal, RTC Section 99(b)(5) allows the County Board of Supervisors to adopt a single resolution establishing a tax exchange on behalf of the subject agencies given their status as special districts. Towards this end, the Board of Supervisors is scheduled to consider adopting a tax exchange covering the combined reorganization proposal on September 26, The anticipated tax exchange would proportionally transfer 100% of all property tax revenue currently allocated to CSA No. 115 to Lakeside and San Miguel Consolidated FPDs. The total monetary value of the adopted exchange for the current fiscal year is $429,073. Environmental Review CEQA requires San Diego LAFCO to assess whether environmental impacts would result from activities approved under the Commission s statutory authority. Accordingly, San Diego LAFCO is tasked with making distinct determinations as responsible agency under CEQA with respect to acting on the two separate filings made by Lakeside FPD and San Miguel Consolidated FPD and administratively processed as a combined reorganization proposal. These actions are summarized below. 13 P age 137

138 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 San Miguel Consolidated FPD as lead agency determined their proposed reorganization and accompanying sphere of influence amendments qualified for exemption under State CEQA Guidelines Section in adopting their resolution of application on February 11, Staff independently determines this is an appropriate finding given the lands are already within an authorized fire protection and emergency medical service provider and the reorganization will not change the geographic area where services are presently authorized. Lakeside FPD as lead agency determined their proposed reorganization and accompanying sphere of influence amendments qualified for exemption under State CEQA Guidelines Section in adopting their resolution of application on March 24, Staff independently determines this is an appropriate finding given the lands are already within an authorized fire protection and emergency medical service provider and the reorganization will not change the geographic area where services are presently authorized. Protest Proceedings Approving the two separate filings made by Lakeside FPD and San Miguel Consolidated FPD and administratively processed as a combined reorganization proposal would require protest proceedings under Government Code Section As allowed under State law the Executive Officer would be delegated the responsibility to administer the protest proceedings and hold a noticed and combined hearing to accept written objections filed by registered voters and/or landowners within the affected territory. The following thresholds would apply in valuing protests and determining next steps: Should less than 25% of (a) registered voters and/or (b) landowners holding less than 25% of the assessed value of land within any subject agency in the affected territory file written protests the reorganization will be ordered without an election. Should 25% to 50% of (a) registered voters and/or (b) landowners holding 25% to 50% of the assessed value of land within any subject agency in the affected territory file written protests the reorganization will be ordered subject to an election. Should more than 50% of (a) registered voters and/or (b) landowners holding 50% or more of the assessed value of land within any subject agency in the affected territory file written protests the reorganization will be terminated. As authorized under State law, should protest proceedings be required staff would provide notice to landowners and registered voters through a display advertisement published in the San Diego Union Tribune and not less than 21 days in advance of the hearing. This option applies given the number of landowners and registered voters significantly exceeds the 1,000 threshold to transition the notice from direct mail to publication in a newspaper. 13 The proposal was not filed with San Diego LAFCO until March 22, P age 138

139 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 RECOMMENDATION Staff recommends approval of the combined reorganization proposal and associated sphere of influence amendments consistent with Alternative One as provided in the proceeding section. Approval provides for the orderly and proportional transfer of fire protection and emergency medical service responsibilities within the affected territory from CSA No. 115 to Lakeside and San Miguel Consolidated FPDs. The recommendation follows extensive analysis over a four-year period and memorializes a compromise reached by the FPDs in step with affirmatively responding to ongoing feedback from the Commission s Ad Hoc Advisory Committee. Markedly, the analysis includes tracking San Miguel Consolidated FPD s financial standing through its audit which parallels its return to stand-alone staffing and verification therein the agency finished with a positive total margin; the benchmark the Commission previously established to define a self-sustaining agency. The staff analysis separately attests both FPDs have adequate administrative and service capacities to assume responsibilities for the subject lands without detriment to constituents new or existing. Approval will also provide both FPDs revenue-certainty going forward and aid their respective efforts to perform long-term service planning for the subject lands. ALTERNATIVES FOR ACTION The following alternative actions are available and can be accomplished by a single motion: (over) Alternative One Approval (Recommended): Approve the combined reorganization proposal and associated sphere of influence amendments subject to protest proceedings and specified terms through the adoption of the draft resolution provided as Attachment One. Alternative Two Continuation: Continue the item to either the next regular meeting set for December 3, 2018 or a special meeting at a designated time and place. This option includes providing direction to staff for any additional information as requested. Alternative Three Disapprove: Disapprove the reorganizations and associated sphere of influence amendments and direct the Executive Officer to execute resolutions. This option would preclude similar proposals being presented to the Commission for a period of no less than one year. 15 P age 139

140 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 PROCEDURES FOR CONSIDERATION This item has been placed on the agenda as part of a noticed public hearing. The following procedures, accordingly, are recommended in the consideration of this item: 1) Receive verbal report from staff; 2) Invite comments from applicants; 3) Open the hearing and invite audience comments; and 4) Close the hearing, discuss item, and consider recommendation or alternative. Respectfully, Keene Simonds Executive Officer Appendices: A. Sphere of Influence Statements under Government Code B. Analysis of Reorganization Factors under Government Code Attachments: 1) Draft Resolution of Approval Combines Reorganizations No. 1 and No. 2 2) Joint-Letter from San Miguel Consolidated and Lakeside FPDs Agreeing to Combined Proposal Approach 3) Application Materials (a) San Miguel Consolidated FPD (b) Lakeside FPD 4) Municipal Service Review Determinations for CSA No. 115, Lakeside FPD, and San Miguel Consolidated FPD 5) Recent Breakdown in Agency Reponses in CSA No ) Recent Financial Trends for San Miguel Consolidated FPD through FY ) Hearing Publication in San Diego Union Tribune 8) Listing of Subject Parcels in Affected Territory 16 P age 140

141 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 APPENDIX A Government Code Section Sphere of Influence Statements Amendment to San Miguel Consolidated FPD (SA14-12) Amendment to Lakeside FPD (SA14-13) 1) The present and planned land uses, including agricultural and open-space lands. The present and planned land uses of the affected territory are urban in nature and highlighted by 800 plus single-family residences, 600 plus multi-family residences, and various commercial and retail uses. Development is guided by the County of San Diego s Lakeside Community Plan. LAFCO estimates the resident population of the affected territory is approximately 4,900. This estimate produces a relatively dense population with a ratio of over 11 residents within every one mile in the affected territory. (2) The present and probable need for public facilities and services in the area. Existing and planned uses within the affected territory merits organized fire protection and emergency medical services. This need is highlighted by a current and relatively dense residential population approaching 5,000 along with several heavily-used arterial roads that traverse the affected territory and connect neighboring communities. (3) The present capacity of public facilities and adequacy of public services the agency provides or is authorized to provide. CSA No. 115 presently provides fire protection and emergency medical services to the affected territory through the administration of a four-way service contact with the City of El Cajon, City of Santee, Lakeside FPD, and San Miguel Consolidated FPD. CSA No. 115 does not have any related fire or emergency facilities or apparatus; service is entirely dependent on the response and resources of the four contracted agencies. Lakeside and San Miguel Consolidated FPDs have emerged as regular service responders within the affected territory in step with the recent relocations of their respective fire stations. Both FPDs have available and sufficient capacities to formally assume and continue to serve the affected territory on a permanent basis without adverse impact to existing constituents. 17 P age 141

142 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 (4) The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. The affected territory has developed a cohesive social and economic identify as an unincorporated pocket and purposefully outside the neighboring Cities of El Cajon and Santee and their spheres of influence. The expansion of Lakeside and San Miguel Consolidated FPDs spheres of influence to proportionally include the affected territory in step with annexations is consistent with these social and economic interests for the community to retain its unincorporated status going forward. (5) The present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. Approximately 21% or 86 acres of the affected territory qualifies as a disadvantaged unincorporated community (DUC) based on statute and implementing LAFCO policy. The majority of the DUC lands lie immediately to the west of State Highway 67 and subject to inclusion into San Miguel Consolidated FPD s sphere of influence. The remaining DUC lands lie east of Rex Lane and subject to inclusion into Lakeside FPD s sphere of influence. The sphere of influence amendments serve to facilitate the delivery of enhanced fire protection and emergency medical services through the permanent assignment of service responsibilities, and as such do not adversely impact DUC residents. 18 P age 142

143 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 APPENDIX B Government Code Section Boundary Change Factors Reorganization No. 1 San Miguel Consolidated FPD (RO14-12) Reorganization No. 2 Lakeside FPD (RO14-13) 1) 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 areas, during the next 10 years. The affected territory is approximately 441 unincorporated acres in size and located in urban east San Diego County and adjacent to the southwest by the City of El Cajon and to the north by the City of El Cajon. Elevation ranges between 480 to 760 feet above sea-level. Growth and development within the affected territory is guided by the County of San Diego s Lakeside Community Plan and predominately marked by a range of residential designations and supporting commercial and retail uses. The affected territory is largely built-out with additional development tied to infill redevelopment. The estimated resident population is 4,900. Total assessed value (land and structures) is $419.6 million. 2) The need for municipal services; the present cost and adequacy of municipal 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. The County of San Diego acts as the primary purveyor of general governmental services to the affected territory and highlighted by community planning, roads, street lighting, and law enforcement. There are also a number of smaller local governmental agencies that provide services to the affected territory. This includes the Padre Dam Municipal Water District (potable water and wastewater); Helix Water District (recreation); CSA No. 69 (paramedic); CSA No. 135 (regional communications); Resource Conservation District of Greater San Diego County (watershed & soil conservation) and San Diego County Flood Control District (flood control). The combined reorganization proposal affects only fire protection and emergency medical services and was comprehensively studied as part of a recent municipal service review completed by LAFCO in July A copy of the determinative statements prepared as part of the municipal service review and formally received by the Commission at a noticed hearing is attached and incorporated into the analysis. 19 P age 143

144 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No ) The effect of the proposed action and of alternative actions, on adjacent areas, on mutual social and economic interests, and on local governmental structure. Approval of the combined reorganization proposal would strengthen existing social and economic interests within the affected territory and its identity as an unincorporated community and purposefully outside the neighboring Cities of El Cajon and Santee. The expansion of San Miguel Consolidated and Lakeside FPDs spheres of influence to proportionally include the affected territory in step with concurrent annexations is consistent with these social and economic interests for the community to retain its unincorporated status going forward. 4) 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 Commission previously determined the need to replace CSA No. 115 as the designated fire protection and emergency medical service provider for the affected territory and memorized this decision by eliminating the CSA sphere of influence in November The Commission separately determined in July 2017 the merit to consider expanding Lakeside and San Miguel Consolidated FPDs spheres of influence to include the affected territory by establishing separate special study areas. Approval of the combined reorganization to proportionally annex the affected territory to the FPDs is consistent with the expectations outlined by the Commission in establishing the special study areas and proceeding with the transfer of service responsibilities. The combined reorganization would not induce or otherwise facilitate the loss of open-space lands, and as such does not conflict with the provisions of Government Code Section ) 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 agricultural land under LAFCO law. 6) The definiteness and certainty of the boundaries of the territory, the nonconformance of proposed boundaries with lines of assessment, the creation of islands or corridors of unincorporated territory, and other similar matters. The affected territory is conterminous with the existing jurisdictional boundary of CSA No This boundary is certain and known with surveyed metes and bounds on file with LAFCO. The proportional annexation of the affected territory between Lakeside and San Miguel Consolidated FPDs is also known and memorialized in draft maps and descriptions prepared by the County Assessor s Office to inform a property tax exchange. Approval would be termed on the submittal of final maps and descriptions consistent with the requirements of the State Board of Equalization. 20 P age 144

145 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 (7) 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). 8) Consistency with the city or county general plans, and specific plans. The affected territory is entirely unincorporated and subject to the land use policies of the County of San Diego. The County s implementing land use policy documents for the affected territory is the Lakeside Community Plan, which contemplates the role and need for organized fire protection and emergency medical services to support current and planned development. The proposal does not conflict with San Diego Forward, the regional transportation plan prepared and adopted by San Diego Association of Governments. 9) The sphere of influence of any local agency affected by the proposal. The combined reorganization proposal would necessitate two concurrent sphere of influence amendment actions. The first action involves amending and expanding Lakeside FPD s sphere of influence to include the portion of the affected territory that lies generally north of Pepper Drive. The second action involves amending and expanding San Miguel Consolidated FPD s sphere of influence to include the portion of the affected territory that lies generally south of Pepper Drive. Approval of these amendments to proportionally designate the FPDs and not CSA No. 115 as the appropriate current and future providers of fire protection and emergency medical services for the affected territory is warranted. 10) The comments of any affected local agency or other public agency. Lakeside and San Miguel Consolidated FPDs have agreed to the combined reorganization approach underlying the Executive Officer recommendation to proportionally divide the annexation of the affected territory post CSA No. 115 dissolution generally along Pepper Drive. CSA No. 115 has not filed written objection to the recommendation. The Cities of El Cajon and Santee agencies immediately adjacent to the affected territory have communicated their support for the recommendation to LAFCO staff. 11) 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. Analysis prepared as part of the earlier municipal service review for the region and augmented in evaluating the combined reorganization proposal shows Lakeside and San Miguel Consolidated FPDs as the receiving entities have adequate financial resources to formally assume service responsibilities within the affected territory. This statement is supported by a review of recent audited statements for each FPD with key measurements 21 P age 145

146 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No. 115 regarding liquidity, capital, and margin summarized below. Lakeside FPD A review of the last five fiscal year audits from to shows: Lakeside FPD finished FY2017 with fair and stable liquidity levels with a current ratio of 4.2 (i.e., $4.20 in current assets for every $1.00 in current liabilities). This ratio has remained relatively constant over the preceding five-year period and increased by 1%. Lakeside FPD finished FY2017 with moderate and improving capital levels to assume new obligations with an adjusted debt ratio of 0.34, less pension and related employee obligations (i.e., $34 out of every $100 in assets are financed). This ratio has favorably decreased over the preceding five-year period by (32%). - The unadjusted debt ratio totaled 1.55 in FY2017 and has increased by 112% over the preceding five-year period due to pension and related employee obligations. Lakeside FPD finished FY2017 with a positive and improving total margin ratio of 5.9%. This ratio marks an improvement over the five-year average of (3%) and reflects an overall eight-fold improvement during the 60-month period. San Miguel Consolidated FPD A review of the last six fiscal year audits from to with the additional and most recent year added to assess FPD s transition back to stand-alone staffing shows: San Miguel Consolidated FPD finished FY2018 with fair and improving liquidity levels with a current ratio of 3.6 (i.e., $3.60 in current assets for every $1.00 in current liabilities). This ratio has increased over the preceding six-year period by 103%. San Miguel Consolidated FPD finished FY2018 with moderate and improving capital levels to assume new obligations with an adjusted debt ratio of 0.27, less pension and related employee obligations (i.e., $27 out of every $100 in assets are financed). This ratio has favorably decreased over the preceding six-year period by (63%). - The unadjusted debt ratio totaled 2.61 in FY2018 and has increased by 160% over the preceding six-year period due to pension and related employee obligations. San Miguel Consolidated FPD finished FY2018 with a positive and improving total margin ratio of 18.1%. This ratio reversed three consecutive years of decreasing margins and marked by a loss of (2.7%) in the prior fiscal year. 22 P age 146

147 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No ) Timely availability of adequate water supplies for projected needs as specified in G.C. Section The affected territory already lies within and receives domestic water service from the Padre Dam Municipal Water District. Approval of the combined reorganization proposal is specific to transferring fire protection and emergency medical services and would not affect the timely availability of water supplies within the affected territory. 13) 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. The combined reorganization proposal does not impact any local agencies in accommodating their regional housing needs. All potential residential units associated with the affected territory are already assigned to the County of San Diego. This assignment would not change as a result of proposal being approved. 14) Any information or comments from the landowner or owners, voters, or residents of the affected territory. No comments have been received from the public concerning the combined reorganization proposal or related matters as of September 20, A hearing notice was published as an advertisement display in the San Diego Union Tribune on Monday, September 10, 2018 consistent with LAFCO law. The notice invited comments through the public hearing set for Monday, October 1, ) Any information relating to existing land use designations. The County of San Diego is the land use authority for the affected territory and designates a range of urban type uses for the affected territory at moderate to high density levels. 16) The extent to which the proposal will promote environmental justice. A portion of the affected territory qualifies as a disadvantaged unincorporated community (DUC) based on statute and implementing LAFCO policy. The combined reorganization proposal aims to provide a more uniform and stable levels of fire protection and emergency medical services throughout the affected territory. The expected uniformity in service levels treats all subject residents equally and do not raise any environmental justice concerns. 23 P age 147

148 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 10 Combined Public Hearing: Reorganizations No. 1 and No. 2 Involving CSA No ) 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 combined reorganization proposal would be in the best interest of current and future landowners and residents by establishing formal and clear fire protection and emergency medical service responsibilities within the affected territory going forward. 24 P age 148

149 DRAFT RESOLUTION OF THE SAN DIEGO LOCAL AGENCY FORMATION COMMISSION APPROVING A COMBINED REORGANIZATION AND ASSOCIATED SPHERE OF INFLUENCE AMENDMENTS CONCURRENT DISSOLUTION OF COUNTY SERVICE AREA NO. 115 AND ANNEXATION OF THE AFFECTED TERRITORY GENERALLY NORTH OF PEPPER DRIVE TO LAKESIDE FIRE PROTECTION DISTRICT AND ANNEXATION OF THE AFFECTED TERRITORY GENERALLY SOUTH OF PEPPER DRIVE TO SAN MIGUEL CONSOLIDATED FIRE PROTECTION DISTRICT LAFCO File Nos. RO14-12 et al. and RO14-13 et al. AGENDA ITEM No. 10 Attachment 1 WHEREAS, County Service Area Number 115 ( CSA No. 115 ) is a dependent special district formed in 1985 and provides fire protection and emergency medical services to an approximate 441 acre jurisdictional boundary which is divided by Pepper Street; and WHEREAS, the San Miguel Consolidated Fire Protection District ( San Miguel FPD ) is an independent district formed in 1988 and provides fire protection and emergency medical services to an approximate 29,730 acre jurisdictional boundary covering Spring Valley, Grossmont, and Bostonia; and WHEREAS, San Miguel FPD filed for reorganization on March 22, 2015, requesting the San Diego Local Agency Formation Commission ( LAFCO ) dissolve CSA No. 115 and annex the affected territory in its entirety to San Miguel FPD; and WHEREAS, Lakeside Fire Protection District ( Lakeside FPD ) is an independent district formed in 1963 and provides fire protection and emergency medical services to an approximate 28,900 acre jurisdictional boundary anchored in the unincorporated community of Lakeside; and WHEREAS, Lakeside FPD filed for reorganization on March 24, 2015, two days after San Miguel FPD s filing, requesting LAFCO dissolve CSA No. 115 and annex the affected territory in its entirety to Lakeside FPD; and WHEREAS, in September 2016, San Miguel FPD and Lakeside FPD agreed in writing to a joint approach to modify and coordinate their reorganization proposals to divide the affected territory into equal annexation halves based on assessed value ( Joint Proposal ); and WHEREAS, the Joint Proposal seeks to annex approximately 229 acres to the north of Pepper Drive to Lakeside FPD and approximately 210 acres to the south of Pepper Drive to San Miguel FPD; and 1 P age

150 WHEREAS, Government Code section requires that any such reorganization also be consistent with the sphere of influence of the local agencies affected by the reorganization; and WHEREAS, the Commission s Executive Officer has reviewed the reorganization proposal and prepared a report with recommendations; WHEREAS, the Executive Officer s report and recommendations on the Joint Proposal and need for concurrent sphere of influence amendments have been presented to the Commission in the manner provided by law; and WHEREAS, the Commission heard and fully considered all the evidence presented at a noticed public hearing along with reviewing the necessary concurrent sphere of influence amendments for consistency under Government Code Section on October 1, NOW, THEREFORE, BE IT RESOLVED, the Commission hereby finds, determines, and orders the following: 1. The hearing was held on the date set therefore, and due notice of said hearing was given in the manner required by law. 2. At the hearing, the Commission called for, heard, and considered all interested parties and public comments and read and considered the Executive Officer s report. 3. The Commission serves as responsible under the California Environmental Quality Act (CEQA) in considering two distinct projects associated with the Joint Proposal and as detailed in the Executive Officer s report: (a) accommodating sphere of influence amendments and the (b) reorganization itself. The Commission s findings as responsible agency are as follow. a) San Miguel Consolidated FPD as lead agency on its proposal determined the proposed reorganization and associated sphere of influence amendment was exempt under CEQA Guidelines section The Commission independently determines this is an appropriate finding given the lands are already within an authorized fire protection and emergency medical provider and the reorganization will not change the geographic area where services are presently authorized. a) Lakeside FPD as lead agency on its proposal determined the proposed reorganization and associated sphere of influence amendment was exempt under CEQA Guidelines section The Commission independently determines this is an appropriate finding given the lands are already within an authorized fire protection and emergency medical provider and the reorganization will not change the geographic area where services are presently authorized. 4. The Commission conditionally APPROVES the following sphere of influence amendments. a) Lakeside FPD s sphere of influence is amended to include approximately 230 acres of CSA No. 115, as shown in Exhibit A. b) San Miguel Consolidated FPD s sphere of influence is amended to include approximately 211 acres of CSA No. 115, as shown in Exhibit A. 2 P age

151 c) All previously established special study areas for Lakeside FPD and San Miguel Consolidated FPD involving CSA No. 115 are eliminated. 5. The Commission conditions the approved sphere of influence amendments as described on the recordation of the Certificate of Completion associated with the Joint Proposal identified as RO14-12 (San Miguel Consolidated FPD) et al. and RO14-13 et al. (Lakeside FPD). 6. The written statements of the Commission addressing the mandatory factors required for consideration any time spheres of influence are adopted, amended, or updated under Government Code Section are provided as Exhibit B. 7. The Commission conditionally APPROVES the Joint Proposal identified as RO14-12 et al. and RO14-13 et al. without further modifications or amendments and as shown in Exhibit A. a. The following conditions must be satisfied within one calendar year or October 1, 2019 unless prior written request for an extension is received and approved by the Commission. i. Completion of the 30-day reconsideration period provided under Government Code Section ii. iii. Receipt and confirmation by the County of San Diego Assessor s Office of the completeness of maps and geographic descriptions of the affected territory showing the (a) dissolution of CSA No. 115 and (b) proportion annexations of the affected territory to San Miguel Consolidated FPD and Lakeside FPD as shown in Exhibit A. Upon the Commission's order giving approval to the Joint Proposal, CSA No. 115 is prohibited from taking any of the actions contained in Government Code section , subdivision (a)(4), including: 1. Appropriating, encumbering, expending, or otherwise obligating, any revenue of CSA No. 115 beyond that provided in the current budget at the time the dissolution is approved by the commission. b. The following conditions apply upon and after the effective date of the joint-reorganization as defined in Section 11 below: i. Successor Agency. Upon the effective date, San Miguel FPD and Lakeside FPD shall be the successor to CSA No. 115 for purposes of providing structural fire protection and emergency medical services, and succeeding to all of the rights, duties, and obligations of the extinguished district with respect to enforcement, performance, or payment of any outstanding bonds, including revenue bonds, or other contracts and obligations within each of their respective share of the territory previously included within the extinguished district. ii. Reorganization of Territory. Upon the effective date, CSA 115 will be dissolved, terminated, and extinguished and all its corporate powers shall cease. The territory shown as Exhibit A that was formerly within CSA No. 115 will be annexed to San Miguel FPD. The territory shown as Exhibit A that was formerly within CSA No. 115 will be 3 P age

152 annexed to Lakeside FPD. Both service sub-areas will operate pursuant to Sections of the Health and Safety Code. iii. iv. Tax Revenues. All property tax revenues and voter-approved special tax or special assessment revenues (if any), received or receivable by CSA No. 115 as of the effective date shall be collected or collectible by San Miguel FPD and Lakeside FPD, pursuant to a tax exchange resolution adopted by the County Board of Supervisors on September 26, 2018, for the exclusive use of funding the services within the Territory. Transfer of Assets. To the extent any such assets exist, San Miguel FPD and Lakeside FPD shall accept all real and personal property, books, records, papers, offices, equipment, supplies, moneys, funds, appropriations, licenses, permits, entitlements, agreements, contracts, claims, judgments, and all other assets and obligations transferred from CSA No. 115 in "as-is" condition associated with the respective territory annexed to San Miguel FPD and Lakeside FPD, without any payment or repair obligation from CSA No All incidental liabilities, such as accounts payable, contract obligations and consumer deposits associated with the respective territory annexed to San Miguel FPD and Lakeside FPD shall be transferred to San Miguel FPD s and Lakeside FPD's appropriate, respective, isolated accounts. All assets including, but not limited to cash reserves, land, structures, appurtenances, rolling stock, personal property including tools, office furniture, fixtures and equipment, and held by CSA No. 115, if any, shall be divided equally among and transferred to the appropriate services zone of San Miguel FPD and Lakeside FPD as of the effective date. v. Transfer by Operation of Law. Except as otherwise provided herein, the ownership, possession, and control of all books, records, papers, offices, equipment, supplies, moneys, funds, appropriations, licenses, permits, entitlements, agreements, contracts, claims, judgments, land, and other assets and property, real or personal, owned or leased by, connected with the administration of, or held for the benefit or use of, CSA No. 115 shall be divided equally among and transferred to San Miguel FPD and Lakeside FPD. San Miguel FPD and Lakeside FPD are the successors to CSA No. 115 and, except as otherwise provided herein, the provisions of Government Code sections et seq. applicable to successor agencies to dissolved agencies apply to San Miguel FPD and Lakeside FPD. vi. County of San Diego Service Agreements. The County of San Diego s service agreements regarding CSA No. 115 with the City of Santee (Contract No ), the City of El Cajon (Contract No ), the San Miguel FPD (Contract No ), and Lakeside FPD (Contract No ) for dividing property tax revenues based on calls for service shall become null and void upon the effective date. vii. Policies and Procedures. All policies, procedures, regulations, resolutions and ordinances that have previously been adopted by the San Miguel FPD and Lakeside FPD shall remain in effect and apply to the territory of CSA No. 115 annexed by each respective fire protection district. 4 P age

153 viii. ix. Payment by Lakeside FPD to San Miguel FPD. Prior to the recordation of the Certificate of Completion as described in Section 11, Lakeside FPD and San Miguel FPD will enter into an agreement pursuant to which Lakeside FPD shall pay San Miguel FPD $400,000.00, said sum agreed to by both fire protection districts. Automatic Aid Agreement Participation. Lakeside FPD and San Miguel FPD will maintain participation in an Automatic Aid Agreement that includes the former areas of CSA No The affected territory as designated by the Commission is inhabited as defined in Government Code Section The Commission delegates to the Executive Officer performing all conducting authority proceeding requirements under Government Code Section All three agencies subject to the Joint Proposal CSA No. 115, San Miguel FPD, and Lakeside FPD utilize the regular assessment roll of the County of San Diego. 11. Pursuant to Government Code section 56886, subdivision (p), the effective date of the Joint Proposal shall be the end of the first fiscal quarter following the recordation of the Certificate of Completion with the office of the County Registrar-Recorder. 12. 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 October 1, 2018 by the following vote: AYES: NOES: ABSENT: ABSTAINING: 5 P age

154 Page Blank for Photocopying 6 P age

155 EXHIBIT A 7 P age

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157 EXHIBIT B Government Code Section Sphere of Influence Statements Amendment to San Miguel Consolidated FPD (SA14-12) Amendment to Lakeside FPD (SA14-13) 1) The present and planned land uses, including agricultural and open-space lands. The present and planned land uses of the affected territory are urban in nature and highlighted by 800 plus single-family residences, 600 plus multi-family residences, and various commercial and retail uses. Development is guided by the County of San Diego s Lakeside Community Plan. LAFCO estimates the resident population of the affected territory is approximately 4,900. This estimate produces a relatively dense population with a ratio of over 11 residents within every one mile in the affected territory. (2) The present and probable need for public facilities and services in the area. Existing and planned uses within the affected territory merits organized fire protection and emergency medical services. This need is highlighted by a current and relatively dense residential population approaching 5,000 along with several heavily-used arterial roads that traverse the affected territory and connect neighboring communities. (3) The present capacity of public facilities and adequacy of public services the agency provides or is authorized to provide. CSA No. 115 presently provides fire protection and emergency medical services to the affected territory through the administration of a four-way service contact with the City of El Cajon, City of Santee, Lakeside FPD, and San Miguel Consolidated FPD. CSA No. 115 does not have any related fire or emergency facilities or apparatus; service is entirely dependent on the response and resources of the four contracted agencies. Lakeside and San Miguel Consolidated FPDs have emerged as regular service responders within the affected territory in step with the recent relocations of their respective fire stations. Both FPDs have available and sufficient capacities to formally assume and continue to serve the affected territory on a permanent basis without adverse impact to existing constituents. (4) The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. The affected territory has developed a cohesive social and economic identify as an unincorporated pocket and purposefully outside the neighboring Cities of El Cajon and Santee and their spheres of influence. The expansion of Lakeside and San Miguel Consolidated FPDs spheres of influence to proportionally include the affected territory in step with annexations is consistent with these social and economic interests for the community to retain its unincorporated status going forward. 9 P age

158 (5) The present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. Approximately 21% or 86 acres of the affected territory qualifies as a disadvantaged unincorporated community (DUC) based on statute and implementing LAFCO policy. The majority of the DUC lands lie immediately to the west of State Highway 67 and subject to inclusion into San Miguel Consolidated FPD s sphere of influence. The remaining DUC lands lie east of Rex Lane and subject to inclusion into Lakeside FPD s sphere of influence. The sphere of influence amendments serve to facilitate the delivery of enhanced fire protection and emergency medical services through the permanent assignment of service responsibilities, and as such do not adversely impact DUC residents. 10 P age

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183 SECTION I: REVIEW OF THE CSA NO. 115 REORGANIZATION CSA No. 115 was originally formed in 1985 following the merger of the Santee Fire Protection District with the City of Santee. From 1985 to 2016, CSA No. 115 had been responsible for structural fire protection and emergency medical services within the Pepper Drive area via a contract with the City of Santee. In May 2013, San Diego LAFCO began collecting fire protection call data in response to inquiries from the San Miguel Consolidated FPD and Lakeside FPD, who both expressed interest in dissolution of CSA No. 115 and annexation of the dissolved CSA territory. While the County of San Diego had historically contracted with the City of Santee to serve the predominantly single-family residential area, LAFCO staff s collection of call history data determined that other fire providers, including San Miguel Consolidated FPD, Lakeside FPD, and the City of El Cajon also responded to a number of calls within the unincorporated community. The County of San Diego subsequently revised its contracting procedures and released a new contract in April 2016 that reimburses first responders based on quarterly response data. Refer to Table 1 for an illustration of first responder activity in CSA No A number of meetings with representatives from LAFCO and the two fire districts occurred from June 2013 to September 2014 to discuss a more efficient method to delivery fire service in the area. To assist the districts in evaluating the merits of a possible reorganization of the CSA, consultant assistance was provided by LAFCO to the San Miguel and Lakeside FPDs through an arrangement with Rich Miller, President of Metro Plan LLC. Table 1 Calls Responded within CSA No Data 2016 Data 2017 Data City of El Cajon 45% 31% 44% City of Santee 30% 5% 4% Lakeside FPD 1% 18% 35% San Miguel FPD 24% 46% 17% AGENDA ITEM No. 10 Attachment 4 On February 11, 2015, the Board of Directors of the San Miguel Consolidated FPD unanimously adopted a resolution of application with LAFCO initiating the CSA No. 115 (Pepper Drive) Reorganization No. 1. This reorganization involves dissolution of CSA No. 115, concurrent annexation to San Miguel Consolidated FPD, and related sphere/service review actions. This reorganization was formally submitted to LAFCO on March 2, On March 24, 2015, a conflicting proposal was initiated by the Lakeside FPD Board of Directors. This proposal also involves the dissolution of CSA No. 115 and concurrent annexation to Lakeside FPD, plus associated sphere and service review actions. Lakeside FPD s reorganization was submitted to LAFCO on March 30, Page 4 of

184 Per Government Code Section 56657, LAFCO may not approve a reorganization proposal until it has considered any other proposals that may conflict with the subject proposal, provided that the (other) proposal was submitted to the Commission within 60- days of the submission of the subject proposal. This provision in State Law applies to the San Miguel Consolidated FPD s proposed reorganization of CSA No. 115 because the Lakeside FPD s proposed reorganization of CSA No. 115 was submitted within 60- days of the submission of the San Miguel Consolidated FPD s proposed reorganization. Therefore, both the San Miguel Consolidated FPD and Lakeside FPD proposals will be processed and considered by LAFCO together. JUSTIFICATION San Miguel Consolidated FPD Original Proposal Proposed by resolution of the San Miguel Consolidated FPD is a reorganization involving the dissolution of CSA No. 115 (Pepper Drive) and concurrent annexation of the territory within the dissolved district to the San Miguel Consolidated FPD (441.6 acres). The justification for the reorganization as stated by the San Miguel Consolidated FPD is to: (1) Formalize the San Miguel Consolidated FPD s first responder status for a significant number of calls within CSA No. 115; (2) Facilitate the construction and utilization of a new fire station owned and operated by the San Miguel Consolidated FPD located at 1105 Pepper Drive; (3) Utilization of San Miguel Consolidated FPD s extensive depth of personnel and resources to serve CSA No. 115 territory; (4) Provision of services to CSA territory without the need to impose new benefit fees, special taxes, or assessments; (5) Implementation of LAFCO s sphere of influence objectives; (6) Removal of an extra layer of administrative oversight; (7) Improving public participation and through an elected board of directors that have a singular focus (fire protection and emergency medical services); and (8) Consolidation and simplification of service responsibility. LAFCO staff s evaluation of the San Miguel Consolidated FPD s application will include the validity of each justification statement listed by the district. Lakeside FPD Original Proposal Proposed by the Lakeside FPD is a reorganization involving the dissolution of CSA No. 115 (Pepper Drive) and concurrent annexation of the territory within the dissolved district to the Lakeside FPD (441.6 acres). The justification for the reorganization as stated by the Lakeside FPD is to: (1) Extend emergency services from Lakeside FPD to CSA No. 115 to establish a logical pattern of service delivery; (2) Continue mutual interests and community identity within the Lakeside Community Planning Area; (3) Facilitate relocation of Lakeside FPD Station No. 1; (4) Improve Lakeside FPD s ability to service residents and businesses throughout the fire district; (5) Reduce dependence on Mutual Aid partnerships; (6) Relocation of Lakeside FPD Station No. 1 needs to Page 5 of

185 occur regardless of the proposed reorganization; (7) Acceleration of the completion of a new permanent Lakeside FPD fire station; (8) Lakeside FPD personnel already serve CSA No. 115 by providing ambulance transport service (9) Retention of Heartland (Central) Fire Zone partnerships; (10) Retention of the current Heartland Communications Facility Authority dispatch arrangement; (11) Reduction of service impacts to the City of Santee and El Cajon Fire Departments; (12) Stability of the Lakeside FPD; and (13) Utilization of former CSA No. 115 revenues to support the permanent Fire Station No. 1. LAFCO staff s evaluation of the Lakeside FPD s application will include the validity of each justification statement listed by the district. The proposed reorganization by both San Miguel Consolidated FPD and Lakeside FPD fulfills a component of a long-range LAFCO plan formulated over 30 years ago when a sphere of influence was originally adopted for the CSA No That plan involved the adoption of a zero (transitional) sphere designation placing the CSA within the City of El Cajon s sphere. These sphere designations were intended to provide the impetus for the two agencies to cooperatively work towards a reorganization that would place all of the CSA No. 115 service area within the boundaries of El Cajon. However, due to city annexation and district detachment issues in this region, the Commission removed the territory from El Cajon s sphere in 2008 and designated the Pepper Drive area and other territory within El Cajon s spheres as a special study area. A special study area designation is used by LAFCO to identify geographic areas that possess service issues. LAFCO s primary goal is to improve fire protection and emergency medical services within all areas of the County, including this area of East County. Combining CSA No. 115 with either the San Miguel Consolidated FPD or with Lakeside FPD is accordingly the culmination of substantial effort and planning for the purpose of streamlining and strengthening response capabilities. Reorganizing fire protection services is a priority for LAFCO and a decision was made to waive the $31,980 processing fees for the two proposals ($15,990 for each reorganization application). Modification to Proposals LAFCO staff coordinated joint meetings with the fire districts to discuss the two conflicting proposals. A possible solution to resolve the competing nature of the two applications would be a modification of both proposals where each district would annex respective portions of CSA No. 115 as part of two cross-conditioned reorganizational actions. On September 23, 2016, the San Miguel and Lakeside FPDs modified their respective proposals as follows: Reorganization No. 1: Dissolution of County Service Area No. 115 consisting of acres (Part A ); annexation of a portion of the dissolved CSA No. 115 to San Miguel Consolidated FPD consisting of acres (Part B ); detachment from Lakeside Fire Protection District and annexation Page 6 of

186 of the detachment area to San Miguel Consolidated FPD consisting of 1.81 acres (Part C ). Refer to Map 1. Reorganization No. 2: Annexation of a portion of the dissolved CSA No. 115 to Lakeside FPD consisting of acres (Part D ). Refer to Map 1. Per the modifications, agreed to by both districts, the San Miguel Consolidated FPD has proposed the annexation of a portion of the dissolved CSA No. 115 territory totaling acres (Part B on Map 1). Part C represents two minor modifications to the proposed boundaries. First, the proposed split of CSA No. 115 will create an island consisting of four parcels (refer to Map 2). In order to prevent the creation of an island, LAFCO staff proposed the detachment of the four parcels from Lakeside FPD and concurrent annexation of the detached area to SMCFPD. Secondly, the San Miguel Consolidated FPD s proposed new fire station site is currently located within Lakeside FPD s service area. The detachment of the single parcel (APN: ) from Lakeside FPD and concurrent annexation of the detached territory to San Miguel Consolidated FPD was originally proposed by the fire districts to prevent any jurisdictional overlap. However, the San Miguel FPD Board has since stopped the construction on Pepper Drive and has considered a new location of the new fire station on Bradley Avenue. Thus, detachment of the single parcel will no longer be required. The remaining portion of the dissolved CSA No. 115 area (totaling acres) will be annexed to Lakeside FPD (refer to Map 3). Both fire districts believe this approach has merit and notified LAFCO staff that they would agree to a proposal modification whereby LAFCO would name each fire district as successor to CSA No. 115, conditioned on the allocation of a proportionately equal amount of territory and revenue from the predecessor CSA, and address any jurisdictional overlap. While concurrence about this joint application approach was promising, LAFCO staff still needed to conduct an independent analysis to reach conclusions on several items including: (1) associated financial, service, and legal issues; (2) the need for two relocated new fire stations; (3) service impact from the recent contract termination between San Miguel Consolidated FPD and Cal Fire; (4) development of two separate boundary metes and bounds descriptions; and (5) formulation of terms and conditions. SECTION II: DATA ANALYSIS The CSA No. 115 Reorganization has been a two-year project. Since the first stakeholder meeting in July 2016, a lot of progress has been made and as a result several changes have occurred: the conflicting applications have since evolved into a single joint application between Lakeside and San Miguel FPD; the construction of a new San Miguel FPD fire station is still pending and may be relocated from the original Page 7 of

187 Pepper Drive location to a site on Bradley Avenue; San Miguel FPD will reestablish fire service responsibilities on July 13, 2017; and a 4-way contract has been active between the County and the 4 neighboring fire agencies. All these variables not only affect the service delivery within the CSA No. 115 area but also the East County Region. With this type of impact, it is imperative that LAFCO staff conduct a thorough evaluation of the proposed reorganization so that the Commission can have all available information to make a conscious decision during the July 10 meeting. In order to complete such a thorough evaluation, LAFCO staff requested a wide range of data from the two fire agencies as well as Cal FIRE and the County of San Diego. The data sources used in LAFCO s analysis included adopted budgets, audited financial statements, micro studies, active and proposed contractual agreements, and other documents provided by the affected agencies. The collection of essential information allowed LAFCO staff to conduct a detailed analysis of the proposed reorganization which resulted in the completion of several technical reports. These reports, which are included in this municipal service review as Appendices B-D, were conducted in accordance to Government Code Section to ensure the feasibility, orderly development, and efficient and affordable service delivery to the CSA No. 115 area. The draft versions of each technical report were presented to the ad hoc committee between December 2016 to June The goal of these reports was to address the issues regarding the proposed reorganization and fulfill the MSR and Sphere determinations. The following sections discuss the sphere of influence analysis and municipal service review for CSA No. 115, Lakeside FPD, and San Miguel FPD. SECTION III: SPHERES OF INFLUENCE ANALYSIS AND RECOMMENDATIONS In accordance with State Law, each LAFCO is obligated to develop and adopt spheres of influence for each city and special district in the county. A sphere of influence is defined as a plan for the probable physical boundaries and service area of a local government agency as determined by the Commission. Spheres are characterized as planning tools used to provide guidance for individual proposals involving jurisdictional changes, and are intended to encourage efficient provision of organized community services and prevent duplication of service delivery. Spheres may be amended periodically; recent State Law directs that they be reviewed every five years, as necessary. In determining a sphere, the Commission is required to consider specific factors and make written determinations related to: (1) present and planned land uses in the area, including agricultural and open space lands; (2) present and probable need for public facilities and services in the area; (3) present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide; (4) Page 8 of

188 existence of any social and economic communities of interest in the area; and (5) present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. While this MSR and Sphere of Influence Analysis is in association with the proposed CSA No. 115 reorganization, LAFCO staff has been actively involved with other fire agencies to address long-term fire protection and emergency medical service issues involving unincorporated areas within the County. Active proposals such as the proposed annexation of two unincorporated islands, for example, to CSA No. 135, Alpine FPD, San Miguel FPD, Lakeside FPD, and CSA No. 135 respectively; and the proposed annexation of six unserved islands to Alpine FPD may require subsequent sphere of influence amendments in the near future. Thus, it is LAFCO s responsibility to anticipate these potential jurisdictional boundary changes in the East County Region as part of this sphere of influence study. With that being said, Statement of Determinations for CSA No. 115, Lakeside FPD, and San Miguel FPD will only be considered at this time. Lakeside FPD The Lakeside FPD boundary covers approximately 45 square miles northeast of the Cities of Santee and El Cajon and contains significant wildland interface. LAFCO approved a sphere of influence for the Lakeside FPD in 1983 that includes a net area that is larger than the district boundary. The Lakeside FPD boundary may change in the foreseeable future if the proposed CSA No. 115 reorganization is approved by the Commission. However, with the exception of a special study area overlay covering CSA No. 115, no change in the existing Lakeside FPD larger-than-district sphere boundary is recommended at this time. If the proposed CSA No. 115 reorganization is approved then the attached Statement of Determinations may be used to fulfill the statutory requirements (see Appendix A). San Miguel FPD The boundary of the SMCFPD reflects the territory and spheres-of-influence of each FPD that was absorbed and includes the unincorporated communities of Bostonia, Casa de Oro, Crest, Grossmont/Mt Helix, Rancho San Diego, Spring Valley, and unincorporated areas adjacent to the Cities of El Cajon, La Mesa, and Lemon Grove. The Bostonia area, which was part of the former East County FPD, is geographically separate from the principal SMCFPD service area. LAFCO approved a sphere-ofinfluence for the San Miguel Consolidation FPD in 1987 that was larger than the district boundary. The sphere was expanded in 2008 to accommodate consolidation with the East County FPD. The San Miguel FPD boundary may change in the foreseeable future if the proposed CSA No. 115 reorganization is approved by the Commission. However, with the exception of a special study area overlay covering CSA No. 115, no change in Page 9 of

189 the existing San Miguel FPD larger-than-district sphere boundary is recommended at this time. If the proposed CSA No. 115 reorganization is approved then the attached Statement of Determinations may be used to fulfill the statutory requirements (see Appendix A). CSA No. 115 As part of the proposed CSA No. 115 Reorganization Nos. 1& 2, the CSA No. 115 would reaffirm the current zero sphere of influence signifying the service responsibilities of the agency should be transferred to a one or more neighboring fire agency. The territory within the CSA No. 115 should eventually become part of another agency s sphere of influence. However, neither an expansion nor modification to delete territory since the 2007 sphere update is being proposed at this time. If the proposed CSA No. 115 reorganization is approved then the attached Statement of Determinations may be used to fulfill the statutory requirements (see Appendix A). Special Study Area Sphere recommendations may also include provisions for the designation of a special study area to facilitate further reorganization discussions among affected jurisdictions. While it is recommended that San Miguel and Lakeside FPDs sphere be reaffirmed, the Commission may also consider designating the CSA No. 115 territory as a special study area. This designation would identify this key issue within the East County Region and help resolve related jurisdictional issues. Maps of the agencies service boundaries and sphere of influence boundaries, including the special study area, are included as exhibits in Attachment A. SECTION IV: MUNICIPAL SERVICE REVIEW DETERMINATIONS The following determinations, which were originally written for the 2007 MSR/SOI report for the two fire agencies, have been updated to account for the circumstances associated with the proposed CSA No. 115 Reorganization No. 1 & No. 2. Subsequent to the adoption of this MSR/SOI Update, the California State Legislature revised the number of written determinations that are required for a Municipal Service Review. Government Code Section now requires the following areas be addressed: 1. Growth and Population Projections for the Area 2. The Location and Characteristics of any Disadvantaged Unincorporated Communities Within or Contiguous to the Sphere of Influence Page 10 of

190 3. Present and Planned Capacity of Public Facilities and Adequacy of Public Services including Infrastructure Needs of Deficiencies 4. Financial Ability of Agencies to Provide Services 5. Status and Opportunity for Shared Facilities 6. Accountability for Community Service Needs, including Governmental Structural and Operational Efficiencies 7. Any Other Matter Related to Effective or Efficient Service Delivery, as Required by Commission Policy Determination 1: Growth and Population Projections for the Area Efficient provision of public services is linked to an agency s ability to plan for future need. For example, a fire agency must be prepared to supply fire and medical services for existing and future levels of demand, and also be able to determine where future demand will occur. Municipal service reviews give LAFCO, affected agencies, and the public the means to examine both the existing and future need for public services and to determine whether projections for future growth and population patterns are integrated into service planning functions. Projected growth increases translate into increased need for services, and the need to anticipate where services will be required, especially in areas outside a jurisdictional boundary. Since service demand influences both location and capacity of future public facilities, it is important that agreed upon population and development forecasts serve as the corner stone of the region s planning processes. Since population projections anticipate increases for the year 2050, long-term planning is vital to maintain seamless service provision. A complete review of Determination 1 is discussed in Appendix B. Determination 1.0: SANDAG projections to 2050 indicate that the East County Region will undergo significant growth Between 2012 and 2015, San Miguel FPD, Lakeside FPD, and CSA No. 115 experienced an increase in population by 2,000, 1,078, and 74 respectively. The San Diego Association of Governments (SANDAG) forecasts indicate that between 2012 and 2050, the East County Region will grow by approximately 23% - adding another 78,000 residents that will need emergency services 1. By 2050, population for the City of El Cajon will be 120,626; City of Santee will be 65,977; San Miguel FPD will be 150,551; Lakeside FPD will be 75,158; and CSA No. 115 will be 5,264. The total population in the East County Region will reach approximately 417,575 by Future 1 SANDAG, Long Range Forecasts, Page 11 of

191 residents throughout the region will rely on each fire district for adequate fire protection and emergency medical services. Determination 1.1: Planning for future fire protection and emergency medical services in the region is hampered by a fragmented system with a multitude of service providers surrounding CSA No. 115 (Pepper Drive). There is no single fire agency to provide fire protection and emergency medical services within the CSA No. 115 area. The County of San Diego currently contracts with four separate fire districts (San Miguel FPD, Lakeside FPD, City of El Cajon, and City of Santee) to provide fire services within CSA No While Monte Vista Command Center dispatches ambulances for CSA No. 115, surrounding fire agencies utilize Heartland Communications for dispatch services. The formation a centralized authority to coordinate planning activities for improving future emergency services, determine how resources could be allocated in a manner that would avoid duplication of effort, establish a single point of dispatch for all 911 responses, and maximize efficiencies within the Pepper Drive area would benefit current and future residents. Determination 2: The Location and Characteristics of any Disadvantaged Unincorporated Communities Within or Contiguous to the Sphere of Influence CSA No. 115 encompasses approximately 0.7 square mile of unincorporated territory that is adjacent to the City of Santee and is generally developed with single family residences and a mixture of other land uses. In accordance to Senate Bill 244, which became effective on January 1, 2012, state law requires the identification and description of all disadvantaged unincorporated communities (DUC) located within or contiguous to the existing spheres of influence of cities and special districts that provide fire protection, sewer, and/or water services. DUCs are defined as inhabited unincorporated areas with an annual median household income that is 80% or less than the statewide annual median household income (equal to $46,166 or less in 2010). A complete review of Determination 2 is discussed in Appendix B. The identified disadvantaged unincorporated communities are required to be addressed by LAFCO when: Considering a city annexation proposal involving 10 or more acres with an existing disadvantaged unincorporated community located contiguous to the proposal area; and Approving sphere of influence and municipal service review determinations associated with the update or establishment of spheres of influence for local agencies subject to SB 244 requirements. Page 12 of

192 Determination 2.0: Within approximately 50% of CSA No. 115, the inhabited unincorporated area is classified as a disadvantaged unincorporated community. CSA No. 115 occupies unincorporated territory between the City of El Cajon and the City of Santee. The special study area sphere of influence designation for the City of El Cajon includes CSA No Based on the criteria set forth by SB 244, staff s analysis indicates that approximately 50% of CSA No. 115 is designated as a DUC. LAFCO staff has also located DUCs within San Miguel and Lakeside FPD. Based on U.S. Census Bureau data, San Miguel FPD has 5 DUCs within the Northwest and Southwest boundary and Lakeside has 3 DUCs within the Southern boundary. LAFCO staff should implement the Commission s DUC Policy as the proposed reorganization or any future boundary adjustment within or adjacent to CSA No. 115 is considered. Determination 3: Present and Planned Capacity of Public Facilities and Adequacy of Public Services including Infrastructure Needs of Deficiencies In authorizing the preparation of municipal service reviews, the State Legislature has focused on one of LAFCO s core missions encouraging the efficient provision of public services. Infrastructure needs or deficiencies, which refers to the adequacy of existing and planned public facilities in relation to how public services are and will be provided to citizens, impacts the efficient delivery of public services. For an MSR, adequate level of service is defined as the norm for the area under study. Infrastructure can be evaluated in terms of capacity, condition, availability, quality; and correlations among operational, capital improvement, and finance plans. It is recognized that there may be unmet infrastructure needs due to budget constraints or other factors; nevertheless, identification of deficiencies may promote public understanding and support for needed improvements. A complete review of Determination 3 is discussed in Appendix B. Determination 3.0: There is no long-term comprehensive strategy within the East County Region to improve or add to infrastructure for fire protection and emergency medical services. To evaluate the impact of the proposed reorganization of CSA No. 115 on both the CSA and surrounding territory, LAFCO staff established a sub-regional analytical model. This particular sub-region in East County includes 13,410 acres and has a total population of 121,655 within six primary areas: South/East Santee, North/East El Cajon, South/West Lakeside, plus the Communities of Bostonia and Pepper Drive (CSA No. 115). The sub-region is generally developed with a combination of single and multifamily homes as well as light industrial and small commercial occupancies. There are also pockets of heavy industrial and larger mixed-use commercial occupancies. There are large undeveloped areas on Rattle Snake Mountain and some planted orchards that pose challenges for access in the event of a wildland fire. A need exists for 10 First Responder Engine Companies in the study area identified as the Eastern Sub-region of San Diego County based on a three-year annual average of Page 13 of

193 over 25,000 calls for service. This Eastern Sub-region was drawn by LAFCO staff for analytical purposes to capture data within a seven mile radius of Pepper Drive and Winter Gardens Boulevard. Per Heartland Communication Facility Authority call data, actual calls for calendar years 2014, 2015 and 2016 totaled 24,203, 24,874 and 26,760, respectively. While some engine companies have higher call volume than others, the average for calendar year 2016 was over seven calls per day (24 hour period) for 10 engines. Determination 3.1: Recent relocation efforts may lead to an increase in optimal service delivery Fire department deployment, as described by Citygate Associates LLC, is about the speed and weight of the attack. Speed calls for first-due, all risk intervention units (engines, trucks and/or rescue ambulances) strategically located across a department. Weight is about multiple-unit response for serious emergencies. In these situations, enough firefighters must be assembled within a reasonable time frame to safely control the emergency. Such analysis led Lakeside FPD to relocate Station #1 to improve service delivery within its jurisdictional boundary. The former Lakeside FPD Station 1 was located at 9726 Riverview Ave and approximately 4.1 miles from the Pepper Drive area. The station, which housed a paramedic engine company and brush company, provided first response to Winter Gardens, Riverview and Lakeside proper. The District has since relocated Lakeside Fire Station #1 to a site in the 8000 block of Winter Gardens Boulevard which substantially improved coverage at both the 4 th and 5 th minute travel. The relocation also allows for 5-minute coverage into all of CSA No San Miguel FPD also explored improving coverage within the unincorporated areas including the Bostonia community. However, the new fire station site acquired by San Miguel FPD was located on 1105 Pepper Drive at the corner of Pepper Drive and North 1 st Street which is outside San Miguel FPD s jurisdiction and within Lakeside FPD s service boundary. The San Miguel Board has recently halted constructions following several meetings between LAFCO and Lakeside FPD representatives and has now considered a new fire station location on the 700 block of Bradley Avenue. This new site is within San Miguel FPD s jurisdictional boundary. Full occupancy at the Bradley Avenue station has yet to be determined and requires further LAFCO analysis on the impacts to CSA No. 115 and the East County Region. Determination 3.2: CSA No. 115 relies upon a complex system of automatic and mutual aid among local agencies, in addition to a 4-way contract between neighboring fire agencies in order to provide fire protection and emergency medical services. Fire protection and emergency medical agencies assess risk against available resources and formulate plans for providing services. Individual agencies rarely possess sufficient resources to cover extraordinary situations; moreover, unnecessary duplications of effort and needless expense would result if each fire protection agency independently acquired facilities, apparatus, equipment, and personnel to create a response capability able to confront every conceivable worst-case scenario. Page 14 of

194 Accordingly, a basic component of fire protection strategy is to share apparatus and personnel among agencies as requested (mutual aid) or dispatch resources automatically upon notification of an incident (automatic aid). Reorganization of CSA No. 115 may eliminate administrative costs associated with contracting for emergency responses within the service area, improve 911 response times, and address any duplication of efforts. Determination 3.3: County Service Areas that provide fire protection and emergency medical services have traditionally been restricted to volunteer, part-time emergency personnel unless funds to provide staff facilities are identified. CSA No. 115 instead relies on a contractual system involving municipalities and fire districts. Six former CSAs, which are now part of CSA No. 135, provided fire protection and emergency medical services through volunteer part-time safety personnel, who are not quartered in CSA facilities. CSA No. 115 is the only CSA that obtains services by contract and currently does not retain personnel and has no requirement for staff housing. Historically, the County has contracted with the City of Santee for fire protection and emergency medical services even though neighboring fire agencies have been first responders to calls within CSA No As of April 2016, the County now reimburses fire responders based on actual call data in accordance to a four-way contract with El Cajon, Santee, Lakeside FPD, and San Miguel FPD. Determination 4: Financial Ability of Agencies to Provide Services LAFCO must weigh a community s public service needs against the resources available to fund the services. During municipal service reviews, the financing constraints and opportunities, which have an impact on the delivery of services, are reviewed and enable LAFCO, local agencies, and the public to assess whether agencies are capitalizing on financing opportunities. Service reviews may also disclose innovations for contending with financing constraints, which may be of considerable value to numerous agencies. The historical and projected financial health of Lakeside and San Miguel FPDs were evaluated as part of this municipal service review. A complete review of Determination 4 is discussed in Appendices C and D. Determination 4.0: Subject agencies are heavily dependent on property tax revenue to fund fire protection and emergency medical service responsibilities Under general financial practices, it is a local agency s advantage to have a balance of revenue sources to mitigate the effects of economic fluctuation. The approximately $386,000 operating budget for CSA No. 115 is currently funded by a share of property taxes. Historically, property taxes are the District s primary source of revenue. In FY 2014/15, $8.4 million or 70% of Lakeside FPD s total revenue was from property taxes. The dependence on property taxes as the primary source of revenue is even greater Page 15 of

195 with San Miguel FPD. Approximately 90% of total revenue for San Miguel FPD is from property taxes. Determination 4.1: Operational performance (operating revenue vs. operating expenses) by San Miguel and Lakeside Fire Protection Districts during the past fiscal years increased total reserve balances Between FY 2008/09 and FY 2014/15, San Miguel and Lakeside FPDs have incurred a surplus in operating net balance which has contributed to a healthy reserve amount. While Lakeside FPD s actual revenue and expenditures were slightly below their projections within their adopted budgets, the District consistently ended each fiscal year with a surplus. Lakeside FPD has eight specific reserve funds: (1) General; (2) Emergency; (3) Capital; (4) Leave; (5) OPEB; (6) Heartland Communications Facility Authority JPA; (7) SDG&E Mitigation; and (8) Unassigned. Staff analysis indicated there was a steady decline in total reserve funds after FY 2010/11. This was primarily due to the District s scheduled relocation and construction of its new headquarters. Other capital improvements, such as the construction of the new fire station near CSA No. 115, contribute to the reduction in total reserves. The total reserve balance for FY 2014/15 ended with $7.8 million which is approximately 59% of the agency s total revenue. San Miguel Consolidated FPD consistently ended their fiscal year since 2008 with a surplus as well. The excess funds have contributed to a healthy reserve fund balance throughout the years. The District has six specific reserve funds: (1) General; (2) Special Projects; (3) Capital Reserve; (4) Uncompensated Leave; (5) Vehicle Replacement; and (6) Other Governmental. Staff analysis indicated that in FY 2012/13, the District endured a decline of approximately $1.3 million in their reserves due to the uncompensated leave payout during that year. The total reserve balance for FY 2014/15 ended with approximately $6 million which is 30% of the agency s total revenue. Determination 4.2: Financial forecast for San Miguel and Lakeside Fire Protection Districts during the next ten years raised areas of concern San Diego LAFCO conducted two financial analysis reports as part of this municipal service review. While the first financial report (Part One) covered the operational performance during FY 2008/09 to FY 2014/15, the second report (Part Two) is more extensive and projects the financial condition of both agencies overall governmental activity for the next ten years. Lakeside Fire Protection District has maintained a fairly stable operational budget for the past seven years. However, after reviewing the overall governmental activity, the District has experienced a constant deficit since FY 10/11. This financial decline could be due to the District s ongoing capital improvement projects such as the construction of its new headquarters. Other capital improvements, including Page 16 of

196 the construction of the new fire station near CSA No. 115, have also contributed to the decline in the agency s total governmental activity. The ongoing projects have depleted the reserves by over 30% from $11.4 million (FY 2010/11) to $7.8 million (FY 2014/15). Currently, Lakeside FPD still maintains a healthy reserve balance. All three projection scenarios indicate that the agency will be sustainable however due to the stagnant revenue inflow; the District should consider making further adjustments in upcoming budgets to avert future financial shortfalls. Based on LAFCO staff s evaluation of the latest adopted budget (FY 2016/17), 44% of total expenditure is salary and benefits ($7.6 million), 18% is CSA No. 69 contract expenses ($3.1 million), 11% is capital outlay ($1.8 million), 15% is the remaining operating expenses ($2.5 million), and 12% is the remaining non-operating expenses ($2 million). The District should reassess theses budgetary costs, specifically non-operating expenses, to address the projected financial deficits in the years to come. As for San Miguel FPD, it is preparing to transition all fire service responsibilities back to the agency following the termination of the CAL FIRE contract. The District originally entered into a cooperative agreement with CAL FIRE in 2012 after facing several consecutive years of declining revenues and increased costs. The contract allowed the District to shift long-term expenses and operational responsibilities to CAL FIRE - resulting in significant annual savings. Hosaka, Rotherham & Company, the District s auditor, has stated in each audited financial statement that As a result of the transition of CAL FIRE on December 31, 2012, the District s condition is improving. The auditor also noted that the annual cooperative agreement came under budget each fiscal year from FY 2011/12 to FY 2014/15 which increased the District s reserve balance during those years. The historical governmental activity performance under the current contract illustrated the positive impact to the agency. Nevertheless, the Board of Directors voted to terminate the CAL FIRE contract and revert back to a stand-alone agency for fire service due to the projected rising CAL FIRE costs. The financial projections under the Existing Conditions Scenario prepared by LAFCO staff incorporates the anticipated rising costs and does exemplify a negative impact to the agency s long-term fiscal performance if it continues to contract with CAL FIRE for fire services. A section later in this report provides a comparison chart which summarizes both projection scenarios (Stand-Alone vs. Existing Conditions). The projections, following a $4.3 million adjustment, illustrate a positive forecast for San Miguel FPD. However, the District will be operating in a leaner budget in comparison to its adopted budget in FY 2011/12 as a stand-alone agency. Any increases in budgetary costs may affect the long-term financial performance of the agency. LAFCO s findings, while educated speculations, should be strongly considered and thoroughly evaluated by the San Miguel FPD Board as the District prepares to transition from the current cooperative agreement with CAL FIRE. Page 17 of

197 Determination 4.3: Proposed Plan for Service indicates no new or extended benefit fee, special tax, or assessment will be implemented to CSA No. 115 from either San Miguel or Lakeside Fire Protection District The San Miguel Consolidated FPD proposes to provide service to CSA No. 115 without the need for new or extended benefit fees, special taxes, or assessments. Dissolution would also eliminate the need for a contracting entity (CSA No. 115) to service the area. Lakeside FPD proposes to bring CSA No. 115 into the District's service area so these areas can receive the same Fire/EMS Service that is currently provided districtwide. The District has a voter approved, non-escalating, benefit fee using an existing formula which generally costs District residents $40 per single family dwelling. The formula is slightly more for commercial areas, less for mobile homes and vacant property. Similar to San Miguel FPD, this benefit fee is not being proposed by Lakeside FPD to be applied to properties within CSA No. 115 upon annexation. The District intends to use 100% of property tax and other revenues obtained as part of the CSA No. 115 annexation for Capital Improvements (the construction of a permanent fire station) to serve the Pepper Drive Area. Determination 5: Status and Opportunity for Shared Facilities Public service costs may be reduced and service efficiencies increased, if service providers develop strategies for sharing resources, such as equipment, procurement, and joint use facilities. Sharing both facilities and excess capacity/equipment may decrease duplicative efforts, may lower costs, and/or minimize unnecessary resource consumption. A complete review of Determination 5 is discussed in Appendix B. Determination 5.0: Adoption of a 4-way contract between the County of San Diego and the neighboring fire agencies ensures the delivery of fire service but does not apply long-term planning for CSA No. 115 Since incorporation of Santee in 1981, the County of San Diego has been responsible for fire protection in Pepper Drive, but contracted with the City of Santee for fire protection service and then in 2016 expanded the contract to include the City of El Cajon and the Lakeside and San Miguel Consolidated FPDs for actual service provision. Based on response data within CSA No. 115, the County of San Diego revised its contracting process in April 2016 and terminated the CSA No. 115 contract with the City of Santee and instead executed a contract with the four neighboring fire agencies. The contract reimburses the responding agencies based on quarterly response date. Reimbursement for services is based on standby rate and call volume. Call reimbursement is based on the number of calls responded to within CSA No The agency filing the report for the incident will qualify for reimbursement for the response. The CSA provides a governance structure that is able to contract with the four agencies for fire protection and advanced life support level EMS services. An Page 18 of

198 increment of the one percent property tax, which the CSA collects, funds the four-way contract. The amount of the contract since has been fairly constant at approximately $386,896 per year. Ambulance transport services are provided by CSA No. 69 (Heartland Paramedic). The most recent data resulted in the following reimbursement amounts for the first responders: City of Santee ($12,382); San Miguel Consolidated FPD ($38,220); Lakeside FPD ($71,440) and City of El Cajon ($88,050). During the first and second quarter in FY 16/17 there were 206 calls in CSA No Of those 206 calls, the City of Santee was the first responder to 8 calls (4%); San Miguel FPD was the first responder to 36 calls ($17%); Lakeside FPD was the first responder to 72 calls (35%), and the City of El Cajon was the first responder to 90 calls (44%). However, the proposed reorganization would improve the level of service, increase efficiencies, and identify a more logical service provider to the residents within the CSA No. 115 area. Determination 5.1: Consideration of a joint use facility may avoid duplicating organizational structures and overlapping operational capabilities During the service review preparation, Lakeside FPD and San Miguel FPD reestablished discussions to determine if efficiencies can be achieved by accommodating the facility needs of both agencies through the use of a joint facility. Since the San Miguel Consolidated FPD has not completed construction of a new fire station at 1105 Pepper Drive, the Lakeside FPD and San Miguel Consolidated FPD could potentially still explore the joint usage of a single fire station located at 8035 Winter Gardens Boulevard or other location such as the Bradley Avenue site. Options for planning future shared facilities and services are still being considered. Opportunities still exist for the Lakeside FPD and San Miguel Consolidated FPD to implement cost avoidance strategies through a functional or jurisdictional consolidation in order to achieve optimal usage of existing fire stations, apparatus and personnel -- elimination of duplicate administrative positions alone could result in ongoing operational savings ranging from $400,000 to $600,000 annually. This projection is preliminary and should be referred to LAFCO staff for further analysis. Cost avoidance measures could be more readily achieved by the Lakeside FPD than the San Miguel Consolidated FPD because the new Lakeside fire station and property located at 8035 Winter Gardens Boulevard is of a suitable size to potentially co-locate multiple fire engine companies, whereas San Miguel s proposed fire station and property lacks sufficient capability to support co-habitation of multiple fire engine companies from multiple districts. One of the impediments to facility sharing has been San Miguel s contract with Cal FIRE; this impediment will no longer be present after the April 13 transition to a standalone agency and discontinuation of the CAL FIRE contract. Page 19 of

199 Determination 6: Accountability for Community Service Needs, including Governmental Structural and Operational Efficiencies In making a determination of local accountability and governance, LAFCO will consider the degree to which local accountability is fostered in the region. Local accountability and governance refers to public agency decision making and operational and management processes that: (1) include an accessible and accountable elected or appointed decision making body and agency staff; (2) encourage and value public participation; (3) disclose budgets, programs, and plans; (4) solicit public input when considering rate changes, work and infrastructure plans; and (5) evaluate outcomes of plans, programs, and operations, and disclose results to the public. A complete review of Determination 6 is discussed in Appendix B. Determination 6.0: LAFCO staff review of current and proposed governmental structure to address community service needs The San Miguel Consolidated FPD is an independent special district and is governed by a seven-member Board of Directors elected to four-year terms on an alternating basis. The Operations Division is responsible for managing and supervising the day-to-day operations of the Fire District. The Division s primary responsibility is to provide emergency responses from our 8 fire stations and 8 front-line response apparatus. Emergency medical responses account for approximately 76% of calls. Other emergency responses include structure, vehicle and vegetation fires; vehicle accidents, rescues, hazardous materials incidents and public service calls. At this time, the Division is managed by the Fire Chief, four CAL FIRE shift Battalion Chiefs, and a Logistics Coordinator. Each response unit is staffed with 3 personnel consisting of a Fire Captain, Fire Apparatus Engineer and Firefighter/Paramedic or Firefighter EMT. Our day to day staffing includes seven Type One Structural Firefighting Engine Companies and One Type 1 Truck Company. All response personnel are certified to a minimum level of Emergency Medical Technician. In addition to emergency responses, Operations personnel also provide public education, perform fire prevention inspections, maintain fire hydrants, perform minor equipment and facilities maintenance and participate in continuous training activities. LAFCO staff will need to reevaluate the level of service following the transition back to a standalone agency. The Lakeside FPD is also an independent special district and is governed by a 5- member board. All board members are elected at-large. The Operations Division is comprised of three platoons of firefighters alternating 24-hour duty shifts to provide continual, 24-hour per day, year-round service. Operations Division personnel operate out of four fire stations staffing four paramedic engine companies, one rescue company, one brush engine, and two advanced life support paramedic ambulances. Lakeside firefighters respond to over 9000 incidents annually including fires, medical emergencies, traffic collisions, rescues, and a wide variety of other requests for service. CSA No. 115 is governed by the five-member Board of Supervisors. Board members are elected by supervisorial district to four-year terms and must be residents and registered voters within the applicable supervisorial district. CSA No. 115 is within Page 20 of

200 Supervisorial District 2. Administrative services for CSA No. 115 are provided by the San Diego County Fire Authority, which is a departmental function within the County Public Safety Department. Information is relatively available on each agency website. Determination 7: Any Other Matter Related to Effective or Efficient Service Delivery, as Required by Commission Policy Determination 7.0: LAFCO staff evaluation of the benefits and constraints associated with the proposed CSA No. 115 Reorganization Based on the completion of three technical reports conducted as part of the municipal service review, LAFCO staff has reached a number of preliminary conclusions. The ad hoc committee reviewed and commented on the below conclusions. Reorganization Conclusions: 1. A need exists for 10 First Responder Engine Companies in the study area identified as the Eastern Sub-region of San Diego County based on a three-year annual average of over 25,000 calls for service. 2. It appears that CSA No. 115 is currently receiving an acceptable level of service and response times from the two districts and two cities that participate in the CSA No. 115 service agreement with the County. 3. Response times within the CSA No. 115 service area will improve to 2.03 minutes for Lakeside FPD and 1.31 minutes for San Miguel Consolidated FPD upon full operation of both new fire stations based on data provided by both districts during the completion of the technical reports. 4. Response times to territory outside of CSA No. 115 but within the Eastern subregion will also improve upon full operation of the Lakeside FPD and San Miguel Consolidated FPD fire stations by reducing overall travel times by 1 to 3 minutes within the two districts. 5. The relocation of a Lakeside FPD fire station and initial relocation of a San Miguel Consolidated FPD station will result in two fire stations potentially being sited within 0.80 of a mile of each other. The County Fire Authority and others have questioned the appropriateness of this arrangement and if it is in the best interests of the region. The station relocation decisions also raise concerns whether the districts will incur additional and/or unnecessary capital expenditures and operating costs. New information has indicated that San Miguel FPD has considered relocating the new fire station to the Bradley Avenue site. Page 21 of

201 6. While relocation of the Lakeside and San Miguel Consolidated FPD fire stations occurred after significant inter-agency communications between the Lakeside and San Miguel Consolidated FPDs, there was not a consensus and agreement on station relocation issues, including potential co-location of both fire districts within one fire station. Both districts believe the selected locations were necessary to better serve their own constituents and improve coverage to CSA No Lakeside FPD s fire station located at 8035 Winter Gardens Boulevard and San Miguel Consolidated FPD s proposed fire station located at 1105 Pepper Drive or Bradley Avenue will become fully operational with or without approval of reorganization of CSA No Approval or disapproval of either or both reorganizations (Nos. 1 and/or 2) will not change areas of coverage, response times, or community investment in the Pepper Drive community, because the fire stations and community investment by Lakeside and San Miguel Consolidated FPDs has already occurred or is planned. Due to automatic aid agreements and the four-way agreement with the County of San Diego, response to CSA No. 115 is unlikely to change. 9. Opportunities still exist for the Lakeside FPD and San Miguel Consolidated FPD to implement cost avoidance strategies through a functional or jurisdictional consolidation in order to achieve optimal usage of existing fire stations, apparatus and personnel -- elimination of duplicate administrative positions alone could result in ongoing operational savings ranging from $400,000 to $600,000 annually. This projection is preliminary and should be referred to LAFCO staff for further analysis. 10. Cost avoidance measures could be more readily achieved by the Lakeside FPD than the San Miguel Consolidated FPD because the new Lakeside fire station and property located at 8035 Winter Gardens Boulevard is of a suitable size to potentially co-locate multiple fire engine companies, whereas San Miguel s proposed fire station and property lacks sufficient capability to support cohabitation of multiple fire engine companies from multiple districts. One of the impediments to facility sharing has been San Miguel s contract with Cal FIRE; this impediment will no longer be present after the Cal FIRE contract is terminated. Page 22 of

202 11. Since the San Miguel Consolidated FPD has not completed construction of a new fire station at 1105 Pepper Drive, the Lakeside FPD and San Miguel Consolidated FPD could potentially still return to discussions regarding the siting and joint usage of a single fire station located at 8035 Winter Gardens Boulevard. 12. If both reorganizations are disapproved by LAFCO, CSA No. 115 will receive fire protection and emergency medical services under the 4-way contract. Since reimbursement funds from the County are now shared proportionally to the percentage of first responses, the four contracting entities will experience a reimbursement amount based on actual response call data. 13. If the proposed agreement between the FPDs is approved as part of the reorganization, then two districts will split the revenues evenly and the Cities of Santee and El Cajon will no longer receive revenues from the area. This may address one of San Miguel Consolidated FPD historic beliefs that it has been responding in the City of El Cajon without compensation for many years and that Santee has benefited for several decades without being the primary responder. 14. Disapproval of the two reorganization proposals could delay the construction or completion of the two fire stations as revenue from the CSA will continue under the County s four-way service agreement. 15. According to preliminary analysis conducted by LAFCO staff, termination of the Cooperative Agreement between the San Miguel Consolidated FPD and Cal FIRE may impact the San Miguel Consolidated FPD s long-term financial ability to provide services, including the Eastern sub-region and Pepper Drive. 16. Termination of the Cooperative Agreement between the San Miguel Consolidated FPD and Cal FIRE is not subject to LAFCO purview per SB 239; however, should a new contract be executed to re-engage Cal FIRE in the future, then LAFCO purview would be required per SB Termination of the Cooperative Agreement between the San Miguel Consolidated FPD and Cal FIRE may result in the District s need to contract for dispatching services. However, this potential dispatching contract is not subject to LAFCO purview in accordance to Government Code Sections and Page 23 of

203 18. As with any major jurisdictional proposal, LAFCO needs to consider alternatives. The following jurisdictional alternatives and modifications to CSA No. 115 Reorganization Nos. 1 and 2 have been accordingly identified and should be subject to further analysis: a. Approval of one or both of the reorganization proposals; b. Disapproval of one or both of the reorganization proposals; c. Functional and/or jurisdictional consolidation/reorganization of Lakeside FPD and San Miguel Consolidated FPD; d. Dissolution of CSA No. 115 and annexation of the dissolved CSA territory to the Cities of Santee and/or El Cajon; e. Dissolution of CSA No. 115 and annexation of the dissolved district territory to CSA No. 135; f. Continuation of the proposed reorganization hearings for an indefinite or definite time period; and g. Other: To be identified APPENDICES A. Statements of Determinations for Spheres of Influence: Lakeside Fire Protection District, San Miguel Consolidated Fire Protection District and County Service Area No. 115 B. Service Delivery Analysis C. Independent Financial Analysis (Historical Data) Part 1 of 2 D. Independent Financial Analysis (Projected Data) Part 2 of 2 Page 24 of

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205 CSA No. 115 Call Volume Breakdown AGENDA ITEM No. 10 Attachment 5 Quarter Lakeside Santee El Cajon San Miguel Dispatched Onscene Dispatched Onscene Dispatched Onscene Dispatched Onscene Q1 FY Q2 FY Q3 FY Q4 FY % of Total 4% 2% 35% 59% Q1 FY Q2 FY Q3 FY Q4 FY % of Total 36% 3% 32% 29% Q1 FY Q2 FY Q3 FY Q4 FY % of Total 43% 8% 30% 18% Agency FY2016 FY2017 FY2018 May 18th to Aug 31st Lakeside 23 4% % % 12 13% Santee 14 2% 22 3% 46 8% 8 9% El Cajon % % % 15 16% San Miguel % % % 58 62% % % % % 1 San Miguel Lakeside Lakeside San Miguel 2 El Cajon El Cajon El Cajon El Cajon 3 Lakeside San Miguel San Miguel Lakeside 4 Santee Santee Santee Santee * SMCFPD Opened the Bradley Station on May 18th 205

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207 San Miguel Consolidated Fire Protection District Audited Financial Statements September 19, 2018 AGENDA ITEM No. 10 Attachment Measurements contract contract contract contract contract independent ASSETS Current Ratio (Liquidity) Last 3 Years Current 6,118,268 7,343,878 9,039,305 9,926,233 9,754,266 11,144, Average Trend Average Trend Non Current 20,284,535 19,265,235 18,047,367 11,226,138 12,661,618 12,331, % % $ 26,402,803 $ 26,609,113 $ 27,086,672 $ 21,152,371 $ 22,415,884 $ 23,476,536 Days Cash (Liquidity) Last 3 Years DEFERRED OUTFLOWS Average Trend Average Trend Pension Costs (+) 1,415,786 1,853,566 4,380,860 9,754, % % $ $ $ 1,415,786 $ 1,853,566 $ 4,380,860 $ 9,754,074 Debt Ratio (Capital) Last 3 Years LIABILITIES Average Trend Average Trend Current 3,453,022 2,674,688 2,942,511 2,904,093 3,371,471 3,089, % 59.81% % % % % 160.3% 270.3% % 26.7% Non Current 15,177,749 13,241,154 33,674,743 40,702,639 47,959,472 58,249,099.. OPEB portion notes notes notes 7,819,405 8,846,556 18,658,019 Debt Ratio Less Pension & OPEB (Capital) * Last 3 Years.. pension portion 22,458,700 23,802,978 31,846,516 36,446, Average Trend Average Trend $ 18,630,771 $ 15,915,842 $ 36,617,254 $ 43,606,732 $ 51,330,943 $ 61,338, % 59.81% 52.27% 56.66% 47.46% 26.55% 52.2% 62.4% 43.56% 53.13% DEFERRED INFLOWS Total Margin (Profitability) Last 3 Years Unearned Revenue 100,228 75,387 30,549 38, Average Trend Average Trend Pension Costs ( ) 6,821,784 6,636,433 3,585,770 4,331, % 9.86% 6.68% 4.50% 2.70% 18.21% 5.2% 440.1% 6.67% 305.0% $ $ $ 6,922,012 $ 6,711,820 $ 3,616,319 $ 4,369,650 Operating Margin (Profitability) Last 3 Years RESERVES Average Trend Average Trend Capital 6,279,647 7,168,903 7,884,611 8,046,138 10,221,618 6,375, % 9.85% 8.23% 4.51% 2.01% 17.91% 6.7% 972.6% 6.80% 297.2% Restricted 1,912,491 2,446,897 3,446,934 Unrestricted (420,106) 1,077,471 (26,368,333) (35,358,753) (38,372,136) (38,853,099) Equipment Replacement Ratio (Management) Last 3 Years $ 7,772,032 $ 10,693,271 $ (15,036,788) $ (27,312,615) $ (28,150,518) $ (32,477,352) Average Trend Average Trend n/a n/a % % NET ASSETS $ 7,772,032 $ 10,693,271 $ (15,036,808) $ (27,312,615) $ (28,150,518) $ (32,477,352) Savings Ratio (Management) Last 3 Years NET ASSETS ADJUSTED Average Trend Average Trend LESS PENSION & OPEB $ 7,772,032 $ 10,693,271 $ 7,421,892 $ 4,309,768 $ 12,542,554 $ 22,627, % 11.62% 9.80% 5.45% 1.25% 22.57% 8.5% 746.8% 8.92% 314.1% unrestricted portion $ (420,106) $ 1,077,471 $ (3,909,653) $ (3,736,370) $ 2,320,936 $ 16,251,343 NOTES 1 SMFPD reverted back to independent status beginning July 1, 2017, and as such FY is the first year under its new staffing arrangement. 2 Audits for FY , FY , and FY were not previously reviewed by LAFCO in the MSR approved by the Commission in July SD LAFCO previously defined "self sustaining fire agency" as total governmental revenues exceeding total governmental expenses; i.e., total margin 207

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209 AGENDA ITEM No. 10 Attachment 7 209

210 Blank for Photocopying 210

211 Listing of all Affected APNs in CSA No. 115 Updated 9/20/ P age AGENDA ITEM No. 10 Attachment 8 211

212 Listing of all Affected APNs in CSA No. 115 Updated 9/20/ P age

213 Listing of all Affected APNs in CSA No. 115 Updated 9/20/ P age

214 Listing of all Affected APNs in CSA No. 115 Updated 9/20/ P age

215 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) San Diego Local Agency Formation Commission Chair Jo MacKenzie, Director Escondido Irrigation District Vice Chair Ed Sprague, Director Olivenhain Municipal Water Members Catherine Blakespear, Mayor City of Encinitas October 1, 2018 TO: San Diego Commissioners 11 AGENDA REPORT Public Hearing 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 Robert Barry, Chief Policy Analyst SUBJECT: Proposed North Avenue Estates Reorganization Annexation to City of Escondido with Concurrent Detachments from County Service Area No. 135 (Regional Communications) and the Deer Springs Fire Protection District (RO18-06 et al.) SUMMARY The San Diego Local Agency Formation Commission (LAFCO) will consider a reorganization proposal filed by resolution of the City of Escondido to annex approximately 17.9 acres of unincorporated territory located within its sphere of influence. The proposed reorganization includes concurrent detachments of the affected territory from the Deer Springs Fire Protection District (FPD) and County Service Area (CSA) No. 135 (regional communications) in conjunction with Escondido assuming service responsibilities. The primary purpose of the reorganization is to facilitate the proposed 34-unit singlefamily residential development known as North Avenue Estates. An initial version of the proposal was 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. Staff believes the current development plan includes sufficient revisions to remedy these earlier concerns, and it is recommended the Commission approve the reorganization without modifications and waive protest proceedings. Standard terms are also recommended. 215

216 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) BACKGROUND Applicant Request Affected Territory as Proposed San Diego LAFCO has received an application from the City of Escondido ( Escondido ) on behalf of interested landowners requesting approval to annex approximately 17.9 acres within the City s sphere of influence. Escondido is also seeking concurrent approval to detach the affected territory from Deer Springs FPD and CSA No. 135 (regional communications) in conjunction with the City assuming the associated services. As submitted, the affected territory includes five unincorporated parcels located along North Avenue and divided between two non-contiguous areas as described below. Area A includes three of the five subject parcels and located immediately north of the intersection of North Avenue and Conway Drive. Two parcels are undeveloped and subject to a development approval as detailed in the succeeding sections. These two parcels are identified as and and are approximately 1.25 and acres in size, respectively. The third parcel is developed with one single-family residence and is identified as The third parcel is also already connected to Escondido s wastewater system via an earlier LAFCO-approved contractual service agreement between the landowner and the City. Area B includes two of the five subject parcels and is located approximately 1,200 feet west of Area A near North Avenue s intersection with North Broadway Street. The two parcels are each developed with one single-family residence and are identified as and These two parcels are also already connected to Escondido s wastewater system through earlier LAFCO-approved contractual service agreements between the respective landowners and the City. Affected Territory Area A - Three Parcels - One Parcel is Developed with SFR * - Two Parcels are Undeveloped; Subject to 34-lot Subdivision A Area B - Two Parcels - Both Developed with SFR * B * Already Connected to City Wastewater 2 P age 216

217 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) Subject Agencies The proposed reorganization involves three subject agencies whose service areas would be affected by the associated boundary changes: Escondido; CSA No. 135 (regional communications) and Deer Springs FPD. 1 A summary of the subject agencies follows. Escondido is located in northern San Diego County and encompasses approximately 23,200 acres or 36.2 square miles. It is bordered by the incorporated Cities of San Marcos to the east and San Diego to the south as well as the unincorporated communities of Harmony Grove, Elfin Forest, Eden Hills, Hidden Meadows, Valley Center, San Pasqual, Lake Hodges, and San Dieguito. Escondido was incorporated in 1888 and is governed by a five-member city council consisting of a directly-elected at-large mayor and four councilmembers elected by district. The estimated resident population is 150, Escondido presently provides a full range of municipal services marked by land use and community planning, fire and police protection, emergency medical, wastewater, water, and recycled water. 3 LAFCO established a larger-than-agency sphere of influence for Escondido in 1979, which was last reviewed and affirmed in 2008 and includes 19,619 non-jurisdictional acres. 4 Deer Springs FPD is an independent special district that provides fire protection and emergency medical services within an approximate 28,260 acre or 44.2 square mile jurisdictional boundary in northern San Diego along the I-15 corridor. Escondido is directly to the south. Deer Springs FPD was formed in 1981 and is governed by a five-member board of directors that are elected at-large to four-year terms. The estimated resident population in Deer Springs FPD is 12, Fire protection and emergency medical services which includes advance life support is provided by Deer Springs FPD through a contract with CALFIRE. This contract provides staffing for three FPD fire stations: (1) 8709 Circle R Drive; (2) 1321 Deer Springs Road; (3) Meadow Glen Way East. 6 LAFCO established a smaller-than-agency sphere of influence for Deer Springs FPD in The sphere was last reviewed and affirmed by LAFCO in 2014 and excludes 8,020 jurisdictional acres including the affected territory with the majority located to the south towards Escondido. CSA No. 135 is a dependent special district that provides regional communications throughout its approximate 2,393,485 acre or 3,739.8 square mile jurisdictional boundary that includes all unincorporated lands as well as 10 of the 18 local cities. 7 (It also provides fire protection and emergency medical services within a LAFCOactivated latent power area of its jurisdictional boundary. The affected territory is State law defines subject agency to mean any district or city for which a change or organization or reorganization is proposed. Referenced source is San Diego Association of Governments, 2016 estimates. Rincon Del Diablo Municipal Water District also provides water and fire protection services within portions of Escondido. The next scheduled sphere of influence review is Referenced source is San Diego Association of Governments, 2016 estimates. Auxiliary services are also provided from the CALFIRE station at 1127 West Lilac Road. Cities within CSA No. 135 are Carlsbad, Del Mar, Encinitas, Imperial Beach, Lemon Grove, Poway, San Marcos, Solana Beach, Santee, and Vista. 3 P age 217

218 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) not located within the activated latent power area.) CSA No. 135 and its regional communication services were established in 1994 to support the funding and operation of an 800 MHz communications system for public safety personnel. The estimated resident population in CSA No. 135 is 1,057, LAFCO established a sphere of influence in 1994 for CSA No. 135 that is coterminous with the county boundary. The sphere was last reviewed and affirmed in Affected Local Agencies The affected territory is presently located within the jurisdictional boundaries of the following local agencies directly subject to San Diego LAFCO. 9 Deer Springs FPD * CSA No. 135 (regional communications) * Rincon del Diablo MWD North County Cemetery District Palomar Health Healthcare District Resource Conservation District of Greater San Diego County * Subject to the proposed reorganization ADDITIONAL BACKGROUND Earlier Proposal and Commission Action The affected territory was previously subject to a proposed reorganization submitted by Escondido to San Diego LAFCO in The earlier proposal similarly sought to facilitate the subdivision and development of Area A to include 34 single-family residence lots. (Area B was not included in the initial proposal.) The proposal was considered and approved by LAFCO in August 2008 with a condition imposed by the Commission to address the potential need for the remedial extension of Escondido wastewater services to impacted adjacent properties along Laurashawn Lane. Escondido did not agree to the condition and the proposal was subsequently terminated in 2009 due to a failure to complete terms within a specified period. Additional background details concerning the earlier proposal are provided as part of an attached memorandum. 8 Referenced source is San Diego Association of Governments, 2016 estimates. 9 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. 10 LAFCO Ref. No. RO P age 218

219 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) DISCUSSION This public hearing item is for San Diego LAFCO to consider approving with or without modifications Escondido s reorganization proposal to annex the affected territory along with the corresponding boundary changes to detach from Deer Springs FPD and CSA No. 135 (regional communications). The Commission may also consider applying conditions of approval for the reorganization so long as it does not directly regulate land use, property development, or subdivision requirements. Specific and concurrent action approvals underlying the requested reorganization under LAFCO law follows. 11 Annex the affected territory to Escondido. Detach the affected territory from Deer Springs FPD. Detach the affected territory CSA No. 135 (regional communications). Additional discussion with respect to proposal purpose and Commission focus follows. Proposal Purpose The primary purpose of the proposed reorganization before San Diego LAFCO is to facilitate the development of a 34-unit single-family residential subdivision within two of the three parcels comprising Area A. This planned development is consistent with Escondido s General Plan, pre-zoning, and tentative subdivision map approvals specific to the subject parcels. 12 Markedly, and in order for the development to proceed, annexation is necessary given the need to establish public wastewater services to support the density. Escondido s conditional development and pre-zoning approvals are accordingly contingent on LAFCO approval of the reorganization. The secondary purpose of the proposal is to bundle the annexations of three developed unincorporated properties in Areas A (one parcel) and B (two parcels) that are each presently connected to Escondido s wastewater system under contractual service agreements due to a failed or failing septic system. Present and Proposed Development Potential As detailed in Appendix A, the affected territory (Areas A and B) as proposed is planned for single-family residential use under both the County of San Diego and Escondido General Plans. Differences exists with respect to prescribing minimum lots sizes with the County requiring 1.0 acres and Escondido requiring 0.5 acres with associated ancillary standards including the availability of public wastewater services. Escondido s prezoning further prescribes potential uses. The two undeveloped parcels in Area A are prezoned as Planned Development Residential (PD-R 1.97) and allows for the referenced approval of the 34-lot The detachment to Deer Springs FPD would necessitate an automatic change to the FPD sphere of influence. This change is considered ministerial give it is tied to the Commission s decision on whether to proceed with the detachment. No changes to the CSA No. 135 sphere would be necessitated as a result of approving the reorganization. Reference to (TR916/SUB ). 5 P age 219

220 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) subdivision. This prezoning assignment does not permit accessory units that are not part of the original approvals, and therefore no additional intensity exists. The remaining three developed parcels in Areas A (one parcel) and B (two parcels) are prezoned as Residential Estates (RE-20), and as such prohibits additional development given they become legal nonconforming lots with no allowance for accessory units. Commission Focus Policy Considerations The affected territory as proposed is contiguous with Escondido s incorporated boundary at North Avenue and is part of a large unincorporated area located within the northern portion of the City s sphere of influence. This pre-existing sphere determination by San Diego LAFCO narrows the Commission s consideration of the reorganization proposal to two central and sequential policy items. These policy items ultimately take the form of new determinations and serve to orient the Commission for consideration of the stand-alone merits of the (a) timing of the proposed reorganization and (b) whether discretionary boundary modifications or conditional approval terms are appropriate. The Commission must also consider other relevant statutes as detailed in the proceedings sections. ANALYSIS The analysis of the reorganization is organized into two subsections. The first subsection pertains to evaluating the central issues referenced above regarding the timing of the reorganization relative to the factors mandated for review by the Legislature and local policies as well as whether modifications to the submitted proposal area boundary or application of conditional 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 Proposed Reorganization Timing The proposed reorganization involves annexation to Escondido with concurrent detachments from the Deer Springs FPD and CSA No. 135 (regional communications). San Diego LAFCO s authority over city annexations involve several statutory prerequisites for the affected territory, including: consistency with the adopted sphere of influence; contiguity with the incorporated territory; and establishment of prezoning in advance of the annexation. Proposed jurisdictional changes are also evaluated per the required proposal review factors and for conformance with local policies and procedures. 6 P age 220

221 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) The timing of the proposed reorganization appears appropriate and highlighted by the analysis of the 16 proposal review factors required for consideration under LAFCO law and detailed in Appendix A. The majority of the prescribed factors evaluate the impacts of the proposed reorganization on the service and financial capacities of the receiving entity: Escondido (emphasis added). No single review factor is intended to be determinative as the factors collectively provide a uniform baseline for LAFCO to evaluate and consider proposed boundary changes in context with the Commission s own adopted policies and practices. A summary of key conclusions generated in the staff review of these factors for the proposed reorganization follows. Service Needs The reorganization includes unincorporated territory located within Escondido s sphere of influence and contiguous with the incorporated territory. Annexation of the affected territory would represent a logical and orderly expansion of Escondido s incorporated boundary and would not create islands or corridors of unincorporated territory. Additional details on service needs follow. - The Commission has previously designated Escondido as the appropriate future and long-term land use authority and primary service provider for the affected territory through the long-standing inclusion of the subject parcels within the sphere of influence. Annexation now to Escondido memorializes this standing expectation and accommodates the expressed interest of all affected landowners as evident by their written consent to the proceedings. - Approval would affirmatively respond to the Commission s policy interest to match known and specific development in urbanizing areas with municipal providers with an emphasis in facilitating connections to public wastewater systems when possible. Service Capacities and Levels Escondido would assume service responsibilities for the affected territory upon annexation and highlighted by providing wastewater, fire protection and emergency medical, and law enforcement to all five subject parcels. A review of existing capacities and levels indicates Escondido has sufficient controls and resources to accommodate demands within the affected territory at their planned and maximum uses. Additional details on service capacities and levels follow. - Wastewater: An existing sewer main lies within the public right-of-way on North Avenue and immediately adjacent to the affected territory and allows for lateral connections to the two undeveloped parcels in Area A. (The three remaining parcels in Areas A (one parcel) and B (two parcels) are already connected.) Escondido s existing wastewater system is presently operating at 70% of capacity and can readily assume projected demands associated with the development of Area A and the North Avenue Estates project. 7 P age 221

222 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) - Fire Protection and Emergency Medical: Escondido s closest fire station to the affected territory is located at 1808 North Nutmeg Street (Station No. 3). This station which is one of seven located within Escondido houses one paramedic fire engine and one wildland brush engine and staffed 24 hours. It is approximately 2.8 miles from the affected territory. Analysis performed by Escondido in reviewing the underlying development project identified response times from Station No. 3 to the affected territory would meet the 7.5-minute response standard established in the City General Plan. - Law enforcement: Escondido presently employs 170 sworn and 69 non-sworn support personnel; the former producing a ratio of 1.1 officers for every 1,000 residents. Operations are provided out of a single station at 1163 North Centre City Parkway and is approximately 3.1 miles from the affected territory with an approximate travel time of less than 6.0 minutes. Service Funding and Costs Escondido has overall financial resources to assume and provide municipal services to the affected territory in support of its current and planned development. Additional details on service funding and costs follows and further addressed in the accompanying footnote Escondido finished with high liquidity with an overall current ratio of 12.8 (i.e., $12.80 in current assets for every $1.00 in current liabilities). - Escondido finished with modest capital with an overall debt ratio of 53% (i.e., a slightly more than half $53.00 of every $ of all assets are financed.) This ratio includes deferred outflows/inflows related to pensions. - Escondido finished with a positive bottom line with a total margin of 1.5%. Conclusion Merits of Reorganization Timing The timing of the reorganization and transfer therein of land use authority and other specified services to Escondido is warranted. Justification is marked by the preceding analysis and highlighted by accommodating the planned development within Area A of the affected territory through Escondido s land use and service powers. Additional analysis supporting the conclusion is provided in Appendix A. 13 Development agreement associated with the North Avenue Estates project provides for payment of development fees and general fees to Escondido in the amount of $425,000 or $12,500 for each of the 34 residential lots. Escondido has agreed to provide the owner with fee credits towards the deficiency fees in the amount of the actual costs of the project s proposed drainage improvements not to exceed $100, P age 222

223 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) Item No. 2 Proposal Modification and Terms Staff has not identified any potential boundary modifications to the proposal that merit consideration by San Diego LAFCO at this time. Standard terms also appear appropriate to apply to the reorganization. This latter comment importantly differs from a determination made in the review of the earlier 2008 proposal in which staff recommended and the Commission approved a condition to address potential septic impacts on neighboring properties along Laurashawn Lane. For reasons addressed in the succeeding sections and detailed in the attached memorandum, the revisions to the development plan provide substantive assurance of no impacts to the adjacent septic systems, and as such staff is not recommending additional conditions of approval. 14 Conclusion Merits of Modifications and Terms No modifications appear warranted. Standard terms are recommended. This latter conclusion substantiates the development plan associated with Area A appropriately mitigates concerns previously identified by LAFCO in the review of the initial proposal in 2008 involving impacts to adjacent septic systems on Laurashawn Lane. 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 a jurisdictional change, unless an applicable master property tax transfer agreement is adopted per Revenue and Taxation Code Section 99(d). Escondido and the San Diego County Board of Supervisors have adopted a master agreement governing the exchange of property taxes associated with various boundary changes. This master agreement applies to the reorganization and will provide Escondido a net property tax transfer of $1,244 of annual property tax revenue under current assessed valuations. 14 It is similarly noted the modification of the reorganization to include the adjacent Laurashawn Lane properties as a means to holistically address LAFCO s long-term interest in establishing public wastewater services to the properties does not appear viable at this time for two reasons. First, and as a prerequisite to annexation, Escondido policy requires streets to be improved to city standards with respect to width and cannot be readily achieved on Laurashawn Lane given existing setbacks. Second, and as a means to establish public wastewater via annexations or outside service extensions, a sewer main would need to be extended from North Avenue to and along Laurashawn Lane at a cost that appears prohibitive to the landowners and in the absence of a long-term financing plan. (LAFCO staff estimates the approximate costs to establish wastewater to the portion of Laurashawn Lane immediately adjacent to the affected territory is $1.220 million and includes bundling construction costs, connection fees, and related administrative charges.) 9 P age 223

224 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) Environmental Review Escondido serves as the lead agency for assessing potential impacts of the proposal under the California Environmental Quality Act (CEQA) (Public Resources Code, Sec , et seq.) and the State CEQA Guidelines (California Code of Regulations Sections, 15000, et seq.) given the City has initiated the reorganization by resolution. In 2006, Escondido adopted an Initial Study and Final Mitigated Negative Declaration (MND) for the underlying development and identified potential significant environmental impacts in the categories or biological resources, cultural resources, noise, and mandatory filing of significance. 15 Following revisions to the proposed development, Escondido determined that no new impacts would occur from the modified project and subsequently approved an Addendum to the MND in Staff recommends the Commission concur with Escondido and adopt the findings of the MND and Addendum as a responsible agency. Protest Proceedings Protest proceeding for the reorganization 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, no subject agency filed an objection to waiving protest, and the landowners have consented to the underlying actions. 16 RECOMMENDATION Staff recommends San Diego LAFCO approve the reorganization consistent with Alternative One as outlined in the proceeding section. Approval provides for the anticipated and orderly annexation of the affected territory to Escondido consistent with its existing sphere of influence as well as current service capacities necessary to support current and planned development of the subject parcels. Associated boundary changes to detach the affected territory from Deer Springs FPD and CSA No. 135 are similarly warranted and achieve governmental efficiencies by streamlining municipal services for the affected territory through one provider. The above recommendation acknowledges there are ongoing concerns of adjacent landowners on Laurashawn Lane regarding potential impacts of the reorganization to their unincorporated properties. Specifically, and due to the proximity of the proposed development of Area A to their septic systems, several adjacent landowners have requested additional assurances from Escondido and/or LAFCO that impacts will not occur and if needed that their properties would be connected to the wastewater system. As detailed in the attached memorandum, the reorganization was originally submitted by Escondido and conditionally approved by LAFCO in The approved reorganization proposal was subsequently terminated after Escondido objected to a LAFCO condition of 15 Escondido also adopted a Mitigation Monitoring and Reporting Program to reduce the identified impacts to less-than-significant levels. 16 LAFCO law defines uninhabited as territory in which 11 or less residents reside. 10 P age 224

225 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) approval to remedy potential impacts on the adjacent septic systems. Escondido has resubmitted the reorganization proposal with revisions to the underlying development plan that staff believes sufficiently remedies the earlier concerns. These remedies have been substantiated through analysis performed by a licensed geotechnical engineering firm and affirmatively reviewed by the Department of Environmental Health with additional details footnote. 17 Accordingly, and in light of geotechnical site data and concurrence by Environmental Health, staff believes it is appropriate to proceed with the reorganization without enlisting special terms concerning adjacent septic systems. It is also acknowledged Deer Springs FPD has expressed concern with the reorganization and specifically the associated detachment and loss of potential revenues associated with the pending development of Area A within the affected territory. Staff is aware Deer Springs FPD and Escondido along with the developer for Area A have discussed a potential compensatory fee being paid to the FPD, but as of date there has been no agreement. 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 responsible agency, make concurrent findings on the environmental effects of the project to the mitigated negative declaration adopted by Escondido. c) Determine protest proceedings are waived under Government Code Section d) Adopt the form of resolution approving the North Avenue Estates Reorganization (RO et al) with no modifications. Standard terms apply as follows and must be satisfied within 12 months unless a time extension is requested and approved: - 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 pursuant to the LAFCO Fee Schedule. 17 A licensed geotechnical engineering firm contracted by the landowner/developer of Area A performed a geotechnical study of the development site and concluded the implied subterranean groundwater flow was to the south-southwest and away from project grading. The study concludes that no impacts to the adjacent septic systems will occur from the proposed development s grading operations. Further, and at LAFCO s request, DEH reviewed the site study. In a letter dated August 17, 2018, DEH concurred with the study s conclusions that the proposed development would not impact the existing septic systems adjacent to the site, and stated, After review of the plans, technical documents, and prior correspondence DEH staff have concluded that no significant impacts exist to the adjacent properties' onsite wastewater treatment systems from the proposed grading, cuts and fills, storm water management, or other relevant features of the development. 11 P age 225

226 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) Alternative Two: Continue consideration to a time-specified regular meeting and provide direction to staff concerning additional information, as needed. Alternative Three: Disapprove the proposal. PROCEDURES FOR CONSIDERATION This item has been placed on the agenda as part of a voluntarily noticed public hearing. The following procedures, accordingly, are recommended in the consideration of this item: 1) Receive verbal report from staff; 2) Invite comments from the applicant or representatives 3) Open the hearing and invite audience comments (mandatory); and 4) Close the hearing, discuss item, and consider action on recommendation. On behalf of staff, Robert Barry, AICP Chief Policy Analyst Attachments: 1) Memorandum: Previous Proposal Background, Written Correspondence Received, Deer Springs FPD Detachment 2) Submitted LAFCO Application Materials 3) Mitigated Negative Declaration (ER ) and Addendum (ENV ), City of Escondido (online only) 4) Geotechnical Data 5) Written Correspondence Received 12 P age 226

227 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) APPENDIX A ANALYSIS OF MANDATORY PROPOSAL REVIEW FACTORS GOVERNMENT CODE SECTION (a-p) 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. As submitted, the affected territory totals approximately acres and includes five unincorporated parcels presently located within the adopted sphere of influence for the Escondido. Three of the five subject parcels are developed with single-family residences. The affected territory is located within the northern portion of a valley surrounded by hills to the north and east. The area has an average slope of less than 10% with elevations ranging from 765 to 800 feet above mean sea level. The San Diego County Water Authority Aqueduct traverses north to south underground through the eastern portion of the affected territory. The site is not located within a designated 100-year flood zone. There are currently 15 residents and eight registered voters within the affected territory. The total assessed value (land and improvements) is $1,624,827. The estimated population of 15 provides a per capita assessed valuation of $108, The affected territory is surrounded by large-lot single-family residential development to the unincorporated north and east, with higher density single-family residential development on the incorporated City of Escondido territory to the south, and immediately to the west along unincorporated Laurashawn Lane. No significant growth is expected within these surrounding lands in the next 10 years. 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. Escondido would assume the majority of municipal service responsibilities for the affected territory upon reorganization approval with the notable exception of water, which will remain the responsibility of Rincon del Diablo Municipal Water District. Key services to be assumed by Escondido from the County include community planning, roads, and police protection. Escondido would also assume fire protection and emergency medical from Deer Springs FPD and regional communication services from CSA No Relative to LAFCOs central tasks, the proceeding analysis focuses on the service impacts associated with Escondido extending wastewater and fire services to the affected territory. 13 P age 227

228 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) Extending Public Wastewater Service to Affected Territory Three of the five subject parcels comprising the affected territory have established outside wastewater connections with Escondido. The remaining two subject parcels are unserved and would require connection following annexation and in conjunction with facilitating the planned 34-lot subdivision. Connection for the planned development is readily available to the existing wastewater main located within the adjacent public right-of-way on North Avenue. A sewer main extension is planned to extend to the far boundary of the site per the development agreement. It is estimated the average day wastewater flow for the development at buildout will be approximately 5,984 gallons per day (gpd). This amount represents less than of the available and remaining daily capacity within Escondido s wastewater system, and as such will have a negligible impact. Extending Fire Protection and Emergency Medical Service to Affected Territory Escondido would assume fire protection and emergency medical responsibilities for all five subject parcels comprising the affected territory from the Deer Spring FPD following annexation to the City. Escondido s closest fire station is located at 1808 North Nutmeg Street (Station No. 3). This station which is one of seven stations in Escondido houses one paramedic fire engine and one wildland brush engine and staffed 24 hours. It is approximately 2.8 miles from the affected territory. Analysis performed by Escondido in reviewing the underlying development project identified response times from Station No. 3 to the affected territory would meet the 7.5-minute response standard established in the City General Plan. 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 reorganization and annexation of the affected territory therein to Escondido would recognize and strengthen existing economic and social ties between the subject lands and the City. These ties were initially established in 1979 when the Commission included the entire area into Escondido s sphere of influence, and in doing so signaled the membership s expectation the lands be developed and served by the City when the timing is appropriate. d) The conformity of both the proposal and its anticipated effects with both the adopted commission policies on providing planned, orderly, efficient patterns of urban development, and the policies and priorities in Section The proposal is not anticipated to affect the existing pattern of urban development within the region. The affected territory does not qualify as open-space under LAFCO law and therefore does not conflict with Section P age 228

229 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) e) The effect of the proposal on maintaining the physical and economic integrity of agricultural lands, as defined by Section f) While the affected territory contain soils that potentially qualify as prime agricultural land per Section 56064, the subject lands do not contain agricultural lands as defined by Section This is because the affected territory does not include land currently used for the purpose of producing an agricultural commodity for commercial purposes, land left fallow under a crop rotational program, or land enrolled in an agricultural subsidy or setaside program. Therefore the reorganization will not have an effect on maintaining the physical and economic integrity of agricultural lands. f) The definiteness and certainty of the boundaries of the territory, the nonconformance of proposed boundaries with lines of assessment or ownership, the creation of islands or corridors of unincorporated territory, and other similar matters affecting the proposed boundaries. The reorganization is parcel-specific with known lines of assessment. The County of San Diego Assessor s Office has reviewed the draft map and geographic description submitted for the reorganization and has confirmed the definiteness and certainty of the boundaries. The reorganization would not create islands or corridors of unincorporated territory. g) A regional transportation plan adopted pursuant to Section The proposal involves annexation of unincorporated territory to the City of Escondido and 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. Escondido has adopted General Plan designations for the affected territory as Estate II, and zoning as Residential Estates (RE-20) and Planned Development-Residential (PD-R). The City s land use and zoning designations provide for single-family residential development of up to two dwelling units per acre (du/ac) with a 20,000 square foot minimum lot size. As submitted, the proposed reorganization area is consistent with the Escondido General Plan and the City s conditional development approvals. i) The sphere of influence of any local agency applicable to the proposal. See analysis for Factor C. 15 P age 229

230 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) j) The comments of any affected local agency or other public agency. Staff provided notice of the reorganization to all subject agencies and other interested agencies as required under LAFCO law. The following agencies provided comments. County Planning and Development Services provided comments in a letter dated July 18, 2018 regarding flood control and the Sherriff s Department. The County comments recommended Escondido coordinate with the County Public Works and the Flood Control District regarding existing County-maintained drainage facilities at the northwest corner and along the western boundary of the affected territory. The County comments also requested LAFCO work with Escondido and the County to annex unincorporated islands within the City that cause jurisdictional confusion for emergency service responses. County Department of Environmental Health (DEH) provided comments in a letter dated August 17, 2018 regarding their review of the development project s grading plans and supporting geotechnical information. DEH comments conclude that the proposed project and associated grading operations will not significantly impact the existing septic systems located adjacent to the site. Escondido provided comments in a letter dated August 17, 2018 regarding the concurrent detachment of the affected territory from the Deer Springs FPD. The letter stated that Escondido would object to retention of the affected territory within the FPD following its reorganization with the City. 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. Escondido proposes annexation of the affected territory and has stated that the City has sufficient revenues to provide services to the area. According to Escondido s comprehensive annual financial report (CASR) for the fiscal year ending June 30, 2017, the assets plus deferred outflows of the City exceeded its liabilities plus deferred inflows of the City by $417,875,475 (net position). The City s total government-wide net position increased by $23,642,551 million in the current year, a 6.0 percent increase. At the close of the current fiscal year, the City s governmental funds reported combined ending fund balance of $117,877,941, an increase of $13,084,213 in comparison with the prior year. At the end of the current fiscal year, fund balance committed to Reserves in the General Fund was $17,921,319 or 19.7 percent of General Fund expenditures. The positive financial position and adequate reserves demonstrate that Escondido has sufficient revenues to provide services to the affected territory. 16 P age 230

231 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) Escondido has stated that the proposed reorganization includes a private development project that will require payment of all applicable impact fees as conditioned, excepting $100,000 in deficiency fee credits included in the proposed development agreement. All residences connected to the Escondido wastewater system will pay applicable service charges and fees for the service. The extension of Escondido wastewater service to the proposal area will not adversely impact existing ratepayers and the City appears to have sufficient revenues to serve the affected territory. l) Timely availability of water supplies adequate for projected needs as specified in Section The affected territory already lies within the Rincon Del Diablo Municipal Water District with the three developed subject parcels having already established service. The remaining two subject parcels within the affected territory subject to the North Avenue Estates project will require making connection payment to Rincon Del Diablo Municipal Water District to establish service. 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 reorganization involves the development of 34 single-family residences that would be subsequently offered for sale at market rates. No affordable housing component is included with the Escondido development approvals for the affected territory. Therefore, the proposal would not affect Escondido in achieving their fair-shares of the regional housing needs allocation (RHNA) as determined by the State Department of Housing and Community Development (HCD) and the region s council of governments, the San Diego Association of Governments (SANDAG). 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). All affected landowners support the annexation as witnessed by their signature of a consent form. No other comments were received from the landowner or owners, voters, or residents of the affected territory prior to preparation of this appendix. o) Any information relating to existing land use designations. See analysis for Factor H. 17 P age 231

232 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) 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. The reorganization involves annexation of five unincorporated parcels presently located within the adopted sphere of influence for Escondido. Two of the subject parcels are undeveloped and subject to a development approval. The other three subject parcels are all developed with single-family residences and are connected to the Escondido municipal wastewater system via LAFCO-approved contractual service agreements between the respective landowner and the City due to failures of their respective septic systems. The affected territory is not located within an area that is designated by LAFCO as a disadvantaged unincorporated community (with an annual median household income 80% or less than the statewide annual median). There is no documentation to suggest the reorganization will promote or discourage environmental justice in regards to 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. 18 P age 232

233 OLD OAK TREE LN MUSIC LN PRIVATE RD RYAN WY LARGO LN ARIA AV SYLVAN ST MODE DR KAYWOOD DR Proposal Area 1 EASTMONT PL PRIVATE RD TAMARA DR APN LAURASHAWN LN All area within the City of Escondido SOI Proposal Area 2 APN NORTH AV APN APN Proposal Area 2 APN CONWAY DR N BROADWAY DOUGLASTON GLEN DUNDEE GLEN City of Escondido 15 5 San Marcos Carlsbad Escondido Proposal Area Map Scale 1:5,000 ± Pacific Ocean PRIVATE RD } 56 San Diego CLEVELAND AV Poway RO18-06 RO13-04 RO13-39 RO15-15 PROPOSED "NORTH AVENUE ESTATES REORGANIZATION" (CITY OF ESCONDIDO) SAN DIEGOLAFCO 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\18-06 RO Escondido reversed.mxd Proposal Area City of Escondido SOI = Sphere of Influence 233 Date: 9/19/2018

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235 San Diego Local Agency Formation Commission 9335 Hazard Way Suite 200 San Diego, CA (858) FAX (858) Chair Jo MacKenzie, Director Escondido 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 MEMORANDUM October 1, 2018 TO: FROM: San Diego Commissioners Robert Barry, Chief Policy Analyst SUBJECT: Proposed North Avenue Estates Reorganization (RO18-06) Written Comments Received: Affected Agencies - Adjacent Landowners Additional Proposal Background Deer Springs Fire Protection District Detachment Opposition The San Diego Local Agency Formation Commission (LAFCO) will consider the above-referenced reorganization proposal filed by resolution of the City of Escondido involving annexation of approximately acres of unincorporated territory located within its sphere of influence. The affected territory was subject to a previous reorganization proposal filed by resolution of the City of Escondido in This memorandum provides additional background on the previously-submitted proposal and discussion regarding changes to the project approved by Escondido in 2018 for the re-submitted proposal. LAFCO has received written comments from affected agencies and adjacent landowners in regards to the proposed reorganization. The received correspondence is summarized below with staff discussion regarding cited issues and concerns. The primary purpose of the proposed reorganization is to extend City services to facilitate the proposed 34-unit single-family residential development known as North Avenue Estates (SUB ). The proposed reorganization includes concurrent detachments of the affected territory from the Deer Springs Fire Protection District (FPD) and County Service Area (CSA) No. 135 (Regional Communications) as Escondido would assume responsibility for the associated provision of structural fire protection, emergency medical services, and emergency communications services. Deer Springs FPD has been engaged in discussions with the landowner/developer of the project regarding the detachment of the proposal area. While no formal position on the detachment has been submitted to LAFCO from Deer Springs FPD, the memorandum concludes with a summary of the discussions between the landowner and the FPD. 235

236 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) WRITTEN COMMENTS RECEIVED Following submittal of the reorganization application, staff provided notice of the proposal to all subject agencies and other interested public agencies as required under LAFCO law. Through September 20 th, LAFCO received 3 distinct written comments from affected agencies and 11 from interested parties during the course of processing the reorganization proposal filed by Escondido. (Total does not include processing and/or otherwise procedural inquiries). Copies of all comment letters are attached. Summaries of the comments with brief staff responses are provided below. AFFECTED AGENCIES Comment Letter No.1 County of San Diego, Department of Planning and Development Services The County of San Diego Department of Planning and Development Services provided comments in a letter dated July 18, 2018 regarding flood control and the Sherriff s Department. The County comments recommended Escondido coordinate with the County Department of Public Works, Flood Control District (FCD) regarding existing Countymaintained drainage facilities at the northwest corner and along the western boundary of the proposal area. The County comments also requested LAFCO work with Escondido and the County to annex unincorporated islands within the City that cause jurisdictional confusion for emergency service responses. Staff Response: Information noted. The Escondido development approvals for the affected territory includes improvements intended to benefit the local storm water collection and drainage. Unincorporated islands located within Escondido will be evaluated by LAFCO as part of the City s service and sphere review scheduled for later in the current fiscal year. Comment Letter No.2 City of Escondido The Escondido City Manager provided comments in a letter dated August 17, 2018 regarding the concurrent detachment of the affected territory from the Deer Springs FPD. The letter stated that Escondido would object to retention of the affected territory within the FPD following its reorganization with the City. The City Manager notes that Escondido Fire Station No. 3 (Nutmeg Road) is closer to the site than the nearest FPD station and that the City is responsible for all fire protection and emergency medical services within its territory. The letter also stated that the City does not support the imposition of a detachment fee by the FPD for the affected territory because the annexation would reduce the FPD s fire protection responsibilities and expenses. Additional correspondence from the landowner s representative regarding negotiations with the FPD is included. 2 P age 236

237 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) Staff Response: Information noted. Additional discussion regarding the Deer Springs FPD detachment follows below. Comment Letter No.3 County of San Diego, Department of Environmental Health The County Department of Environmental Health (DEH), Land and Water Quality Division provided comments in a letter dated August 17, 2018 regarding their review of the development project s grading plans and supporting geotechnical information. The DEH comments conclude that the proposed project and associated grading operations will not significantly impact the existing septic systems located adjacent to the site. Staff Response: Information noted. Additional discussion regarding the geotechnical study and DEH review follows below. ADJACENT LANDOWNERS Comment Letter No.1 Kim Lunde This correspondence was received by dated June 15, 2018 from Kim Lunde, resident at 3044 Kaywood Drive. The correspondence states opposition to the property being included within the proposal territory and questions how the proposal will affect the residence. Staff Response: Information noted. The submitted proposal area does not include the subject property and the proposal is not expected to affect the existing residence. Additional discussion regarding the proposal background and issues of concern by the adjacent property owners follows below. Comment Letter No.2 Jayson Knack This correspondence was received by dated June 15, 2018 from Jayson Knack, resident at 2934 Laurashawn Lane. The correspondence states concerns with local groundwater levels, the project s proposed 12.5 buffer area, and community character. The comments include requests for LAFCO conditions. One requested condition would be to re-establish Escondido s 3-party engineering condition regarding connecting impacted residences to the City s wastewater system. An additional condition was requested to remove the clustering of residences within the development. Staff Response: Information noted. The submitted geotechnical information for the proposal area addresses the likelihood of impacts to the adjacent properties septic systems and concludes that no impacts would occur. This no-impact conclusion was supported by review of the County DEH. Per Government Code Section 56375, the Commission may 3 P age 237

238 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) not impose any conditions that would directly regulate land use density or intensity, property development, or subdivision requirements. The Escondido development approvals include environmental review of the proposed development and a Mitigation Monitoring and Reporting Program (MMRP) has been approved to reduce any identified impacts to less than significant levels. Additional discussion regarding the proposal background and issues of concern by the adjacent property owners follows below. Comment Letter No.3 Mike Joslin This correspondence was received by dated July 6, 2018 from Mike and Candy Joslin, residents of Laurashawn Lane. The correspondence notes historic experiences with local flooding and high groundwater conditions and emphasizes concerns with drainage from the project. Staff Response: Information noted. The developer will be responsible for installation of drainage improvements for the site and the City has concluded that the improvements will help the local collection and discharge of stormwater drainage to reduce. Additional discussion regarding the proposal background and issues of concern by the adjacent property owners follows below. Comment Letter No.4 Toni Clem This correspondence was received by dated July 7, 2018 from Toni Clem, resident of 714 North Avenue. This property is located within the affected territory and is currently connected to the Escondido wastewater system via contractual service agreement due to a failed or failing septic system. The correspondence notes historic experiences with local flooding and high groundwater conditions and emphasizes concerns with drainage and traffic generated from the project. Staff Response: Information noted. Please refer to the response to correspondence no. 2. Additional discussion regarding the proposal background and issues of concern by the adjacent property owners follows below. Comment Letter No.5 Connie Braun (North Avenue Homeowners) This correspondence was received by dated July 8, 2018 from Connie Braun, resident of Laurashawn Lane, representing a group of local property owners known as the North Avenue Area Homeowners. The correspondence notes historic experiences with local flooding and high groundwater conditions and emphasizes concerns with drainage and constructionrelated impacts from the project. The correspondence questions the accuracy of the submitted geotechnical report due to the draught condition causing abnormally low groundwater conditions compared to historical and anecdotal information. A table was 4 P age 238

239 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) provided that includes monitoring data on the distance to the top of groundwater from a water table monitoring location at 2942 Laurashawn Lane. The monitoring data covers April 16, 2016 to January 21, The data indicates that the depth of the local water table decreased from 13 to 5 between April 2016 and March 2017, and then increased to a depth of 9 by January The correspondence concludes with two requests: that the geotechnical data be revised to reflect the variations observed in the local water table depth; and thsat LAFCO adopt a condition of approval that will provide clear responsibility for addressing any project-related impacts to the adjacent properties. Staff Response: Information noted. Please refer to the response to correspondence no. 2. Additional discussion regarding the proposal background and issues of concern by the adjacent property owners follows below. Comment Letter No.6 Rod Jones This correspondence was received by dated July 8, 2018 from Rod Jones, resident of 3112 Laurashawn Lane. The correspondence notes historic experiences with local flooding and high groundwater conditions and emphasizes concerns with drainage from the project, local traffic conditions, and Escondido responsibilities for the local area and residents. Staff Response: Information noted. Please refer to the response to correspondence no. 2. Additional discussion regarding the proposal background and issues of concern by the adjacent property owners follows below. Comment Letter No.7 Connie Braun This correspondence was received by dated July 9, 2018 from Connie Braun, resident of 3024 Laurashawn Lane. The correspondence notes historic experiences with local flooding and high groundwater conditions and emphasizes concerns with drainage from the project. Staff Response: Information noted. Please refer to the response to correspondence no. 2. Additional discussion regarding the proposal background and issues of concern by the adjacent property owners follows below. Comment Letters No.8 & No.9 Kathy Jones The correspondence was received by dated July 9 th and July 10th, 2018 from Kathy Jones, resident of 3112 Laurashawn Lane. The correspondence notes historic experiences with high local groundwater conditions at 2942 Laurashawn Lane and emphasizes previous DEH engineering concerns with the property s septic system and leach field. 5 P age 239

240 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) Staff Response: Information noted. Please refer to the response to correspondence no. 2. Additional discussion regarding the proposal background and issues of concern by the adjacent property owners follows below. Comment Letter No.10 Jayson Knack This correspondence was received by dated July 24, 2018 from Jayson Knack, resident of 2934 Laurashawn Lane. The correspondence notes historic experiences with high groundwater conditions and emphasizes concerns with the findings of the submitted geotechnical study and Escondido s removal of development conditions related to potential septic impacts. Staff Response: Information noted. Please refer to the response to correspondence no. 2. Additional discussion regarding the proposal background and issues of concern by the adjacent property owners follows below. Comment Letter No.11 Leonard Kurka This correspondence was received by dated July 6, 2018 from Leonard Kurka, resident of Laurashawn Lane. The correspondence notes historic experiences with local flooding and emphasizes concerns with Escondido s removal of development conditions related to potential septic impacts. Staff Response: Information noted. Please refer to the response to correspondence no. 2. Additional discussion regarding the proposal background and issues of concern by the adjacent property owners follows below. PREVIOUS PROPOSAL BACKGROUND North Avenue Estates Reorganization (2006) RO06-18 In 2006, the City of Escondido conditionally approved a 39-lot Tentative Subdivision Map (TR-916) titled as North Avenue Estates involving approximately 17.2 acres within the presently proposed reorganization area. The City s 2006 development approvals included a Master and Precise Development Plan for 34 single-family residences, prezoning and annexation of the project area, and certification of a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP) (ER ) for the development and reorganization. Following the City s approvals, the previously proposed "North Avenue Estates Reorganization" (Ref. No. RO06-18) was submitted to LAFCO in June 2006 by resolution of the City of Escondido. A number of unincorporated landowners immediately adjacent to the west of the proposed development sent letters to LAFCO 6 P age 240

241 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) voicing concern and opposition to the proposed reorganization. The adjacent landowners have stated that the local high groundwater conditions would be affected by the construction grading and negatively impact their existing septic systems. The adjacent unincorporated properties are each developed with one single-family residence on approximately 10,000 square foot lots (4.3 du/ac). The residences utilize underground septic disposal systems with little available lot space for leach field repair or expansion. In response, Escondido s TR-916 development approvals included a condition addressing the potential for adjacent septic system impacts. The City s condition required a 3-party consensus agreement of the City engineer, the County Department of Environmental Health (DEH), and an engineer representing the developer that a construction-related impact to an adjacent septic system had occurred. If the 3-parties agreed that a development-related impact had compromised the affected septic system, the developer would be responsible for connecting the impacted property to the City s sewer system. However, the adjacent landowners were not satisfied with the City s condition and requested LAFCO provide additional assurance of potential remediation if the proposed development and reorganization negatively impacted their existing residences. The previously submitted North Avenue Estates Reorganization (RO06-18) proposal was heard and conditionally approved by LAFCO at a continued public hearing in August Mindful that any adjacent septic impacts would likely require subsequent LAFCO review and approval for contractual service agreement connection or annexation to the City, LAFCO staff recommended the Commission approve the reorganization with conditions. The recommended LAFCO condition of approval identified the County DEH as the appropriate regulatory entity to determine the failed or failing status of any impacted septic systems and evaluate the subject parcel s ability to accommodate septic repair or expansion. The recommended condition also identified the annexing City as the responsible party for determining the need to facilitate a remedial connection to the City s wastewater system due to construction-related impacts to an adjacent property. In response to the LAFCO condition of approval for the reorganization, Escondido declined to complete the necessary final documentation to record the Commission s approval. Escondido stated that it declined to accept the LAFCO septic impact condition of approval for the reorganization because it would expose the City to unacceptable liability for potential septic impacts within an undetermined period of time. Per Government Code Section 57001, a proposal has 12 months from the Commission s approval to complete the recordation process and become effective or the proposal will be terminated as abandoned unless extended by request and approval of the Commission. On July 10, 2009, LAFCO granted a one year time extension to complete the proceeding for the pending reorganization, to allow the applicant additional time to coordinate with the City on a potential solution. On September 17, 2010, the proposal proceeding was accordingly deemed terminated. 7 P age 241

242 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) Currently Proposed North Avenue Estates Reorganization 2018 RO18-06 In 2016, the landowner/developer submitted revised development plans for TR-916 to the City of Escondido with a new request for annexation of the project area. In January 2018, the City approved a revised Tentative Subdivision Map (SUB ), certified an Addendum to the previously-certified MND (ENV ), and adopted a resolution of application to annex the project area. The City s previously-approved MND for TR-916 was determined to still be sufficient for the revised SUB project. Under provisions of the California Environmental Quality Act (CEQA), the City would be required to update the 2005 MND if the changes to the project would potentially lead to significant environmental impacts. The City determined that the changes to the proposed project would reduce any potential impacts and that an Addendum to the MND would be the appropriate environmental document. The Addendum to the MND is discussed in more detail below. As submitted, the proposed reorganization area now includes five unincorporated parcels spanning to non-contiguous areas presently located within the adopted sphere of influence for Escondido. Two of the subject parcels are undeveloped and subject to a development approval as detailed in the succeeding sections. These two parcels are identified as and and are approximately 1.25 acres and acres in size, respectively. The other three subject parcels are all developed with single-family residences and located at 632, 644, and 714 North Avenue. The three developed parcels are connected to the Escondido municipal wastewater system via LAFCO-approved contractual service agreements between the respective landowner and the City 1. The contractual service agreements between Escondido and the landowners were each previously granted by LAFCO in response to a documented failure or impending failure of the subject parcel s septic system. Inclusion of the three developed properties within the proposed reorganization with Escondido will complete the annexations anticipated by the Commission s previous approvals for the contractual wastewater service agreements with the landowners. The City of Escondido has adopted General Plan designation for the proposal area is Residential Estates and the City s prezoning designations are RE-20 for the three developed parcels, and PD-R 1.97 for the two undeveloped parcels that are subject to SUB The Estate designation accommodates detached single-family homes on large lots and applies to areas that are on the edge of urban development or in areas that are already characterized by an estate development pattern. Development clustering is permitted pursuant to General Plan Residential Clustering policies. The City s land use and zoning designations for the affected territory provide for residential development of up to two dwelling units per acre (du/ac) with a 20,000 square foot minimum lot size. The developed parcels would be considered legal non-conforming lots by the City. 1 LAFCO Ref. Nos. OAS/RO13-09; OAS/RO13-39; and OAS/RO P age 242

243 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) SUB Revisions to TR-916 Among the City s approved SUB revisions to TR-916 is the addition of a 12.5-foot wide buffer area between the western edge of the residential development and the adjacent unincorporated properties on the east side of Laurashawn Lane. The inclusion of the buffer area is intended to ensure that the project construction will not impact the existing septic systems of the adjacent unincorporated properties. Following requests by LAFCO for additional data supporting the efficacy of the proposed buffer area as mitigation for any potential septic impacts, the landowner/developer provided a geotechnical study for the project area produced by a licensed geoengineering firm. The determination of the geotechnical study was that the underlying groundwater in the general project area flows to the south-southwest towards Laurashawn Lane and away from the adjacent SUB development area. The study concluded from the implied groundwater flow direction that the existing Laurashawn septic systems are not utilizing the adjacent development project area to the east as an extended leach field. This conclusion supports the City s determination that the proposed 12.5 buffer area would provide sufficient space between the existing septic systems and the project grading to avoid any potential for impacts. Therefore, as part of the approvals for the revised SUB , the City removed the TR-916 project s 3-party engineering condition requiring the developer to finance the connection of any impacted adjacent properties to the City s wastewater system. The City s 2018 approval for SUB included the following amended grading condition: Due to the location of existing leach fields for the properties on the east side of Laurashawn Lane and along the westerly project boundary, the project s final grading design shall provide adequate set back from this westerly project boundary (as shown conceptually on the Tentative Map) to incorporate County Health Department Standards and the recommendations of the Geotechnical Engineer all to avoid impact to the existing leach fields during project grading to the satisfaction of the City Engineer. Any proposed grading work in the setback area shall be limited to minor grading to establish proper drainage flow and provide surfacing to the requirements of the City Engineer. No excavation shall take place in the setback area as part of the project grading or in the future by the home owners. The project CC&R s shall ensure maintenance of the setback area by the HOA or designee and shall prohibit any excavation within the setback area that could impact the leach fields of the westerly neighboring properties. An unrepairable local septic system would likely require LAFCO approvals for connection of the property to the Escondido wastewater system as a permanent solution for the health and safety emergency affecting the subject residents. As the proposed reorganization area includes three developed properties with previously-failed septic systems, it can be seen that many of the local unincorporated properties presently developed with septic systems on small lots may have a propensity for failure due to the local conditions and circumstances. Accordingly, Escondido s 2012 Wastewater Master Plan identifies the local area within its planned future wastewater service territory for the horizon date of This inclusion of the local area within Escondido s long-term wastewater infrastructure and 9 P age 243

244 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) service planning is consistent with the area s inclusion within the City s sphere of influence. While Escondido s amended grading condition acknowledges the location of the existing adjacent leach fields, the condition does not identify a process for either determining construction-related impacts or securing connection to the City s wastewater system if it is determined that construction-related impacts have occurred and the impacted septic system cannot be repaired or expanded. Therefore, the Commission may wish to discuss and consider if the City s amended development approvals provide adequate assurance that the proposed reorganization will not have negative effects on the adjacent areas, as discussed in Appendix A. Department of Environmental Health Review To assist LAFCO s evaluation of the project modifications and submitted geotechnical information, the County Department of Environmental Health reviewed the determinations and conclusions of the site study. In a letter dated August 17, 2018, DEH staff concurred with the study s conclusions that the proposed development would not impact the existing septic systems adjacent to the site, and stated that, After review of the plans, technical documents, and prior correspondence DEH staff have concluded that no significant impacts exist to the adjacent properties' onsite wastewater treatment systems from the proposed grading, cuts and fills, storm water management, or other relevant features of the development. In light of the submitted geotechnical site data and concurrence by the County DEH with the determination that no impacts will occur to the adjacent septic systems from the proposed development, the staff conclusion is that Commission approval of the proposed reorganization is appropriate without additional conditions regarding potential septic impacts. It should be noted that the surrounding unincorporated area includes many developed parcels with similar physical constraints affecting the long-term sustainability of their existing septic systems. The City conducted a survey of the adjacent property owners to gauge their willingness to be annexed to the City and survey the current functional status of their respective septic system. The results of the survey were deemed inconclusive, with limited support for annexation without identification of specific improvement and connection costs to be borne by the annexing property owners. As the local unincorporated area is within the Escondido sphere of influence, and the City is the only available local public wastewater service provider, it can be seen that the long-term residential uses of these developed properties are likely to require future provision of City wastewater services. Accordingly, staff recommends that the Commission s scheduled review of the City s municipal services and adopted sphere should include evaluations of the long-term service planning for the projected needs of the unincorporated territory located within the sphere. These service and sphere evaluations should include discussions of the opportunities and constraints for the City to extend wastewater services to existing, proposed, and projected development within the sphere. 10 P age 244

245 San Diego LAFCO October 1, 2018 Regular Meeting Agenda Item No. 11 North Avenue Estates Reorganization (City of Escondido) DEER SPRINGS FPD DETACHMENT OPPOSITION LAFCO has received correspondence as noted above from the Escondido City Manager regarding potential opposition from the Deer Springs FPD to the concurrent detachment of the affected territory. The City Manager s letter stated that Escondido would object to retention of the affected territory within the FPD following its reorganization with the City. The City Manager notes that Escondido Fire Station No. 3 (Nutmeg Road) is closer to the site than the nearest FPD station and that the City is responsible for all fire protection and emergency medical services within its territory. The letter also stated that the City does not support the imposition of a detachment fee by the FPD for the affected territory because the annexation would reduce the FPD s fire protection responsibilities and expenses. As discussed in Appendix A, Escondido would assume fire protection and emergency medical responsibilities for all five subject parcels comprising the affected territory from the Deer Spring FPD following annexation to the City. Escondido s closest fire station is located at 1808 North Nutmeg Street (Station No. 3). This station which is one of seven stations in Escondido houses one paramedic fire engine and one wildland brush engine and staffed 24 hours. It is approximately 2.8 miles from the affected territory. Analysis performed by Escondido in reviewing the underlying development project identified response times from Station No. 3 to the affected territory would meet the 7.5-minute response standard established in the City General Plan. At this time, staff is aware of an item regarding the proposed detachment that was heard by the Deer Springs FPD Board on September 12, However, no formal position on the detachment has been submitted from the FPD. The attorney for the landowner/developer forwarded correspondence on September 20, 2018 that describes discussions with the FPD regarding the detachment, potential retention of the affected territory with the FPD, and a potential detachment feed to be paid to the district to remove any opposition regarding the loss of property tax revenues. The correspondence reports that the landowners have offered the FPD a one-time detachment fee of $25,000 contingent on the district s consent to the detachment, which was declined. The Board indicated to the landowner that the opposition to the detachment was declined due to objections regarding detachments associated with city annexations and not in regards to the offered amount. The correspondence states that the FPD Board President and Fire Chief will appear at the October 1 st LAFCO hearing on the item hearing to formally submit the Board s objection to the associated detachment. 11 P age 245

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271 GEOCON INCORPORATED GE OTEC H NIC AL AGENDA ITEM No. 11 Attachment 4 Project No July 11, 2017 North Avenue CAJ, LLC Post Office Box San Diego, California Attention: Subject: References: Mr. Casey Johnson SUMMARY OF CONCLUSIONS IN PREVIOUS GEOTECHNICAL REPORTS NORTH A VENUE ESTA TES SAN DIEGO COUNTY, CALIFORNIA I. Supplemental Exploratory Trenching, North Avenue Estates, Escondido, California, prepared by Geocon Incorporated, dated November 15, 2016 (Project No ). Dear Mr. Johnson: 2. Groundwater Flow, North Avenue Estates, Escondido, California, prepared by Geocon Incorporated, dated February 17, 2017 (Project No ). 3. Response to LAFCO Comments, North Avenue Estates, San Diego County, California, prepared by Geocon Incorporated, dated May 3, 2017 (Project No ). In accordance with your request we have summarized our conclusions from previous reports prepared by Geocon Incorporated with respect to potential impacts to adjacent property septic systems. It is our opinion based on the information obtained from our field investigations that the potential to encounter septic seepage in remedial excavations performed on the North A venue Estates project is low, therefore remedial excavations should not cause or contribute to a failure of the adjacent septic systems. Groundwater flow at the site, if present, occurs on or below the alluvium/gabbro contact. We expect groundwater flow to follow the alluvium/gabbro gradient contact, which is to the south-southwest based on exploratory trenching performed on the property. We expect groundwater flow and septic seepage below the properties along Laurashawn Lane to also flow to the south-southwest along the alluvium/gabbro contact, or away from the North Avenue Estates project. As such, it is our opinion, that remedial grading performed within the North Avenue Estates site will not cut-off groundwater flow from and beneath adjacent properties thereby causing a rise in groundwater and impacting the vertical percolation from the existing septic systems. As an added measure of conservatism, a IO-foot buffer area is proposed within the North Avenue Estates project adjacent to the lots along Laurashawn Lane from the south end of the property up to the 6960 Flanders Drive San Diego, California Telephone Fax

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299 AGENDA ITEM No. 11 Attachment 5 MARK WARDLAW DIRECTOR PLANNING & DEVELOPMENT SERVICES 5510 OVERLAND AVENUE, SUITE 310, SAN DIEGO, CA (858) Fax (858) KATHLEEN A. FLANNERY ASSISTANT DIRECTOR July 18, 2018 Robert Barry Chief Analyst San Diego Local Agency Formation Commission (LAFCO) 9335 Hazard Way, Suite 200 San Diego, CA Via to: robert.barry@sdcounty.ca.gov REQUEST FOR COMMENTS ON THE NORTH AVENUE ESTATES REORGANIZATION FOR THE CITY OF ESCONDIDO Mr. Barry, The County of San Diego (County) reviewed LAFCO's Notice of Proposal Preliminary Staff Report, dated June 11, 2018 (Project). The County previously submitted comments on this Project, dated August 7, 2017 (Attachment A). The County appreciates the opportunity to review the Project and offers the following comments for your consideration. Please note that none of these comments should be construed as County support for this Project. FLOOD CONTROL 1. The County Department of Public Works, Flood Control District (FCD) currently maintains drainage facilities (DPW-DRNCUL ; DPW-DRNCHN ; FC-038) at the northwest corner and along the western property boundary of APN , which is proposed to be annexed by the City for the Project. This was noted in the County's previous comment letter to the City dated August 7, a. In the County's previous comment letter, we noted that any proposed discharge or impact to these facilities requires close coordination with County FCD to ensure they are not adversely impacted, and to ensure County FCD retains access and the ability to maintain the facilities. The County did not receive a response from the City addressing this comment; therefore, this comment still applies. b. In addition, County FCD would be amenable to transferring the ownership and easement to the City of Escondido for the aforementioned portion of the channel within the Annexation proposal. 299

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