DISSOLUTION OF COUNTY SERVICE AREA NO. 2 (AIRPORT DISTRICT) AND COUNTY SERVICE AREA NO. 3 (RIVERDALE PARK TRACT)

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1 EXECUTIVE OFFICER S AGENDA REPORT APRIL 27, 2016 TO: FROM: SUBJECT: LAFCO Commissioners Javier Camarena, Assistant Executive Officer DISSOLUTION OF COUNTY SERVICE AREA NO. 2 (AIRPORT DISTRICT) AND COUNTY SERVICE AREA NO. 3 (RIVERDALE PARK TRACT) BACKGROUND At its February 24, 2016 meeting, the Local Agency Formation Commission approved a Municipal Service Review (MSR) and Sphere of Influence (SOI) Update for the County s 24 County Service Areas (CSAs). The document identified CSA No. 2 (Airport District) and CSA No. 3 (Riverdale Park Tract) as inactive and not providing services. Based on the unlikelihood of a future need for the two CSAs, the MSR included a recommendation that the Districts be dissolved. The Commission approved the MSR and its associated recommendations and directed Staff to initiate the dissolution process. (See Exhibit 1 - LAFCO Resolution ) Following the Public Hearing, this item, if approved, will formally dissolve CSAs No. 2 and 3, subject to a required Protest Hearing. DISCUSSION County Service Areas (CSAs) are dependent special districts, organized under Section et seq. of the Government Code. CSAs are governed by the County Board of Supervisors and are legally authorized to provide any one or more of a variety of extended services within a particular area. The extended services provided by a CSA are only for the benefit of the facilities and property within the CSA. Typical services include storm drainage control and maintenance of parks and landscaping. County Service Area No. 2 (Airport District) was approved in 1974 for local park/recreation services. The County is not currently collecting assessments for this CSA and there is no record of funds having ever been collected for the District. The CSA does not provide any service to the parcels within its boundaries. County Service Area No. 3 (Riverdale Park Tract) was formed in 1982 to provide municipal water service. In 1984 the Riverdale Park Tract Community Services District (CSD) was formed to replace CSA No. 3. The CSA has been inactive since its inception in Stanislaus County intended to dissolve the CSA upon successful formation of the CSD under Board of Supervisor s Resolution No , dated December 18, However, the dissolution has not occurred. The Cortese-Knox-Hertzberg Act (CKH Act) states that the Commission may initiate the dissolution of a district, provided that the dissolution is consistent with a recommendation or conclusion of a study prepared by the Commission (Government Code Section 56375). Consistent with this section, the Commission adopted an updated MSR that includes a recommendation for dissolution. Findings Government Code Section provides findings the Commission may make for ordering dissolution. Included in this Section is the following finding that is appropriate in this case: 1

2 EXECUTIVE OFFICER S AGENDA REPORT APRIL 27, 2016 PAGE 2 That the corporate powers have not been used, as specified in Section and that there is a reasonable probability that those powers will not be used in the future. As previously mentioned, CSA No. 2 (Airport District) and CSA No. 3 (Riverdale Park Tract) have both been inactive since their inception and there are no plans to activate them. Both CSAs have not provided any service within their respective boundaries. Therefore, the finding can be made to dissolve the two CSAs. Additionally, for any proposal initiated by the Commission initiated by the Commission, both of the following determinations must be made (Section 56881): (1) Public service costs of a proposal that the commission is authorizing are likely to be less than or substantially similar to the costs of alternative means of providing service. (2) A change of organization or reorganization that is authorized by the commission promotes public access and accountability for community services needs and financial resources. Staff believes that both of the above findings can be made. Dissolution will eliminate future need for the Commission to review and adopt spheres of influence for these Districts, thus saving LAFCO and County Staff time. Dissolution will not impact existing services nor will it create any new taxes or fees for residents within the CSA boundaries. Protest Hearing The areas within the two CSAs are legally inhabited and are subject to the conducting authority hearing process (protest hearing) which allows registered voters as well as property owners to protest the dissolution. If the dissolution is approved by LAFCO, registered voters and landowners in the areas will be notified regarding LAFCO s decision and when a Protest Hearing will be held by the Executive Officer. Pursuant to Government Code Section (c)(2), if a majority protest occurs (at least 50% of the registered voters residing in the territory), the proceedings will be terminated. If there is no majority protest, the dissolution shall be ordered without an election. ENVIRONMENTAL REVIEW RECOMMENDATIONS California Environmental Quality Act (CEQA) Guidelines specify in that reorganizations of local agencies are exempt from environmental review where changes do not alter the geographic area in which previously existing powers are exercised. As the two CSAs do not provide any services or otherwise exercise their powers, the proposed dissolutions are exempt from the provisions of CEQA. Additionally, pursuant to 15061(b)(3), there is no substantial evidence that the proposed dissolutions will have a significant effect on the environment. Therefore, a Notice of Exemption is the appropriate environmental document. RECOMMENDED ACTION Based on the information presented, and following open and close of the Public Hearing, Staff recommends that the Commission: 2

3 EXECUTIVE OFFICER S AGENDA REPORT APRIL 27, 2016 PAGE 3 1. Certify that the project is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Sections and 15061(b)(3) of the State CEQA Guidelines. 2. Approve Dissolution of County Service Area No. 2 (Airport District) and County Service Area No. 3 (Riverdale Park Tract) and adopt LAFCO Resolution No and Resolution No (attached as Exhibits 2 and 3), which: Attachments: a. Determine that the proposal meets the required findings for dissolution as established in Sections and of the Cortese-Knox-Hertzberg Act (CKH Act). b. Orders the dissolution without an election, subject to majority protest, pursuant to Government Code Section (c)(2). c. Determine that all assets, if any, from CSA No. 2 (Airport District) and CSA No. 3 (Riverdale Park Tract) shall be distributed to the County of Stanislaus in accordance with Government Code Section d. Determine the effective date of the dissolution shall be the date of recordation of the Certificate of Completion. Exhibit 1 - LAFCO Resolution No : MSR No and SOI Update No Municipal Service Review and Sphere of Influence Updates for the County Service Areas Exhibit 2 - Draft LAFCO Resolution No : Dissolution of County Service Area No. 2 (Airport District) Exhibit 3 - Draft LAFCO Resolution No : Dissolution of County Service Area No. 3 (Riverdale Park Tract) 3

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5 EXHIBIT 1 LAFCO Resolution No MSR No and SOI Update No Municipal Service Review and Sphere of Influence Updates for the County Service Areas 5

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35 EXHIBIT 2 Draft LAFCO Resolution No : Dissolution of County Service Area No. 2 (Airport District) 35

36 STANISLAUS COUNTY LOCAL AGENCY FORMATION COMMISSION RESOLUTION DATE: April 27, 2016 NO SUBJECT: Dissolution of County Service Area No. 2 (Airport District) On the motion of Commissioner, seconded by Commissioner, and approved by the following vote: Ayes: Noes: Absent: Ineligible: Commissioners: Commissioners: Commissioners: Commissioners: THE FOLLOWING RESOLUTION WAS ADOPTED: WHEREAS, the Commission may initiate a proposal for the dissolution of a district pursuant to Government Code Section 56375(a)(2)(B) when it is consistent with a recommendation of a Municipal Service Review or Sphere of Influence Update, prepared pursuant to Section and 56425; WHEREAS, the Commission adopted a Municipal Service Review and Sphere of Influence Update on February 24, 2016, that included a recommendation for dissolution of County Service Area (CSA) No. 2 (Airport District) and direction to Staff to initiate proceedings; WHEREAS, County Service Area No. 2 (Airport District) was formed in 1974 for the purpose of providing park/recreation services; WHEREAS, County Service Area No. 2 (Airport District) has been inactive since its inception, has not collected assessments, and has not provided services; WHEREAS, the territory involved is inhabited; WHEREAS, the Stanislaus Local Agency Formation Commission held a public hearing on the proposed dissolution on April 27, 2016; in the Joint Chambers, Basement Level, th St., Modesto, CA, pursuant to notice of hearing which was published in accordance with State law; WHEREAS, at the hearing, all persons present were given an opportunity to hear and be heard in respect to any matter in relation to the review, in evidence presented at the hearing; NOW, THEREFORE, BE IT RESOLVED by the Commission: 1. Certifies that the project is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Sections and 15061(b)(3) of the State CEQA Guidelines as there is 36

37 Resolution Dissolution CSA No. 2 (Airport District) Page 2 no substantial evidence that the proposed dissolution will have a significant effect on the environment. 2. Finds that, pursuant to Government Code Section 57102, the corporate powers of the District have not been used and that there is a reasonable probability that those powers will not be used in the future. 3. Finds that, pursuant to Government Code Section 56881(b), there are no changes to the public service costs and the dissolution will promote public access and accountability, as the District is no longer relevant or necessary. 4. Approves the dissolution of County Service Area No. 2 (Airport District) subject to the following terms and conditions: a. As required by Government Code Section (c)(2), the dissolution is subject to protest proceedings; however, should majority protest not be found, the dissolution shall be ordered without election. b. The effective date of the dissolution shall be the date of recordation of the Certificate of Completion. c. All assets, if any, from CSA No. 3 (Riverdale Park Tract) shall be distributed to the County of Stanislaus, as the successor agency, in accordance with Government Code Section ATTEST: Sara Lytle-Pinhey, Executive Officer 37

38 Resolution Dissolution CSA No. 2 (Airport District) Page 3 38

39 EXHIBIT 3 Draft LAFCO Resolution No : Dissolution of County Service Area No. 3 (Riverdale Park Tract) 39

40 STANISLAUS COUNTY LOCAL AGENCY FORMATION COMMISSION RESOLUTION DATE: April 27, 2016 NO SUBJECT: Dissolution of County Service Area No. 3 (Riverdale Park Tract) On the motion of Commissioner, seconded by Commissioner, and approved by the following vote: Ayes: Noes: Absent: Ineligible: Commissioners: Commissioners: Commissioners: Commissioners: THE FOLLOWING RESOLUTION WAS ADOPTED: WHEREAS, the Commission may initiate a proposal for the dissolution of a district pursuant to Government Code Section 56375(a)(2)(B) when it is consistent with a recommendation of a Municipal Service Review or Sphere of Influence Update, prepared pursuant to Section and 56425; WHEREAS, the Commission adopted a Municipal Service Review and Sphere of Influence Update on February 24, 2016, that included a recommendation for dissolution of County Service Area (CSA) No. 3 (Riverdale Park Tract) and direction to Staff to initiate proceedings; WHEREAS, County Service Area No. 3 (Riverdale Park Tract) was formed in 1982 for the purpose of providing municipal water service; WHEREAS, County Service Area No. 3 (Riverdale Park Tract) has been inactive since its inception, has not collected assessments, and has not provided services; WHEREAS, the territory involved is inhabited; WHEREAS, the Stanislaus Local Agency Formation Commission held a public hearing on the proposed dissolution on April 27, 2016; in the Joint Chambers, Basement Level, th St., Modesto, CA, pursuant to notice of hearing which was published in accordance with State law; WHEREAS, at the hearing, all persons present were given an opportunity to hear and be heard in respect to any matter in relation to the review, in evidence presented at the hearing; NOW, THEREFORE, BE IT RESOLVED by the Commission: 1. Certifies that the project is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Sections and 15061(b)(3) of the State CEQA Guidelines as there is 40

41 Resolution Dissolution CSA No. 3 (Riverdale Park Tract) Page 2 no substantial evidence that the proposed dissolution will have a significant effect on the environment. 2. Finds that, pursuant to Government Code Section 57102, the corporate powers of the District have not been used and that there is a reasonable probability that those powers will not be used in the future. 3. Finds that, pursuant to Government Code Section 56881(b), there are no changes to the public service costs and the dissolution will promote public access and accountability, as the District is no longer relevant or necessary. 4. Approve the dissolution of County Service Area No. 3 (Riverdale Park Tract) subject to the following terms and conditions: a. As required by Government Code Section (c)(2), the dissolution is subject to protest proceedings; however, should majority protest not be found, the dissolution shall be ordered without election. b. The effective date of the dissolution shall be the date of recordation of the Certificate of Completion. c. All assets, if any, from CSA No. 3 (Riverdale Park Tract) shall be distributed to the County of Stanislaus, as the successor agency, in accordance with Government Code Section ATTEST: Sara Lytle-Pinhey, Executive Officer 41

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