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Public Hearings 6.
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| LAFCO |
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| Information |
| SUBJECT |
Consider and Adopt the Final Combined Municipal Service Review/Sphere of Influence Update for the Yolo County Water Districts and Authorize the Executive Officer to Waive Fees for the Dissolution of the Yolo-Zamora Water District (LAFCo No. S-038) |
| RECOMMENDED ACTION |
1. Receive staff and consultant presentations on the Yolo County Water Districts MSR/SOI.
2. Open the Public Hearing for public comments on the item.
3. Close the Public Hearing.
4. Consider the information presented in the staff report and during the public hearing. Discuss and direct staff to make any changes deemed appropriate.
5. Find that the project is exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3).
5. Move to adopt Resolution No. 2013-04 adopting the Combined MSR/SOI for the Yolo County Water Districts (LAFCo No S-038) , approving updated SOIs for the Dunnigan Water District, Yolo County Flood Control and Water Conservation District and the Yolo-Zamora Water District as illustrated in Maps 1, 2 and 3 to the resolution, and authorizing the Executive Officer to waive fees for future dissolution of the Yolo-Zamora Water District. |
| FISCAL IMPACT |
Yolo LAFCo contracted with RSG, Inc. to prepare the Combined MSR/SOI for the Yolo County Water Districts in an amount not to exceed $42,090. This amount was already budgeted for in the FY 2012/13 LAFCo budget and no further costs associated with the study itself are anticipated.
Staff recommends that LAFCo waive the application fees to dissolve the Yolo-Zamora Water District because the District is depleted of sufficient funds to pay for this process. If the District initiates the dissolution process instead of LAFCo, the Cortese-Knox-Hertzberg Act provides for an expedited process omitting protest proceedings, which would save staff time and resources. |
| REASONS FOR RECOMMENDED ACTION |
The Cortese-Knox-Hertzberg Reorganization Act of 2000 (CKH Act) requires the Commission develop and determine spheres of influence for cities and special districts in the County. The CKH Act also requires the Commission, as necessary, to review and update each SOI every five years. The last MSR/SOI for these districts was completed in 2005. Staff combined these water districts into one MSR/SOI because the review is being utilized as a reorganization study to provide a road map for potential dissolution of the Yolo-Zamora Water District at its request.
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| BACKGROUND |
A MSR is conducted prior to, or in conjunction with, the update of a SOI. A MSR evaluates the structure and operation of district services and includes a discussion of the capability and capacity of the district to ensure the provision of municipal services to future growth of the district’s boundaries. The SOI indicates the probable physical boundaries and service area of a district and lays the groundwork for potential future annexations.
Municipal Service Review (MSR)
Municipal Service Reviews are designed to equip LAFCo with information to guide decision making regarding agency boundaries and the provision of efficient government services. LAFCo has broad discretion regarding the scope of the study including geographic/agency focus and alternatives for improving the efficiency, cost-effectiveness, accountability and reliability of public services.
This MSR looks at three of our water districts: Dunnigan Water District, Yolo County Flood Control and Water Conservation District (YCFCWCD) and the Yolo-Zamora Water District, all of which provide water for agricultural irrigation purposes. The MSR was scoped to focus on two issue areas:
• Dissolution of the Yolo-Zamora Water District (at their request) providing a “road map” for this process and any potential issues; and
• The proposed Dunnigan Specific Plan and any resulting issues for the Dunnigan Water District.
The Cortese-Knox-Hertzberg (CKH) Act requires that MSRs make determinations regarding population growth, any disadvantaged unincorporated communities, capacity and adequacy of facilities and services, agency financial ability, shared service opportunities, public accountability and effective/efficient service delivery. These determinations are addressed in detail on pages 48-52 of the study. The MSR generally finds the Dunnigan Water District and YCFCWCD to be effective agencies and meet these standards listed above. The Yolo-Zamora Water District never acquired water rights to the Tehama-Colusa Canal as anticipated when it was formed in 1955 and was recommended for dissolution in LAFCo’s 2005 MSR. This 2013 MSR recommends that LAFCo waive dissolution application fees for the Yolo-Zamora Water District given the District’s lack of resources.
The proposed Dunnigan Specific Plan proposes to obtain water from the Dunnigan Water District, however it remains unclear how that may financially impact the District in terms of water sales and revenues. The County’s application for the Specific Plan is not yet complete and a finance plan has not yet been submitted. This issue will need to be addressed during the Specific Plan process.
Sphere of Influence (SOI)
The SOI indicates the probable physical boundaries and service area of the District and defines an area where future annexations could occur. The Cortese-Knox-Hertzberg (CKH) Act requires that SOIs make determinations regarding planned land uses including agricultural and open space, need for public services, present capacity to provide services, existing communities and the existence of any disadvantaged unincorporated communities. These determinations are addressed in detail on pages 54-57 of the study, which generally finds that the recommended SOIs for each water district is appropriate considering their capacity and need to provide services.
Considering the recommendation to dissolve the Yolo-Zamora Water District, this SOI update recommends dividing the current District boundary area putting roughly two-thirds of it into the SOI for the YCFCWCD and one-third into the SOI for the Dunnigan Water District. The demarcation line corresponds to topography, some existing canal systems and the potential for each district to provide agricultural water via a gravity flow system in the future. The SOI for the Yolo-Zamora Water District is recommended to effectively be deleted, or what’s termed as a “zero” SOI.
Dissolution
The Yolo-Zamora Water District board president approached staff last year regarding its need to be dissolved. It never acquired water rights to provide service and is depleted of the financial resources to continue to perform basic administrative functions. This MSR/SOI was prepared in order to study potential dissolution, create a "road map" and resolve any issues that may result.
Since the District does not have the staff resources and financial ability to submit an application to LAFCo for dissolution, staff recommends LAFCo waive the fees. If the District initiates the dissolution process instead of LAFCo, the Cortese-Knox-Hertzberg Act provides for an expedited process without protest proceedings, saving significant staff time and resources. The MSR estimates the District has a population of 846 people but staff does not expect dissolution to be significantly contested.
Agency/Public Involvement
This MSR/SOI has been prepared in close coordination with the three water districts and their staff. The draft MSR/SOI was released for public review on August 9, 2013. We have correspondence from Dunnigan Water District and YCFCWCD indicating they have no issues with the study. Staff has also attended three board meetings of the Yolo-Zamora Water District to answer any questions/concerns and coordinate District dissolution. No public comments have been received.
CEQA
The approval of the MSR/SOI and adopting the expanded SOI boundaries for two districts is considered a project under CEQA. However, considering the project will not result in any land use changes or physical improvements or construction (i.e. the land would remain in its current agricultural production and would potentially reduce sole reliance on groundwater pumping in the future), staff recommends the project is not subject to CEQA per Section 15061 (b)(3).
FINDINGS
1. Finding: The Project does not have the potential to cause a significant effect on the environment, and is therefore not subject to CEQA in accordance with CEQA Guidelines Section 15061(b)(3). A Notice of Exemption will be filed with the County Recorder.
Evidence: The project includes adoption of a Municipal Services Review and Sphere of Influence expansion for the Yolo County Flood Control and Water Conservation District and the Dunnigan Water District. The SOI could provide for future annexation of additional territory into each District, however, this additional territory will not change the existing agricultural use of the subject property and may reduce the reliance on groundwater in the future. No significant construction or other improvements are anticipated at this time.
2. Finding: Approval of the Combined Municipal Service Review and Sphere of Influence Study for the Yolo County Water Districts is consistent with all applicable state law and local LAFCo policies.
Evidence: The project was prepared consistent with the requirements in the Cortese-Knox-Hertzberg Act for a MSR/SOI and all applicable Yolo LAFCo policies and adopted Standards for Evaluation. The dissolution promotes public access and accountability for community services needs and financial resources. The Yolo-Zamora Water District has never provided water services and no longer collects property tax revenue. |
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