LAFCo Municipal Service Review: Utility Services

Stakeholders’ WorkshopSeptember 13, 2005

ByBurr Consulting

CDMBraitman & Associates

Maps by P&D Consultants

b.d. spatial systems

Overview

MSR Requirements and Process

Utility MSR Overview

Government Structure Options

Water Sewer Flood Control &

Stormwater Solid Waste Resource

Conservation

The New Legislative Mandate

Upon determination of a sphere of influence, the commission shall adopt that sphere, and shall review and update, as necessary, the adopted sphere not less than once every five years.

- Government Code §56425

In order to prepare and update spheres of influence in accordance with Section 56425, the Commission shall conduct a service review of the municipal services provided in the county or other appropriate area designated by the commission.

- Government Code §56430

Legislation Requires LAFCo to Make Determinations on:

1. Infrastructure needs or deficiencies,

2. Growth and population projections for the affected area,

3. Financing constraints and opportunities,

4. Cost avoidance opportunities,

5. Opportunities for rate restructuring,

6. Opportunities for shared facilities,

7. Government structure options, including advantages of consolidation or reorganization of service providers,

8. Evaluation of management efficiencies, and

9. Local accountability and governance.

Utility MSR Services

Water Wholesale Treatment Retail

Wastewater Collection Treatment Disposal

Flood Control Stormwater Solid Waste

Trash Collection Recycling Disposal

Resource Conservation

Utility MSR Public Service Providers

Independent Special Districts

Dependent Special Districts

Cities

1. Alameda County Resource Conservation District

2. Alameda County Water District

3. Castro Valley Sanitary District

4. Contra Costa Water District *

5. Dublin San Ramon Services District *

6. East Bay Municipal Utility District *

7. East Bay Regional Park District *

8. Oro Loma Sanitary District9. Union Sanitary District

1. Alameda County Flood Control and Water Conservation District

2. Curbside Recycling CSA

3. Castlewood CSA 4. Five Canyons CSA 5. Livermore-

Amador Valley Sewer Study CSA

6. Zone 7 Water Agency

1. Alameda2. Albany3. Berkeley4. Dublin5. Emeryville6. Fremont7. Hayward8. Livermore9. Newark10. Oakland11. Piedmont12. Pleasanton13. San Leandro14. Union City

* Multi-County Agency Blue = SOI Update after Utility MSR

Utility MSR Data Sources

Questionnaires Requests for

Information 2003 Service-specific

questions Agency Documents

Budget CAFR Bond Statements CIP Master Plans UWMP

Regulatory Agencies RWQCB, CIWMB EPA, Homeland

Security Regional Agencies

ABAG ACCWP ACWMA

Other OES QualServe Moody’s, S&P Census

Initial Government Structure Options

Subject to LAFCo Approval

Dissolution of Livermore-Amador Valley Sewer Study CSA

Consolidation of ACWD and USD Consolidation of OLSD and CVSD Special district formation for

stormwater treatment purposes is an option for long-term consideration

Resource conservation district annexation of territory to make the district’s boundary countywide

Annexation of adjacent unincorporated areas to the cities of Hayward, Livermore and Pleasanton

Not Subject to LAFCo Approval

Regionalization through formation of JPAs for various regional services, such as desalination, storage, water reliability, and recycled water projects

Annexation of the cities of Berkeley and Albany to an ACFCD zone

General

Regionalization and service consolidation among smaller agencies

MSR recommends that LAFCo evaluate out-of-area service (since 2000)

MSR recommends that LAFCo review incentives for city annexation and encourage solutions

Water Service

Water Services Initial Findings

Water Supply EBMUD Mokelumne River

supplies vulnerable to drought

State Water Project supplies vulnerable to contaminants and seawater intrusion

SFPUC supplies vulnerable to earthquakes

Recycled Water Supply DSRSD and EBMUD JPA EBDA & Livermore

Water Demand 156 gallons per capita daily Inland areas use more Highest growth expected in

Tri-Valley area Demand increase from

264,439 acre-feet in 2005 to 286,514 by 2020

Service Adequacy Castlewood practices

minimal conservation Water health and

monitoring violations

Water Services Initial Findings (continued)

Facility Needs & Deficiencies

SFPUC seismic upgrades & pipeline inspection

Pleasanton demineralization

Infrastructure in Hayward islands

New Zone 7 WTP in Altamont

Opportunities for Shared Facilities

CCWD’s Los Vaqueros Reservoir

SFPUC - Desalination

Rate Restructuring & Financing Opportunities

Increase water service & connection charges

Charge higher rates on high use levels to encourage conservation

Implement excess use charges, demand-based rates or seasonal rates

Financing Constraints Temporary State-imposed

reductions of property taxes

Water ServicesInitial Policy Options

Government Structure Options

Consolidation of ACWD and USD

Regionalization of various water services

SOI Options ACWD and Zone

7 SOI – Boundary Overlap

DSRSD – Doolan Road

EBMUD – Include northern cities in SOI

Alameda County Water District

Zone 7 Water Agency

Zone 7 Water AgencySOI Detail: Option 2

Dublin San Ramon Services District

DSRSD Option 1: Remove northern Doolan Road Area

DSRSD Option 2: Exclude area outside City of Dublin UGB

East Bay Municipal Utility District

Sewer Service

Wastewater ServicesInitial Findings

Service Outside Bounds CVSD – nursing facility,

regional park and golf course Hayward – incorporated

islands and Hayward Hills OLSD – Floresta Gardens in

San Leandro and portion of Hayward

Livermore – Unincorporated areas, LLNL, Sandia National Lab, & Ruby Hill in Pleasanton

Pleasanton – Castlewood CSA Berkeley – Perimeter

connections in Oakland and Albany

Septic Areas Prohibited in Happy Valley,

Sycamore, Alisal, and the Lomitas Vineyard

Allowed if sewer is not available

Less than 1% of households

Service Demand Rapid growth: DSRSD,

Livermore, USD Capacity issues Conservation

Wastewater Services Initial Findings (continued)

Service Adequacy DSRSD, Livermore and

EBDA have exceeded effluent limitations

Most collection providers conduct CCTV inspection of sewer lines

Financing Opportunities Increase sewer service

charges, connection fees, reserves, State revolving loans and bonded debt

Opportunities for Rate Restructuring

Charge rates based on flow to promote conservation

Infrastructure Needs Collection Systems:

Alameda, Albany, Berkeley, Emeryville, Oakland, & Piedmont under RWQCB order

Disposal Capacity: Tri-Valley Treatment Capacity:

OLSD/CVSD under RWQCB order

Opportunities for Shared Facilities

EBMUD is interested in sharing excess treatment capacity

Wastewater Services Initial Policy Options

SOI Options CVSD

Retain existing SOI Expansion (2 options)

OLSD Reduce existing SOI Expansion (1 option) Retain existing SOI Coterminous

USD – Keep existing Sewer Study CSA –

Zero SOI

Government Structure Options

Dissolve Livermore-Amador Valley Sewer Study CSA

Consolidate OLSD and CVSD

Castro Valley Sanitary District

Castro Valley Sanitary DistrictSOI Detail: Option 2

Castro Valley Sanitary DistrictSOI Detail: Option 3

Oro Loma Sanitary District

Oro Loma Sanitary DistrictSOI Detail: Option 1

Oro Loma Sanitary DistrictSOI Detail: Option 2

Flood Control & Stormwater Initial Findings

Service Scope Flood control: maintain and

operate regional runoff collection, conveyance and discharge systems

Stormwater: maintain and operate local drainage systems

Service Demand Increased impervious

surface in the Tri-Valley area is resulting in increased runoff and greater service demand

Rate Restructuring & Financing Opportunities

ACA 13 would enhance revenue Increase development plan

review and permitting fees Impose fees to cover discharge

inspection costs

Infrastructure Needs or Deficiencies

Zone 7 arroyos need capacity enhancement

Channel capacity enhancements needed in flood-prone areas of San Leandro, Fremont and Pleasanton

Unfunded Army Corps projects for Laguna Creek, Estudillo Canal and Arroyo de la Laguna

Flood Control Services