LAFCo 509 W. WEBER AVENUE SUITE 420 STOCKTON, CA 95203
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1 SAN JOAQUIN LOCAL AGENCY FORMATION COMMISSION AGENDA ITEM NO. 2 LAFCo 509 W. WEBER AVENUE SUITE 420 STOCKTON, CA REVISED EXECUTIVE OFFICER S REPORT March 10, 2016 TO: FROM: SUBJECT: LAFCo Commissioners James E. Glaser, Executive Officer City of Lathrop Draft Municipal Service Review and Sphere of Influence Plan Update Workshop Recommendation It is recommended that after receiving testimony and providing comments on the Draft Municipal Service Review (MSR) and Sphere of Influence Update for the City of Lathrop that the matter be scheduled for a public hearing on April 14, Background A Municipal Service Review (MSR) is a comprehensive review of an agency intended to obtain information about the agency s ability to provide services. Its purpose is to evaluate the provision of services from a comprehensive perspective and recommend actions, when necessary, to promote the efficient provision of those services. Service reviews are intended to serve as a tool to help LAFCo, the public and other agencies better understand the public service structure and evaluate options for the provision of efficient and effective public services that the agency currently provides. State law requires that LAFCo update spheres of influence every five years and prepare a Municipal Service Review in conjunction with that update. LAFCo last approved the City of Lathrop Municipal Service Review and Sphere of Influence Plan on January 19, The MSR is required by the Cortese-Knox-Hertzberg Act to have six categories, as defined by the San Joaquin LAFCo Service Review Policies adopted December 14, Each of these categories requires a written determination. The six categories are as follows:
2 Growth and Population Projections for the Affected Area The Location and Characteristics of any Disadvantage Unincorporated Communities within or Contiguous to the Sphere of Influence Present and Planned Capacity of Public Facilities and Adequacy of Public Services, Including Infrastructure Needs and Deficiencies Financial Ability of Agencies to Provide Services Status of and Opportunities for Shared Facilities Accountability for Community Service Needs, Including Governmental Structure and Operational Efficiencies In determining a sphere of influence, the Commission is required to consider and make written determinations with respect to the following factors (Government Code Section 56425): The present and planned land uses in the area, including agricultural and open space lands. The present and probable need for public facilities and services in the area. The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. 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 present and probable need for those public facilities and services within any disadvantaged unincorporated communities (DUCs) within the sphere of influence. Summary of Issues Population The City s 2015 population is estimated at 20,353 by the California Department of Finance. The latest population projections for Lathrop are 53,163 people by All of the residential growth will occur within the existing city boundary and will provide for population growth of up to 68,603 people if all vacant and underutilized parcels were developed; however, it is not expected that actual population growth will approach this maximum until well after Expansion within the existing SOI to include all those areas designated as within the 10 Year Planning Horizon will provide for the additional commercial and industrial development. The City of Lathrop does not propose any lands in the 20 year planning horizon. The level of population growth is consistent with the City s General Plan. The City s ability to provide adequate service to new developments will be ensured prior to approval of new developments, in accordance with existing City policies. Area of Interest The Sphere of Influence Update proposes an amendment to the existing sphere boundary along the northerly portion (see page 2-24 of the attached report). Approximately 2,101 acres of land located north of the Central Lathrop Specific Plan Area has no General Plan land use designation and was proposed for the
3 storage of recycled water, spray fields, and agricultural/open space purposes. LAFCo s adopted Policy and Procedures for Spheres of Influence (September 21, 2007) required that territory will not be considered for inclusion within a City s sphere of influence unless the area is included within the city s general plan land use element. Furthermore, in the case of the City of Lathrop, all of the future residential growth (at least beyond the thirty year planning horizon) will occur within the existing city boundary. Therefore, with no general plan land use designation and the lack of demonstrated need for additional residential growth, the area does not qualify for inclusion in a sphere of influence. This area is now proposed to be defined as an Area of Interest and the Lathrop SOI reduced to exclude those lands which do not have a General Plan Land Use designation. The Area of Interest will serve to protect Lathrop s interest from future growth from other agencies. Fire Services The City of Lathrop General Plan includes policies and implementation measures that would allow for the Fire District to continue providing adequate facilities and staffing levels. The City is served by the Lathrop-Manteca Fire District which is a special independent district. The City Lathrop, at the time of incorporation in 1989, chose not to provide municipal fire service but rather to rely upon the existing fire district to provide fire services. The fire district receives revenues from property tax, special assessments, development fees and a portion of Measure C which is a City wide special sales tax. The district s travel time to all emergency calls within the City boundary is 4:08 minutes for 90% of the total emergency calls. The District has identified the need for four future stations to provide future fire protection. Police Services The City of Lathrop General Plan includes policies and implementation measures that would allow for the Police Department to continue providing adequate staffing levels. Law enforcement services are provided through contract with the San Joaquin County Sheriff s Department. Staffing levels are assessed by the City on an annual basis, based on a variety of factors including response times for priority calls. There are currently 26 sworn officers dedicated to serve Lathrop. With a population of 20,353 the existing staffing level equates to a ratio of 1.31 officers per 1000 residents. Funding of Lathrop s law enforcement activities is enhanced through the use of Community Facilities Revenue and the sale tax measure proceeds. Water Supply The City of Lathrop General Plan 2023 includes policies and implementation programs related to maintaining an adequate water supply for the City s population The City currently has an existing groundwater supply capacity of 18,368 acre-feet of water per year of which 9,184 acre-feet is available for use. Additionally, the City has a surface water capacity allotment of 8,007 acre-feet of water per year from South San Joaquin Irrigation District (SSJID) under Phase I, although they are not currently using their full allotment. The Phase II allotment would be 11,791 acre-feet of water per year. Project allotments are subject to the availability of surface water, which can be affected by drought conditions. An analysis of normal,
4 single-dry years, and multi-dry years shows that there is sufficient capacity of groundwater and surface water to supply the projected demand in Lathrop through build-out. Wastewater Treatment The City of Lathrop General Plan addresses wastewater treatment through various policies and implementation programs. Based on projected wastewater generation factors for various land use, the City estimates that wastewater flows will total 11.9 MGD at build-out. The overall collection sewer strategy will consist of a combination trunk sewer gravity collection system with pump or lift stations located along the alignment to convey wastewater to an influent pump station located at the Lathrop Consolidated Treatment Facility (LCTF) and at the Manteca- Lathrop Wastewater Quality Control. The City owns and operates the LCFT and owns a percentage of the WQCF. SB5 Compliance A significant issue facing the City of Lathrop is compliance with Senate Bill 5 (SB5) -200 year flood protection. In 2007, the State of California approved the SB5 bills that require 200-year Urban Level of Flood Protection (ULFP) for urban areas in the Central Valley. Briefly summarized, the SB 5 Bills require that urban (population > 10,000) and urbanizing areas (population > 10,000 within ten years) have 200-year flood protection no later than After July 2, 2016, the City is prohibited from issuing new discretionary permits and residential building permits in areas that may be inundated to a depth of more than three feet during a 200-year flooding event unless the City confirms that 1) 200-year flood protection is provided, or 2) adequate progress has been made toward providing 200-year flood protection by SB5 requires that the 200-year flood protection requirements be incorporated into amendments of the City s General Plan and zoning. General plan amendments must be completed by July 2015; zoning amendments must be completed by July The City of Lathrop adopted a General Plan amendment in July of 2015 which satisfied this requirement. Lathrop is composed of three separate flood basins, represented by the three reclamation districts that cover the City: Reclamation District 2107 located on Stewart Tract, southeast of the UPRR tracks, Reclamation District 2062 located on Stewart Tract, northwest of the UPRR tracks and also known as the River Islands development project, and Reclamation District 17 located east of the San Joaquin River. Per the recently amended General Plan, RD 2107 is not subject to SB5. RD 2062 is expects to confirm that they already provide Urban Level if Flood Protection (ULFP) prior to July RD 17 created a Joint Powers Authority (JPA) that included San Joaquin County, Stockton, Manteca and Lathrop to issue bonds to fund the local share of Phase 1-3 Improvements to the RD 17 levees. Lathrop is working with RD 17 to update that JPA to fund the local share of the needed ULFP improvements to the RD 17 levees, to adopt fee programs and/or exactions paid and advanced from property owners in areas of entitled and planned development within RD17, and a new Enhanced Infrastructure Financing District.
5 To date, Lathrop and Manteca have funded the required Urban Levee Design Criteria analysis of the RD 17 levees, identified the 200-year floodplain, calculated an estimated cost to provide the ULFP improvements, and requested State funds for the State share of this work. Lathrop will continue to work with all public agencies within RD 17 to provide for final design and construction of ULFP improvements that will allow findings of Adequate Progress toward providing ULFP as the improvements are constructed. If the City is not able to confirm that 1) 200-year flood protection is provided, or 2) adequate progress has been made toward providing 200-year flood protection by 2025, the City will comply with State Law and not issue permits until the appropriate flood protection is provided or adequate progress has been made. If development in RD 17 is put on hold due to issues concerning 200-year flood protection, the City will still continue to experience growth and development in RD 2062 (River Islands). Phase 1 of River Islands was constructed with levees built to a 200-year flood standard. Phase 1 includes entitlements for over 4,000 residential lots, a commercial town center, school sites, and an employment center that are protected by 200-year levees, and available for development as the real estate market demands. The City will not be shut down ; rather, growth will be focused in the western portion of the City known as River Islands. Financial Ability to Provide Services The City of Lathrop expenses are covered through the revenues that they receive from development fees, property taxes, and connection and usage fees. As land is developed within the City and annexed into the City of Lathrop from the SOI, these fees and charges apply. The City of Lathrop manages their finances on a continual basis, which is reported on an annual basis through the Comprehensive Annual Financial Report and the City Budget. The City s management and reporting of their finances are in accordance with the legal requirements for such. An outside audit is performed to ensure that the legal requirements are met. The City s has budgeted for current and future expenses, debts, and revenues. The City s financial statements show that they are fiscally sound. The City will continue to manage and report their financial condition on an annual basis, which will include adjustments as necessary. Governmental Structure The ability to serve the anticipated growth within the SOI is not expected to have a significant effect on governmental structure of the City of Lathrop or its ability to provide services. Mechanisms are in place within City departments to effectively provide for public participation in the planning and development process to address growth within the City. The City will continue to work with service providers to address government structure options to provide efficient and cost effective public facilities and services. Commission Action The Commission s service review policy sets forth the procedure for public participation and public hearing. The policy requires a two-step process for the
6 adoption of a service review: 1) a public meeting/workshop with the Commission to accept comments from the public and the Commission prior to finalizing the document ; and 2) a formal 21-day review period and public hearing. Staff will provide public notice for the April 14, 2016 meeting to meet our legal obligation for a public hearing. The Commission will be able to adopt the MSR at that meeting or may continue the matter to a future meeting. A motion is attached for Commission s consideration. Attachment: Draft Municipal Service Review and Sphere of Influence Update
7 Motion Moved by Commissioner, seconded by Commissioner that the City of Lathrop Municipal Service Review and Sphere of Influence Plan Update be set for public hearing on April 14, 2016.
Staff Report. Staff requests Commission review, discussion and determination of a policy on Unincorporated Islands and Corridors
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