LAFCo Municipal Service Review: Utility Services

1
LAFCo Municipal Service Review Utility Services

• Stakeholders Workshop
• September 13, 2005
• By
• Burr Consulting
• CDM
• Braitman Associates
• Maps by
• PD Consultants
• b.d. spatial systems

2
Overview

• MSR Requirements and Process
• Utility MSR Overview
• Government Structure Options

• Water
• Sewer
• Flood Control Stormwater
• Solid Waste
• Resource Conservation

3
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

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Legislation Requires LAFCo to Make Determinations
on

• Infrastructure needs or deficiencies,
• Growth and population projections for the
  affected area,
• Financing constraints and opportunities,
• Cost avoidance opportunities,
• Opportunities for rate restructuring,

• Opportunities for shared facilities,
• Government structure options, including
  advantages of consolidation or reorganization of
  service providers,
• Evaluation of management efficiencies, and
• Local accountability and governance.

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Utility MSR Services

• Water
• Wholesale
• Treatment
• Retail
• Wastewater
• Collection
• Treatment
• Disposal

• Flood Control
• Stormwater
• Solid Waste
• Trash Collection
• Recycling
• Disposal
• Resource Conservation

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Utility MSR Public Service Providers
Independent Special Districts Dependent Special Districts Cities
Alameda County Resource Conservation District Alameda County Water District Castro Valley Sanitary District Contra Costa Water District Dublin San Ramon Services District East Bay Municipal Utility District East Bay Regional Park District Oro Loma Sanitary District Union Sanitary District Alameda County Flood Control and Water Conservation District Curbside Recycling CSA Castlewood CSA Five Canyons CSA Livermore-Amador Valley Sewer Study CSA Zone 7 Water Agency Alameda Albany Berkeley Dublin Emeryville Fremont Hayward Livermore Newark Oakland Piedmont Pleasanton San Leandro Union City
Multi-County Agency Blue SOI Update
after Utility MSR
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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
• Moodys, SP
• Census

8
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 districts 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

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Water Service
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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

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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
• CCWDs 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

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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

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Alameda County Water District
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Zone 7 Water Agency
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Zone 7 Water AgencySOI Detail Option 2
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Dublin San Ramon Services District
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DSRSD Option 1 Remove northern Doolan Road Area
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DSRSD Option 2 Exclude area outside City of
Dublin UGB
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East Bay Municipal Utility District
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Sewer Service
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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

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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

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Wastewater Services Initial Policy Options

• Government Structure Options
• Dissolve Livermore-Amador Valley Sewer Study CSA
• Consolidate OLSD and CVSD

• 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

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Castro Valley Sanitary District
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Castro Valley Sanitary DistrictSOI Detail
Option 2
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Castro Valley Sanitary DistrictSOI Detail
Option 3
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Oro Loma Sanitary District
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Oro Loma Sanitary DistrictSOI Detail Option 1
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Oro Loma Sanitary DistrictSOI Detail Option 2
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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

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Flood Control Services