CC 2012-08-28_11.a. Memorandum of Agreement Shpere of Influence UpdateMEMORANDUM
TO: CITY COUNCIL
FROM:
tb
TERESA M~CLIS~COMMUNIN DEVELOPMENT DIRECTOR
SUBJECT: CONSIDERATION OF RESOLUTION APPROVING A MEMORANDUM
OF AGREEMENT (MOA) REGARDING SPHERE OF INFLUENCE
UPDATE AND MUNICIPAL SERVICE REVIEW
DATE: AUGUST 28,201 2
RECOMMENDATION:
It is recommended the City Council:
1. adopt a resolution approving a Memorandum of Agreement (MOA) between the City
of Arroyo Grande and the County of San Luis Obispo regarding the Local Agency
Formation Commission's (IAFCO) update of the City's Sphere of Influence (SOI)
and Municipal Service Review (MSR); and
2. provide any additional comments regarding the Draft SO1 and MSR.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The cost for preparation of the SO1 Update and the MSR are covered in IAFCO's
annual budget. The City is not required to pay any fees for the processing of this
application. Considerable staff time is required to update the MOA, as well as review
IAFCO's SO1 and MSR.
BACKGROUND:
IAFCO is completing an update of the SO1 for the following jurisdictions in the "Five
Cities" area: The City of Arroyo Grande, City of Grover Beach, Oceano Community
Services District, and the South San Luis Obispo County Sanitation District. The update
is required by the Cortese-Knox-Hertzberg (CKH) Local Government Reorganization
Act of 2000. The last update of the City's SO1 was adopted by IAFCO in 2003.
The public review draft of the SO1 and MSR document was released in July, 2012 and
public comment has been extended to September 14, 2012. The documents are online
at www.slolafco.com. Study sessions were held at IAFCO on July 19, and August 16,
2012. The draft describes the service capabilities, population trends, water supply and
demand, and governmental structure for each jurisdiction. The study sessions at
Item 11.a. - Page 1
CITY COUNCIL
CONSIDERATION OF A MEMORANDUM OF AGREEENT REGARDING THE
SPHERE OF INFLUENCE UPADATE AND MUNICIPAL SERVICE REVIEW
AUGUST 28,2012
PAGE 2
LAFCO focused on the City's water resources and stressed the importance of the
provision of reliable water with any new development in the City's Sol.
In 2004, a town meeting was held to hear ideas and concerns regarding potential
development of the City's Sol. Concerns were addressed at that time regarding
resource constraints, specifically trafFic1circulation and water, and the potential impact to
the rural setting of the City if the property were to be intensely developed.
Approval of the MOA by the City allows for it to be forwarded to the County Board of
Supervisors for their consideration. If it is approved by the Board, LAFCO is required by
law to give the Agreement "Great Weight". The MOA is non-binding, but clarifies the
planning principals to be followed for the SO1 area and allows for closer cooperation
between the City and County. Approval of the MOA is not required, but it helps LAFCO
in making its decision regarding the Sphere of Influence.
ANALYSIS OF ISSUES:
Section 56425 of the Government Code regarding the MOA prescribes the required
content, including proposed Sphere of Influence boundaries, zoning regulations and
development standards that the City and County mutually would apply to the affected
areas. These generally refer to adopted City and County General Plan policies and
development regulations. The MOA can be amended by mutual agreement. Nothing in
the MOA obligates the City to annex any of the Sphere areas without further approval
processes.
The MOA outlines policies for the orderly and logical development in the City's Sol. It
includes the process for interagency cooperation, interim development, infrastructure
and facilities, environmental constraints, agricultural protection, land use, general plan
and zoning amendments, and timing of actions. The update primarily modifies the
section on land use, stressing that new development would include logical infrastructure
expansion, balanced housivg types, walk-able and compact neighborhoods, feasible
and financially viable transportation and the provision of uses that provide opportunities
for head of household jobs. Additionally, the section on agricultural protection stresses
consistency with City policies.
The City's primary property in the SO1 is approximately 374 acres at the south end of
the City east of Highway 101 and is commonly referred to as the FredericksMlilliams
property or the ArroyoILinda Crossroads. No changes or modifications are proposed for
this SO1 boundary. The other SO1 area includes Tract 1724, which is 27-units already
built out at Cathedral Lane near Sunrise Terrace that is also not proposed to be
changed.
The only change proposed to the City's SO1 is Tract 1551, which includes ten acres
south of Branch Mill Road and east of Newsom Sprivgs, adjacent to the southern City
Item 11.a. - Page 2
CITYCOUNCIL
CONSIDERATION OF A MEMORANDUM OF AGREEENT REGARDING THE
SPHERE OF INFLUENCE UPADATE AND MUNICIPAL SERVICE REVIEW
AUGUST 28,2012
PAGE 3
limit line. This area includes nine properties built in the 1980's and have a private water
and septic system. This area would benefit from City services if eventually annexed into
the City.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
Approve the MOA and provide comments on the SO1 and MSR;
Do not approve the MOA and provide comments on the SO1 and MSR;
Defer approval of the MOA, provide comments on the SO1 and MSR, and provide
direction to staff.
ADVANTAGES:
The MOA provides guidance on how to treat any future development applications that
may occur in the Sol.
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
The project is categorically exempt from CEQA pursuant to Section 15061 (b). LAFCO
is the lead Agency for the Sphere of Influence Update and MSR.
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted on Thursday, August 23, 2012. The agenda and staff reports
were posted on the City's website on Friday, August 24, 2012. No public comments
were received as of the time of preparation of this report.
ATTACHMENTS:
1) LAFCO Status reports
2) SO1 and MSR update (Previously distributed and available online at
www.slolafco.com)
Item 11.a. - Page 3
RESOLUTION NO.
A RESOLUTION OF THE ClTY COUNCIL OF THE ClTY
OF ARROYO GRANDE APPROVING A MEMORANDUM
OF AGREEMENT WITH THE COUNTY OF SAN LUIS
OBISPO RELATING TO THE LOCAL AGENCY
FORMATION COMMISSION PROCEEDINGS TO UPDATE
THE SPHERE OF INFLUENCE AND MUNICIPAL
SERVICE REVIEW
WHEREAS, the San Luis Obispo Local Agency Formation Commission is required to
develop and determine the updated Sphere of lnfluence (SOI) for the City of Arroyo
Grande pursuant to Government Code Section 56425 as part of its periodic review of
the SO1 for every City and Special District in the County of San Luis Obispo; and
WHEREAS, the City Council on November 12, 2002 approved the Memorandum of
Agreement for the 2002 SO1 Municipal Service Review Update; and
WHEREAS, LAFCO is required to update the Sphere of lnfluence every five years or as
needed and further requires that the Municipal Service Review be conducted prior to or
in conjunction with the Sphere of lnfluence update; and
WHEREAS, Government Code section 56425 provides for a Memorandum of
Agreement between the City and County in conj~~nction with the Sphere of lnfluence
Update and Municipal Service Review Report adoption;
NOW, 'THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande
that the Memorandum of Agreement (MOA) with the County of San Luis Obispo regarding
LAFCO proceedings to update the SO1 and MSR, attached hereto as Exhibit "A, is hereby
approved for submittal to LAFCO,
AND BE IT FURTHER RESOLVED that the Mayor is authorized to sign and submit the
original MOA to LAFCO with a copy transmitted to the County of San Luis Obispo Board of
Supervisors for like approval.
On motion by Council Member seconded by Council Member and by the
following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 28th day of August 2012.
Item 11.a. - Page 4
RESOLUTION NO.
PAGE 2
TONY FERRARA, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 11.a. - Page 5
Exhibit "A"
MEMORANDUM OF AGREEMENT
BETWEEN THE CITY OF ARROYO GRANDE AND
THE COUNTY OF SAN LUIS OBISPO
REGARDING THE CITY'S SPHERE OF INFLUENCE
This Agreement is entered into on this day of ,
2012, by and between the City of Arroyo Grande (hereafter "City") and the County San
Luis Obispo County (hereafter "County").
WITNESSETH
WHEREAS, the Cortese/'Knox/Hertzberg Act ("the Act") requires the Local
Agency Formation Commission (LAFCO) to update the Spheres of Influence for all
applicable jurisdictions in the County every five years; and
WHEREAS, a Sphere of Influence is defined by Government Code 56076 as a
plan for the probable physical boundaries and service area of a local agency, and pursuant
to Government Code 56425 has been identified by the County of San Luis Obispo and the
City of Arroyo Grande as contained in Exhibit A; and
WHEREAS, the Act fbrther requires that a Municipal Service Review be
conducted prior to or, in conjunction with, the update of a Sphere of Influence and such a
Municipal Service Review has been prepared by LAFCO staff in accordance with Section
56430 of the California Government Code as a means of identifying and evaluating
public services provided by the City of Arroyo Grande and changes to the City's Spheres
of Influence; and
WHEREAS, the Act strongly encourages the City and County to reach agreement
regarding the boundaries (Exhibit A), development standards, and zoning requirements
(Exhibit B) to ensure that development within the sphere occurs in an orderly and logical
manner; and
Memorandum of Agreement
City of Arroyo Grande and County of San Luis Obispo
Page I
Item 11.a. - Page 6
WHEREAS, the City and County have reached an agreement regarding the Sphere
of Influence boundaries (Exhibit A), and Terms and Provisions (Exhibit B); and
WHEREAS, LAFCO is required by Government Code 56425 (b) to give great
weight to this agreement in making its final determination of the city's Sphere of
Influence.
NOW, THEREFORE, the parties agree as follows:
1. The Sphere of Influence boundary contained in Exhibit A provides for the orderly
and logical growth for the City of Arroyo Grande and represents an appropriate
20-year growth boundary based on existing information.
2. The Terms and Provisions contained in Exhibit B provide a framework for
completing updates to the General Plans of both the City and the County for the
areas in the Sphere of Influence.
3. The Terms and Provisions contained in Exhibit B are intended to provide the City
and the County with the basis for developing specific land use policies and
standards for the areas in the City of Arroyo Grande's Sphere of Influence and do
not supersede or limit the planning or environmental review process of either
jurisdiction.
Memorandum of Agreement
City of Arroyo Grande and County of San Luis Obispo
Page 2
Item 11.a. - Page 7
Mayor
City of Arroyo Grande
APPROVED AS TO FORM AND LEGAL EFFECT:
City Attorney
Dated:
ATTEST:
City Clerk
Dated:
Memorandum of Agreement
City of Arroyo Grande and County of San Luis Obispo
Page 3
Item 11.a. - Page 8
Chair, Board of Supervisors
County of San Luis Obispo
APPROVED AS TO FORM AND LEGAL EFFECT:
County Counsel
Dated:
ATTEST:
County Clerk
Dated:
Memorandum of Agreement
City of Arroyo Grande and County of San Luis Obispo
Page 4
Item 11.a. - Page 9
Memorandum of Agreement Page 5
City of Arroyo Grande and County of San Luis Obispo
Exhibit A
Item 11.a. - Page 10
EXHIBIT B
TERMS AND PROVISIONS
The following Terms and Provisions are agreed to and shall be used by the City of Arroyo
Grande and the County with regard to the proposed Sphere of Influence as described in
Exhibit A and to update their General Plans.
1. Intent. It is the intent of the County and the City to work cooperatively
towards the goal of developing the agreed upon Sphere of Influence (as
shown in Exhibit A) in an orderly and logical manner consistent with the
Cortese/Knox/Hertzberg Act, the City and County General Plans, the
California Environmental Quality Act and any other applicable laws and
regulations.
Interagency Cooperation. The City and the County shall work
cooperatively to plan for future land uses, public services and facilities
needed to improve and maintain area circulation connections, and to
preserve agricultural land and open space. The County and City will
consider the creation and implementation of various assessment and
financing mechanisms for the construction and maintenance of public
improvements, such as roads, utilities, recreation and trail improvements,
parks and open space, and similar improvements that could serve visitors
and residents of the City and the County. Discretionary development
projects and General Plan Amendments (GPAYs) that may affect each
agency's jurisdiction shall be referred to the other for review and comment
as early as possible in the land use process. The County shall seek the
City's comments regarding these projects or GPA's in the referral area
map found in Exhibit C. The City shall seek the County's comments
regarding projects or GPAYs that affect the unincorporated area found in
Exhibit C. All such referrals shall be sent to the following contact
person(s) for early review and comment:
Memorandum of Agreement
City of Arroyo Grande and County of San Luis Obispo
Page 6
Item 11.a. - Page 11
Director of Planning and Building
County of San Luis Obispo
Department of Planning and Building
County Government Center
San Luis Obispo, CA 93408
Community Development Director
City of Arroyo Grande
Community Development Dept.
300 East Branch Road
Arroyo Grande, CA 9342 1
Projects and activities that affect agricultural lands and resources shall be referred to
the County Agricultural Commissioner's office at the following address:
Agricultural Commissioner
San Luis Obispo County Department of Agriculture
2 156 Sierra Way, Suite A
San Luis Obispo, CA 93401
The provisions mentioned above shall not supersede other methods of commenting or
providing feedback regarding a proposal or project.
Development Review Coordination. Projects or GPAYs proposed within the referral
area shown in Exhibit C, and subject to an Initial Study under CEQA, shall cause the
City and County representatives to request a meeting prior to completion of the Initial
Study. The purpose would be to discuss the City's and County's General Plan policies
with regard to the proposal and to identify any key issues that may need special
attention during the CEQA process.
3. Interim Development. To the extent possible, the County shall limit the
development in the Northern Arroyo Grande Fringe Area to what is
allowed under current land use designations. This includes compliance
with the standards regarding the Residential Rural and Residential
Suburban land use categories found in the County's San Luis Bay Area
Plan.
4. CityiCounty Shared Services, Infrastructure, and Facilities. The
County and City will evaluate the creation and implementation of various
assessment and financing mechanisms to provide for the construction and
maintenance of public improvements and services, such as: roads, Fire and
Police emergency response, utilities, recreation and trail improvements,
historical and cultural parks, and similar improvements that could serve
visitors and residents of the City and the County. Special consideration
Memorandum of Agreement
City of Arroyo Grande and County of San Luis Obispo
Page 7
Item 11.a. - Page 12
shall be given to the possible development of impact fees that could assist
both the County and the City in maintaining roads and other transportation
infrastructure in the unincorporated area adjacent to the City where impact
fees are not currently charged.
Environmental Constraints. The City and the County shall base their
recommendations and decisions for the 180 acre Frederick site and the 200
acre Williams site (already within the City's SOI) on an environmental
constraints analysis that studies resources such as, but not limited to,
sensitive habitats, 100 year flood plain areas, agricultural lands with class
I, I1 or I11 soils, open space resources, cultural resources, and areas of
greater then 30% slopes. The Constraints Analysis shall be used to help
prepare fhture plans for these SO1 areas.
6. Phasing. In general, the SO1 areas shall be developed in a phased manner,
with the SO1 area closest to the City (Fredericks) being considered first
and the Williams property being considered after the Frederick project
receives approval and is annexed into the City. Alternatively, a different
phasing plan may be considered if it enhances the orderly and logical
development of the area.
7. Agriculture and Open Space. The City and the County will work
together to permanently preserve agricultural and open space resources in
the SO1 area using the City's and County's Agricultural Element policies,
Strategic Growth principles, and the Conservation and Open Space
Element (COSE) policies. The criteria contained in the COSE and
Agriculture Element, and the pertinent policies in the City's General Plan,
shall be used in developing the preservation policies and programs. A
Transfer of Development Credits program may be used to encourage a
density bonus as an incentive to property owners and developers.
8. Land Uses. The SO1 as described in Exhibit A may include, but is not
limited to residential, mixed-use, public facilities, visitor-serving,
Memorandum of Agreement
City of Arroyo Grande and County of San Luis Obispo
Page 8
Item 11.a. - Page 13
agricultural uses, and/or recreational uses. The following goals shall guide
future development:
a. Direct development toward existing incorporated areas and
unincorporated urban areas with logical infiastructure connections
Phase urban development in a well designed manner, first using vacant or
underutilized "infill" parcels and lands next to or near existing
development and adjacent infrastructure. Include a range of land uses and
housing types and densities affordable to a wide range of incomes.
b. Create walkable and transit fiiendly neighborhoods that have logical
connections to other parts ofthe City
Areas proposed for future growth should address roadway distances that
would connect the new areas of development together with the existing
City and would promote maximum comectivity between different land
uses through walkways, bike paths, transit, or other means.
c. Provide for a variety of transportation choices that are feasible and
financially viable
Insure adequate densities of development that are conducive to supporting
transit service.
d. Create a range ofhousing opportunities and choices
Future development plans should clearly define a program for including a
balanced variety of housing types; one that includes multi-family
development and options for other types of housing. The development
should maximize the opportunities to offer a greater range of housing
choices that are affordable to people with a variety of income levels.
e. Use land more eflciently
The proposed development should be designed in a way that encourages
transit, walkability and comectivity to existing city infrastructure within
the areas proposed for development. The goals are to I) develop compact
Memorandum of Agreement
City of Arroyo Grande and County of San Luis Obispo
Page 9
Item 11.a. - Page 14
neighborhoods that contain residential uses that are affordable by design
and efficient in land and energy consumption and 2) minimize the number
of large lots by encouraging a variety of housing densities.
J: Improve the regional or sub-regional jobshousing balance
Plan for land uses that provide opportunities for employment and in
particular, explore creating opportunities for head-of-household jobs.
9. General Plan Amendment. The City intends to complete pre-zoning, pre-
annexation, and any necessary pre-general plan amendment activities prior
to or concurrent with an annexation proposal being processed by LAFCO.
The County intends to complete any necessary amendments to its General
Plan in the San Luis Bay Area Plan to reflect the annexation of territory to
the City of Arroyo Grande. The County shall also consider policies for the
northern part of the City/County boundary, currently zoned Residential
Suburban, that limit the intensification of land uses in the area.
10. Zoning RequirementsISpecific Plan. A land use plan, which identifies
land uses within the Sphere of Influence areas, shall be prepared and
adopted by the City prior to the annexation of the property into the City.
The Plan shall be prepared in accordance with the City's General Plan and
subject to environmental review which shall include analysis of issues
related to completing the annexation, such as a reliable and adequate water
supply, sewer capacity, and other services for the proposed project.
Policies in the City's General Plan may apply to the SO1 area.
Memorandum of Agreement
City of Arroyo Grande and County of San Luis Obispo
Page I0
Item 11.a. - Page 15
Memorandum of Agreement Page 11
City of Arroyo Grande and County of San Luis Obispo
EXHIBIT C - Referral Map
Item 11.a. - Page 16
SAN LUIS OBlSPO LAFcO
Local Agency Formation Com@&i@e~~'"J
Meeting Agenda 10 2012
UP( OF kR2m f Rc:m August 16, 2012 at 9:00 a.m. c~J,~,,-
If you wish to speak at the meeting, please complete a "Request to Speak" form
and give it to a LAFCO staff member
Board of Supervisors Chambers
County Government Center
1055 Monterey Street
San Luis Obispo, California
Phone: (805) 781-5795
Fax: (805) 788-2072
Commissioners: Chairman Bruce Gibson, Vice Chairman Ed Eby,
Commissioners Muril Clift, James R. Patterson, Duane Picanco,
Richard Roberts, Kris Vardas and Alternate Commissioners
Tom Murray, Roberta Fonzi, Frank Mecham, and Marshall Ochylski
Pledqe of Alleqiance
Call to OrderlRoll Call
Approval of the Minutes: July 19, 2012
Non-Aqenda Public Comment Period:
This is the period in which persons may speak on items that are not on the regular
agenda. All persons wishing to speak on agenda items or during this non-agenda
public comment portion of the meeting are asked to fill out a "request to speak form"
and provide it to the Commission Clerk prior to the beginning of that item. Each
speaker will be limited to a three-minute presentation. During public hearings.
applicants or their representatives will be given the opportunity to speak first
following the staff report and questions of the Commission have been addressed.
Consent Aaenda Items:
A-1 Appropriation of Reserves to offset costs associated with Los Robles Del Mar
Litigation (Recommend Approval)
Reaular Matters:
6-1 Templeton Community ~e&cesDistrict - Outside User Agreement for
Emergency Water to Los Robles Mobile Estates (Recommend Approval)
Item 11.a. - Page 17
SAN LUIS OBlSPO LAFCO
.A.ugust 16. 2012 at 9:00 a.m.
Meeting Agenda
Page 2
C-1 Study Session: Sphere of Influence UpdateIMunicipal Service Review for the
South County Area Jurisdictions - Cities of Arroyo Grande and Grover Beach and
Oceano CSD and South SLO Sanitation District (Recommend Review and
Provide Comments)
C-2 Establish a nominating committee to review and recommend applicants for the
Regular and Alternate LAFCO Public Members positions (Recommend Approval)
Closed Session:
' D-I : The Commission will meet in closed session pursuant to Government Code
Section 54956.9(a) to confer with LAFCO Counsel regarding litigation in the I.
matter of Central Coast Development Co. v San Luis Obispo LAFCO
I
Commissioner Comments:
Leqal Counsel Comments:
Executive Officer Comments:
Adjournment
Information Only:
Sphere of InfluencelMunicipal Service Review Updates:
' City of Paso Robles SOIIMSR . , .
City of Arroyo Grande SOIIMSR
City of Grover Beach SOI!MSR
Oceano Community Services District SOliMSR .. South San Luis Obispo County Sanitation District SOIIMSR
Item 11.a. - Page 18
BRUCE GIBSON
Chair. County Member
ED Eev
Vice Chair.
Special District Member
MURIL CLIFT
Soecial District Member
JAMES R. PAT~ERSON
County Member
DUANE PICANCO .
City Member '
RICHARD ROBERTS
Public Member
KRI~ VARDAS
City Member
ROBERTA FONZI
City Member
FRANK R. MECHAM
County Member
TOM MURRAY
Public Member
MARSHALL OCHILSKI
Special Distrlct Member
DAVID CHURCH .
Executive Officer-
RAYMOND A. BIERINC
Legal Counsel .
5.
MIKE PRAY ' .
, .
Analyst ... .
.. . , '..
DONNA J. BLOYD~ -4 .
Commisslon Clerk . . . .. . .
LAFCO - San Luis Obispo - Local Agency Formation Commission
SLO LAFCO - Serving the Area of San Luis Obispo County
TO: MEMBERS, FORMATION COMMISSION
FROM: DAVID CHURCH, Am, EXECUTIVE OFFIcEG
DATE: AUGUST 16,2012
SUBJECT: STUDY SESSION-SOUTH COUNTY AGENCIES SPHERE OF
INFLUENCE UPDATElMUNlClPAL SERVICE REVIEWS
(NO ACTION REQUIRED)
Recommendation. It is respectfully recommended that the Commission
consider the information provided at this study session and provide comments
to staff as appropriate.
Summary. This study session is to provide the Commission and public with
information regarding the City of Arroyo Grande, Grover Beach, Oceano CSD
and South San Luis Obispo County Sanitation District Spheres of
Influencesand Municipal Service Review Updates. The Public Review Draft
SOIIMSR Update was released for a 45-day public review period starting July
13 thru September 4, 2012. The Draft SOIIMSR Update can be found on the
LAFCO website: www.slolafco.com.
Study Session. During this study session staff will provide more details to the
Commission and the pl~blic with regard to the Sphere of Inlluence Updates and
Municipal Service Reviews prepared for the
South County Agencies. The study session is
informational in nature and provides an
opportunity to identify issues and questions
prior to the public hearing. Also, the public is
invited to provide any feedback or questions
about the documents or the process. No
action is requested of the Commission at this time. Please provide us with any
comments, insights and questions you may have about the documents or the
process.
At the July 19 meeting the Commission discussed water resources and
commonly shared water sources of the South County Agencies such as the
Santa Maria Groundwater Basin and Lopez Reservoir. Also discussed was the
possibility of joint efforts regarding the development of a recycled water
program in connection with the South San Luis Obispo County Sanitation
District. More information is provided about the water resources including a
Water Supply, Water Demand, Water Balance Table. This table shows the
available supplies, average demands over a 10-year period and the estimated
water balance available to each jurisdiction.
Item 11.a. - Page 19
San Luis Obispo LAFCO Augusi 16,2012
South County SO1 UpdateIMSR Study Session Page 2
Water Supply and Demand
The City of Arroyo Grande currently utilizes four sources of water supply to meet the community
water demand needs: groundwater from two sources: the Santa Maria Groundwater Basin and
the Pismo Formation Basin. In addition, Lopez Lake Reservoir and a transfer from Oceano CSD
(this water could either come from the CSD allocation of State Water or groundwater).
The City of Grover Beach currently relies on two water sources to supply its communitywater
demand needs: groundwater from the Santa Maria Groundwater Basin and Lopez Lake
Reservoir.
The Oceano Community Services District currently utilizes three water sources of water supply
to meet the community water demand needs: groundwater from the Santa Maria Groundwater
Basin, Lopez Lake Reservoir and State Water Project Gter.
All three jurisdictions utilize common water sources to supply their community water demand.
The Santa Maria Groundwater Basin was adjudicated in 2002 and each jurisdiction was
allocated an entitlement under a Settlement Agreement. The basin is managed by the Northern
Cities Management Area group. Lopez Reservoir is also a common water source shared with Pismo
Beach and Avila Beach via County Service Area 12. ': '
Item 11.a. - Page 20
San Luis Obispo LAFCO August 16,2012
South County SO1 Upd
Table 1 -Water Demand, Supply, and Balance
SMGWB=Santa Maria Groundwater Basin
Pismo Form. = Pismo Formation Basin
FWP = State Water Project
Only 525 AF is available due to pipe line capacity
2~dditional excess water could be made available
It
e
m
1
1
.
a
.
-
P
a
g
e
2
1
San Luis Obispo LAFCO P.ugust 16, 2012
Water Balance - Another View
Another way to look at a jurisdiction's water situation is water demand per person, which is used
in the County's Resource Management Systems Annual Report. Each jurisdiction has policies
regarding the provision of water service to new development. The table below summarizes the
currently available water for allocation to new development. Additional water resources could be
added based on the various elements such as excess Lopez Reservoir water, transfers, or
development of a recycled water program. The table reflects the current supplies for each
jurisdiction and is a snapshot in time of the water situation.
Table 2
Source: 2010 County Resource Management Summary, Urban Water Management Plans
Each of the jurisdictions has looked into the cost and requirements to develop a recycled water
program but none'have taken significant steps to pursue such a program. If the South County
Agencies developed a recycled water program, opportunities could exist to improve the reliability .
of the water resources. In particular the Santa Maria Groundwater Basin could be improved
which would allow for more consistent use from this source.
Water Supply strategy to Meet Future Needs
. -
Each jurisdiction'have developed a water management plan that includes a conservation
program, estimated population growth at buildout, opportunities to reduce per capita water use,
and future water sources to meet future needs of their General Plans. These plans identify the
various water resources and proscribed entitlements and provide an assessment of their
reliability and expectation of how much water will be available in the future for management of
future needs. .. '. : .
According to the County of San Luis Obispo Zone 3 2010 Urban Water Management Plan
periodic droughts have occurred in the region. However, these droughts have not caused a shortage
Item 11.a. - Page 22
San Luis Obispo LAFCO August 16,2012
South County SO1 UpdatelMSR Study Session Page 5
of water in the Lopez system. In the most prolonged drought of 1986-92, all communities within
Zone 3 received their full allocation of water from Lopez Reservoir. In addition, in the latest drought,
from 2008 to 2011, all communities within Zone 3 also received their full requested allocation of
water from Lopez Reservoir.
The Northern Cities Management Area (NCMA) Annual Reports provides the jurisdictions with
current data about the Santa Maria Groundwater Basin condition, total demands on the system,
area characteristics, and threats to the water supply so that each jurisdiction can manage
accordingly. The 201 0 NCMA Annual Report includes a SupplylDemand Comparison. In 201 0,
the total urban water demand, based on production, was 7,542 AFY. Based on 2010
precipitation and ET data, 2010 applied irrigation water use was estimated at 2056 AF, while
rural water use was estimated at 38 AFY. The total combined demand for the NCMA in 2010
was 9,636 AFY. The following Table 7 displays the water demand, by source, of each
jurisdiction in 201 0.
Table 7. 2010 Water Demand by Source (AF)
Source: 201 0 NCMA Annual Report
Based on the estimated groundwater safe yield, the total available supply for all uses is 15,669
AFY, which is the sum of 10,690 AFY for urban use plus the allocation for applied irrigation and
rural area of 4,979 AFY. Total applied water demand by source was estimated at 9,636 AFY for
201 0.
Recommendation
Based upon the information contained in Chapter 2 of the SO1 Update and MSR Chapters 3,4,
5, & 6, it is recommended that the Spheres of lnfluence be maintained as coterminous SO1
boundaries of Grover Beach and Oceano CSD and that Tract 1551 be added to the City of
Arroyo Grande and South County Sanitation District. Chapter 2, Sphere of lnfluence Update,
Transfers
100
0
0
-1 00
0
0
0
0
Krbnn -Area
A1-1.oyo @nude
hver Btacll
Pismo Beach
Ocenllo C'SD
Urban Wat tr Use
Total
Applied L-~ioatiou
Rural Water Users
Total
Stnte
\\:atel-
er
0
0
1.005
714
1.730
0
0
1?730
Lopez
Rerel-\-oil.
2,246
7 73
843
2 03
4.064
0
0
4,064
Other
Supplies
70
0
0
0
7 0
0
0
7 0
Groundwater
540
1,014
96
-3s
1.678
2.056
3 S
3.772
Total
2,95 6
1,737
1,944
,955
7.542
2.056
3 8
9,636
Item 11.a. - Page 23
San Luis Obispo LAFCO August 16,2012
Souih County 501 Updaie/blSR Stuay Session Page 6
provides more detailed information regarding the basis for this recommendation and written
determinations.
The following additional recommendations are based on the Municipal Service Reviews
prepared for the four agencies in the Five Cities area. These recommendations are not
obligatory, but are intended to encourage orderly development and efficient provision of services
in the area:
1. The jurisdictions should continue to work to provide consolidated fire protection service
in the area within the context of the Joint Powers Agreement (Five Cities Fire Authority).
It may make sense at some point to pursue the formation of a Fire Protection District;
however the current JPA is providing effective and efficient service to the area.
2. The jurisdictions in the area, including the City of Pismo Beach, should work together to
develop a recycled water program to help maintain the health of the Tri-Cities
Groundwater Basin and enhance the reliability and sustainability of their future water
supply.
3. The Cities of Arroyo Grande and Grover Beach should continue to evaluate the
consolidation of police services in the area. This would likely result in fiscal savings for
the jurisdictions while maintaining the adequate levels of services in the area.
4. 'The South San Luis Obispo County Sanitation District should continue to implement the
organizational and administrative improvements thathave been adopted by the Board of
Directors.
Item 11.a. - Page 24
Exhibit A
July 19,2012 Status Report
Item 11.a. - Page 25
BRUCE CI~SON
Chair, County Member
ED EBY
Vice Chair.
Special District Member
MURIL CLIFT
Soecial District Member
JAMES R. PA~ON
County Member
DUANE PICANCO
City Member
RICHARD ROBERTS
Public Member
KRIS VAROAS
City Member
ROBERTA FONZI
City Member
FRANK R. MECHAM
County Member
TOM MURRAY
Public Member
MARSHALL OCHYUKI
Special District Member
DAVID CHURCH
Executive Officer- '
RAYMOND A. BIERINC .
Legal Counsel
Analyst . " . :. .. .-.
DONNAJ. BLOYD. a .,.
Commlsslon Clerk'::;. -
. .:,
I I--,- - 1,. 7 - . , . - . , :- -. .. ,,, . -,:s 2S.isi;c - Loc~I Agency !-cr;~iaii~n -2~mmission
:i. -.li.SS. - Sari/ing ?he Aie~ ai Stin his 25is.c~ 2;iiiiiy
TO: MEMBERS, FORMATION COMMISSION
FROM: DAVID CHURCH, AIcP, EXECUTIVE OFFICER@
DATE: JULY 19,2012
SUBJECT: STATUS REPORT-SOUTH COUNTY AGENCIES SPHERE OF
INFLUENCE UPDATElMUNlClPAL SERVICE REVIEWS
(NO ACTION REQUIRED) .
Recommendation. It is respectfully recommended that the Commission
consider the information provided at this status report and provide comments to
staff as appropriate.
Summary. This status report is to provide the Commission and public with
information regarding the City of Arroyo Grande, Grover Beach, Oceano CSD
and South San Luis Obispo County Sanitation District Sphere of Influences and
Municipal Service Reviews Update. The Public Review Draft SOllMSR Update
describes the various population trends, water supply and demand, and
governmental structure for each jurisdiction as required by the Cortese-Knox-
Hertzberg Act. Chapters One and TWO are provided in hardcopy. 'The
Municipal Service Review (MSR) Chapters for each jurisdiction is found on the
CD or on the LAFCO website: www.slolafco.com. Chapter one is an
Introduction and Executive Summary to the document. Chapter two contains
the proposed Sphere of Influence Updates for each jurisdiction. Chapter three
discusses the City of Arroyo Grande, Chapter four discusses City of Grover
Beach, Chapter five discusses Oceano CSD, and Chapter six discusses the
South San Luis Obispo County Sanitation District updates for there Municipal
Service Reviews. A Categorical Exemption was determined to be appropriate
and can be found in Appendix A. The Draft Memorandum of Agreement for the
City of Arroyo Grande is schedule for consideration by the City and County in
AugustlSeptember and can be found in Exhibit B.
Background. The Sphere of lnfluence
Update and Municipal Service Reviews for
the South County jurisdictions have been
drafted and released for public review
starting July 13. The Public Review includes
a 45-day period for all interested parties to
comment on the documents. The comment
period for the Draft documents ends on
September 4, 2012. The documents are
available online at www.slolafco.com or a CD
can be obtained for free by calling the
LAFCO office. . .
Exhibits
A: Public Review Drafl
SOllMSRlNOE
6: Draft Memorandum of
- Agreement (MOA)
C: Recommended Sphere
of Influence Maps
Item 11.a. - Page 26
3an Luis Obispo L'AFCO July 19, 2012
South County SCI Upaate/l\/lSR Siaius Repon
Status Report. During this status report staff will brief the Commission and the public with
regard to the Sphere of Influence Update and Municipal Service Review prepared forthe South
County jurisdictions. Staff will summarize the information and determinations found in the draft
documents. The report is informational in nature and provides an opportunity to identify issues
and questions prior to the public hearing. Also the public is invited to provide any feedback or
questions about the documents or the process. No action is requested by the Commission at
this time. Please provide us with any comments, insights and questions you may haveabout the
documents or the process.
Chapter 1 - Introduction and Executive Summary. This chapter introduces terms and
definitions, summarizes the purpose of the documents and describes the process of updating
the Sol. The Executive Summary provides a summary of each of the factors for each
jurisdiction considered in the Municipal Service Reviews and the recommendation regarding the
SO1 for each jurisdiction.
Chapter 2 - Sphere of lnfluence Update. The Sphere of lnfluence Chapter describes the
requirements of the Cortese-Knox-Hertzberg Act and provides background regarding the
existing SO1 for each jurisdiction. It also identifies the Study Areas that were evaluated in
determining the SOI, the City-County draft agreement between Arroyo Grande and the County,
and the LAFCO staff recommendation for each jurisdiction. The draft MOA found in Appendix B
is also summarized in this chapter. Also covered are the factors that are required by CKH for
establishing a SOI. The Staff Recommendation is to maintain the existing SO1 for the City of
Grover Beach and Oceano CSD. A small existing subdivision with single family residences is
recommended to be added to the City of Arroyo Grande and South San Luis Obispo County
Sanitation District Sol.
Chapter 3, 4, 5, 6 - Municipal Service Reviews. The purpose of the Municipal Services
Review is to provide the Commission with information to update a jurisdiction's Sphere of
Influence. The preparation of a Municipal Service Review is an information-driven activity. We
have been assisted by City arid District staff in gatheriug the information needed to prepare the
Sphere Update and MSR for each jurisdiction. LAFCO staff has taken this information and
reviewed, analyzed and summarized the data. The MSR along with the analysis and
determinations called for by the Government Code is used as the information base for the
Sphere of lnfluence Update. The MSR addresses the seven factors that are required to be
evaluated.
Notice of Exemption (Appendix A). The purpose of the environmental review process is to
provide information about the environmental effects of the actions and decisions made by
LAFCO and to comply with the California Environmental Quality Act (CEQA). In this case, it has
been determined with certainty that there is no possibility that the project will have a significant
environmental effect on the environment and therefore it is found to be exempt from CEQA
pursuant to section 15061 (b)(3) of the State Guidelines. The Local Agency Formation
Commission will file this Notice of Exemption upon approval of the Sphere of lnfluence Update.
Draft Memorandum of Agreement (Appendix B). The process of updating the Sphere of
lnfluence and Municipal Service Review for the City of Arroyo Grande also involved meetings to
Item 11.a. - Page 27
2gy: L.a#c ;?b#cnp I-A,',:? -- -.- --.-,.-- - 13 - qt! : 9: 291 2
Sctiin t-cl;r,::d SCI L'pcarei~brSF. Siarus 3ecc~ ?age 3
revise the City-County Memorandum of Agreement (MOA). The MOA is scheduled to be
considered by the City in August and will be considered by the County in September. In the
MOA, the City and County agreed to maintain the existing SO1 and add a small existing
subdivision (Tract1551). The City, County and LAFCO staff developed provisions to address
specific areas, layout a process for possible development, and frame the guiding principles for
shaping the SO1 boundary and future development. The principles incorporated into the Draft
MOA include:
Orderly DevelopmentlPhasing. In general, the SO1 areas shall be developed in a phased
manner, with the SO1 area closest to the City (Fredericks) being considered first and the
Williams property being considered after the Frederick project receives approval and is annexed
into the City. Alternatively, a different phasing plan may be considered if it enhances the orderly
and logical development of the area.
Agriculture and Open Space. The City and the County will work together to permanently
preserve agricultural and open space resources in the SO1 area using the City's and County's
Agricultural Element policies, Strategic Growth principles, and the Conservation and Open
Space Element (COSE) policies. The criteria contained in the COSE and Agriculture Element,
and the pertinent policies in the City's General Plan, shall be used in developing the
preservation policies and programs. A Transfer of Development Credits program may be used
to encourage a density bonus as an incentive to property owners and developers
Guiding Principles for Future Development. The City and County agree that the following
principles should help guide development that is proposed within the City's Sphere of Influence.
The following goals shall be considered:
a. Direct development toward existing incorporated areas and unincorporated urban areas
. with logical infrastructure connections
Phase urban development in a well designed manner, first using vacant or underutilized
"infill" parcels and lands next to o'r near existing development and adjacent infrastructure.
Include a range of land uses and housing types and densities affordable to a wide range
of incomes. '
6. Create walkable and transit friendly neighborhoods that have logical connections to other
parts of the City
Area proposed for future growth should address roadway distances that would connect
the new areas of development together with the existing City and would promote
maximum connectivity between different land uses through walkways, bike paths, transit,
or other means.
c. Provide for a variety of transportation choices that are feasible and financially viable
Insure adequate densities of development, that are conducive to supporting transit
service.
d. Create a range of housing opportunities and choices
Future development plans should clearly define a program for including a balanced
Item 11.a. - Page 28
San Luis Obisco LVCC Jcriy 13, 2012
Souih County SO1 UpdatelkiSR Siatus Hepori Page 4
variety of housing types; one that includes multi-family development and options for
higher-density housing. 'The development should maximize the opportunities to offer a
greater range of housing choices that are affordable to people with a variety of income
levels.
e. Use land more efficiently
The proposed development should be designed in a way that encourages transit,
walkability and connectivity to existing city infrastructure within the areas proposed for
development. The goals are to 1) develop compact neighborhoods that contain residential
uses that are affordable by design and efficient in land and energy consumption and 2)
minirr~ize the number of large lots by encouraging a variety of housing densities.
f. Improve the regional or sub-regional jobs/housing balance
Plan for land uses that provide opportunities for employment and in particular, explore
creating opportunities for head-of-household jobs.
Study Areas. For study purposes, the City of Arroyo Grande, Oceano CSD and LAFCO staff
prepared a map that included the existing SO1 properties and one additional area to be
considered as the Study Areas for the Sphere of Influence for the City of Arroyo Grande. Three
Study Areas were evaluated for Oceano CSD, and because the South San Luis Obispo County
Sanitation District provided sewer services to the three jurisdictions a similar boundary was
evaluated to ensure consistency. The Study Areas are used to help analyze and identify which
properties should remain1 be included and which should be excluded from the Sphere of
Influence. A summary of the Study Areas are listed in the table below:
Table 1: City of Arroyo Grande and Oceano CSD Study Areas
II Study Areas I Acreage I Land Uselzoning I Existing Land Use I Build-Out Potential
Arroyo Grande
#2 Williams
2 Residential #1 Fredericks
(Existing Sol)
#3 Tract 1724
(Existing Sol)
#4 Tract 1551
(proposed addition)
Totals
190 .
#2 State Parks Dunes
#3 Silver Spur Stables
Totals
184
11
10
395
Agriculture
Oceano CSD
204
18
231
Agriculture
Residential
Suburban
Residential
Suburban
#1 Tract 244
Crops
Crops
Recreation '
Recreation
2 Residential
Residential
Residential
9
27 Residential
(Built)
9 Residential
(Built)
40
OHV Park
Stables
Mixed
(Built)
0 Residential
Unknown
39
Residential 39 Residential
Item 11.a. - Page 29
The Study Areas are described in more detail below and include: a map that focuses on the
particular area.
SO1 Study Area #4 - Branch Mill Area (Located in SLO County; Not within the SOI).Tract
1551 was evaluated as Study Area 4 for possible inclusion into the City's Sphere of Influence.
Tract 1551 is located in the County and not within the Sol. These.nine parcels are located
south of Branch Mill Road and east of Newsom Springs. This area contains approximately 10
acres of an already subdivided tract. The area is Tract 1551 that was created in 1983. It is
located in the County and designated "Residential Suburban" and is located in a very high fire
hazard area with existing private water wells and septic systems. This area may benefit from
City services if the residents want to be annexed into the City.
City/County MOA. This area should be included in the Sol.
LAFCO Staff Recommendation. The SO1 should include Area Four. Staff recommendation is
to add Study ~r& 4. Tract 1551 is an existing subdivided tract with 9 residences served by
existing wells and septic systems. The wells are experiencing some difficulties with
contamination and providing adequate service to the area. Improved service may be achieved
if services were provided by the City of Arroyo Grande.
Item 11.a. - Page 30
.sen Lzis 12bispc i.\.<c - ?ciy 19, 2012
South Scunj SO1 !Jpdateli~~Si=, Starus fiepcn Page 6
SO1 Study Area #'l -Tract 244 (Located in SLO County; Not within the SOI). Study Area #1
is a nine-acre area located northeast of the District within the City limits of Arroyo Grande. The
area is south of The Pike between Elm and Paul Streets. The area consists of 43 parcels with
39 residential lots zoned single-family residential, a commercial property (Seven-Eleven store),
and three vacant parcels zoned mixed-useloffice. The District currently provides water and
sewer service to the area under an agreement with the City. The District's infrastructure is
closer to the area to be able to provided service. An application for development of the vacant
properties is currently being considered by the City of Arroyo Grande that would extend the
City's infrastructure to be able to provide services to a portion of the area.
LAFCO Staff Recommendation. The Staff recommendation is to not include Study Area 1 and
make no changes to the Oceano CSD's Sphere of Influence. Tract 244 is within the City of
Arroyo Grande with the City providing all other city services such as police, street maintenance,
drainage, etc. The vacant properties if approved for development would extend the existing
infrastructure under the existing agency agreement.
a
5 s o Grandel 2 :
- -.-.-.-.-. -l-.l.-ll
, -
Figure 2
SO1 Study Area #I
WILMAR I 0 Study Area .-.--. --
. . - 2. w rk-V..z District Bndy
' HOLDEN Oceano CSD
'A BASIN
LA VERNE
.. .. . . .
._< .. . .
R 0 . , .. .
.-.. - City Limit
9 acres - 39 SFR
Item 11.a. - Page 31
~dis ;cis;;c ~.':r3= ,'XI!! ;9, 2012
Scufi Csunty SCI U~aaieIbiSZ Staius Zepcz Page 7
SO1 Study Area #2 - State Parks Dunes (Located in SLO County; Not within the SOI).
Study Area #2 consists of the Oceano Dunes area of the State Parks totaling 204 acres. State
Parks has contacted the District for a possible publiclprivate partnership to build a dump station
within the State Park Dunes area. Oceano CSD is the closest sewer provider for collection and
infrastructure improvements which could provide needed services to the OHV Dunes
recreational area.
LAFCO Staff Recommendation. The SO1 should exclude Area Two. State Parks could enter
into an agreement with the District to provided sewer service to the area. The recommendation
is to not include the Oceano Dunes and State Park dunes to the south in the District's Sol. It is
unlikely that the District's services (other than sewer collection services) will be needed in this
area in the next 20 years to serve growth and development. This area is a heavily used
recreational area that affords residents and visitors access to the Coast. This land use is
unlikely to change in the next 20 years since it is a dedicated State Park.
L
! WUlNER
!
!
!
I-.-.-.-.-, --. -'-.-._._ '-.-. --._ UNNAM~D
!
1
I !
! I , :- ! ' -. ..,.! ! .. . -- -.! I - Study Area 2 -. __ - .. ! !. ! ! . .
"I .-'
* -.__.
1 . I
.- .- I
Figure 3
SO1 Study Area #2
0 Study Area
.. .. . . . . . . : i.s% 1%--. District Bndy
_ .___ . __ - -- _ _ _
I
! - Li 204 acres - Dunes
Item 11.a. - Page 32
52fi Qbic,r\c 1_??3c -eL1y : 3, 2372
South Counry SG1 L'pazi=!l\l~SF. ;.[arcs ?.accr, Page 8
SO1 Study Area #3 - Silver Spur Stables (Located in SLO County; Not within the SOI).
Study Area #3 is an existing stables consisting of 18 acres. The area is within the County
agriculture Land Use designation. The owners have contacted the District for a request to
provide water service to the area. The District could provide water service to the area under an
outside user agreement if there is a documented threat to public health and safety. The
Districts infrastructure would need to be extended to be able to provided service.
LAFCO Staff Recommendation. The SO1 should exclude Area Three. The property owners
should discuss the opportunities further with the District and the necessary infrastructure
improvements that would be needed for an outside agreement with the District for water service.
The CKH Act 56133 is being considered for legislative changes that may.allow for an outside
agreement with an area not within the Sphere of Influence if the need is documented and would .
not create significant growth to the area. If these changes are adopted by,the legislators an .+
opportunity may exist for the property to get water service from the District.
-.-.-.
-I-.-. -.-,.,
Study Area 2
--.
0 Study Area
. . . . . . . . . . . .- - ... ..-.,-.<.. ..-. 5:: District Bndy
:,-7>ws{
.....a,.
18 acres - existing
stables
-
..
Item 11.a. - Page 33
THIS PAGE INTENTIO NALLY LEFT BLANK
Item 11.a. - Page 34