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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