LAFCo Municipal Service Review: Utility Services

1. LAFCo Municipal Service Review: Utility Services Stakeholders’ Workshop September 13, 2005 By Burr Consulting CDM Braitman & Associates Maps by P&D Consultants b.d. spatial systems

2. MSR Requirements and Process Utility MSR Overview Government Structure Options Water Sewer Flood Control & Stormwater Solid Waste Resource Conservation Overview

3. The New Legislative Mandate • Upon determination of a sphere of influence, the commission shall adopt that sphere, and shall review and update, as necessary, the adopted sphere not less than once every five years. - Government Code §56425 • In order to prepare and update spheres of influence in accordance with Section 56425, the Commission shall conduct a service review of the municipal services provided in the county or other appropriate area designated by the commission. - Government Code §56430

4. Infrastructure needs or deficiencies, Growth and population projections for the affected area, Financing constraints and opportunities, Cost avoidance opportunities, Opportunities for rate restructuring, Opportunities for shared facilities, Government structure options, including advantages of consolidation or reorganization of service providers, Evaluation of management efficiencies, and Local accountability and governance. Legislation Requires LAFCo to Make Determinations on:

5. Water Wholesale Treatment Retail Wastewater Collection Treatment Disposal Flood Control Stormwater Solid Waste Trash Collection Recycling Disposal Resource Conservation Utility MSR Services

6. Utility MSR Public Service Providers * Multi-County Agency Blue = SOI Update after Utility MSR

7. Questionnaires Requests for Information 2003 Service-specific questions Agency Documents Budget CAFR Bond Statements CIP Master Plans UWMP Regulatory Agencies RWQCB, CIWMB EPA, Homeland Security Regional Agencies ABAG ACCWP ACWMA Other OES QualServe Moody’s, S&P Census Utility MSR Data Sources

8. Subject to LAFCo Approval Dissolution of Livermore-Amador Valley Sewer Study CSA Consolidation of ACWD and USD Consolidation of OLSD and CVSD Special district formation for stormwater treatment purposes is an option for long-term consideration Resource conservation district annexation of territory to make the district’s boundary countywide Annexation of adjacent unincorporated areas to the cities of Hayward, Livermore and Pleasanton Not Subject to LAFCo Approval Regionalization through formation of JPAs for various regional services, such as desalination, storage, water reliability, and recycled water projects Annexation of the cities of Berkeley and Albany to an ACFCD zone General Regionalization and service consolidation among smaller agencies MSR recommends that LAFCo evaluate out-of-area service (since 2000) MSR recommends that LAFCo review incentives for city annexation and encourage solutions Initial Government Structure Options

9. Water Service

10. Water Supply EBMUD Mokelumne River supplies vulnerable to drought State Water Project supplies vulnerable to contaminants and seawater intrusion SFPUC supplies vulnerable to earthquakes Recycled Water Supply DSRSD and EBMUD JPA EBDA & Livermore Water Services Initial Findings Water Demand • 156 gallons per capita daily • Inland areas use more • Highest growth expected in Tri-Valley area • Demand increase from 264,439 acre-feet in 2005 to 286,514 by 2020 Service Adequacy • Castlewood practices minimal conservation • Water health and monitoring violations

11. Facility Needs & Deficiencies SFPUC seismic upgrades & pipeline inspection Pleasanton demineralization Infrastructure in Hayward islands New Zone 7 WTP in Altamont Opportunities for Shared Facilities CCWD’s Los Vaqueros Reservoir SFPUC - Desalination Water Services Initial Findings (continued) Rate Restructuring & Financing Opportunities • Increase water service & connection charges • Charge higher rates on high use levels to encourage conservation • Implement excess use charges, demand-based rates or seasonal rates Financing Constraints • Temporary State-imposed reductions of property taxes

12. Government Structure Options Consolidation of ACWD and USD Regionalization of various water services Water ServicesInitial Policy Options SOI Options • ACWD and Zone 7 SOI – Boundary Overlap • DSRSD – Doolan Road • EBMUD – Include northern cities in SOI

13. Alameda County Water District

14. Zone 7 Water Agency

15. Zone 7 Water AgencySOI Detail: Option 2

16. Dublin San Ramon Services District

17. DSRSD Option 1: Remove northern Doolan Road Area

18. DSRSD Option 2: Exclude area outside City of Dublin UGB

19. East Bay Municipal Utility District

20. Sewer Service

21. Service Outside Bounds CVSD – nursing facility, regional park and golf course Hayward – incorporated islands and Hayward Hills OLSD – Floresta Gardens in San Leandro and portion of Hayward Livermore – Unincorporated areas, LLNL, Sandia National Lab, & Ruby Hill in Pleasanton Pleasanton – Castlewood CSA Berkeley – Perimeter connections in Oakland and Albany Septic Areas Prohibited in Happy Valley, Sycamore, Alisal, and the Lomitas Vineyard Allowed if sewer is not available Less than 1% of households Service Demand Rapid growth: DSRSD, Livermore, USD Capacity issues Conservation Wastewater ServicesInitial Findings

22. Service Adequacy DSRSD, Livermore and EBDA have exceeded effluent limitations Most collection providers conduct CCTV inspection of sewer lines Financing Opportunities Increase sewer service charges, connection fees, reserves, State revolving loans and bonded debt Opportunities for Rate Restructuring Charge rates based on flow to promote conservation Wastewater Services Initial Findings (continued) Infrastructure Needs • Collection Systems: Alameda, Albany, Berkeley, Emeryville, Oakland, & Piedmont under RWQCB order • Disposal Capacity: Tri-Valley • Treatment Capacity: OLSD/CVSD under RWQCB order Opportunities for Shared Facilities • EBMUD is interested in sharing excess treatment capacity

23. SOI Options CVSD Retain existing SOI Expansion (2 options) OLSD Reduce existing SOI Expansion (1 option) Retain existing SOI Coterminous USD – Keep existing Sewer Study CSA – Zero SOI Government Structure Options Dissolve Livermore-Amador Valley Sewer Study CSA Consolidate OLSD and CVSD Wastewater Services Initial Policy Options

24. Castro Valley Sanitary District

25. Castro Valley Sanitary DistrictSOI Detail: Option 2

26. Castro Valley Sanitary DistrictSOI Detail: Option 3

27. Oro Loma Sanitary District

28. Oro Loma Sanitary DistrictSOI Detail: Option 1

29. Oro Loma Sanitary DistrictSOI Detail: Option 2

30. Service Scope Flood control: maintain and operate regional runoff collection, conveyance and discharge systems Stormwater: maintain and operate local drainage systems Service Demand Increased impervious surface in the Tri-Valley area is resulting in increased runoff and greater service demand Rate Restructuring & Financing Opportunities ACA 13 would enhance revenue Increase development plan review and permitting fees Impose fees to cover discharge inspection costs Infrastructure Needs or Deficiencies Zone 7 arroyos need capacity enhancement Channel capacity enhancements needed in flood-prone areas of San Leandro, Fremont and Pleasanton Unfunded Army Corps projects for Laguna Creek, Estudillo Canal and Arroyo de la Laguna Flood Control & Stormwater Initial Findings

31. Flood Control Services