[VI.A. LAFCO "101" PowerPoint Presentation: The Executive Officer will provide an introduction and overview of Local Agency Formation Commission roles and responsibilities as introduction for new Commissioners and the public, and as a refresher for existing Commissioners.]

PRESENTATION. EXECUTIVE OFFICER NICHOLSON IS GOING TO PROVIDE AN INTRODUCTION AND OVERVIEW OF THE LOCAL AGENCY FORMATION COMMISSION ROLES AND RESPONSIBILITIES FOR NEW COMMISSIONERS AND THE PUBLIC AS A REFRESHER FOR EXISTING MEMBERS ALSO.

OKAY, BILL. OKAY. THANK YOU. YEAH. JUST TO INTRODUCE THIS THE REASON IT'S ON THE AGENDA.

NORMALLY, WHEN WE HAVE NEW COMMISSIONERS COME ON BOARD, I MEET WITH THEM INDIVIDUALLY AND GIVE AN OVERVIEW OF LAFCO.

BUT IN THIS CASE, WE HAVE THREE NEW MEMBERS. AND ALSO FOR THE BENEFIT OF THE REST OF YOU, COMMISSIONERS WHO'VE BEEN ON FOR A WHILE HAVE BEEN THROUGH THIS, AND YOU'VE BEEN TO OUR CAL LAFCO STATE ASSOCIATION CONFERENCES.

SO YOU'RE KIND OF UP TO SPEED, BUT I THOUGHT IT'D BE A GOOD REFRESHER ESPECIALLY FROM A PERSPECTIVE OF MERCED LAFCO.

AND THEN TO SEE HOW WHAT I'VE BEEN DOING FOR A LONG TIME, TRAINING THE NEW COMMISSIONERS.

SO YOU KIND OF ARE IN THE FOLD OF WHAT'S BEEN GOING ON.

SO WITH THAT JUST GOING BACK TO THE HISTORY OF HOW WAS LAFCO CREATED THE LOCAL AGENCY FORMATION COMMISSIONS.

IT CAME OUT OF THE WILD GROWTH IN CALIFORNIA AND, YOU KNOW, DIFFERENT PARTS OF THE COUNTRY.

BUT AFTER WORLD WAR TWO, ALLOWED THE SOLDIERS WHO WERE TRAINED AT FORT ORD OR CAMP PENDLETON DOWN SOUTH OR THROUGHOUT THE STATE.

THEY CAME AND SETTLED IN CALIFORNIA AFTER THE WAR, AND THERE WAS THIS BIG POPULATION BOOM, BIG BUILDING BOOM. AND SO THERE WAS A LOT OF DEVELOPMENT THAT WAS LEAPFROG AND SPRAWLING, EXTENDING SERVICES WILLY NILLY. THERE WOULD BE WARS BETWEEN CITIES FOR ANNEXING TERRITORY WITH NO REAL STATE OR LOCAL GUIDANCE.

EACH ENTITY WAS DOING THEIR OWN THING. AND MANY SPECIAL DISTRICTS WERE FORMED WITHOUT CONSIDERING THEIR BUDGETS OR GOOD GOVERNANCE ISSUES.

SO AT THE TIME IT WAS GOVERNOR PAT BROWN. THE BROWN NAME HAS BEEN AROUND FOR A LONG TIME.

THEY CREATED A COMMISSION ON METROPOLITAN AREA PROBLEMS AND CREATED A REPORT.

AND THIS IS FROM THE 60S KIND OF IMAGE FOR AN URBAN AREA AND A SUBURBAN HOME.

SO HISTORIC DOCUMENT. SO THE STATE LEGISLATURE APPROVED THE CREATION OF LAFCO WAY BACK IN 1963.

ONE OF THE ISSUES WAS, IS THIS A PROBLEM FOR THE STATE TO FIX? AND AS YOU'RE ALL LOCAL GOVERNMENT REPS, YOU DON'T REALLY TRUST THE STATE OR WANT THE STATE TO COME DOWN IN YOUR NEIGHBORHOOD AND TELL YOU WHAT TO DO.

SO THEY CREATED IT AS A LOCAL AGENCY, ONE FOR EACH COUNTY.

SO THERE'S 58 LAFCO'S. AND THEN THEY ARE INDEPENDENT AGENCIES.

THE MEMBERS ARE APPOINTED LOCALLY. AND THERE IS NO APPEAL FROM LAFCO, FROM SOME BIG BROTHER, NOT FROM THE COUNTY, NOT FROM SOME STATE DEPARTMENT LAFCO ACTIONS.

YOU MIGHT RECONSIDER IT, BUT YOU DON'T GET APPEALED TO SOME OTHER BODY.

AND THE ONLY RESOLUTION IF SOMEONE'S REALLY UNHAPPY IS TO TAKE YOU TO TAKE THE COMMISSION TO COURT.

SO THE PURPOSES OF THIS OVERALL STUDY, AND THE CREATION OF THE LAW WAS TO ENCOURAGE ORDERLY BOUNDARIES AND DISCOURAGE URBAN SPRAWL.

THE OTHER MAIN POINT WAS TO CONSERVE AGRICULTURE AND OPEN SPACE LANDS BECAUSE, YEAH, ALL THE GROWTH WAS JUST SPRAWLING OUT IN THE COUNTRYSIDE AND THROUGHOUT THE WHOLE STATE. ALSO PROMOTING EFFICIENT PUBLIC SERVICE DELIVERY.

SO IT INCLUDED BOTH GROWTH IN THE CITIES AND UNINCORPORATED COUNTIES WITH THE CONTROL OVER SPECIAL DISTRICTS.

ALSO HAD CONSIDERATIONS. YOU HAD TO LOOK AT REGIONAL HOUSING NEEDS.

ADEQUATE SUPPLY OF WATER. DISADVANTAGED COMMUNITIES IS A NEWER REQUIREMENT, WHICH ARE TYPICALLY DISADVANTAGED UNINCORPORATED AREAS WHERE A CITY WILL GROW ON VACANT LAND OR ON FARMLAND.

AND IF THERE'S A COUNTY POOR AREA NEXT DOOR, THE CITIES WILL USUALLY LEAVE THAT BEHIND AND ANNEX THE BARE LAND AND BUILD THE NEW DEVELOPMENT AND THEN THE UNDERPRIVILEGED OR THE GHETTO AREAS STAY IN THE UNINCORPORATED COUNTY AND DON'T GET ALL THE BENEFITS OF THE CITY SERVICES.

IT MENTIONS ALSO OTHER ESSENTIAL SERVICES. SO OVER TIME AND SAY THE PAST TEN YEARS, THE STATE LEGISLATURE KEEPS ADDING MORE AND MORE THINGS FOR

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LAFCO'S TO CONSIDER. SOME OF THEM ARE VERY IMPORTANT, BUT THEY DEPEND ON GEOGRAPHY.

SO THE SPREAD OF WILDFIRES IS A BIG ISSUE FOR EXPANDING COMMUNITIES LIKE YOU HAD IN THE TOWN OF PARADISE.

SO YOU'RE GOING TO ANNEX MORE LAND WHAT'S YOUR FIRE SUPPRESSION AND FIRE RISK? WE DON'T BEING IN THE VALLEY FLOOR WITH, YOU KNOW, PRETTY MUCH FARMLAND, YOU KNOW, WET FARMLAND AROUND TOWNS.

IT'S NOT ONE OF OUR HIGH PRIORITIES, BUT DISADVANTAGED COMMUNITIES DEFINITELY IS.

AND SO THERE'S MORE ISSUES BEING ADDED ALL THE TIME BY THE LEGISLATURE.

SO BACK TO THE MAKEUP OF OUR LAFCO'S. IN MERCED HERE WE HAVE, AS YOU ALL REPRESENT, AS YOU HAVE TWO COUNTY SUPERVISORS, TWO ELECTED CITY COUNCIL MEMBERS OR MAYORS, AND ONE PUBLIC MEMBER.

THE PUBLIC MEMBER IS APPOINTED BY THE OTHER CITY COMMISSIONERS, AND PEOPLE VOLUNTEER FOR THE POSITION.

IN OUR CASE, CHAIR BERTAO HAS BEEN AROUND FOR A LONG TIME, SO NOBODY BOTHERS TO RUN.

[LAUGHTER] BUT HE'S A WEALTH OF HISTORY AND KNOWLEDGE OF THE AREAS AND COMMITTED, SO IT'S WONDERFUL.

EACH EACH CATEGORY HAS A ALTERNATE SEAT. SO AS WE HAVE TODAY, WE HAVE ALTERNATES FOR COUNTY AND CITY MEMBERS.

THERE IS AN ALTERNATE PUBLIC MEMBER AS WELL. IN OTHER LAFCO IS ABOUT HALF OF LAFCO IS ACROSS THE STATE.

THERE'S ALSO SPECIAL DISTRICTS SITTING ON THE COMMISSION.

WE'VE FLOATED THE IDEA PROBABLY TEN YEARS AGO.

THERE WAS AN EFFORT, AN OUTREACH EFFORT WE DID WITH THE SPECIAL DISTRICTS ASSOCIATION OF CALIFORNIA TO TRY TO GET SPECIAL DISTRICTS ON BOARD.

AND IT PRETTY MUCH RELATED TO FUNDING RIGHT NOW, THE CITY'S BESIDES REVENUE WE GET FROM APPLICATIONS.

THE COST FOR RUNNING LAFCO COMES FROM THE COUNTY PAYING HALF AND THE CITY'S PAYING HALF AND THE CITY'S PAY BASED ON THEIR TOTAL REVENUES.

SO A BIG CITY LIKE MERCED PAYS THE MOST AND LIKE A DOS PALOS PAYS A SMALLER SHARE.

SO A SPECIAL DISTRICTS CAME ON. IT WOULD GET SPLIT BY THIRDS.

SO WHAT HAPPENED? SOME OF THE THE BIGGEST DISTRICTS AND THE RICHEST DISTRICTS IN THE COUNTY ARE PRIMARILY AGRICULTURAL, LIKE CENTRAL CALIFORNIA IRRIGATION DISTRICT OR MERCED IRRIGATION DISTRICT, AND THEY DON'T DO A LOT OF LAFCO ACTIONS.

IT'S PRETTY RARE. SO THEY'RE THINKING, WELL, DO WE WANT TO FUND BE RESPONSIBLE TO FUND THE MAJORITY OF OUR SHARE OF LAFCO WHEN WE HARDLY USE THE LAFCO SERVICE? SMALL URBAN DISTRICTS LIKE IN DELHI OR WINTON OR SANTA NELLA THAT PROVIDE SEWER AND WATER THEY WOULD LIKE TO BE ON LAFCO BECAUSE LAFCO VOTES ON EXPANSIONS OF THEIR BOUNDARIES. BUT THEIR BUDGETS ARE SMALL, AND SO YOU NEED TO GET A MAJORITY OF THE SPECIAL DISTRICTS TO AGREE THAT THEY WANT TO COME ON LAFCO. AND THE OUTREACH THAT WAS WAS PROPOSED DIDN'T RESULT IN MUCH FANFARE OR SUPPORT.

SO WE JUST WE DROPPED IT, BUT THEY COULD COME OUT IN THE FUTURE.

AND IF THEY WANTED TO COME ON, THEY THEY COME ON.

IT'S NOT LIKE THE COMMISSION VOTES ON IT. SO SO THEN AGAIN, TALKING ABOUT LAFCO ARE INDEPENDENT, SO THERE'S ONE IN EACH COUNTY. THERE'S NO APPEAL TO OTHER BODIES.

THE STATE LOOKS AT LAFCO AS A WATCHDOG FOR LOCAL GOVERNMENT EFFICIENCY SO THAT'LL GET INTO THE ISSUE.

WE TALKED ABOUT MUNICIPAL SERVICE REVIEWS. CHAIR BERTAO MENTIONED IS SOMETHING THAT WE'RE WORKING ON, WHERE YOU LOOK AT EACH CITY AND EACH SPECIAL DISTRICT PERIODICALLY.

AND TO SEE HOW THEY'RE DOING, IF THEY MAY HAVE APPLICATIONS COME TO LAFCO. SO YOU GET TO LOOK AT IT THEN, BUT OTHER TIMES THERE'S NO, THERE'S NO APPLICATION COMING. SO YOU WOULDN'T LOOK AT IT.

BUT THE STATE MANDATED THAT WE WE LOOK AT THEM.

THE LAW SAYS EVERY FIVE YEARS OR AS NECESSARY.

SO DEPENDING ON THE ENTITY LIKE CEMETERY DISTRICTS, IT'S NOT SOMETHING THAT WE LOOK AT SO FREQUENTLY.

WE DON'T WORRY ABOUT IT EVERY FIVE YEARS BECAUSE NOTHING MUCH CHANGES THERE.

BUT WITH CITIES AND MORE URBAN AREAS, IT HAPPENS MORE FREQUENTLY.

AND THEN MY POSITION AS EXECUTIVE OFFICER, I'M APPOINTED BY THIS COMMISSION AND I WORK FOR YOU.

I DON'T WORK FOR THE COUNTY OR WORK FOR ANY OTHER ENTITY.

SO YOU'RE MY CLIENTS. AND SO I HAVE NO, NO SPLIT INTEREST OR RESPONSIBILITY.

SO SOME OF THE MAIN RESPONSIBILITIES AS YOU'RE SITING, COMMISSIONERS, IS TO REGULATE THE BOUNDARIES OF EXISTING PUBLIC AGENCIES.

AND TYPICALLY YOU DO THAT THROUGH ANNEXATIONS.

THIS ITEM THAT YOU HAD IN YOUR CLOSED SESSION FOR CCID WAS A DETACHMENT.

SO IT WAS REMOVING IT FROM THE DISTRICT THAT DOESN'T HAPPEN TOO MUCH FOR CITIES TO DETACH LAND FROM CITY.

BUT MOST OF THE TIME WE'RE WE'RE DEALING WITH THE ANNEXATION BOUNDARIES.

AND YOU ALSO CAN FORM NEW ENTITIES NEW INCORPORATING NEW CITIES.

THE COMMUNITY OF MOUNTAIN HOUSE UP IN SAN JOAQUIN COUNTY WAS JUST FORMED LAST YEAR.

ALSO FORMING NEW SPECIAL DISTRICTS. WE HAD WE DON'T GET THAT REQUEST VERY OFTEN, BUT THERE WAS AMSTERDAM WATER DISTRICT CREATED

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MAYBE FIVE YEARS AGO, NORTH OF MERCED. BUT YOU ALSO CAN FORM NEW DISTRICTS, AND THEN YOU CAN DISSOLVE DISTRICTS OR CONSOLIDATE WORKING, PUTTING DISTRICTS THAT ARE SIMILAR HAVE THE SAME POWERS CONSOLIDATE THEM TOGETHER TO MAKE A LARGER, MORE FUNCTIONAL MAYBE BUDGET, MORE AFFORDABLE OPERATION.

AND THAT'S ACTUALLY PART OF ONE OF THE TOPICS OF THE MSRS THAT I'M GOING TO GET TO ON THE NEXT PRESENTATION.

SO THE OTHER PART OF THE RESPONSIBILITIES ARE THE CHANGING OF BOUNDARIES HAS TO BE CONSISTENT WITH THE SPHERES OF INFLUENCE AND THE SPHERE OF INFLUENCE IS LIKE THE OUTERMOST BOUNDARY OF THE SERVICE AREA, NOT NECESSARILY CURRENTLY, BUT IN THE FUTURE.

AND SO WHEN YOU'RE LOOKING AT A CITY, FOR INSTANCE, THEY'RE GOING TO HAVE A SPHERE OF INFLUENCE TIED TO THEIR GENERAL PLAN THAT LAFCO APPROVED THE CITY WILL PUT IT IN THEIR GENERAL PLAN, AND THAT'S WHAT THEY WANT. BUT IT'S NOT THEY CAN'T THEY CAN APPROVE THEIR GENERAL PLAN, BUT THEY CAN'T APPROVE THEIR SPHERE OF INFLUENCE . IT'S A PROPOSAL. AND THEN LAFCO HAS TO AGREE AND SET THE SPHERE.

AND LAFCO HAS AUTHORITY TO PUT THE SPHERE WHERE THEY FEEL IT'S MOST APPROPRIATE.

SO AGAIN, AND YOU CAN'T ANNEX LAND OUTSIDE THE SPHERE.

SO IF YOU GET A PROPOSAL FOR SOMETHING THAT'S NOT IN THE SPHERE, YOU ALSO HAVE TO AS A COMMISSION, YOU HAVE TO MODIFY THE SPHERE OF INFLUENCE AT THE SAME TIME.

LAFCO IS ALSO PROHIBITED FROM DIRECTLY REGULATING LAND USE OR THE LAND USE DESIGNATION.

SO IF THERE IS A PROPOSAL FOR A SUBDIVISION OF SINGLE FAMILY HOMES TO LOS BANOS, LET'S SAY, AND THE STATES SAYING, HEY, WE WANT MORE APARTMENTS, WE WANT MORE AFFORDABLE HOUSING. SO LAFCO COULD SAY, WE'RE DENYING THIS. GO CHANGE IT TO APARTMENTS AND BRING IT BACK, AND THEN WE'LL CONSIDER IT.

LAFCO IS NOT ALLOWED TO DO THAT. YOU CAN ONLY EVALUATE THE PROPOSAL THAT COMES BEFORE YOU.

YOU CAN'T AS A COMMISSION, PLAY WITH THE LAND USES THAT'S A LOCAL GOVERNMENT RESPONSIBILITY.

SO AGAIN IF IT'S IF YOU WOULD LIKE COMMERCIAL BUT IT'S RESIDENTIAL OR VICE VERSA, IT'S NOT LAFCO'S CALL.

YOU CAN EITHER APPROVE IT OR DENY IT, BUT YOU CAN'T GET INTO THAT LOCAL GOVERNMENT ROLE.

THERE'S ALSO EXCEPTIONS FROM ANNEXATIONS WHERE THERE'S A REASON TO EXTEND A SERVICE TO AN AREA OUTSIDE THE BOUNDARY, WHETHER IT'S A CITY, TYPICALLY THE SERVICE IS SEWER OR WATER, AND IT COULD BE FROM A SPECIAL DISTRICT LIKE WINTON OR PLANADA OR A CITY, OF COURSE. AND YOU PROVIDE IT INTO THE COUNTY, AND IT MAY BE THERE'S A FAILED SEPTIC SYSTEM, AND THE SEWER LINE RUNS RIGHT BY FROM THE SEWER PLANT TO THE CITY, AND IT GOES RIGHT BY THE PROPERTY.

AND IT'S A SMALL PARCEL AND THEY CAN'T REALLY REPLACE THEIR SEPTIC.

SO THE CITY OR THE SPECIAL DISTRICT MIGHT AGREE TO HOOK UP THE PROPERTY.

AND UNDER STATE LAW, THEY DON'T LAFCO DOESN'T WANT EXCUSE ME, THE STATE DOESN'T WANT THESE LITTLE TIES TO PUBLIC SERVICES OUTSIDE THE BOUNDARIES SCATTERED ALL OVER THE PLACE, WHICH USED TO HAPPEN IN THE OLD DAYS.

SO THEY WANT LAFCO TO APPROVE IT. AND AGAIN, WE CONSIDER THE ALTERNATIVE IS, OH, YOU SHOULDN'T BE HAVING DEVELOPMENT THERE AND T HIS IS GOING TO LEAD TO TO SOMETHING THAT'S NOT APPROPRIATE OR THE AREA SHOULD BE ANNEXED.

THERE'S NO REASON NOT TO INCLUDE YOUR PARCEL. YOU'RE SURROUNDED ON THREE SIDES BY THE CITY YOU NEED TO ANNEX. THERE'S NO REASON TO JUST DO IT OUTSIDE.

BUT WE TYPICALLY THERE ARE HARDSHIP CASES WHERE THE THE PROPERTY IT'S NOT FEASIBLE TO ANNEX RIGHT NOW.

AND THEY HAVE A HEALTH AND SAFETY NEED THAT'S 90% OF WHAT WE GET.

THE OTHER THING IS WHEN THE IN DROUGHT CONDITIONS WITH THE WATER TABLE DROPPING, WE GET A LOT OF WELLS GO DRY, AND IF YOUR CITY OR DISTRICT WATER NEARBY, HEY, JUST LET THEM HOOK UP.

AGAIN IT'S USUALLY FOR THE EXISTING OCCUPANTS NOT A BENEFIT FOR BUILDING A NEW SUBDIVISION.

AND THE CITY OR THE DISTRICT WOULDN'T WANT THEM TO.

THEY'D WANT TO ANNEX IT IF THEY'RE DOING THAT. THIS IS A REPRESENTATION FROM THE STATE OFFICE OF PLANNING AND RESEARCH OF A THE THEORETICAL BOUNDARIES OF IF YOU HAVE A CITY IN GRAY, THEN THE NEXT BOUNDARY OUT THERE WOULD BE THEIR SPHERE OF INFLUENCE .

THE DARK DASHED LINE SHOWING YOU THAT IT'S THE NEXT AREA FOR THEM TO GROW.

AND THEN AGAIN, LAFCO WOULD SET THAT SPHERE AND ALSO THEN APPROVE ANNEXATIONS WITHIN THAT BOUNDARY.

THE OUTER BOUNDARY WOULD BE LIKE A PLANNING AREA WHERE WHEN THEY STARTED THE GENERAL PLAN UPDATE, THEY LOOKED AT THE AREAS THAT THEY MIGHT CONSIDER GROWING INTO OR LANDOWNERS MIGHT HAVE SAID, HEY, I'D LIKE TO BE IN THE CITY. SO YOU START OFF WITH A BIG STUDY AREA.

AND WHEN WHEN LAFCO THEN LATER SETS THE SPHERE THAT THAT LARGER PLANNING AREA STILL IS IN PLACE BECAUSE IT WAS PART OF THE CITY'S GENERAL PLAN.

JUST LIKE THE LAND USES THAT ARE DESIGNATED RESIDENTIAL, COMMERCIAL, INDUSTRIAL, ALL THOSE WILL STILL BE SET BY THE CITY.

BUT THE THE SPHERE OF INFLUENCE IS LAFCO'S MODEL.

SO I'M GOING TO BE PRESENTING THE SPHERES OF EACH OF THE CITIES AND THE COUNTY.

AND JUST THIS IS THE STATE'S KIND OF SAMPLE. AND YOU CAN SEE THE SPHERE BOUNDARY IS SOMEWHAT CLOSE IN,

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AND THAT MAY OR MAY NOT BE THE CASE WITH ALL THE CITIES AND ALL THE SPECIAL DISTRICTS THAT THE BOUNDARIES ARE SO CLOSE IN.

SO ANOTHER REQUIREMENT THAT CAME IN IN YEAR 2000, THERE WAS A BIG OVERHAUL OF THE LAFCO LAW CALLED THE CORTESE-KNOX-HERTZBERG ACT.

AND KNOX WAS INVOLVED FROM THE VERY FORMATION OF LAFCO.

AND THEN HIS SON NOW IS STILL INVOLVED IN THE STATE AND KEEPING THINGS GOING.

SO THIS LARGE BOOK IS PRETTY MUCH ALL THE STATE LAWS GOVERNING LAFCO'S.

AND THEN WE ADOPT OUR OWN LOCAL POLICIES. BUT IN 2000, THIS WAS A MAJOR REWRITE.

AND A VERY GOOD, GOOD EFFORT. IT WAS MUCH NEEDED.

BUT THEY ADDED THE REQUIREMENT FOR THESE MUNICIPAL SERVICE REVIEWS WHERE WE HAVE TO LOOK AT THE, THE OPERATIONS AND THE FUNCTIONS AND THE BOUNDARIES OF CITIES AND SPECIAL DISTRICTS PERIODICALLY.

SO IN THE DEFINITIONS, THE FIRST PART IS A SPHERE OF INFLUENCE .

DID I SKIP A SLIDE HERE. NO I'M DOING THAT FIRST.

OKAY. SO I DID THAT ALREADY. YEAH. NO. THAT'S IT.

YEAH. SO THE SPHERE OF INFLUENCE IS A PLAN FOR THE PROBABLE PHYSICAL BOUNDARY AND SERVICE AREA.

SO IT'S NOT IF YOU'RE IF YOU'RE AN AG IRRIGATION DISTRICT OR YOU'RE WE HAVE RESOURCE CONSERVATION DISTRICTS OR CEMETERY DISTRICTS, YOU DON'T REALLY HAVE A GROWTH BOUNDARY BECAUSE YOU'RE NOT PLANNING ON GROWING MORE.

YOU'RE JUST SERVING WHAT YOU'RE SERVING TYPICALLY. BUT CITIES AND THE URBAN DISTRICTS HAVE A SPHERE IN YOUR INTENTIONS FOR GROWTH.

BUT THIS SPHERE ISN'T JUST A WRITTEN STUDY. IT'S NOT JUST A MAP BOUNDARY.

IT HAS POLICIES AND CRITERIA FOR US TO EVALUATE IN THE LAW.

AND WE HAVE TO MAKE DETERMINES FIVE WRITTEN DETERMINATIONS ON THINGS LIKE THE LEVEL OF CAPACITY THEY HAVE, THEIR SERVICES PROVIDED, ARE THEY ADEQUATE OR NOT.

AND IF IT'S GROWTH RELATED, THEN YOU WOULD LOOK AT GENERAL PLANS OF THE CITIES OR THE COUNTY FOR THAT.

SO LAFCO IS EVALUATING AND THERE'S WRITTEN DOCUMENT FOR EACH SPHERE.

SO IT'S NOT JUST A MAP IN A GENERAL PLAN OR ON THE LAFCO WEBSITE.

AND BECAUSE MOST OF THE SPHERES ARE RELATED TO GROWTH, THE URBAN AREAS IT'S A 20 YEAR HORIZON TYPICALLY, WHICH FOLLOWS GENERAL PLANS. AGAIN, IF YOU HAVE AN AG IRRIGATION DISTRICT OR CEMETERY DISTRICT THAT THAT DOESN'T HAVE AS MUCH OF A WEIGHT TO IT.

AND SO THE MUNICIPAL SERVICE REVIEW REQUIREMENT IS, IS OTHER FACTORS TO LOOK AT BY STATE LAW THAT CAME IN IN 2020.

AND THE YOU LOOK AT GROWTH AND POPULATION PROJECTIONS TO SEE WHAT THE NEED FOR SERVICES ARE.

AND AGAIN, THAT COULD STILL APPLY TO SOME RURAL DISTRICTS NEEDS AND DEFICIENCIES OF THE SERVICES THAT, THEY PROVIDE. FINANCIAL ABILITY SO WE LOOK AT THEIR BUDGETS.

AND THAT'S BIG WHEN YOU'RE LOOKING AT CITIES.

STATUS AND OPPORTUNITIES FOR SHARED FACILITIES.

SO WE HAVE AGAIN, THE ISSUE WHERE YOU MIGHT HAVE A SPECIAL DISTRICTS NEXT TO A CITY AND IN MANY CASES CITY OF ATWATER WINTON, WHICH IS A SEPARATE DISTRICT THEY THEIR SEWER GOES TO THE ATWATER SEWER PLANT.

SO THAT'S NOT UNCOMMON. THE DOS PALOS AREA, THERE'S A JPA WITH MIDWAY AND SOUTH DOS PALOS, TWO SPECIAL DISTRICTS, LOCALLY ADOPTED BOARDS, BUT THE SEWER AND THE WATER, THEY HAVE A JPA FOR OPERATING THAT.

SO IT'S MORE EFFICIENT IN A LOT OF WAYS, UNLESS THE CITY IS SOMEWHAT POINT WAS GOING TO ANNEX THE AREAS.

AND THEN THE LAST CATEGORY WAS ACCOUNTABILITY AND OPERATIONAL EFFICIENCY.

SO WE MIGHT LOOK AT DO THEY GET AUDIT. DO THEY DO AUDITS.

DO THEY, DID THEY KEEP TRACK OF WHAT'S WHAT'S GOING ON.

IS THE STATE OR SOME AGENCY LIKE A SPECIAL DISTRICT WATER BOARD LOOKING AT THE DISTRICT FOR VIOLATIONS OF WATER QUALITY STANDARDS AND THINGS LIKE THAT.

SO AN EACH LAFCO IS DOING THIS IN THEIR OWN COUNTY.

SO IT'S AGAIN, THAT'S THAT WATCHDOG ROLE THAT, THAT LAFCO PERFORMS THAT THERE'S REALLY NO OTHER ENTITY DOING THAT EXCEPT FOR SPECIFIC LIKE THE REGIONAL WATER QUALITY CONTROL BOARD DEALING WITH WATER ISSUES.

THEY'LL GO AFTER THAT TOPIC, BUT THEY DON'T LOOK MORE BROADLY ABOUT THE GOVERNMENT OPERATIONS.

SO THIS IS ONE OF THE MSRS MUNICIPAL SERVICE REVIEWS THAT WE'RE WORKING ON IS FOR RESOURCE CONSERVATION DISTRICTS.

BUT I PUT THIS I'LL HAVE THE SLIDE LATER AS WE TALK ABOUT THAT.

BUT THIS I PUT UP JUST TO SHOW THE GEOGRAPHY OF MERCED COUNTY.

WE HAVE SIX INCORPORATED CITIES, AND WE HAVE UNINCORPORATED COMMUNITIES UP, ESPECIALLY UP AND DOWN HIGHWAY 99 WITH WITH DELHI AND FRANKLIN BEACHWOOD IS ANOTHER INCREDIBLE COMMUNITY. NORTH OF ATWATER IS WINTON PLANADA ON THE FAR EAST AND THE WEST SIDE ARE THE BIG, THE BIG UNINCORPORATED COMMUNITY OF SANTA NELLA.

MORE BUT THERE'S SOME SOME SMALLER ONES, AND VOLTA AND SANTA NELLA JUST BASICALLY CONSOLIDATED TOGETHER.

AND THEN WE'RE DEALING WITH ALL THE GRASSLANDS WATER DISTRICT AREA, WHICH THAT KIND OF THE PURPLISH IN THE MIDDLE OR THE RED, I GUESS IT'S MORE RED IS, THE GRASSLANDS RESOURCE CONSERVATION DISTRICT, BUT IT'S SIMILAR TO THEIR WATER DISTRICT BOUNDARY.

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SO AND ON THE EAST SIDE IS MOST OF IT, BELOW THE MERCED RIVER IS MERCED IRRIGATION DISTRICT.

SO AN THE WEST SIDE YOU HAVE THE BIG CCID. THAT'S THREE.

IT GOES INTO THREE COUNTIES AND SAN LUIS WATER DISTRICT.

SO WE HAVE THERE'S REALLY NOT AN ACRE OF THE COUNTY WHERE LAFCO DOESN'T HAVE SOME ROLE AT SOME LEVEL FOR DISTRICTS.

AND I ALSO I DIDN'T MENTION THE COUNTY SERVICE AREA.

SO MERCED COUNTY HAS COUNTY SERVICE AREA NUMBER ONE TO PROVIDE SERVICES IN THE UNINCORPORATED AREAS.

AND THAT'S ANOTHER ENTITY THAT LAFCO LOOKS AT PERIODICALLY.

SO NOW I WANTED THAT OVERVIEW, BUT NOW I'M JUST GOING TO GO ALPHABETICALLY THROUGH THE CITIES.

AND THESE MAPS SHOW BOTH THE SPHERE OF INFLUENCE , WHICH IS THAT 20 YEAR HORIZON.

OR THERE COULD BE OTHER ISSUES. IT DOESN'T MEAN IT'S NECESSARILY FOR GROWTH.

AND THEN IT SHOWS THE CURRENT CITY LIMITS. SO AN THIS IS THE CURRENT GENERAL PLAN.

THE CITY IS WORKING ON AN UPDATED GENERAL PLAN.

BUT THE BIGGEST THING YOU'LL KIND OF NOTICE IS THAT BIG AREA DOWN TO THE SOUTH, WHICH IS IF YOU KNOW THE COMMUNITY, THERE'S MCSWAIN, WHICH IS A ONE ACRE LOT RURAL RESIDENTIAL COMMUNITY THAT'S IN THE COUNTY, AND IT'S PROBABLY GOING TO STAY IN THE COUNTY. I DON'T THINK THOSE FOLKS WILL WANT TO BE ANNEXED. AND THE CITY DOESN'T PROVIDE SERVICES THERE, BUT WEST OF IT.

IN THE CURRENT GENERAL PLAN, THE CITY HAD A HUGE GROWTH AREA GOING ALL THE WAY DOWN TO HIGHWAY 140.

IN THE ADOPTED GENERAL PLAN, I UNDERSTAND THE GENERAL PLAN UPDATE THEY'RE GOING TO SCALE THAT WAY BACK AND FOCUS MORE NORTH OF 99.

BUT THIS IS THE BOUNDARY THERE. TO THE NORTHEAST YOU'VE GOT CASTLE AIR FORCE BASE AND THEN NORTH.

JUST NORTH OF ATWATER IS THE UNINCORPORATED COMMUNITY OF WINTON.

AND SO AGAIN, WE HAVE THAT RELATIONSHIP, AND I'M GOING TO DO THE WINTON SLIDE NEXT.

THIS IS THE BOUNDARY FOR THE WINTON COMMUNITY OR WATER AND SANITARY DISTRICT, WHICH HAS A UNIQUE NAME.

MR. CHAIR. YEAH. CAN I ASK MR. CHAIR, MAY I ASK A QUESTION? IS THAT OKAY? SURE. OKAY. CAN YOU GO BACK TO THE ATWATER ONE, PLEASE? SO YOU SEE HOW THERE'S THOSE TWO LITTLE? ARE THOSE ISLANDS LIKE COUNTY ISLANDS IN THOSE SPOTS RIGHT THERE? YES. OKAY. THANK YOU. YEAH. ONE IS A SMALL RESIDENTIAL AREA, AND THE OTHER ONE IS THE RANCHO DEL REY GOLF COURSE.

SO IT WAS IN THE COUNTY. AND AS THE CITY GREW, THERE WAS NO INTEREST TO ANNEX THE GOLF COURSE.

SO. THANK YOU. YEAH. SO AND TO THAT YEAH ISLANDS IS ANOTHER ISSUE I DIDN'T GET LAFCO WAS RESPONSIBLE FOR.

YOU'RE NOT SUPPOSED TO CREATE ISLANDS. YOU HAVE TO MAKE SPECIAL FINDINGS IF YOU DO.

AND THERE'S ALWAYS A PUSH TO GET RID OF ISLANDS, WHICH IS IT'S A VERY HARD ISSUE ACROSS THE STATE.

BUT THAT'S SOMETHING ELSE WE CAN LOOK AT. YEAH.

THE STATE ENCOURAGES US TO DO IT. THERE IS. WHAT'S THE OTHER LITTLE ISLAND BUILD RIGHT THERE IN THE MIDDLE OF TOWN.

IT'S A SMALL RESIDENTIAL AREA THAT WOULD HAVE BEEN A COUNTY DEVELOPED POCKET THAT WAS MORE LOW INCOME.

AND THE [INAUDIBLE] YEAH. SO IT'S. THAT'S THE GARDEN.

THAT'S NOT GARDENS THAT'S A LONG WAYS FROM THERE.

NO, IT'S CASTLE DRIVE. THE ROAD JUST REPAVED IT LAST YEAR.

YEAH. SO. SO ACTUALLY ATWATER IS PRETTY GOOD BECAUSE THE GOLF COURSE IS KIND OF UNIQUE.

SO YOU HAVE ONE AREA OTHER OTHER CITIES YOU HAVE MORE MORE ISLANDS.

BUT THAT'S A GOOD QUESTION. SO WINTON HAS ISLANDS, AS YOU'LL SEE.

BUT THIS IS THE REVERSE. THE SHADED PART IS THE DISTRICT.

AND ON THE SOUTH END YOU'LL SEE THESE LITTLE DETACHED POCKETS.

TYPICALLY EVEN FOR CITIES, YOU HAVE SEWER PLANTS OR PUBLIC WORKS YARDS OR WHATEVER THAT ARE PART OF THE DISTRICT.

BUT THEY DON'T CONNECT, THEY DON'T ANNEX AND EVERYTHING IN BETWEEN.

SO WHILE THERE'S NO GAPS WITHIN THE DISTRICT ITSELF, THERE'S SOME ISLAND AREAS THAT THEY'VE ANNEXED FOR MORE OF THEIR OWN PERSONAL REASONS. BUT THIS AREA DOES FIT JUST NORTH OF ATWATER.

AND AGAIN, SO THERE'S IS THIS ATWATER GROWTH NORTH.

WE GET INTO THE ISSUES OF, WELL, WHERE'S WINTON AND WHERE'S ATWATER AND WHO'S, TURF SHOULD IT BE.

AND THE SEWER DISTRICT. BUT THEY DON'T CONTROL LAND USE.

THEY RUN THE SEWER AND THE WATER, BUT THEY DON'T CONTROL LAND USE.

SO THAT'S THE BOARD OF SUPERVISORS. SO THAT'S WHERE THE COUNTY AND THE CITY GET INTO NEGOTIATIONS OVER LIKE A NEW CITY GENERAL PLAN.

ONE REQUIREMENT THAT THAT IS IN THE STATE LAW IS IF A CITY IS GOING TO GROW AND ESTABLISH A NEW SPHERE OF INFLUENCE OR EXPAND THEIR SPHERE, THEY ACTUALLY HAVE TO MEET WITH THE COUNTY AND DISCUSS IT AND TRY TO REACH AN AGREEMENT.

AND IF THEY REACHED AN AGREEMENT BETWEEN THE COUNTY AND THE CITY OF THAT AREA BEING PUT INTO THE SPHERE THEN WHEN IT COMES TO THE COMMISSION HERE, YOU'RE SUPPOSED TO PUT GREAT WEIGHT ON THAT. HEY, THE CITY AND THE COUNTY HAVE AGREED.

IT MAY LOOK, MAYBE IT LOOKS TOO BIG, MAYBE IT LOOKS TOO SMALL.

WHATEVER YOUR OPINION. BUT YOU'RE SUPPOSED TO PRETTY MUCH ACCEPT THAT IF BECAUSE IT'S HARD FOR THE COUNTIES AND CITIES TO AGREE,

[00:30:06]

IT'S A IT'S HARD TAKE A LOT OF NEGOTIATION. WHERE THEY DON'T AGREE, THEN IT'S UP TO LAFCO TO DECIDE WHICH YOU AGREE ONE SIDE OR THE OTHER. DO YOU COME UP WITH A COMPROMISE OR WHATEVER? BUT WHEN IT COMES TO ANNEXATIONS, IT'S NOT LIKE AN AGREEMENT ON WHAT DO YOU LIKE IT OR NOT, IT'S ACTUALLY ABOUT REVENUE SHARING SO THAT WHEN YOU TAKE LAND FROM A CITY AND GO INTO A COUNTY AND I SHOULD, I SHOULD JUST GO BACK TO THE ATWATER MAP BECAUSE IT DOESN'T AFFECT SPECIAL DISTRICTS. IT'S JUST FOR CITIES.

THE CITY ACTUALLY LEGALLY CANNOT ANNEX LAND WITHOUT HAVING A CITY COUNTY REVENUE SHARING AGREEMENT.

SO SORRY ABOUT THAT. SO IN THE CASE WHEN WE GET TO LIVINGSTON, THEY DON'T HAVE A CURRENT REVENUE SHARING AGREEMENT, SO THERE'S NO ANNEXATION APPLICATIONS COMING.

SO THAT'S THE STATE MANDATED THAT BECAUSE THEY DIDN'T WANT TO BE FORCED TO RESOLVE.

WELL, WHO SHOULD GET WHAT SPLIT OF THE TAXES? IT'S A LOCAL ISSUE.

SO I DO HAVE A QUESTION ON THAT. OKAY. SO, IF THE CITY OF LIVINGSTON, SINCE WE DON'T HAVE A REVENUE SHARING AGREEMENT IN PLACE, BUT IF THEY WANTED TO EXPAND, WE COULD COME UP WITH AN AGREEMENT ON THAT EXPANSION ALONE WITHOUT A REVENUE SHARING AGREEMENT? YEAH, IT WOULD BE. IT WOULD BE A REVENUE SHARING AGREEMENT OR JUST FOR THAT TERRITORY.

OKAY, GOOD. I HEARD THAT THE OTHER, I WASN'T AWARE OF THAT.

AND I THOUGHT, OKAY, WELL THAT WAS COULD HAPPEN MAYBE MOVING FORWARD.

YEAH, BUT THAT WOULD BE PER EXPANSION. NOT LIKE.

YEAH. FULL EXPANSION. IT JUST BE PER. YEAH. AND AS COUNCIL JUST SAID THE YOU HAVE A MASTER TAX SHARING AGREEMENT WHEN YOU DO IT ONE TIME AND THEN YOU DON'T.

EACH ANNEXATION HAS THE SAME TERM. SO YOU MIGHT HAVE A TERM FOR COMMERCIAL SHARING TAXES DIFFERENTLY THAN YOU DO FOR RESIDENTIAL.

BUT THAT'S BETWEEN THE COUNTY AND THE CITY. BUT THE MASTER AGREEMENTS THEN COVER IT AND YOU USE IT FOR YEARS.

YOU COULD HAVE IT COULD HAVE A DEADLINE IN IT, OR IT COULD BE, YOU KNOW, NO, NO TIME SPECIFIC UNTIL, YOU KNOW, 30 DAY NOTICE TO COUNCIL. BUT IF YOU DON'T, YEAH, IF YOU DON'T HAVE AN AGREEMENT, YOU CAN TRY TO NEGOTIATE ONE AT A TIME. SO IT'S WHATEVER, WHATEVER WORKS.

IT'S AS YOU KNOW, IT'S PAINFUL TO GO THROUGH THAT PROCESS.

SO TO DO IT PROJECT BY PROJECT WOULD BE, YEAH, IT WOULD AGE YOU MORE QUICKLY AND THE CITY AS WELL.

OKAY. ALL RIGHT. SO MOVING ON. THIS IS THE DOS PALOS AREA.

SO YOU HAVE THE CITY TO THE EAST AND THE CITY AREA TO THE WEST IS PRETTY MUCH PUBLIC FACILITIES.

AND THEN YOU KNOW, OLD SEWER PLANT AND CORPORATION YARD AND THEN WADE TO THE WEST FURTHER, A LITTLE BIT BRIGHTER GREEN IS A NEWER SEWER POND AREA.

SO IT'S IN THE CITY LIMITS. THEY ANNEXED IT AND IT'S IN THE SPHERE OF INFLUENCE .

BUT IT'S DETACHED. IT'S REMOTE. THE REST OF THE SPHERE ACTUALLY INCLUDES THE MIDWAY AREA ON THE WEST AND THEN TO THE SOUTH IT'S SOUTH DOS PALOS.

SO THOSE ARE BOTH INDEPENDENT SPECIAL DISTRICTS.

AND I'VE GOT A MAP FOR THE MIDWAY AREA AND YOU CAN SEE THE, THE SHAPE OF IT, ELGIN AVENUE STATE HIGHWAY ON THE EAST SIDE.

IT JUST OVERLAPS INTO THE CITY A LITTLE BIT BECAUSE OF HISTORIC WATERS WATER SERVICE.

BUT TO THE NORTH, THAT LITTLE, THAT LITTLE MOUTH PIECE KIND OF LIKE LOOK LIKE A HORSE'S HEAD.

THAT'S CITY PROPERTY. SO, IT'S NOT IN THEIR DISTRICT HISTORICALLY.

I THINK THE OLD SEWER PLANT FOR THE CITY. RIGHT.

THAT'S THE OLD SEWER PLANT FOR THE CITY. RIGHT. SO, I GO BACK TO THIS SLIDE AND YOU CAN SEE THAT THAT NOTCH ON THE WESTERN PIECE, THAT NOTCH TO THE EAST IS THAT LITTLE GAP IN THE MIDWAY AREA.

AND THEN THEY HAD OTHER LAND FURTHER TO THE WEST.

BUT YEAH, THAT WAS AN OLD SEWER PLANT. SO, THERE'S A LOT OF ISSUES.

AGAIN, WITH CERTAIN CITIES HAVING UNINCORPORATED COMMUNITIES WITH DISTRICTS THAT ARE SUBJECT TO LAFCO REVIEW JUST ON THEIR, ON THEIR FRINGE. GOING ON THIS IS GUSTINE. NO, UNINCORPORATED COMMUNITY CLOSE BY.

BUT THEY ALSO HAVE NOT ONLY THEIR SEWER PLANT, BUT THEIR AIRPORT WAY OFF TO THE EAST DOWN ONE HIGHWAY 140, AND THAT IS IN THEIR SPHERE. THERE'S A CONNECTION, A LITTLE SMALL RIGHT OF WAY, CONNECTING THE THAT TO THE CITY LIMITS.

ALTHOUGH I DIDN'T MENTION THIS BEFORE, BUT THE WORD CONTIGUOUS IS BIG IN LAFCO LAW.

LIKE FOR A CITY TO ANNEX LAND, IT HAS TO BE CONTIGUOUS TO THE CITY LIMITS.

AND THE ONLY EXCEPTION IS FOR PUBLIC FACILITIES, SEWER PLANTS WATER WELLS YOU KNOW, PUBLIC WORKS TYPE YARDS.

SO THEY DIDN'T HAVE TO CONNECT THE AIRPORT. WELL, YEAH, THEY I GUESS THE AIRPORT, THEY WOULD HAVE, BUT NOT THE SEWER PLANT. AND THEN YOU CAN SEE THIS HAS A VERY LARGE SPHERE, EVEN THOUGH THEY DON'T HAVE A LOT OF GROWTH IN IT.

THIS ONE HAS GOT THE AERIAL BEHIND IT, BUT THIS IS THE CITY OF LIVINGSTON, AS WE TALKED ABOUT THEN THE RED BOUNDARY IS THE CITY LIMITS, AND THEN THE BLUE DASHED LINE IS THE SPHERE, AND THE RED LINE ACTUALLY GOES ON THE EAST SIDE OF HIGHWAY 99,

[00:35:06]

TRAVERSING IT. IT GOES ALL THE WAY UP TO THE MERCED RIVER.

SO THERE'S A HUGE AREA THERE THAT'S ALREADY IN THE CITY LIMITS TO FOR FUTURE GROWTH.

AND THERE'S ALSO AREAS TO THE SOUTHWEST THAT ARE ALSO IN THE SPHERE ALREADY.

BUT THEN THERE IS A GAP ON THE WEST SIDE. TO THE FAR LEFT OF THAT PICTURE IS THE SEWER PLANT, THAT'S REMOVED, DETACHED FROM THE CITY. IN TERMS OF, YOU KNOW, PHYSICALLY.

BUT IT'S THE AREA IN BETWEEN. IT'S IN THE SPHERE, BUT IT'S NOT IN THE, IN THE CITY LIMITS.

SO THAT WOULD BE SUBJECT TO ANNEXATION. AND THEN ON THE VERY SOUTH END, YOU CAN SEE THERE'S A GAP.

LIKE A HALF MILE OF SPACE THAT'S IN THE SPHERE, BUT NOT IN THE CITY LIMITS.

YES DARON, IS IT FROWNED UPON? SAY SO THEY HAVE THOSE ISLANDS OUT THERE.

IF THEY WANTED TO DEVELOP LAND AROUND THAT, WOULD THAT BE CONSIDERED CONTIGUOUS OR IS IT CONTIGUOUS ONLY IN THE MAIN BODY? YEAH. YOU KNOW THE TEXT OF THE LAW DOESN'T, THEY USE THE WORD CONTIGUOUS TO DEFINE IT, BUT THEY DON'T SAY IF YOU'RE CONTIGUOUS TO A SEWER PLANT, YOU CAN'T ANNEX MORE LAND FOR DEVELOPMENT. THEY DON'T SAY THAT.

SO THAT WOULD BE PART OF THE EVALUATION. FACTORS THAT LAFCO WOULD LOOK AT LIKE IS IF THE ONLY THING CONNECTED IS, IS THE SEWER PLANT AND YOU WANT TO MAYBE YOU WANT TO DO INDUSTRIAL PARK AND THAT HAS CAPACITY.

AND IF THE COMMISSION, YOU KNOW, FELT LIKE, HEY, WELL THAT SEEMS REASONABLE, YOU GOT GOOD ACCESS, LET'S SAY TO A HIGHWAY, YOU MIGHT CONSIDER THAT, BUT IF IT'S HOUSING OR SOMETHING, YOU'D SAY, WELL, YOU'RE GOING TO PUT HOUSING NEXT TO THE SEWER PLANT A MILE FROM TOWN.

WHAT'S THE LOGIC OF THAT? SO LAFCO, YOU COULDN'T SAY, YEAH, THE LAW WOULDN'T SAY IF YOU CHANGE THE DESIGNATION TO INDUSTRIAL WILL APPROVE IT, AND IF YOU HAVE IT, RESIDENTIAL WILL DENY IT.

BUT THE CITY COULD COME BACK AND SAY, OKAY, WE'RE GOING TO WE'LL SWITCH IT TO SOMETHING THAT MAKES SENSE. RIGHT, BECAUSE I IN REFERENCE TO THE CITY OF MERCED WITH THE BELLEVUE CORRIDOR, THAT THEY TO INCORPORATE THE UC SO THAT COULD BE ALL CONTIGUOUS THEN BUILDING OUT FROM THOSE CORRIDOR.

IT COULD IN EITHER DIRECTION. IT COULD BE, EXCEPT FOR THAT ONE TOOK SPECIAL LEGISLATION.

SO LET ME SEE WHO'S NEXT. I'VE GOT LOS BANOS.

WELL LET ME I'LL JUST GO TO THAT AND WE'LL GO BACK TO LOS BANOS.

SO, THE LAW ABOUT CONTIGUOUS ANNEXATIONS IS STATEWIDE.

SO, FOR UC MERCED, WHICH IS TO THE NORTHEAST HERE, THE UPPER RIGHT SIDE, IT WAS TWO MILES FROM THE CITY LIMITS.

AND EVEN THOUGH THE CAMPUS HAS BEEN AROUND 20 YEARS, IT COULDN'T BE ANNEXED BECAUSE IT WASN'T CONTIGUOUS AND IT WASN'T A CITY PUBLIC FACILITY.

IT WASN'T LIKE A SEWER PLANT. IT'S A, YOU KNOW, UNIVERSITY CAMPUS WITH HOUSING AND CLASSROOMS AND, YOU KNOW, THEIR OWN ALL KINDS OF FACILITIES. SO THAT WAS ADAM GRAY GOT THAT LEGISLATION PASSED TO ALLOW ANNEXATION OF THE UC MERCED CAMPUS SPECIFICALLY. AND THEN IT ACTUALLY HAD SOME PROVISIONS IN IT.

ONE IS THAT YOU HAD TO CONNECT IT TO THE CITY DOWN A DOWN A STREET RIGHT AWAY.

YOU COULDN'T JUST HAVE IT AS A TOTALLY DETACHED PIECE OF GROUND.

AND SO IT COULD EITHER BE BELLEVUE ROAD, WHICH IS SHOWN ON THIS MAP, OR LAKE ROAD CAME IN FROM THE SOUTH SO THAT THAT COULD HAVE BEEN CHOSEN BY THE CITY, BUT THEY CHOSE BELLEVUE. IT ALSO THEN ALLOWED LAND CONTIGUOUS TO THE CAMPUS COULD BE ANNEXED.

SO, LIKE YOU'RE SAYING, THE SEWER PLANT ISSUE, YOU TYPICALLY WOULDN'T ANNEX NEXT TO A SEWER PLANT.

SO IN THIS AREA YOU HAVE THIS TWO MILE STRETCH OF BELLEVUE ROAD AND A LOT OF LANDOWNERS ALONG THERE.

AND DEVELOPERS SAID, WELL, I WANT TO ANNEX, YOU KNOW, I'M A MILE FROM THE CITY LIMITS. LET ME ANNEX HALFWAY OVER, WHICH IS GOLF ROAD. AND THE IT WOULD BE IT WOULD BE ALL CONTRARY TO LAFCO LIKE LEAPFROG DEVELOPMENT AND HOPSCOTCH KIND OF PATTERN.

SO THE LEGISLATION, BECAUSE IT HAD TO GET APPROVED BY THE STATE AND THERE'S OTHER LAFCO AND OTHER INTERESTS OUT THERE SAYING, HEY, IF YOU DO THIS LEGISLATION, IT'S GOING TO BE USED BY ORANGE COUNTY OR SACRAMENTO OR WHOEVER ELSE, AND WE DON'T WANT THAT. SO THE LEGISLATION HERE WAS BECAUSE THE CAMPUS IS ISOLATED AND THEY NEED SERVICES, THEY NEED COMMERCIAL DEVELOPMENT, THEY NEED HOUSING.

BESIDES THE VIRGINIA SMITH TRUST PROPERTY TO THE SOUTH THE LAND WEST OF LAKE ROAD THAT'S CONTIGUOUS, JUST TOUCHING THE CAMPUS COULD ALSO BE ANNEXED.

AND THOSE WERE THE ONLY PROPERTIES THAT COULD BE ANNEXED UNDER THIS LAW.

OTHERWISE, EVERYTHING ELSE ON THAT BELLEVIEW CORRIDOR THAT YOU HAVE TO ANNEX FROM WHICH IS G STREET EAST, PARCEL BY PARCEL, LIKE EVERY OTHER CITY YOU HAVE TO USE COMMON SENSE TOO.

YEAH. NOT JUST GO LIKE, LIKE, FOR EXAMPLE, SANTA CLARA COUNTY.

DID YOU KNOW 40 YEARS AGO WHEN THEY JUMPED SAN JOSE FOR 20 MILES OUT OF TOWN IN THAT KIND OF STUFF? SO, CORRECT. YEAH. SO THIS ONE WAS A UNIQUE. THE LAFCO HAVE TO BE A LITTLE A LITTLE CONSERVATIVE, MAYBE, AND NOT JUST PLAY, PLAY THE GAME THAT THE MUNICIPALITIES WANT TO ANNEX CERTAIN PLACES IF THEY THINK THEY WANT TO KEEP THE LINES CONTIGUOUS AND KEEP OPEN SPACE, THEY GOT TO REALLY CONSIDER THAT, TOO.

[00:40:02]

YEAH. IN FACT, THAT WAS IT. IT WAS SAN JOSE AND SANTA CLARA THAT THAT USED TO ANNEX DOWN HIGHWAY 101 AND GO TO, YOU KNOW, GO TOWARDS GILROY. AND JUST EVERY TIME THERE'S AN INTERCHANGE, THEY WOULD ANNEX IT TO PUT A GAS STATION AND HOTEL AND MAKE THAT IN THE CITY LIMITS, NOT HAVE THE COUNTY DO IT. SO, THEY PROHIBITED THAT IN THE STATE LAW.

AND SO, THIS WAS ACTUALLY AN EXCEPTION TO THAT.

ONCE THE PROHIBITION CAME IN, WHICH WAS AROUND FOR DECADES, THIS THE LEGISLATION IS SIMILAR TO THAT PROVIDED AN EXCEPTION IN THAT PART OF THE LAW FOR UC, SPECIFICALLY UC MERCED AND THEN THE CONTIGUOUS LAND.

SO, YOU SEE MERCED CASE. SO, THE SPHERE OF INFLUENCE IS MUCH BIGGER ON THE NORTH AND WITH A LOT OF LAND FOR FUTURE ANNEXATION IN THEIR SPHERE.

AND OF COURSE, THEIR GENERAL PLAN HAS THAT AREA DESIGNATED URBAN.

AND IT'S NOT SO TIGHT IN THE SOUTH. BUT TALKING ABOUT THE UNINCORPORATED ISLANDS, THERE'S NOT TOO MANY IN MERCED EITHER.

SOME OF THEM ARE LIKE UNLIKE IN THE NORTHERN PART, IT'S KIND OF A SOMEWHAT WEALTHIER SINGLE FAMILY HOME AREA BY OLIVE AVENUE. AND ON THE SOUTH YOU'LL SEE FINGERS.

AND THAT'S WHERE THE CITY HAS AND LAFCO HAS APPROVED ANNEXATIONS OF THE VACANT PARCELS AND FARMLAND AND THE DUCTED DISADVANTAGED UNINCORPORATED COMMUNITIES ARE THESE SLIVERS OF LAND THAT ARE OUTSIDE THE BLUE LINE, THEY'RE CONNECTED TO THE COUNTY.

THEY'RE REMAINING IN THE COUNTY. AND SO, THE CITY.

I GUESS JOSH WOULD KNOW THIS THE BEST, BUT THE CITY IS GETTING A LOT OF PRESSURE FROM SPECIAL INTEREST GROUPS AND MINORITY AND DISADVANTAGED COMMUNITY GROUPS TO START ANNEXING SOME OF THOSE AREAS, WHICH YOU GOT CITY POLICE, CITY FIRE ALL AROUND IT, BUT IT'S SERVED BY THE COUNTY.

SO NOT THAT YOU CAN'T HAVE MUTUAL AID, BUT THIS IS ONE OF THE PATTERNS IN HISTORIC GROWTH OF THE WHOLE CENTRAL VALLEY THAT THAT THE STATE IS PUSHING TO ONE OF OUR CRITERIA. NOW, LOOKING AT DISADVANTAGED COMMUNITIES TO STOP HAVING LAFCO'S APPROVE ANNEXATIONS THAT KEEP SURROUNDING AND SEPARATING THE DEVELOPED DISADVANTAGED AREAS AND LEAVING THE PRIME DEVELOPABLE PARCELS FOR CITIES TO CHERRY PICK, SO TO SPEAK. AND MERCED HERE, SO LIKE THAT SOUTHERN PIECE, WHY WOULDN'T THAT BE IN HIS SPHERE OF INFLUENCE ? WHY WOULD YOU LEAVE THAT OUT? YEAH, IT'S REALLY A MISTAKE, A HISTORIC MISTAKE.

OKAY. AND SO, AND WE DON'T USUALLY JUST GO, IT'S ALREADY A CITY OWNED PROPERTY.

IT'S A SEWER PLANT, SO IT SHOULD BE IN THEIR SPHERE.

JUST LIKE, JUST LIKE GUSTINE. YOU KNOW, IT'S A VERY GOOD POINT.

AND THE SPHERE STOPS TO THE NORTH, AND IT'S BEEN THAT WAY FOR A LONG TIME.

SO, WE WILL WE TYPICALLY JUST DON'T DO A SPHERE AMENDMENT FOR SOMETHING LIKE THAT BECAUSE THERE'S NO BENEFIT.

IT DOESN'T. THE CITY DOESN'T. IT'S THEIR PROPERTY.

IT'S FOR SEWER. THEY DON'T NEED ANYTHING FROM LAFCO.

SO WE DON'T BRING IT UP AS A SEPARATE, SPHERE AMENDMENT, BUT WE'LL ADDRESS IT WITH THE CITY.

GENERAL PLAN UPDATE THAT THEY'RE JUST STARTING. SO WHEN THAT'S DONE, WE WILL.

WE WILL DEFINITELY RECOMMEND THE COMMISSION PUT THAT INTO THE SPHERE.

IT WAS JUST IT WAS NEVER CAUGHT BEFORE WITH LAFCO.

AND EVERYTHING WE FOCUSED ON HAS BEEN THE URBAN GROWTH OF THE TOWN.

AND IT ONLY CAME UP WHEN THEY WERE ACTUALLY ADDING LAND FOR MORE SEWER PONDS THAT THEY HAD TO BUY.

AND OH, WE CAN'T ANNEX IT BECAUSE IT'S NOT IN THE SPHERE, WHICH IS A STATE LAW.

SO, THEY JUST THEY OWN THE LAND, BUT THEY DON'T.

IT'S NOT IN THE CITY LIMITS FOR SOME OF THE PONDS.

OKAY. YEAH, GOOD OBSERVATION THERE. OKAY. SO AS A REWARD FOR THAT QUESTION, WE'LL GO BACK TO LOS BANOS.

YEAH. SO, THIS MAP IS A LITTLE BIT HARDER TO READ TOO BECAUSE IT'S AN AERIAL PHOTO.

BUT THE CITY LIMITS ARE GRAY. AND UNFORTUNATELY SOME OF THE FARM GROUND SHOWS UP AS GRAY.

BUT THE BIGGER POINT FOR THIS ONE IS WE HAVE OUR SPHERE OF INFLUENCE FOR THE CITY, WHICH IS THE BLACK LINE.

AND AS YOU CAN SEE, IT'S IF YOU LOOK ON THE WEST SIDE, IT KIND OF JOGS BACK AND FORTH.

NOT TOO FAR PAST THE AIRPORT. THE CITY'S WEST, THE AIRPORT ON THE WEST SIDE.

BUT IN THE CITY'S GENERAL PLANS SINCE 2004, THEY'VE SHOWN A MUCH BIGGER SPHERE.

AND THAT'S THE RED DASHED LINE. SO, IT GOES WAY OUT PAST VOLT ROAD ON THE WEST, WHICH IS SEVERAL MILES.

SO LAFCO APPROVED A MUCH SHORTER BOUNDARY. THE CITY CAME BACK IN 2012 WITH THE GENERAL PLAN UPDATE AND WANTED THIS BIGGER SPHERE AND LAFCO BASICALLY SAID WE DON'T WE DON'T APPROVE THAT. WE'RE STICKING WITH THE CURRENT BOUNDARY.

AND THEN THE CITY WAS TRYING TO NEGOTIATE WITH THE COUNTY ON THAT BOUNDARY.

AND WHEN, AS I MENTIONED EARLIER, IF THE CITY AND COUNTY, THEY'RE SUPPOSED TO TALK AND TRY TO REACH AGREEMENT ON A SPHERE, AND IF THEY DO, THEN LAFCO HAS TO REALLY CONSIDER THAT THAT'S NOT JUST A RUBBER STAMP, BUT TAKE THAT AS A SOLID AGREEMENT AND

[00:45:03]

THEN MAYBE NOT APPROVE IT IF YOU HAD GOOD JUSTIFICATION.

BUT IN THIS CASE, THE CITY AND THE COUNTY DIDN'T REACH AN AGREEMENT.

AND SO, THE LAFCO DIDN'T DENY IT. BUT THEY SAID, GO BACK AND WORK IT OUT WITH THE CITY.

AND SO HERE WE ARE 12 YEARS LATER, AND THE CITY HAS A NEW GENERAL PLAN WITH PRETTY MUCH THAT SAME SPHERE.

AND RIGHT NOW WE'RE DOING A MUNICIPAL SERVICE REVIEW UPDATE, WHICH IS REQUIRED TO UPDATE THE SPHERE.

WE HAVE TO DO AN MSR FIRST. AND SO WE'RE IN THE PROCESS WITH OUR CONSULTANT ON THAT AND THE CONSULTANTS GETTING A LOT OF INFORMATION FROM THE CITY.

YOU KNOW, ON THEIR SERVICES, SEWER, WATER, POLICE, FIRE AND ALL THAT.

AND THEN THE BOUNDARIES. SO LAFCO WILL GET TO CONSIDER THAT IN THE, IN THE NEAR FUTURE.

AND I'LL TALK A LITTLE BIT MORE SPECIFICALLY ABOUT THAT, BUT THAT'S THE RELATIONSHIPS OF LOS BANOS RIGHT NOW IS MORE THE BOUNDARY WITH THE SPHERE AND THE CITY LIMITS. SO, I'LL GO ON TO I JUST SHOWED THAT BOUNDARY AGAIN.

THIS IS SHOWING A TIGHTER SPHERE AROUND THE CITY LIMITS THAN, THAN IN A LOT OF OUR COMMUNITIES AND NOT PICKING ON LOS BANOS, BUT JUST MANY COMMUNITIES. SO NOW IF THERE'S ANY GENERAL QUESTIONS, I, WE COULD TAKE THOSE OR WE KIND OF WENT THROUGH IT AS WE YOU HAD QUESTIONS AS WE WENT, BUT ARE THERE ANY OTHER QUESTIONS OR ANY GENERAL QUESTIONS.

I HAVE ONE, HAS AND I DON'T WANT TO OPEN A CAN OF WORMS ON THIS, BUT, YOU KNOW, YOU GOT THE TWO BIG UNINCORPORATED COMMUNITIES OF THREE OF THEM, HILMAR WINTON AND DELHI.

AND IT SEEMS LIKE THEY WANT TO STAY OUT OF OUT OF INCORPORATION CAUSE THAT HAVE NEVER HAPPENED.

BUT HAS THE COUNTY EVER APPROACHED THEM THAT IT WOULD BEHOOVE THEM TO INCORPORATE, TO TAKE PRESSURE OFF THE COUNTY SERVICES OR THAT KIND OF A MOOT POINT? WELL, I'LL SPEAK FOR MY EXPERIENCE WITH THE COUNTY IS THE COUNTY HASN'T GONE TO THE DISTRICTS TO TRY TO GET THEM TO INITIATE IT.

IT CAN BE A GOOD THING OR A BAD THING, DEPENDING.

BUT COMMUNITIES HAVE BROUGHT IT UP BEFORE AND VERY, VERY RECENTLY HILMAR IS LOOKING AT RIGHT NOW THEIR GOVERNANCE.

BESIDES HAVING A SPECIAL DISTRICT WITH SEWER AND WATER. THE COUNTY APPOINTS A MUNICIPAL ADVISORY COUNCIL.

SO THEY'RE KIND OF LIKE A LOCAL PLANNING COMMISSION.

NOT MAYBE THEY MIGHT THINK THEY'RE MORE LIKE A CITY COUNCIL, BUT THEY'RE THE COUNCIL TO ADVISE THE BOARD.

THEY MIGHT THINK THEY'RE THE BOARD. I DON'T KNOW. SO WE HAVE THOSE IN THE LARGER UNINCORPORATED COMMUNITIES, INCLUDING SANTA NELLA, AND THEY ADVISE THE, THE BOARD ON MANY ISSUES, INCLUDING PLANNING ITEMS THAT THE PLANNING TAKES, SUBDIVISION MAPS AND COMMERCIAL DEVELOPMENT PROJECTS FOR THEIR INPUT.

THEY DON'T HAVE THE AUTHORITY TO APPROVE OR DENY, BUT THEY GIVE THEIR INPUT.

SO OVER THE YEARS THERE HAS BEEN INITIATED MORE BY THE DIFFERENT DISTRICTS TO SAY, HEY, WE WOULD LIKE TO BE BECOME A CITY AND LET'S GO STUDY IT NOW.

IT'S A VERY EXPENSIVE PROCESS. IT TAKES THE LOCAL VOTERS TO SUPPORT IT.

AND SO THAT'S PART OF IT IS HOW DO YOU GET THE MONEY RAISED TO, TO FUND AN EFFORT FOR AN UPDATE? SO, IT'S BEEN TALKED ABOUT IN WINTON IN THE PAST.

AND IT'S BEEN TALKED ABOUT IN HILMAR VERY RECENTLY.

DELHI HAS TALKED ABOUT IT WHEN ESPECIALLY IT COMES UP WHEN THE COUNTY DOES COMMUNITY PLANS, WHICH ARE THERE. THAT'S THE GENERAL PLAN FOR THOSE UNDER CORPORATE COMMUNITIES. SO, THERE'S A COMPONENT OF THE MERCED COUNTY GENERAL PLAN. SO, WHEN YOU'RE TALKING ABOUT THAT FUTURE LAND USE AND GROWTH, AND USUALLY THE DEVELOPERS AT THE TABLE, BECAUSE THAT'S WHERE THEY WANT TO BUILD THAT TOPIC WILL ALWAYS COME UP, BUT THE COUNTY HASN'T TRADITIONALLY INITIATED THAT DISCUSSION.

LIKE, YEAH, YOU BECOME A CITY. IT'S MORE LIKE, WHAT ARE THE SERVICES THE COUNTY PROVIDES? SO YEAH, THE SUPERVISORS SHOULD CHIME IN. I WOULD SAY IS IT'S IT SOUNDS REALLY GREAT IN THEORY UNTIL THEY ACTUALLY START TO DIG INTO IT AND REALIZE THAT WHEN YOU DO INCORPORATE ALL THE THINGS THAT COME ALONG WITH THAT, WHEN YOU TALK ABOUT PROVIDING YOUR OWN POLICE SERVICES, YEAH, YOU'RE GOING TO HAVE A MAYOR AND COUNCIL MEMBERS, BUT YOU GOT POLICE SERVICES, FIRE SERVICES THAT YOU THAT THAT IT'S BEING PROVIDED THROUGH THE COUNTY. NOW, THE COUNTY WOULDN'T BE RESPONSIBLE FOR THAT PIECE OF IT, BUT THOSE THINGS ARE NOT CHEAP.

AND SO I'M WONDERING WHETHER THAT, I MEAN, WHETHER THE COUNTY EVER THOUGHT IT WAS TOO MUCH FOR THEM TO HANDLE.

I WOULD THINK THAT IF THERE WAS ONE THAT WAS GOING TO DO IT, IT'D BE HILMAR WOULD BE THE FIRST ONE. THEY SEEM TO BE WELL ORGANIZED OVER THERE, BE HILMAR. THAT'S FINE. YEAH. AND THE, THERE USED TO BE A LOT OF INCORPORATIONS ACROSS THE STATE.

IT WAS A REGULAR OCCURRENCE, ESPECIALLY LIKE IN A RIVERSIDE COUNTY, SANTA CLARA DOWN, DOWN ORANGE COUNTY SAN DIEGO.

BUT THIS BECAUSE OF THE IMPACT TO COUNTIES FROM INCORPORATIONS ON REVENUES.

THE STATE PASSED A LAW ABOUT 20 YEARS AGO FOR REVENUE NEUTRALITY THAT IF YOU'RE GOING TO FORM A CITY,

[00:50:07]

YOU CAN'T BLEED THE COUNTY BY DOING IT. SO YOU HAVE TO WORK WITH THE COUNTY TO SAY, OKAY, THIS IS GOING TO COST, YOU KNOW, IN TAXES, WE NEED $1 MILLION A YEAR.

LET'S JUST USE THAT NUMBER. YOU COULDN'T DETRACT A MILLION FROM THE COUNTY'S REVENUE.

YOU'D HAVE TO LET THE COUNTY STAY WHOLE AND COME UP WITH NEW ASSESSMENT FEES OR OTHER CHARGES TO HELP FUND THE SERVICES AND MAYBE GET SOME COOPERATIVE AGREEMENT WITH THE COUNTY. SO IT'S VERY HARD. IT JUST STOPPED. THERE WAS NO FORMATIONS, NO INCORPORATIONS FOR ABOUT 20 YEARS.

AND MOUNTAIN HOUSE IS THE FIRST ONE. IT JUST HAPPENED LAST YEAR AND IT'S BECAUSE IT WAS A MASTER PLAN COMMUNITY.

MORE HIGH END. IT'S RIGHT AT THE BOTTOM OF THE ALTAMONT PASS.

SO YOU GET THESE COMMUTERS THAT WANT WANT A BIG HOME.

THEY HAVE PARKS AND RECREATION PROGRAMS, AND THEY, THEY, THEY HAVE MONEY.

SO THEY WERE ABLE TO TAX THEMSELVES TO FORM THE CITY AND THEY'RE MORE HIGH END.

YOU'RE NOT TAKING A DOLLAR THAT HAS A LOT OF LOW INCOME PEOPLE.

AND EVEN THOUGH IT'S A BIG COMMUNITY OF 10,000 THEY CAN'T REALLY AFFORD THOSE.

PEOPLE DON'T WANT TO VOTE IN A TAX TO THEMSELVES.

THEY'RE LIKELY TO, YOU KNOW, TO PAY THEIR, THEIR, THEIR, THEIR RENT OR THEIR MORTGAGE.

SO IT'S A 20 YEAR PROCESS. YEAH. IT WAS A LONG.

YEAH, IT TAKES A LONG TIME. AND YEAH, YOU KNOW, LOTS OF MONEY TO HIRE TO DO THE YOU HAVE TO DO A PHYSICAL, A FISCAL FEASIBILITY STUDY. SO, IT'S HARDER NOW THAN IT USED TO BE BECAUSE OF THAT THAT THEY CAN'T TAKE THE REVENUE FROM THE COUNTY WITHOUT MAKING IT BALANCED, UNINCORPORATED. SO, I MEAN, LOOK, FOR EXAMPLE.

MY FATHER GOT MORE SYSTEMATIC KNOWLEDGE. YOU KNOW THAT THERE ARE WHAT WE HAVE TO DO.

OKAY. YEAH. ARE YOU FINISHED WITH THIS PRESENTATION? YEAH. YEAH, I'M DONE WITH THE PRESENTATION. SO.

ANY OTHER COMMENTS OR ABOUT ON THE PRESENTATION QUESTIONS? JOSH? YES. THANK YOU, MR. CHAIR. NOW, I JUST WANT TO SAY THANK YOU. THIS IS VERY HELPFUL.

BECAUSE AS YOU SAW IN IN MERCED, THOSE COUNTY ISLANDS THERE ARE VERY FRUSTRATING TO ME JUST BECAUSE WE PROVIDE THE SERVICES AND THEY DON'T EVEN KNOW THAT THEY'RE ACTUALLY IN THE COUNTY. THEY STILL THINK THEY'RE IN THE CITY BECAUSE THEY TECHNICALLY ARE.

BUT IT'S JUST A FRUSTRATING IT'S A FRUSTRATING THING TO EXPLAIN TO PEOPLE, BUT THIS HAS BEEN VERY HELPFUL.

I APPRECIATE IT. THANK YOU. DO YOU THINK I HAVE A QUESTION FOR YOU, THEN? DO YOU THINK LIKE THE THESE DUCKS THAT ARE THAT ARE SCATTERED AROUND THE SOUTH SIDE IN PLACES.

SOME OF THOSE SOME OF THOSE COMMUNITIES ARE MESSY.

OKAY. YOU KNOW, AND THE COUNTY CODE ENFORCEMENT DOESN'T ALWAYS DO THE BEST JOB IN THE WORLD TO HAVE THEM CLEAN UP THEIR MESSES AND STUFF.

IF THESE WERE IN THE CITY, DO YOU THINK THE CITY HAS MORE TEETH TO FOR THEM TO TIDY UP THEIR AREA AND MAKE IT LOOK BETTER OR NOT? IF THEY, YOU KNOW, WOULD THAT BE ONE OF THE ONE OF THE ADVANTAGES OF, OF PUTTING THEM IN THE CITY? I THINK THAT ONE OF THE ADVANTAGES, ESPECIALLY IN THE SOUTH PART, IS THAT THEY ARE CONSTANTLY TALKING ABOUT HOW THEY DON'T HAVE SIDEWALKS, THEY DON'T HAVE CLEAN WATER BECAUSE THEY'RE ON WELLS AND STUFF.

AND SO THEY WOULD LIKE TO BE HOOKED UP INTO THE CITY'S WATER SYSTEM.

AND I THINK THAT'S THEIR BIGGEST COMPLAINT. IT'S NOT THE NECESSARILY THE OTHER STUFF.

I DO THINK THAT IT WOULD I DON'T NECESSARILY THINK IT'S MORE OF A TEETH THING.

I THINK IT'S MORE OF THEY HAVE THE CAPACITY BECAUSE WHEN YOU'RE LOOKING AT THE COUNTY ITSELF, YOU KNOW, WE COVER A LOT OF AREA. AND SO, IT'S HARD TO GET TO THOSE AREAS, THOSE REALLY SMALL ONES.

SO, I THINK THAT AND THEN EVEN LIKE IN THE NORTH WHERE YOU HAVE THE BLACK RASCAL BY OLIVE AND THEN THE BEAR CREEK, YOU KNOW, THOSE ARE SOME AREAS THAT, YOU KNOW, THEY HAVE SIGNIFICANT WATER ISSUES OUT THERE.

THE BEAR CREEK AREA, NOT SO MUCH, BUT IN THAT SMALLER ONE UP THERE, IT'S A REALLY DIFFICULT BECAUSE THEY HAVE TWO WELLS OUT THERE AND ONLY ONE OF THEM WORKS.

AND SO IF IT GOES DOWN LIKE THAT HAPPENED, I WANT TO SAY LAST MAY.

ONE OF THEIR WELLS WENT DOWN AND THEY DIDN'T HAVE WATER BECAUSE ONE OF THE OTHER, THE WORKING WORLD WENT DOWN AND THEY DIDN'T HAVE ANY WATER, SO THEY HAD TO GET HOOKED UP TO THE CITY. WITH THE FIRE HYDRANT THAT WAS ON CITY AREA, WHICH WITH HOSES AND STUFF LIKE THAT.

SO BECAUSE WE DON'T HAVE THAT CAPACITY. SO AND I MIGHT ADD TO THAT SO THAT, THAT BLACK RASCAL CREEK IS THE NORTHERNMOST ISLAND WHICH IS ON THAT MAP.

ON THE EAST SIDE, THERE'S A BIG ONE TO THE SOUTH, WHICH IS A LOT OF ONE ACRE LOTS THAT ARE ON THEIR OWN WELLS AND SEPTIC, AND THEY PROBABLY DON'T WANT TO ANNEX, BUT THAT THIS AREA IS SMALL LOT.

THEY DON'T MEET STANDARDS FOR SEPTIC, BUT THEY WERE BUILT WHEN THE STANDARD WAS SMALLER.

LAFCO CREATED THAT ISLAND BY LETTING THE CITY ANNEX TO THE EAST.

[00:55:05]

AND I WAS INVOLVED. YOU KNOW, I'VE BEEN TO LAFCO HERE FOR A FEW DECADES.

AND IT WAS A PROMISE BY THE CITY THAT AS WE GROW EAST, WE HAD THE NEED FOR HOUSING FOR THE UC AND ALL THAT.

SO LAFCO SAID, OKAY, WE'LL LET YOU ANNEX THAT.

WE'RE GOING TO CREATE AN ISLAND, BUT YOU'RE GOING TO CLEAN IT UP IN THE FUTURE. SO, THEY THAT ANNEXATION WAS HUGE.

AND ALL THE DEVELOPMENT SOUTH OF UC, I GUESS THE UNIVERSITY COMMUNITY OR THE UNIVERSITY OF VISTA THAT THE MULTI-STORY APARTMENTS FOR STUDENTS AT THE END OF LAKE ROAD AT THE SOUTH END THAT'S THAT WAS ALL ANNEXED AT ONE TIME, AND IT'S PRETTY MUCH ALL BUILT OUT NOW.

SO THE CITY HASN'T COME BACK TO THE NEXT ANNEXATION IN THAT AREA THAT WOULD TRIGGER THIS AGREEMENT THAT WE HAD AS LAFCO WITH IT.

YOU'LL COME BACK AND ADDRESS THIS ISLAND LATER, BUT I HAVEN'T FORGOTTEN, SO I DON'T KNOW HOW LONG I'LL BE AROUND.

BUT THERE'S TALK ABOUT, YOU KNOW, THE CAT, THE CAMPUS PARKWAY TO THE EAST NOW, AND IDEAS OF THE CITY GENERAL PLAN UPDATE, MAYBE MOVING THE CITY LIMITS FURTHER EAST OR EVEN THE HUNT PROPERTY THAT'S NORTH OF YOSEMITE UP THERE THAT LAFCO, WE NEED TO CLEAN THAT ISLAND UP BECAUSE LIKE I SAY, THEY GOT A WATER PROBLEM THERE.

IT'S NOT A LOW INCOME AREA THAT'S GOT CRIME AND ALL THAT.

IT NEEDS GOOD ADEQUATE SERVICES. THERE'S NO REASON FOR IT NOT TO BE IN THE CITY.

AND THE ONLY REASON IT WASN'T IN BEFORE WAS BECAUSE THE PEOPLE LIVING THERE DON'T REALLY WANT TO BE IN THE CITY.

THEY WANT TO STAY IN THE COUNTY. AND IT WOULD HAVE HELD UP THE OTHER ANNEXATION AND THE CITY REALLY NEEDED IT.

SO LAFCO FELT OBLIGED. OKAY, WE'LL CREATE THIS ISLAND, WHICH WE SHOULDN'T.

BUT IT WAS BECAUSE THE PEOPLE WOULD HAVE PROTESTED, AND THEIR VOTES WOULD HAVE STOPPED IT FROM HAPPENING.

SO NOW THAT IT'S A REAL ISLAND, IT'S BELOW 100 ACRES.

YOU CAN ANNEX IT WITHOUT A PROTEST. THEY DON'T GET TO STOP IT.

SO IT'S REALLY BETWEEN THE CITY AND THE COUNTY TO IT COULD HAPPEN ANY DAY THAT THE CITY WOULD INITIATE IT.

AND, YOU KNOW, YOU ALREADY HAVE A REVENUE SHARING AGREEMENT. SO IT WOULD BE IT'S MORE THE BIGGEST ISSUE THERE IS MORE FOR THE CITY TO FIGURE OUT THE SEWER AND THE WATER.

LIKE IF WE ANNEX IT, HOW DO WE PROVIDE THE SERVICE? HOW DO YOU PAY FOR IT? BUT IF THE PEOPLE DIDN'T WANT TO BE IN THE CITY, IT WOULDN'T MATTER, BECAUSE IT WOULD BE UP TO THIS COMMISSION TO APPROVE IT IF THE CITY WANTED TO ANNEX IT.

AND I THINK, TO BE HONEST, I THINK THAT A MAJORITY OF THE PEOPLE OVER THERE NOW WOULD LIKE TO BE IN THE CITY.

SO WHEN YOU SAID THERE'S AN AGREEMENT WITH THE CITY, SO IT'S LIKE TRIGGERS, RIGHT? THAT IF SOMETHING MORE DEVELOPMENT HAPPENS, YOU SIT ON THE EAST SIDE, THEN THEY WOULD HAVE TO MAKE THAT PART OF THE CITY.

YEAH. IT WASN'T AN AGREEMENT BETWEEN THE CITY AND THE COUNTY. IT WAS A LAFCO CONDITION THAT FOR THEM TO.

FOR THEM WE'LL CREATE THIS ISLAND. IT'S AGAINST, IT'S NOT AGAINST THE LAW, BUT THE LAFCO LAW IS TO DISCOURAGE ISLANDS.

AND THEY MAKE IT SPECIAL CONSIDERATIONS FOR LAFCO TO APPROVE THEM.

AND SO, WE APPROVED IT WITH THE IDEA THAT YOU HAD THE NEED FOR THE GROWTH AND TO ACCOMMODATE THE USE.

AND WE SHOULDN'T BE DOING THIS. BUT THE CITY IN THEIR RECORD SAID WE WILL WE'LL COME BACK AND REVISIT THIS FOR ANNEXATION IN THE FUTURE WHEN WE CAN WORK WITH THE LANDOWNERS TO GET THEM TO AGREE OR WHATEVER.

SO, IT'S JUST IT'S SOMETHING THAT HASN'T IT'S MANY YEARS AGO NOW, YOU KNOW, THAT COULD HAVE BEEN 15 YEARS AGO OR SO, BUT THE CITY HASN'T EVER ANNEXED ANYTHING ELSE TO THE EAST YET BECAUSE THEY WENT SO FAR.

THEY WENT TO BASICALLY THE EDGES OF THE SPHERE OF INFLUENCE THERE. SO IT'S IT WOULD BE SOMETHING THAT AND I KNOW THE CITY HAS BEEN WORKING WITH.

I'VE BEEN IN THE MEETINGS TOO, WITH THE CITY STAFF ON SEWER AND WATER ISSUES.

AND SO IT'S, IT'S A MATTER THAT IT WOULDN'T HAVE TO WAIT FOR THE NEXT ANNEXATION.

BUT WE WOULD, YOU KNOW, THE STAFF WOULD BRING IT UP WHEN ANY OTHER ANNEXATION CAME IN.

I KNOW THE CITY HAS APPROVED SOME PRE ANNEXATION PROJECTS OVER ON THE EAST SIDE.

SO THOSE WOULD COME INTO PLAY FOR THIS, THIS AREA.

AND THEY SHOULD, IT SHOULD COME INTO PLAY BECAUSE THAT WAS I WOULDN'T SAY IT WAS AN AGREEMENT.

IT WAS, IT WAS A CONDITION BASICALLY A CONDITION BY LAFCO NOT THE CITY AND THE COUNTY AGREEING, BUT LAFCO SAYING WE SHOULDN'T BE DOING THIS, BUT WITH THE UNDERSTANDING THAT YOU'LL COME BACK AND WE'LL GET RID OF THIS IN THE FUTURE.

WE'LL LET YOU DO IT TEMPORARILY. AND, YOU KNOW, TWO DECADES ON.

BUT, YOU KNOW, AT SOME POINT. AND RIGHT NOW, IT'S MAINLY COST.

I MEAN, THAT'S WHAT THAT'S THE BIG THAT'S THE BIGGEST DRIVER OF THE DISCUSSION.

THANK YOU. ONE OTHER COMMENT TO THAT ON THE COST PIECE IS YES.

THANK YOU, MISTER CHAIR. IS THAT ON SOME OF THESE AREAS CURRENTLY WHEN THEY'RE IN THE COUNTY, THEY QUALIFIED, THEY QUALIFY AS DISADVANTAGED COMMUNITIES, WHICH MAKES THEM AVAILABLE FOR GRANTS TO HELP UPGRADE THEIR WATER SYSTEMS, SEWER SYSTEMS. BUT IF THEY GET ANNEXED INTO THE CITY NOW, THEY DON'T QUALIFY FOR THAT.

NOW THEY'RE NOT. AND SO YOU HAVE AND I MEAN, LISTEN, IS IT FAIR FOR THE CITY TO TAKE ON THAT RESPONSIBILITY OF THE UPGRADES AND ALL THAT? AND SO, THERE'S ALWAYS THAT CHALLENGE OF DO YOU DO IT AS, AS THE COUNTY FIRST SO THAT YOU CAN QUALIFY FOR THE STATE MONEY TO HELP WITH THE UPGRADE? AND I DON'T KNOW, THAT'S GOING TO BE A CHALLENGE LIKE IN THAT CELESTE AREA THAT THAT WE'VE BEEN DEALING WITH.

[01:00:06]

OKAY. GREAT. GREAT POINT. ANYTHING ELSE. THANK YOU, BILL.

WE'RE GOING TO MOVE ON TO B, STATUS UPDATE OF MSRS.

[VI.B. Status update of Municipal Service Reviews (MSRs), which are nearing completion involving: the City of Los Banos; the Resource Conservation Districts MSR Update covering the five RCD headquartered in the County; and an MSR update for the Stevinson Water District for a large annexation proposal.]

OKAY. THIS WILL BE A MUCH QUICKER PRESENTATION.

[INAUDIBLE] YEAH. SO, WE HAVE THREE MSRS UNDERWAY RIGHT NOW.

TWO WITH OUR CONSULTANT ECONOMIC AND PLANNING SYSTEMS WHO'S BEEN INVOLVED IN ALL THE MSRS THAT WE HAVE.

SO THE SIX CITIES AND THEN ALL KINDS OF SPECIAL DISTRICT MSRS.

SO ONE IS THE RESOURCE CONSERVATION DISTRICTS.

THE SLIDE THAT I SHOWED EARLIER, AND THERE'S FIVE OF THEM THAT ARE HEADQUARTERED IN THE COUNTY.

AND THEN ON THE WEST SIDE, THERE'S SOME OVERLAPS FROM NEIGHBORING COUNTIES POZO, SOME SAN BENITO, BUT THEY'RE SMALL LITTLE PIECES, AND FIREBAUGH.

BUT OTHERWISE THE WHAT'S HAPPENED OVER TIME, EAST MERCED HAS BEEN TRADITIONALLY ACTIVE AND ONE OF THEIR MAIN ISSUES IS GOING OR ACTIVITIES GOING AFTER GRANTS FOR DIFFERENT THINGS, WHETHER IT'S HELPING WATER CHANNELS OR DRAINAGES.

WHETHER IT'S FOR FLOOD CONTROL OR VEGETATION HABITAT.

SO THEY'VE BEEN ACTIVE. GRASSLANDS IS ACTIVE.

THEY SUPPORT A LOT OF THE, GRASSLANDS WATER DISTRICT IS UNIQUE BEING A HUNTING AND DUCK CLUB.

WETLANDS SUPPORTING DISTRICT VERSUS AND AG IRRIGATION TILLING.

THE GROUND TYPE DISTRICT. SO, THE RESOURCE CONSERVATION DISTRICT THEY CAN GET GRANT MONEY THAT SUPPORTS OTHER GOALS THAT GRASSLANDS HAS.

BUT THE GUSTINE ROMERO, WHICH IS THE BLUE TO THE NORTH AROUND GUSTINE, AND THEN THE LOS BANOS, WHICH IS THE HUGE AREA WEST OF LOS BANOS AND TO THE SOUTH, THEY'VE BECOME INACTIVE.

THEY DON'T HAVE ANY. THERE'S NOBODY THAT HAS ANY BOOKS OR PAPERWORK OR FILES, ANYTHING FOR THOSE ANYMORE.

SO AND THEN THE SAN LUIS, WHICH IS DOWN OVER THERE BY THE DOS PALOS AREA, IT'S A YELLOW AREA, KIND OF IN THE CENTER, THE SOUTH CENTER. THEY'RE SOMEWHAT ACTIVE, BUT THEY, THEY KIND OF OVERLAP WITH THE SAN LUIS OR THERE'S YEAH, SAN LUIS CANAL COMPANY. SO, IT'S KIND OF A SIDE, A SIDE RESPONSIBILITY THAT THEY HAVE.

BUT IT IS A PUBLIC DISTRICT. SO, AS WE'RE DOING THE MSR WE'VE HAD RECENT MEETINGS, SIX POSITIVE MEETINGS WITH KEN AND MICHAEL FROM SAN LUIS AND WITH ITS PA YANG. I THINK SHE'S WITH THE NATIONAL RESOURCE CONSERVATION SERVICE, THE NRCS, AND THE EAST SIDE, EAST MERCED TALKING ABOUT MAYBE DOING CONSOLIDATION LIKE SAN BENITO. THEY HAVE AN RCD THAT COVERS THE WHOLE COUNTY, AND THEY ACTUALLY PARTNER WITH SANTA CRUZ RCD, WHICH IS THAT WHOLE COUNTY. AND WE HAVE THESE THIS FRACTURED, SMALLER BOUNDARY, BUT IT'S HARD TO MANAGE.

THEY DON'T HAVE A BIG BUDGET. SO WE'RE IN THIS MSR NOW.

WE'RE GOING TO START PUTTING A NARRATIVE INTO IT TO SUPPORT AND ENCOURAGE A CONSOLIDATION.

AND ORIGINALLY WE WERE TRYING TO DECIDE, WELL, SHOULD IT BE EAST MERCED WHO'S ACTIVE OR SHOULD IT BE SAN LUIS, OR HOW SHOULD WE DO IT? BUT WHEN WE MET RECENTLY ZACHARY WELLS IS THE GENERAL MANAGER FOR EASTERN SAID THERE WAS A DISCUSSION.

WHY DON'T WE TRY TO MAKE ONE RCD AND POOL OUR RESOURCES AND, AND ACTUALLY THEY CAN HELP SUPPORT ALL THE EFFORTS WITH SIGMA.

THERE'S, THERE'S MONEY THAT RESOURCE CONSERVATION CAN GET, DISTRICTS CAN GET FROM FEDERAL SOURCES OR MAYBE THE STATE THAT OTHER DISTRICTS CAN'T GET.

SO WE'RE GOING TO HAVE THAT A FEW DISCUSSIONS LEADING INTO IT.

AND THEN WE'LL HAVE A DRAFT DOCUMENT THAT WE'LL SHARE WITH ALL THE DISTRICTS.

AND WE HAVE A DRAFT ALREADY. BUT WE'RE GOING TO ADD I'M ACTUALLY WORKING ON ADDING TEXT FOR THIS EFFECT.

SO, IT COULD BE A POSITIVE THING WHERE THE ENERGY THAT ANYBODY SPENDS ON RCDS TAKE ADVANTAGE OF THAT IN A COLLECTIVE WAY, WHERE THEY'LL WORK TOGETHER AND TRY TO TRY TO GET SOMETHING THAT COVERS THE WHOLE COUNTY AND THEN HAVE ABILITY TO GO AFTER MONEY AND RESOURCES THAT THE IRRIGATION DISTRICTS DON'T HAVE, OR THE, THE SIGMA GROUPS. THIS DAY AND AGE, IN THIS DAY AND AGE, WHAT IS THE PURPOSE REAL PURPOSE OF AN RCD? I REMEMBER IN, YOU KNOW, BACK WHEN I WAS YOUNG, I THINK MOST OF THE THINGS THEY DID WAS THEY USED TO HAVE EQUIPMENT TO LET FARMERS USE AND RENT BECAUSE THEY DIDN'T, YOU KNOW, EVERYBODY DIDN'T HAVE A LOT THINGS BACK IN THOSE DAYS.

AND THEY, THEY HAD SOME PIECES OF EQUIPMENT THAT YOU COULD RENT, BUT THEY WEREN'T ALWAYS THE BEST EITHER.

BUT OTHER THAN THAT WHAT? I MEAN, WHAT IS THEIR PURPOSE IN 2025? YEAH. IT SO THEY KIND OF CAME OUT OF THE FEDERAL SOIL CONSERVATION SERVICE AFTER THE DUST BOWL WHEN, YOU KNOW, YOU FARMERS WERE JUST FARMING AND TILLING UP LAND AND NOT PUTTING BACK INTO THE SOIL,

[01:05:03]

YOU KNOW, NOT REPLENISHING IT AND CONTROLLING DUST AND EROSION AND FLOODING AND THINGS LIKE THAT.

SO, THEY BASICALLY HAVE A ROLE TO KIND OF PARTNER WITH OTHER AGENCIES OR GET FUNDING TO, TO HELP SUPPORT YOU KNOW, THE SOIL, GROUNDWATER. I THINK GUSTINE ROMERO GOT LESS ACTIVE BECAUSE THEY CREATED A DRAINAGE DISTRICT, AND THEY TOOK OVER SOME OF THE FUNCTIONS THAT THE RCD WOULD HAVE BEEN DOING SO THEY DIDN'T, THEY WEREN'T AS PROMINENT, BUT IT WOULD BE. IT WOULD BE HELPING WITH MAYBE IT COULD BE INVASIVE SPECIES OF PLANTS THAT COME IN ESPECIALLY LIKE FOR GRASSLANDS, LET'S SAY, OR OTHER RANGELAND, YOU KNOW, BECAUSE THEY WERE ACTIVE IN RANGELAND TOO, NOT JUST IRRIGATED LAND. SO, YOU CAN DEAL WITH THAT GETTING FOR DRAINAGE CHANNELS AND HAVING THOSE CLEANED OR MAINTAINED BETTER, THEY CAN GO FOR GRANTS FOR THAT. THE EAST MERCED HAS GONE AFTER GRANTS THAT HELPED DAIRIES.

THEY DO STUDIES FOR HELPING DEAL WITH, I THINK IT'S EFFLUENT FROM THE DRAINAGE FROM DAIRIES AND LAGOONS, AND TRY TO FIND OUT PROGRAMS OR FUNDING SOURCES TO HELP MINIMIZE THE NITROGEN IMPACTS NITRATE.

YEAH. I WAS JUST WONDERING WHAT HOW THEY WOULD JUSTIFY THEIR PURPOSE TODAY.

OKAY. OKAY. ANOTHER ONE IS ACTUALLY WORKING AT IT IN-HOUSE BECAUSE IT'S SMALLER IS THE STEVENSON WATER DISTRICT, WHICH IS IN PINK ON THIS MAP. THEY WANT TO ANNEX THREE AREAS.

IT'S TO CROSS-HATCHED AREA. SO THE NORTH, THERE'S IT'S KIND OF A DARK GRAY, NORTH OF THE PINK AND THEN EAST IS THE OLD STEVENSON GOLF COURSE AREA NORTH OF 140. AND YOU CAN SEE IT OVERLAPS. THERE'S SOME AREA THAT'S NOT IN THE DISTRICT.

AND THEN PART OF IT'S IN THE GREEN IS THE MERKINE WATER DISTRICT.

AND THEY WOULD HAVE TO DETACH THAT PART FROM THE GREEN.

THEY HAVE TO DETACH IT FROM MERKINE AND THEN ANNEX IT TO STEVENSON.

AND THEN ON THE VERY SOUTHEAST, THE TAIL KIND OF ON THE SOUTHEAST IS ANOTHER AREA THAT'S MOSTLY KIND OF DUCK CLUB WETLAND AREA.

IT'S NOT MOST OF IT'S NOT CULTIVATED AG VERSUS THE OTHER AREAS THAT HAVE A LOT OF TREES.

SO STEVENSON WANTS TO ANNEX THESE AREAS. AND YOU SEE THE TWO ON THE EAST AREN'T TOUCHING THEIR DISTRICTS.

SO THEY WOULD BE FRAGMENTS OF THE DISTRICT REMOVED, BUT THEY'RE ALSO PART OF THE HISTORIC STEPHENSON FAMILY OR THE KELLY FAMILY NOW.

SO, IT'S ALL KIND OF FAMILY ORIENTED IN THE DISTRICT.

AND THEY WORK TOGETHER, BUT THEY, THEY'RE SEPARATE DISTRICTS.

SO MERKINE DOESN'T OPPOSE THEIR BOARD, VOTED TO SUPPORT THE DETACHMENT OF.

IT'S LIKE 422 ACRES BEING DETACHED AND THE OVERALL ANNEXATION IS 3000 ACRES OF THOSE THREE AREAS.

SO BECAUSE IT WAS SUCH A BIG ANNEXATION TO THIS STEPHENSON DISTRICT, WE NEEDED TO DO AN UPDATE OF THE MSR SO WE COULD AMEND THE SPHERE.

THE SMALLER DETACHMENT FROM MERKINE DOESN'T REQUIRE AN MSR UPDATE, SO WE'RE JUST PROCESSING IT AS AN APPLICATION.

SO THIS ONE IS PRETTY MINOR AND LOCAL SERVING.

BUT WE'RE GOING TO SHARE IT WITH THE SIGMA. WE'VE SENT A REFERRAL TO THEM BUT WHEN WE GET THE DOCUMENT COMPLETED IT'S ALMOST READY TO GO.

WE'LL BE SHARING IT WITH THE GROUNDWATER SUB BASIN PARTIES JUST TO SEE IF THERE'S ANY ISSUES THAT THEY HAVE.

AND THEN WE'LL IT'LL BE BROUGHT FOR PUBLIC HEARING BEFORE YOU.

SO, IN THE NEXT SEVERAL MONTHS AND OH, THAT WAS YEAH, THE LAST ONE.

SO, OH I'M SORRY. SO, LOS BANOS WITH THEIR GENERAL PLAN UPDATE THAT THEY'VE COMPLETED A YEAR AGO OR 2023. WE'RE DOING A MUNICIPAL SERVICE REVIEW BECAUSE THEY'RE, AGAIN, ASKING FOR THEIR LARGER SPHERE OF INFLUENCE .

SO, YOU NEED TO HAVE THE MSR UPDATE FOR THAT.

AND IT'S WITH THE ISSUES WITH THE CITY THAT'S TAKEN A WHILE TO GET ALL THE INPUT FROM ALL THE DIFFERENT DEPARTMENTS, BUT THEY HAVE NOW THE CONSULTANTS HAVE RECEIVED ALL THE INFORMATION.

SO, THEY'RE JUST WRAPPING UP AN ADMIN DRAFT FOR MY REVIEW, AND THEN WE'LL SHARE IT AFTER I REVIEW IT.

THEN WE'LL SHARE IT WITH THE CITY FIRST TO MAKE SURE IT'S ACCURATE.

AND THEN WE'LL SEND THAT OUT FOR PUBLIC REVIEW AND BRING IT, BRING IT BEFORE YOU FOR HEARING.

AND AGAIN THE ISSUES IS STAFF JUST AS A PREVIEW WILL STILL BE THE LARGE SPHERE THAT THEY WANT ON THE WEST SIDE, AND THE JUSTIFICATION FOR THAT AND THE NEED FOR IT MORE SO ON THE WEST SIDE THAN ANYWHERE ELSE.

IN THIS MAP, BUT JUST IN THE SOUTH SIDE, PIONEER ROAD, THE CITY'S NEW GENERAL PLAN BRINGS THE SPHERE UP TO LIKE A QUARTER MILE SOUTH OF PIONEER ROAD, WHICH IS WHICH IS A BLACK LINE GOING EAST, WEST AND SOUTH.

SO THE RED DASHED LINE IN THAT AREA WAS THEIR PREVIOUS PROPOSED SPHERE.

BUT NOW THEY'RE GOING TO BRING IT UP TO THAT ASK, YOU KNOW, ASK US TO BRING IT UP TO THAT BLACK LINE.

SO, IT'LL MATCH THERE. SO, IT'S MOSTLY THE WESTERN SIDE THAT'S GOING TO BE IN TERMS OF BOUNDARIES, THAT WILL BE THE ISSUE. OF COURSE, WHEN WE LOOK AT SERVICE DELIVERY AND ALL THAT, THEIR BUDGET. BUT THAT'LL BE THE OTHER ISSUE COMING UP.

[01:10:05]

SO, THAT'S AN UPDATE OF OUR MSRS. THANK YOU. ANY COMMENT ON THAT? ALL RIGHT. NEXT ITEM IS THE INTRODUCTION OF THE FISCAL YEAR 25-26.

[VI.C. Introduction of the FY 2025-26 Budget process]

OKAY. OH, RIGHT. YEAH. SO, WE HAVE OUR BUDGET PROCESS STARTING THE NEXT TWO MEETINGS IN APRIL. WE'LL HAVE THE PROPOSED BUDGET AND THEN MAY WILL HAVE THE FINAL BUDGET HEARING.

AFTER YOU ADOPT THE PROPOSED BUDGET, THEN WE SEND IT OUT TO ALL THE CITIES AND ALL THE SPECIAL DISTRICTS.

WHICH IS A LITTLE INTERESTING. IT'S IN THE STATE LAW TO DO THAT, BUT BECAUSE WE DON'T HAVE SPECIAL DISTRICTS ON OUR LAFCO, THEY DON'T PAY FOR LAFCO OPERATIONS. BUT IN THE LAW, WE HAVE TO SEND IT TO ALL THE THERE'S LIKE 50, 50 ODD, 52 SPECIAL DISTRICTS OR SOMETHING. BUT THE CITIES GET IT.

AND AGAIN, THEY PAY THEIR HALF ALONG WITH THE COUNTY AND WE SEND IT, OF COURSE, TO THE COUNTY.

SO I JUST AS A QUICK UPDATE, OUR BUDGET FOR THE CURRENT FISCAL YEAR WAS 220, ALMOST $223,000.

BY THE END OF FEBRUARY, WE EXPENDED ABOUT 100,000 OR 45%.

AND SO WE DEFINITELY WON'T YOU KNOW, WE'LL PASS 50%, BUT WE WON'T BE MUCH BEYOND THAT.

SO, WE'RE WE ALWAYS HAVE A BIGGER BUDGET FOR COST, BECAUSE WE DON'T WANT TO GO BACK AND TRY TO ASK ALL THE PARTIES FOR MORE MONEY LATER.

SO WE, WE, WE KIND OF HAVE A LARGER BUDGET WITH EXTRA MONEY FOR MUNICIPAL SERVICE REVIEWS OR OUR COUNCIL.

IN CASE, YOU KNOW, SOME ISSUE CAME UP. SO, IT'S PADDED, BUT WE ONLY WE ONLY SPEND WHAT WE USE AND THEN WE ONLY BUILD THE COUNTY AND THE CITIES ACCORDINGLY. SO, AFTER YOU APPROVE THE FINAL BUDGET, THEN WE'RE AT THE END OF THE FISCAL YEAR.

THEN WE BUILD THE CITIES AND THE COUNTY TO PAY FOR THE PRECEDING FISCAL YEAR.

AND WE REALLY DON'T HAVE ANY PROBLEM. EVERYBODY PAYS UP AND WE WORK WITH THE AUDITOR OFFICE, THE COUNTY AUDITOR'S OFFICE TO VERIFY THE AMOUNTS AND THE BILLINGS.

SO, IT WORKS OUT PRETTY WELL. SO, I THINK WE'RE PROBABLY LOOKING AT A VERY SIMILAR BUDGET FOR THE COMING YEAR.

WE WE'RE WRAPPING UP SOME MSRS, BUT WE USUALLY PUT MONEY IN TO DO MORE.

AND WE CAN PRIORITIZE WHERE THE COMMISSION YOU GET TO PRIORITIZE WHAT WE WANT TO DO NEXT.

SO THIS IS MORE OF AN INTRODUCTION FOR OUR NEXT TWO MEETINGS.

SO WE WILL HAVE MEETINGS. WE HAVEN'T HAD ANY THE LAST COUPLE OF MONTHS, BUT WE'RE GOING TO HAVE MEETINGS THE NEXT TWO MONTHS IN A ROW.

SO, APRIL AND MAY, AND THEN. WHAT'S THE APPROVAL DATE? IT HAS TO BE APPROVED BEFORE THE END OF THE FISCAL YEAR, BEFORE.

JUNE 30TH? YEAH. JUNE 30TH. YEAH. SO, WE HAVE, WE HAVE BY TRYING TO ADOPT IT IN MAY, THEN IF THERE'S AN ISSUE OR SOME FEEDBACK WE GET, WE COULD HAVE OUR JUNE. WE COULD USE OUR JUNE MEETING TO CLEAN SOMETHING UP.

ALL RIGHT. SO OKAY. THANK YOU. ITEM D. YEAH, I THINK THE COUNTY EMPLOYEE.

YEAH, WE'RE JUST SAYING THERE'S A YEAH, JUST THERE'S JUST SOMEONE IN THE AUDIENCE.

SO, BUT IF YOU HAVE ANY COMMENTS, GREAT. JUST OBSERVING.

SO, THANK YOU. SURE. YOU SURE? ALL RIGHT. OUR ITEM D,

[VI.D. Status report on the changes and evolution of our professional association: California Association of Local Agency Formation Commissions (CALAFCO).]

STATUS REPORT ON THE CHANGES AND EVOLUTION OF CAL LAFCO.

NOW, FOR THE FOR THE ANYONE THAT WENT TO THE LAST CAL LAFCO ANNUAL CONFERENCE, THERE WAS A LOT OF BAD THINGS HAPPEN THERE. I MEAN, THEY VOTED ON SOMETHING ON AMENDMENT, AND I DON'T THINK THEY DID SOME STUFF CORRECTLY, BUT EXECUTIVE DIRECTOR, I HAVE ONE.

THERE YOU GO. THERE YOU GUYS GO. AND THEY PASSED IT, YOU KNOW, THAT THEY PASSED SOME STUFF THAT MAYBE THEY SHOULDN'T.

AND BILL'S GOING TO EXPLAIN IT ALL. SO, A LOT OF THINGS HAVE HAPPENED IN THE LAST THIS WAS IN SEPTEMBER, RIGHT? YEAH. OCTOBER. OR OCTOBER. AND SINCE THEN, A LOT OF THINGS HAVE HAPPENED IN THE LAST FEW MONTHS WITH CAL LAFCO.

SO, BILL, PLEASE EXPLAIN. OKAY. YEAH. SO, CAL LAFCO, THE CALIFORNIA ASSOCIATION OF LOCAL AGENCY FORMATION COMMISSION HAS BEEN AROUND FOR DECADES. IT WAS CREATED. YEAH, PRETTY MUCH SINCE IT WAS CREATED.

AND IT WAS REALLY STARTED WITH STAFF TRYING TO FIGURE OUT, WELL, WHAT DO WE HOW DO WE IMPLEMENT THIS LAW AND WHAT DO WE DO? AND OH, THERE WE GO. YEAH. BOB HAS OPINIONS THAT HE HAS FREELY SHARES AT THE CAL LAFCO MEETINGS FOR SURE, WHICH IS GREAT. YEAH. OVER A COCKTAIL MAYBE. YEAH.

SO, A LEGAL OPINION ON IT? YEAH. THERE WE GO.

[01:15:03]

YEAH. SO IT'S EVOLVED OVER TIME INTO, YOU KNOW, FULL TIME OPERATION WITH STAFF AND WE HAD THE BENEFIT OF HAVING BILL FOR A LONG TIME. A VERY TALENTED GOOD. A PERSON WHO'S GOOD ABOUT FINDING COLLABORATION AND WORKING TOGETHER AND BRAINSTORMING AND HOW TO HOW TO THINK EVEN JUST REALLY GOOD TO BRING ALL THESE SEPARATE ENTITIES, SPECIAL DISTRICTS, CITIES AND COUNTIES WHO ARE USED TO SQUABBLING AND FIGHTING OVER THINGS TO BRING THEM TOGETHER ON A STATE LEVEL. AND THEN HE HANDED THE TORCH TO PAMELA MILLER, WHO CONTINUED ON FOR, FOR YEARS. AND SO IT WAS A REALLY GOOD PLACE TO GO AND GET TRAINING, GET EDUCATION, GET SUPPORT.

AND THEY WOULD ALSO SUPPORT LEGISLATION, AND IT WOULD HAVE A LEGISLATIVE COMMITTEE.

AND THEN THE BOARD OF DIRECTORS OF CAL LAFCO, WHICH IS MADE UP BY REGIONS.

THERE'S FOUR REGIONS AND THE BOARD WOULD SUPPORT.