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27 RESPONSE TO LAFCO
REPORT (amity Manager finance Director 1[A MEETING DATE: JUNE 5, 2g07 �-z5 .� 13 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: CITY OF TUSTIN RESPONSE TO THE ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION DRAFT MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE STUDY FOR THE CITY OF TUSTIN. SUMMARY City Council authorization is requested for the City of Tustin's comments on the Orange County Local Agency Formation Commission ( LAFCO) Draft Municipal Service Review (MSR) and Sphere of Influence (SOI) Study for the City of Tustin. LAFCO is required to conduct regional studies that evaluate municipal services and identify any future constraints or challenges for the future delivery of these services. These studies are called municipal service reviews and must be updated by LAFCO every 'live (5) years. LAFCO staff has drafted the attached MSR and SOI Study for the City of Tustin's review and comment. The LAFCO Board is tentatively scheduled to consider the MS'R /SOI at their duly 18, 2007, meeting. RECOMMENDATION: That the City Council authorize staff to forward the attached response letter and comments to the Orange County Local Agency Formation Commission. FISCAL IMPACT: There are no fiscal impacts associated with the review of the Drab IVSR /SOI Study. However, there would be fiscal impacts associated with potential - lure annexations or reorganization. These fiscal impacts have not been analyzed and /or determined at this time. BACKGROUND AND DISCUSSION: LAFCO is required to conduct regional studies that evaluate municipal services and identify any future constraints or challenges for the future delivery of these services. These studies are called municipal service reviews and must be updated by LAFCO every five (5) years. The attached MSR provides an overview for the City of Justin and its City Cound Report LAFCO MSR/SOS June 5, 2007 Page 2 sphere of influence that includes the portion of unincorporated Orange County identified as North Tustin. The MSR For Tustin contains nine (g) summary determinations covering growrth and projected population, infrastructure needs and deficiencies, financing opportunities and constraints, economics of service (rate restructuring, cost avoidance opportunities, shared facilities, and evaluation of management effliciencies,) government structure, and local accountability and governance. Although it is stated in the MSG's Executive Summary, that LLA CO stain has not identified any significant issues, at least two significant issues were identified in the body of the report. The two issues include the potential for the County to contract with the City of Tustin for police services in the North Tustin area and the potential identification of a new local sewer service provider for the areas currently served by the Orange County Sanitation District within the North Tustin area. In addition, there is a recommendation that the Tustin sphere of influence be expanded to encompass the entire North Tustin unincorporated area, which includes a ,portion of the City of Orange Sphere of Influence. The only justification provided in the report for this recommendation is that the identity of the unincorporated area is associated with North Tustin and should be considered as one planning area. it was noted in the report that this issue will require additional research with City and County staff and that past annexation attempts were met with resistance by residents of the area. As noted in the j SRISOI, the purpose of the document is to present an overview of the issues, rather than comprehensively analyze service provision, finances, and government structure options. Therefore, additional studies and actions would be required prior to the implementation of any of the recommendations made in the MSG /SOI. City staff has reviewed the Draft MSG /SOI and prepared the attached comments For consideration by the Council and transmittal to LAFCO. Once LAFCO staff has prepared a final draft draft of the MSR/SO], they have offered to make a presentation to the Council to explain the MSR process and the report. The LAFCO Board is tentatively scheduled to consider the MSR/SOI at their July 18, 2007, meeting. Scott Reekstin Elizabeth A. Binsack Senior Planner Community Development Director Attachment: !Draft Response Letter and Comments S: \Cdd \CCReports \L4FC® MSR SCE Comments.doc June 0, 2007 Ms. Joyce Crosthwaite, Executive Officer Local Agency Formation Commission 12 Civic Center Plaza, Room 205 Santa Ana, CA 92701 SUBJECT, MUNICIPAL SERVICE REVIEW/ SPHERE OF INFLUENCE STUDY Gear �Vli s. Crosthwaite: Thank you for transmitting the [Draft Municipal Service Review and Sphere of lnfluence Study (dUIiSR /SOI) for our review. It is our understanding that the LAFCO [Board is tentatively scheduled to consider this �/IiSR /SOl at their July 18, 2007, meeting. The City of Tustin has the following comments regarding the [Draft MSR /SOI. Additional minor comments and revisions are also noted in the attached document. General Comment Prior to making recommendations regarding significant issues such as potential annexations and changes in spheres of influence and the provision of municipal services, ion -depth 'technical and fiscal analyses and ;policy studies should be undertaken. In ,particular, further discussions on these issues should take place with all parties involved, including staff from the Cities of Tustin and Orange, the County of Orange, LAFCO, and the various special districts. General Comment Sources should be provided to support all of the data in the report. Section 1/Page 2 13rd Paracraph The summary indicates that LAFCO staff did not identify any significant issues in the MSR /SOI. However, significant issues were identified. The City of Tustin is better able to respond to the conclusions of the MSR /SOI, once they are summarized in the Executive Summary. Furthermore, there should be some explanation of the nine determinations in th? Fxecutive Summary. Section 2 1Page 7 Please provide a larger size map, such as a fold -out 11" by 17" map which would be more readable. Section 3 /Pa _qes 9 and 10 The MSR /SOI should utilize Orange County Projections 2000. Section 6 1Page 3411st Paragraph A detailed economic, engineering, institutional and legal analysis must be completed first to accurately determine whether service delivery by Tustin would in fact be less costly. For example, an important engineering factor to be considered in such a study is the significant elevation difference between CFOCWD and Tustin's water system service areas. �l Letter to Joyce Crosthwaite Re: iMSR /S ®f June 6, 2007 Page 2 Section 6/Page 36/2" d Para aph The report implies that there would be a cost savings in contracting with Tustin for police services within the North Tustin area. However, there may or may not be an actual cost savings. Additional studies would be needed to determine the desirability of a contract situation and whether there would be any associated cost savings. Section 6 /Pa _qe 39 Xthoug!h the Clty of Tustin does not own, operate, or maintain any sewers, the Public Works Department would work with the Orange County Sanitation District to find a cost effective solution to ensure local sewer service levels aro maintained or improved, and costs are borne by -those receiving the service. Section 7 /G�a _qes 42 and 44 The statement that Tustin's sphere of influence should be expanded is not supported by valid findings. The only justification provided in the report is the statement that the identity of the area is associated with North Tustin. Tease identify evidence that supports application of this justification to the entire unincorporated area. Many of the residents of the area may have a stronger association with the City of Orange. Section 7 /Page 43 if LAFCO chooses to pursue further study of the alternative options concerning the Bast Orange County Water District, the Public Works Department would support the following option listed on page 43, if it can be shown to be cost effective. This option was discussed with the City of Orange and was verbally supported by them. "Dissolution of the 'EOCWD and division of its assets and service responsibiR�es between the cities of Orange and Tustin." ff YOU have any questions regarding our comments, please contact me at (714) b73- 3g31 . Sincerely, Elizabeth A. Binack Director of Community Development cc: William A. Huston, City Manager Scott Jordan, Police Chief Tire Serlet, Director of Public Works Ron Fault, Director of Finance Dana Cgdon, Assistant Director of Community Development Scott Reekstin, Senior Planner SR /annex/MSR SO] letter.doc ZI/ i /� it / © \' -1 City ,of Tustin /—� Orange County Lo(Agmnoy Formation Commission Municipal Service Review &c Sphere mf Influence Study for City nf Tustin (MSR07~XX) Draft S[NEVYARY .............................................. ................... ................ ............. ................... 2 A. BACKGROUND ............................................................................................................................ 2 B. SUMMARY ................................................................................................................................. 2 AGENCYPROFILE .............................................................................................................................. 4 GROWTH &PROJECTED POPULATION ,.~...,._.....~.,....~...~...~~~^~^~.~,..... .................... 9 A. REGIONAL SUMMARY ................................................................................................................ g CT[TRPNEJ8DS & DEFICIENCIES ......................................................... .................. 13 A. SERVICE OVERVIEW ................................................................................................................ l3 B. L\Yy ENFORCEMENT -----'-------.----.----.---.------------l4 C. FIRE AND EMERGENCY MEDICAL SERVICES ........................................................................... l4 D. WATER SERVICE ..................................................................................................................... l8 EL WASTEWATER .......--.--.....—...------.....—.—.--...----...------..2l I. PARKS 6b RECREATION ............................................................................................................ 23 G. ANIMAL CONTROL SERVICES .................................................................................................. 25 H. LIBRARY SERVICES ................................................................................................................. 25 1. SUMMARY ............................................................................................................................... 25 FINANCING OPP0(RTCN JT8E8& C .............. -........ . ............................................ %8 Table ofContents �� U� Orange County Local0gency Formation Commission Nftwicipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07-VO Draft SECTION6: .................................................................................................................. 32 ECG )l: C) NJIE;', OF SE.RVICI . ................I.. ".......... . 1-1. .................................................. ...... -- ............. . 13 A. RATE RESTRUCTURING ........................................................................................................... 33 B. COST AVOIDANCE, SHARED FACILITIES AND MANAGEMENT EFFICIENCIES ......................... 36 SE('-1'-1'ON 7: ............................................................................................................... 40 '(,',:OVE.RN.N-.tlt'.\,I'ST.R.LTCTI-T'R.*F OP'J'JONS ..................................................................................... - 41 A. INTRODUCTION ....................................................................................................................... 41 B. CURRENT CITY SPHERE & OPTIONS ....................................................................................... 42 C. EAST ORANGE COUNTY WATER DISTRICT ............................................................................. 42 C. SPHERE OF INFLUENCE ............................................................................................................ 44 SECTION8: ..... ......................................................................................................... 4`7 LOCAL ACCO UNTABILITY & GOVERNANCE .......................................................................... 48 A. OvERviEw .............................................................................................................................. 48 Table of Contents AF /YR Acre feet per year Orange County Local4gency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -W Draft A40Y -300;z ACRONYMS ALS Advanced Life Support BLS Basic Life Support CCF Hundred cubic feet CIP Capital Improvement Plan (or Program) EDU Equivalent dwelling unit EOCWD East Orange County Water District FY Fiscal Year GSWC Golden State Water Company IRWD Irvine Ranch Water District LAFCO Local Agency Formation Commission MFD Multi- family dwellings MSR Municipal Service Review MWDOC Municipal Water District of Orange County N/A Not available OCFA Orange County Fire Authority OCPL Orange County Public Library OCSD Orange County Sanitation District OCWD Orange County Water District SFD Single family dwelling SFF Structural Fire Fund SOI Sphere of Influence UWMP Urban Water Management Plan ■ ■ County ency Formation Commission J.CiPJI Servicel(evie w &- Sphere of Influence Study for City of Tustin (MSR 07AX) ■ Z.-,;,nge County LoL -. , ricy Formation Commission Nzunicipal Service Review & Sphere of Influence Study for City of Tustin (MSR 0'7AX) Draft In 1997, the State Legislature convened a special commission to study and make recommendations to address California's rapidly accelerating growth. The Commission on Local Governance for the 21St Century focused their energies on ways to empower the already existing County LAFCOs, originally established in 1963. One of the major new responsibilities of LAFCO is to conduct regional studies of municipal services (Municipal Service Reviews, or MSRs) every five years. MSRs are a way to assist agencies and residents by: (1) evaluating existing municipal services, and (2) identifying any future constraints or challenges that may impact service delivery in the future. MSRs are a prerequisite for completion of sphere of influence studies. This MSR addresses the City of Tustin and its sphere of influence (SOI) that includes the portion of unincorporated Orange County known as North Tustin. The MSR report and Sphere of Influence Study, which is a LAFCO document, is not intended to comprehensively analyze service provision, finances and government structure options . but rather to present a "high level" overview of the issues. The nine determinations for the City of Tustin are examined in this report. Staff did not identify any significant issues and, based on its analysis of the City's service provision and sphere of influence, came to the following conclusions: To be Provided Section 1, Executive Summary -2- Orange County LocJ40ency Formation Commission Municipal Service Review & Sphere Of Influence Study for City of Tustin (MSR 07-XX) Draft Orange County Loca4gency Formation Commission .Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07AX) Draft J_e%a`� The CZoldu=st was incorporated in 1927 as a /5a ul al community, making it the ity in Orange County. Significa ' n growth and development began in the 1950s. From 1955 to 19jor areas were annexed to the City: the Irvine Ranch agricultural preserve ww Tustin Ranch and the former. Marine Corps Air Station Tustin that is noLegacy, a master - planned community with residential, commercial, and insses. The City has changed significantly over the past 30 years to include maed communities, regional shopping centers, such as the Tustin Marketplace anustn Auto Center, and industrial centers with international companies. Ricoh Electronics and s-. I"ti .mutts -a9ghe two largest employer.' Regional public transit hubs include the Tustin Metrolink station located near Tustin Legacy and an OCTA transfer pointof the corner of Newport Avenue and First Street. i7ev l �. �rt►"ca ® A Tustin's sphere of influence includes the unincorporated area known as North Tustin, which is bounded by the Cities of Orange and Tustin. This predominantly residential area was also addressed in the Orange/Villa Park/Orange SOI MSR 03 -29 in March 2005. A profile of the City follows, along with a map of the City and the current sphere of influence (see Figure 2.1). ',Tustin Chamber of Commerce, 2006 data Section 2, Agency Profile - q - ■ M Orange County Loca9gency Formation Commission ]Municipal Service Review & Sphere of Influence Study for City of 'Tustin (MSR 07-XX) Draft " CIty ,c)`T 7mst� n��L��."tL2_,l`1ti�L _- - - _ - - - _ - - �c� lrea 300 Centennial Way .Inc® FPO rrated Area Tustin, CA 92780 (sq. mHes)o 11.08 Contact: William Huston, CM Popu atlon Served. Phone: (714) 573 -?s-,6 3v)0 Z?-. Population Served 714 573 -3113 fax Outside of City Websiteo http:/ /www.tustinca.org 0 - - .CC ouncH members 5 , elected at-larqe -_. AC LvCC�u 2t�[ C2L LAC Ci Ravenues Opazr akin C�a,po�a0 Reserves $172,878 $96 048 at Year 24,243 �aoo f�a�nd��o ����e��o $71,070 ���� ®�e�nen� $ Budget: End (err E,l-y1 VLL� ���Ijj @99 @t•04.1 / Contracted Services Provided to Other Agencies - - -- None Contracted Services Provided by Other Agencies Animal Control County of Orange Fire / Emergency Orange County Fire Authority Ambulance Service Doctor's Ambulance Service Law En` nrcement Number of Patrol Units: X, 50%nJn� /I ;k Number of Priority 1 Service Calls 2006: 583 Personnel (Sworn /Non- Sworn): 94 / 50 Fire Protection/ Emergency Orange County Fire Authority Number of Stations: 3 Personnel (Sworn /Support Staff): 30 Number of Incidents 2005: 3r"S -Dv &e* Water Service City of Tustin Number of Connections: '7-,7-,-2 C7 4 Irvine Ranch Water District Number of Connections: 8,367 Wholesale only within City boundaries; retail to portion East Orange County Water District of unincorporated North Tustin Sez :Uon 2, agency 'Pro -THe - 5 - ■ M M Orange County Localocgoncy Formation Commission XIunicip,al Service Review & Sphere of Influence Study for ° City of Tustin (MSR 07 -XX) `A4Nm c.oUN��`.c4'f' Draft Sewer Service Irvine Ranch Water District Number of Connections: 8,367 Orange County Sanitation District Number of Connections: 1.7rz4.2 q Qp Solid Waste FP,4- TnGo l ��J��e° +.r�. 0C.+vber I, 2coo7 Parks and Recreation Number of Public Parks: 13 city owned, 1 regional Acreage (Parks and Open Space): 84.4 city owned Number of Recreation and Community Centers: 5 Animal Control County of Orange Shelter location: Orange Libraries County of Orange Number of Libraries: 1 Additional Services Provided Building and Planning Services: Yes Flood Control: No Storm Drainage: Yes Redevelopment: Yes "E" on the map - should be N for north Section 2, Agency Profile - 6 - U Ell" County Loca gency Fc -- • ation Commission !Wvii:icipal Service Review & Sphe: .4 Influence Study for Cir ::r Tustin (.MSR 07 -XX) Draft Xhiy 200;z Figm -e ZI City ©f7l 'bona " I r � r,'� � . � - � . —'� t �'c. �, r tip• '!s --�, , } °� l l f =j "I' i I �n ''`. r" j•' , 4 *`tL4 t�? 1 t ' r- �_.11I --� � t!7 tI I't-I T. 7. , -�, TUSTI N .. Sactiun ao Agency Profile TLSti't Mir dual Service review Boirda,'y LegElIG s:a.s�c.r 7- ■ N M Orange County oca t 0 Y gency Formation Commission M— unicipal Service Review & Sphere of Influence Study for City of Tustin (MSI; ■ Orange County L.ocaRcgency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -XX) Draft The central portion of Orange County is approaching build -out. The last major developments that will result in significant population growth include the following: Tustin Legacy (former Marine Corps Air Station Tustin); Heritage Fields in Irvine (former Marine Corps Air Station El Toro); and Santiago Hills within the City of Orange. Land use within the Irvine Business Center area is changing from commercial to high density mixed use. Once these developments are completed over the next decade, this portion of the county will experience limited population growth unless land use policies change. The population projections used in the analysis in this MSR are based on data from the Center for Demographic Research at California State University, Fullerton as presented in the annual publication, Orange County Progress Report, 2006. f,nag � 1) W7 7' -2r5��- P� R+2,98&,, the population within the City of Tustin was approximately 76;S9i. As shown in Figure 3.1 below, the City's projected population for the next 25 years is anticipated to grow at a steady rate, with the exception of a large increase between 2006 and 2010 as anticipated residential units within Tustin Legacy are completed and move to the new community. Population growth between 2006 and 2010 is approx ately +,6:5 %, or over A% per year. Section 3, Growth & Projected Population - 9 - ■ ■ M 00 V\ 4 < :,ounty �Loca gency Formation Commission Municipal Service Review & Sphere of bifluence Study for City of Tustin (MSR 07-XX) Draft Figure 3.1 Population Growth Projections for City of Tustin 90,000 85,000 - -- — 80,000 L. i 75,000 - I 70,000 65,000 2006 2010 2015 2020 2025 2030 Year Table 3.1 Population Projections for the Citv of Tustin Population -- 82,470 85,896 88,202 88,798 88,788 18,021 Change 16.5% 4.15% 2.68% 0.670% -0.01% 25.40% The estimated population for th Nor or or at ea was 23,462 in 2003, approximately one -third the po of Tustin. Projected population in 2020 is approximately 25,000 res predominantly single family residential. It is built ou t and moccur through infill and redevelopment. o� 7%i1.s orea- Section 3, Growth & Projected Population -10- ■ Orange County Lc n ,.goy Formation Commission Municipal Service 'Review & Sphere of Influence Study for City of Tustin (MSR 07 -XX) Draft The City of Tustin wiii have significant growth over the next 5 years as Tustin Legacy is deveioped, This WH be foiiowed by moderate growth. The City has considered this growth in its p9ans -for service, SecVon -9, Growth a Pr©jertted Popu adon - 12 - Orange County Loca gency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (NISR 07.Xx) Draft • Orange County Loca gency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -XX) Draft Services addressed in this report are provided by the City, special districts and the County as shown in Table 4.1 below. Table 4.1 City of Tustin Service Providers Provider Service Current Animal Control County of Orange Fire & Paramedic Orange County Fire Authority Library Orange County Public Library - Tustin Branch Library Parks & Recreation City of Tustin Police City of Tustin Solid Waste Federal Disposal Service Water City of Tustin Irvine Ranch Water District Sewer Orange County Sanitation District Irvine Ranch Water District Cg4-p, �neo�-p� Ce,fFec�,V. ZW1, SM7) The City's General Plan establishes levels of service for municipal services and mandates ongoing review of key public services. This helps to ensure orderly City growth and development and that services and facilities will be provided concurrent with need. The City adopts an annual Capital Improvement Program (CIP) that has a seven -year planning horizon to ensure that infrastructure needs are addressed and service levels are maintained or improved. For FY 2006 -2007, over $96 million is budgeted for capital projects, with the majority directed towards public facilities, Section 4, Infrastructure Needs & Deficiencies -13- ■ ■ Orange County ty Loca 9er,. ^. ,�:� rmation Commission Municipal Service Review & S r ::.::.re of Influence Study for --:f Tustin (MSR 07AX) Draft capacity enhancement of transportation facilities, Tustin Legacy facilities, and water storage. The Tustin Police Department is a full- service police force. The Department is divided into 2 divisions, Administrative Services and Community Policing. Community Policing includes North Area, South Area and Special Operations. Special Units include Investigations, Gang, Traffic, Crime Analysis, a SWAT Team (in partnership with Irvine Police), and a Canine Unit. Tustin also supports an Explorer program, Cadet, Reserve Officer, and Volunteer program. Specific department statistics are listed in Table 4.2 below. Table 4.2 Law Enforcement Facilities, Staffing, & Emerge City of Tustin 94 1 583 'F/ice. Call Volume '17riergency MedicaP Services The Orange County Fire Authority (OCFA) provides fire and emergency medical services for the City of Tustin. OCFA's countywide service area is divided into five divisions comprised of eight battalions. The majority of Tustin is located within Division 4, Battalion 3 with a small portion in Division 2. Figure 4.1 depicts the OCFA service area. With 60 fire stations and a service area that includes urban, suburban, rural, and wilderness areas, OCFA is one of the largest regional fire service organizations in California. Front line apparatus (those units staffed for immediate response) includes 57 fire engines, 10 paramedic vans, and 13 trucks. Of the 80 units, 30 are paramedic advanced life support units, 26 are paramedic assessment units and 24 are basic life support units. OCFA resources include helicopters, a hazardous materials response unit, airport crash rescue units at John Wayne Airport, bulldozers, swift water rescue capabilities, and a federally sponsored urban search and rescue task force. Section 4, Infrastructure Needs & Deficiencies -14- Gran e Coup Locaal'R g County gency Formation Comm ission Municipal Service Review & Sphere of Influence Stuffy for City of Tustin (MSR 07 -XX) Draft OCFA's resources are based upon a regional service delivery system, meaning the agency assigns personnel and equipment to emergency incidents without regard to jurisdictional boundaries. The principle benefits of a regional system are reduced costs, improved service and coverage, reduced duplication, cost avoidance, and increased effectiveness.2 Figure 4.1 OCFA Service Area Z Orange County Fire Authority. Overview of Deployment in Orange County. Section 4, Infrastructure Needs & Deficiencies � 0 0 inty LoAgency Formation Co m. Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -XX) AOr�v+k` Draft Fire Stations Fire stations which serve the City of Tustin are listed below in Table 4.3, along with the number of calls for service received by the stations. A discussion of each station's location, labor resources, and equipment follow. Section 4, Infrastructure Needs & Deficiencies -16- ,I� Yosow `'R s:; Ri � 4"µ.m �_ / �'�,w Fs•vF ns;, .. 41* }1 °:A iLL4 gcrzm :t M ,\ Mm� .� —Mft ' BMW I- Ito t �r 1t "lTa•a •IqV , W, v fi( "v U4 / ' L "4 44 V-1 Mt:S }as Fire Stations Fire stations which serve the City of Tustin are listed below in Table 4.3, along with the number of calls for service received by the stations. A discussion of each station's location, labor resources, and equipment follow. Section 4, Infrastructure Needs & Deficiencies -16- Orange Counter LoAgoncy Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07.XX) Draft Table 4o- F0Tz 5'.Zatvcns serva n@ °Ijha j ly �f T "stln Stations YwRh1n the City of mstin and Sphere - Station 21 Tustin - 1241 Irvine Boulevard, Tustin 1,802 Station 37 Tustin - 14901 Red bill Avenue, Tustin 1,616 Station 43 Tustin Ranch - 11490 Pioneer Way, Tustin 416 Station 8 forth Tustin - 10631 Skyline Drive Other Stations - Station 6 Irvine - 3180 Barranca Parkway, Irvine. Station 26 Valencia - 4691 Walnut Avenue, Irvine Santa Ana Station #2 1668 E. Fourth Street, Santa Ana Santa Ana Station #9 F 1320 E. Warner Avenue, Santa Ana Lade'' Station 21 is located arthe corner of Irvine ]Boulevard and Charloma Drive in Tustin. Two engines, one medic van, one patrol and one water tender are assigned to this station. Each shift includes five personnel for three shifts each day. The Chief for Division 4 and the Administrative Captain are located at this station. 1 2 Station 37 is located east of State Route 55 0o the corner of Red Hill Avenue and Edinger Avenue in Tustin. One Paramedic Assessment Engine is assigned to this location. The station is staffed by three personnel for three shifts each day. i`- Station 43 is located west of Toll Road 261 - the corner of Pioneer Way and Pioneer Road in Tustin Ranch. With one Battalion Unit and one Paramedic Assessment truck, the station houses three Battalion Chiefs and three other personnel for three shifts each day. Station 8 is located in North Tustin; fire apparatus includes one engine and one Paramedic Assessment Unit engine. The station is staffed with three personnel per shift. OCFA Station 6 and Station 26 are located in the City of Irvine near Tustin Legacy. The two Santa Ana Fire Department stations are located to the west of the city and could provide backup response if needed. Section 4, Inffrastruclure Needs & Deff cc andes -17- • Orange County Local 1 T;:: - oration Commission :Municipal Service :Review; A' : .::.: <C lzzfluezzce Study for City of Tustin (MSR 07 -XX) Draft The City of Tustin provides retail water service to portions of the City and unincorporated North Tustin. The Irvine Ranch Water District (IRWD) provides water to the newer sections of Tustin, including Tustin Ranch and Tustin Legacy. Other portions of North Tustin are served by the East Orange County Water District (EOCWD)3 and Golden State Water Company (GSWC). A map of the water agency service areas is shown in Figure 4.2. . Figure 4.2, Water Agency Service Areas 3 EOCWD is reviewed in the OrangefVilla Park/0range SOI Municipal Service Review and Sphere of Influence Study, 2005 Section 4, Infrastructure Needs & Deficiencies -18- Orange County Local7gency Formation Commission Municipal Service Review & Spb.ere of .influence Study for City of Tustin (MSR 07 -VO Draft Water Supply Tustin's primary source of water supply is groundwater pumped from the Orange County Groundwater Basin, supplemented with imported water purchased from the Municipal Water District of Orange County (MWDOC)4 and the Metropolitan Water District of Southern California (Metropolitan). The Orange County Groundwater Basin is managed by the Orange County Water District (OCWD)5. Tustin overlies an area within the basin where the groundwater has high nitrate levels. The City's Main Street Water Facility and 17th Street Desalter have treatment facilities to remove nitrates and high concentrations of dissolved solids from the groundwater produced at those facilities. The Main Street Facility has two wells, reverse osmosis and ion exchange treatment plants as well as a water storage reservoir and a booster pump station. The 17�h Street Desalter is a cooperative venture between the City, OCWD, and Metropolitan. Tustin's groundwater production and treatment benefits other groundwater producers as it provides a solution for addressing groundwater quality issues. Whi'Ch (1p? t,)Iq B c h Yeas' The City' a-O�77 eludes $20.8 million for water storage projects, including $16 million for FY 20 for repair and replacement of the Rawlings Reservoir off Foothill Boulevard. The CIP also includes $11.8 million for water production facilities, including $2.1 million for the construction of a new well on land adjacent to SR -55 that was Caltrans surplus land. The CIP lists several projects for the rehabilitation of existing wells, destruction of non - producing wells and construction of new wells. A majority of the projects are identified in the City's 2000 Water Master Plan to help improve and optimize well production. Table 4.4 below summarizes the current and projected water supplies for the City of Tustin: 4 MWDOC is reviewed in the Municipal Water District of Orange County Municipal Service Review and Sphere of Influence Study, 2007 5 OCWD is reviewed in the Orange County Water District Municipal Service Review and Sphere of Influence Study, 2006 Section 4, Infrastructure Needs & Deficiencies -19- 0 Orange County Locallgency Formation Commissiion Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07AX) Draft Table 4.4 star rant and Projected Water Supplies (A_ F/YR - 2006 2010 ""VI5 2020 2025 203o4 City of Tustin Purchased from MWDOC/MWD/EOCWD 6,722 650 630 670 630 590 Treated groundwater 2,330 4,000 4,000 4,000 4,000 4,000 Clear groundwater 2,398 8,220 8,220 8,220 8,220 8,220 production----_------ IRWO Purchased from MWDOC/MWD 2,620 1,955 2,054 2,079 Produced groundwater 1,230 3,190 4,295 4,851 Recycled Water 9,60 1,860 2,560 2,860 East Orange County Water District (totals only: does not reflect totals for SOX area) Purchased from VIWD T 3,064 3,092 3,076 J 3,055 Golden State Water Company (totals only: does not reflect totals for SOI area) Purchased from MWD T7,540 9,522 10,159 9,780 9,513 Sources: Agency Urban Water Management Plans Balancing Supply & Demand The central portion of Orange County is heavily dependent on groundwater from the Orange County Groundwater Basin; imported water is used to augment groundwater supplies and to preserve groundwater resources when additional imported supply is available at lower rates during winter. During those periods, the groundwater producers may elect to participate in Metropolitan's in-lieu program, where they purchase surplus imported water at the groundwater rate instead of pumping. Tustin participates in this -program. IRWD produces recycled water at its Michelson Water Reclamation Plant and provides recycled water within Tustin Ranch and Tustin Legacy. Although recycled water is not available in other parts of the city, the Groundwater Replenishment System being implemented by OCWD and the Orange County Sanitation District (OCSD) will use highly treated wastewater for groundwater recharge, further improving the reliability and yield of the groundwater basin. Section 4, i7nTrastructure Needs & Defidandes - 20 - IN 0 1W Orange County Local agency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 0 -XX) Draft As a member of MWDOC, Tustin participates in some of the conservation programs available including rebates, education and public outreach. IRWD has a comprehensive conservation program, utilizing the programs offered by MWDOC as well as in -house programs. In addition, both Tustin and IRWD are required to prepare an Urban Water Management Plan (California Water Code Section 10610 et seq.) MWDOC member agencies participate in MWDOC's Urban Water Management Plan and they all ultimately are considered in Metropolitans regional Integrated Resource Plan and Urban Water Management Plan. The combined activities of active resource planning and management, along with water use efficiency programs, supports water supply reliability and the long -term balance of water supply and demand. The following Table 4.5 summarizes the potable demand and supply, both current and projected, as reported by the agencies providing retail water `service within Tustin and its sphere. It'll �I8 v I I 0 1 ,2,970 lAl870 The Irvine Ranch Water District (IRWD) and Orange County Sanitation District (OCSD) provide wastewater services within the City of Tustin. Wastewater infrastructure includes collection and sewer main lines, and lift stations. Both agencies operate regional treatment facilities to handle wastewater from their respective sewer service areas. I The wastewater infrastructure within the MSR study area is summarized in Table 4.6 below: Table 4.6 Wastewater Infrastructure Summary Section 4, Infrastructure Needs & Deficiencies -21- Table 4.5 P. .. .. Demand Acre Feet/Year) Existing Existing Agency -' Projected Projected Supply Demand Difference supply Demand Difference 2006 2006 2020 2020 City of Tustin P6 I %-0, e x 1 • • iai'� i�_� _� O It'll �I8 v I I 0 1 ,2,970 lAl870 The Irvine Ranch Water District (IRWD) and Orange County Sanitation District (OCSD) provide wastewater services within the City of Tustin. Wastewater infrastructure includes collection and sewer main lines, and lift stations. Both agencies operate regional treatment facilities to handle wastewater from their respective sewer service areas. I The wastewater infrastructure within the MSR study area is summarized in Table 4.6 below: Table 4.6 Wastewater Infrastructure Summary Section 4, Infrastructure Needs & Deficiencies -21- Orange County �� � � z 'Formation Commission Municipal Service Revie v & Sphere of Influence Study for +City.vf Tustin (MSR 07-X)) Draft 2 Current 20201 Y • ■ flit. s�ti 1 9 I °1 `�A°� Ir�l I�1 � rJ UL f ..•.1v1,1: p l lA. / f ��r�,j IRWD 8,367 18 MGD Michelson VVi2P 1.9 3.6 960 2860 198 MGD (Reclamation OC Sanitation District6 17,742 Plan68 87 148 N/A N /,4 MGD (Treatment Plant No. 2 The sewer collection system within the older portions of Tustin is aging. This area is served by OCSD.7 Currently OCSD operates approximately 175 miles of local sewers in Tustin and the unincorporated area of North Tustin. As noted in the OCSD MSR /SOI study, there are two issues associated with the local collection system in Tustin and North Tustin. First, the ad valorem apportionment which OCSD receives is inadequate to cover the cost of maintaining the local sewers. Second, OCSD is not equipped to maintain small diameter local sewers as the District's equipment is designed for maintaining large diameter trunk and interceptor sewers. Increasing regulatory b— y requirements to avoid sewer system overflows and failures requires that the system by, actively maintained. The City and OCSD should begin discussions to identify a new local sewer service provider for the areas currently served by OCSD. OCSD's CIP includes three projects within this area. The $11.8 million Gisler -Red Hill System Improvements project will increase the Gisler -Red Hill System to provide additional capacity for future flows from Tustin Legacy and other developments in the Cities of Tustin, Orange and Irvine. The project will upgrade approximately 13,200 feet of 18 -inch to 24 -inch pipe with 24 -inch to 36 -inch diameter pipe along Red Hill Avenue in Tustin and Irvine. The $2.4 million Gisler -Red Hill Trunk Sewer Relocation project is to be completed in FY 2006 -2007. This project modifies a portion of the trunk sewer to avoid conflict with a future Caltrans project and provide additional capacity in the College Avenue Pump Station. Figures are for entire service territory. OCSD is reviewed in the Orange County Sanitation District Municipal Service Review and Sphere of Influence Study, May 2007. Section 4, Infrastructure TIZECIs & IDafficiendas -22- 1W LA Orange County LocQ \gency formation Commission Nfit xicipal Service Review & Sphere of Influence Study for City of Tustin (M5R ill -XX) Draft Mo Cd, inA,ea le-, ?t i' ?u5 fah U�t�ne� -rpa Lastly, OCSD has budgeted funds t epare the environmental documentation / associated with the annexation o 55 arcels to the OCSD. The parcels are located in the unincorporated areas of Cowan Heights and Lemon Heights (North Tustin) and Orange Park Acres. The project addresses the remaining developed properties on parcels that have not been annexed to OCSD and are presently on septic tanks. These properties are anticipated to connect directly to a public sewer by 2015; however it has not been determined who the local sewer service provider will be. Wastewater infrastructure needs in portions of the City will become increasingly critical due to the following: an aging sewer collection system, increasing regulatory requirements, inadequate funding, and no mechanism to create an adequate revenue stream. At this point the City has no plans to provide local sewer service to those areas currently served by OCSD; however the desire of OCSD to focus exclusively on regional collection/ treatment and the lack of adequate and flexible funding is a significant issue. Parks and recreation facilities within the study area range from regional parks to local public parks, trails, bikeways and golf courses. The provision of park and recreation facilities is addressed in the City of Tustin General Plan. Table 4.7 summarizes existing and proposed public parks within the study area. Table 4.7 Public Park Facilities Acreage Peters Canyon Regional Parka (County of Orange) 354 Sports Park 20 Camino Real 4.3 Centennial 8,0 Columbus Tustin 13.0 Frontier 4.5 Magnolia Tree 4.2 8 A portion of Peters Canyon Regional Park lies within the City's boundary. Section 4, Infrastructure Needs & Deficiencies -23- Orange Coup Loom 9 County r�ency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07AX) Draft 7c'-mbla 4.7 Publlz Pa_Fr-1,K Saz! U&_ Acreagaa McFadden- Pasadena 0.4 Peppertree 5.1 Pine Tree 4.2 Clifton Miller Community Center 0.10 Tustin Area Senior Center 0.40 Laurel Glen Park 3.0 Cedar Grove 9.7 Heritage Way Park 5.0 Tustin Family Youth Center Cultural Park 0.53 17.0 Neighborhood Park 3.0 Tustin Legacy Neighborhood Parks 10.0 Tustin Legacy Community Park 24.1 MCAS Tustin Regional Park Count of Orange) 84.5 In addition, there is one privately owned golf course within the study area, Tustin Ranch Golf Club, which is open to the public. Trails and bikeways are an important component of recreational programs, and their value to the community increases significantly when they provide linkages to other local and regional facilities. The City has developed a master plan for completing the existing system of bikeways in the City by completing missing links, identifying constraints within the system for future bikeway infrastructure. The completed system will connect with existing trails in unincorporated area near Peters Canyon Mash. Several private recreational facilities are contained within specific developments within the City, and, as noted in the table, the Tustin Legacy development at former MCAS Tustin will provide additional recreational opportunities, with both private and public facilities. Section -5, Rnffrassructuro deeds & Deficiencies -24- Orange County Loca0gency Formation Commission Municipal Service .Review & Sp:l -tere of Influence Study for City of'Tustin (MSR 07AX) Draft Growth within Tustin and the surrounding communities will result in increased use of parks and recreational facilities, which will intensify maintenance needs and accelerate the need for some capital improvements and refurbishment. The City of Tustin and the County of Orange are responsible for parks and recreation, establishing improvement projects, and parkland acquisitions (as funding is available) within the MSR study area. The Specific Plans for Tustin Legacy and Tustin Ranch identify park and recreation needs prior to project construction. Land -owner and developers are required to provide appropriate park and recreation facilities and amenities as outlined within the development agreements and/or Specific Plan documents. The Orange County Animal Care Services, a division of the Orange County Health Care Agency, provides animal control services. The shelter is located in Orange. The Orange County Public ,Library manages and operates the Tustin Branch Library, a full- service facility. In addition to overseeing daily library operations, the library provides information programs and services for youth and adults, and has several special collections, including African - American History, Baseball, and Photography. The library is open 63 hours each week, and is open every day. As a result of the growth in Tustin over the past two decades, the Tustin Branch Library is to be expanded to a new larger facility within the downtown area. The City's CIP includes $25 million in FY 2006 -2007 for final design, land acquisition, and construction. Funding is provided through a variety of sources, including the US Navy Economic Development Conveyance, Lennar Community Facilities District, and the Tustin Legacy Partners Community Partners Community Facilities District. The City of Tustin will experience increased demands for services due to population growth. Infrastructure systems and facilities, such as water and wastewater, are aging and require increased maintenance as well as capital investment for rehabilitation and improvements. The City and special districts have planned for these needs through master plans, budgeting and Capital Improvement Programs. New development Sooftoon 4, HnTrastrurturs Tloaadh'I ®effocoendes -25- Orange County Local R � � �ency Formation Commission Municipal Service .review & Sphere of Influence Study for City of Tustin (MSR 07 -XX) Draft shares in the costs for system improvements, and the City and special districts are addressing the needs as funding allows. The City of Tustin is faced with increased service demands and aging infrastructure. Infrastructure needs are addressed through master plans, service plans, budgets, and Capital Improvement Programs. Projects are implemented as funding permits. However a replacement for OCSD as a local sewer service provider should be addressed. Section 4, Infrastructure Needs & Deficiencies -26- Orange County Local's Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR. 07-XX) Draft *tTry 20OF 0 "IC A �14 ■ ■ Orange a Coup Locale County gency Formation Commission Municipal Service Review & Sp:heze of Influence Study for City of Tustin (MSR 07 -XX) DRAFT _Alky 2007 The City of Tustin has experienced increasing revenues over the past five years, with increased property taxes, sales taxes, and the elimination of a State - imposed revenue shift. These positive trends are a factor of a robust economy, which will likely be tempered over the next few years due to increased interest rates and a change in the real estate markets. With Tustin Legacy under active development, the City anticipates increased revenues from sales and property taxes; however this will be accompanied by increased service demands and maintenance and capital costs. For FY 2006 -2007 the City's total budgeted revenue is $172.8 million with $167.1 million in expenses. Of the expenses, $71 million is for operations and $96 million is capital projects. The City's budgeted General Fund Revenues for FY 2006 -2007 are shown below: Figure 5.1 City of Tustin General Fund Revenues (FY 2006 -2007) Section 5, Financing Opportunities & Constraints -28- ■ M C''ranc .`;aunty Localency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07-XX) DRAFT 49" 2007 Motor Vehicle In Lieu 1.4% Franchise Fees 2.9% Property Taxes In Lieu VLF 10.1% Property Taxes 14.9% Licenses /Permits /Fees 5.4% Other 5.3% Reserves 5.2% Interest Income 0.2% Sales Tax 34.4% /Sales Tax Backfill 11.4% Transfers ihrres Fines /For(e 5.6% Recrealion Fees 1.6% 1.7% �D f �R �t ;1 The following table summarizes the last five years of the City's financial history Table 5.1 Cited Tustin's Five -Year Financial Summa_ Revenue: Taxes 24,262,934 27,242,253 27,584,090 ?30 994 2, 672 _ ,889,856 Licenses & permits 500,286 435,504 814,405 1,008,965 2,153,355 Fines & forfeitures 780,929 706,679 978,865 895,816 784,966 Use of money and property 265,392 173,121 182,898 154,663 300,341 Intergovernmental revenue 5,041,147 5,061,729 4,512,119 3,681,174 5,565,464 Charges for current services 1,171,332 1,156,251 1,673,612 1,530,537 2,017,336 Rental income 0 0 71,515 61,060 187,288 Other 1,736,849 1,900,926 2,162,811 2,678,346 2,917,282 7(.tal Revenues X33,7 59,73 59 36,575,46-9 -3 7o9-9- 3c,31. 5 4D,-00 5,? 3 434,905, 388 IS s^�pa n S a So -29- 0 a ■ Orange Coup Local% g � gency Formation Commission Municipal Service review & Sp.h.eare of Influence Study for City of Tustin (MSR 07 -XX) DRAFT General Government 8,764,844 7,300,393 6,781,685 7,262,965 8,093,081 Public Safety 16,860,989 17,423,201 19,665,546 20,951,775 22,697,122 Public Works 6,819,374 7,545,096 7,376,050 7,303,047 7,691,894 Community Services 2,608,775 2,486,079 2,587,325 2,834,472 3,026,890 Distribution to participant 0 2,063,583 0 0 0 Capital outlay 2,304,335 0 1,363,536 915,304 2,417,762 Debt service Principal retirement 13,104 0 0 0 0 Interest and fiscal charges 0 0 0 0 0 ` otal E,-�penses 37,371,421 36,818,352 37,774,142 39,267,563 43,926,749 Total Excess Revenue/Expense ., r 205,173 737,670 sJ79,13 Transfers tun /©apt General Fund) 3,©52,004 1,604,119 2,404,034 362,103 2,913,886 Sale of Propmr y © 0 81,562 65,431 137,442 Total General Funzl Balance �L4 M03, 803 15, 351 X039 19,042,807 0 20,208,011 0 24,243,478 Special Revenue & Governmental Funds Fund Balance 10,766,119 Special Revenue 0 Debt service 13,046,049 0 0 0 0 Capital Projects 34,828,201 0 0 0 0 Expendable Trust 182,345 0 0 0 0 South Central Project Area Capital Projects Fund 0 907,840 566,611 44,883 Other 0 52,694,115 49,054,319 59,747,367 59,598,436 Total Fund Balance, End of Year 73,7 .1,523 69,952,994 68,653 °737 79,c570,D75 81,063,652 The City of Tustin places a high priority on financial stability while maintaining service levels as much as possible. The City has a 15% General Fund operating reserve for cash flow, investment income, and unforeseen contingencies. The City's FY 2006 -2007 General Fund budget increased 3.6% over FY 2005 -2006. Due to fiscal constraints, the FY 2006 -2007 budget does not include any transfers from the General Fund to capital improvement funds. Sec'Mon 15, Financinp ®pp arlmnr Uas & Constraints -30- Orange County Local g ty gency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -)00 DRAFT The City uses proprietary or enterprise funds to account for its Water Utility and Tustin Legacy. Cash and cash equivalents at June 30, 2006 totaled $9.8 million for the Water Utility and $18.5 million for Tustin Legacy. At June 30, 2006 the City had $27.7 million in bonded debt outstanding, including $13.4 million in revenue bonds for water system infrastructure, $14 million for tax allocation bonds, and $330,000 in revenue bonds. The tax allocation bonds bear interest at rates ranging from 3.5% to 5% per annum. The annual requirement for amortization is approximately $1.65 million. The interest rate on the water revenue bonds ranges from 3.7% to 4.65% per annum. The annual requirement for amortization is currently $750,407; this increases to $1.2 million by 2010. The City of Tustin uses long -term debt instruments to leverage its financial resources and capital assets to benefit the City's financial position. The City has the financial resources to maintain service levels and provide for capital needs. Section 5, Financing Opportunities & Constraints -31- Orange County Luca gency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07-30 DRAFT Orange County acal1P t gency FormT-:.',Dn Commission Municipal Service Review & Sp'.-- . _ 7.:Eluence Study .fox City of'}'ustin (MSR 07 -XX) DRAFT May 2007 This section combines the required determinations for rate restructuring, cost avoidance opportunities, shared facilities, and evaluation of management efficiencies. The following section provides an overview of the rate structures in use by the agencies addressed in this service review. In July 2006 the City of Tustin adopted an updated fee schedule covering all city services. Water Service Water utility rates include a meter charge (readiness to serve) and a commodity or usage charge. Most of the agencies providing water service are using a tiered rate structure to encourage water conservation. Current domestic water rates are as follows: Figure 6.1 Retail Water Rate Comparison (5/8 -3/4" meter, 20 ccf) $70.00 - _ $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 City of Tustin Irvine Ranch WD East Orange County Golden State Water . WD (retail) Co. Section 6, Economies of Service -33- 0 Grange County Local0gency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -XX) DRAFT Clearly, the City of Tustin charges a lower fee for water services than EOCWD, and they both obtain their water from the same source(s). This cost difference makes the case for transferring service delivery responsibility for the North Tustin area to the City as a cost - savings measure. In addition, Tustin provides incentives, through lower rates, for water conservation, while EOCWD provides only a flat rate. A thorough examination of the existing infrastructure in North Tustin would be necessary to assess the potential long -term costs to the City if it were to assume water delivery services for the North Tustin area. Since the North Tustin area has, in the past, resisted annexation to the City, service could be provided through an out -of -area- service agreement (OASA). This would ensure that the residents receive the benefits of lower water rates, while also encouraging conservation, and still maintain their right of protest to annexation. An OASA must be approved by LAFCO. Only IRWD is able to provide recycled water at this time. OCSD is constructing facilities to enable the production of recycled water, but that resource is not yet available to Tustin or the sphere area. Wastewater Service Sewer rates within the study area include both flat monthly charges and commodity rates based on water usage. Current monthly sewer rates are as follows: 50 Table 6.3 Monthly Sewer Utility Charge Residential OCSD $13.81 flat fee -0- in Tustin and North Tustin $9.80/0 -500 cf IRWD $11.75/501 -1000 cf $13.05 /over 1000 cf OCSD charges a flat service charge to all of its member agency jurisdictions. In addition, properties within the OCSD service area are assessed an OCSD Sewer User Fee on the annual property tax bill. The rate is currently $165.80 for residential properties. However there is currently no mechanism for OCSD to charge for local sewer maintenance services provided in Tustin and portions of unincorporated North Tustin, OCSD became responsible for this service in 1986 when the County Board of Section 6, Economies of Service -34- t Orange County Local ;agency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (M$R 07 -X)O DRAFT Supervisors dissolved two existing sewer maintenance districts in the Tustin area, transferring service responsibility from the County to OCSD. As noted in the OCSD MSR Study, the current funding mechanisms for OCSD do not provide for the collection of user fees for the maintenance of local sewers (estimated at $15 per month per EDL). In FY 2005 -2006, OCSD spent $1,215,707 in contractual expenses, salaries and overhead to operate and maintain the local sewers in the northern portion of Tustin and the adjacent unincorporated area. The District received net review from the ad valorem apportionment in these areas of $246,000. This means the remainder of the OCSD ratepayers subsidized the local sewer operation in the amount of nearly $1,000,000 for that year. This situation has become more critical in the past year. In May 2006 the State Water Resources Control Board adopted Order 2006 - 003 -SGWDR which establishes stricter requirements for sewer design, repair, monitoring and reporting. These requirements are intended to reduce wastewater spills from sewers. Achieving compliance requires additional staffing and increased costs. Small diameter local sewers require more maintenance, inspection and repair than larger diameter regional sewers as they are more easily blocked by debris and roots. Although local sewers comprise only 30% of the total sewer mileage operated by OCSD, they are responsible for over 95% of historical sewer spills. The ad valorem apportionment received by OCSD provided only about 20% of the required costs for maintenance and nothing for reserves to accomplish needed repairs. If it is the decision of the citizens of Orange County that OCSD is to provide local sewer maintenance service, a local sewer user fee needs to be established to cover the costs. However, OCSD has stated it does not want to continue to own, maintain, and operate local sewers. The City of Tustin and OCSD should work to resolve this situation to ensure adequate, reliable local sewer service with the applicable costs borne by the local sewer users and not the entire OCSD service area. Parks and Recreation Tustin charges user fees for programs and facilities. Fees are structured to cover the cost of the program or facility use. Non - residents may participate at a slightly increased cost. Section 6, Economies of Service -35- Orange County Localpency Formation Commission Munic:i.pal. Service Review & Sphere of Influence Study for City of Tustin (MSR " -XX) DRAFT ..frost A�.,r.." ...ice, Shared Facilities and Management Efficiencies Police Services The City of Tustin provides police services within the City. The General Fund pays for the department's services, and the City Council determines level of service and implementation of service policies. At this time, all resources seem adequate to continue providing a municipal police department in the City. The County and City should explore the potential cost savings of contracting with Tustin for police services within the North Tustin Area. The City's boundaries and ability to provide outstanding law enforcement services make a contract situation desirable. North Tustin is an isolated island, surrounded by Santa Ana, Orange and Tustin, making response times for Orange County Sheriff patrols problematic and potentially longer than those that can be provided by Tustin. While North Tustin is also contiguous with Orange and Santa Ana, other contracting opportunities may lie with these cities. This could also be accomplished through an OASA and could improve response times for local residents. Fire & Emergency Services The Structural Fire Fund (SFF) is an allocation of property taxes levied for the specific purpose of funding county fire protection services. It is based on Government Code Section 25643, which states: "The board of supervisors of a county shall determine each year such sum of money as the board of supervisors deems necessary for fire protection services within the county, excluding therefrom any city or district which is at such time providing fire protection services within such city or district.—the taxes for the costs of county fire protection services shall be levied only upon property within the county served by and benefiting from county fire protection services..." This section of the government code was adopted prior to passage of Proposition 13. Since the passage of Proposition 13 in 1978, the SFF rate that was in effect in 1978 remains at the same ratio to non - structural fire fund tax revenues collected from the different tax rate areas. In Proposition 13's enabling legislation, the legislature provided that the SFF be treated like a "special district" and be entitled to receive a pro rata share of the property tax allocation. The boundaries of the SFF encompass the County unincorporated area and 1 member cities of the OCFA. a Section 6, Economies of Service -36- i County Oran e g Loca gency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -XX) DRAFT The SFF includes 15 cities and the County unincorporated area. The 15 member cities include Aliso Viejo, Cypress, Dana Point, Irvine, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, La Palma, Los Alamitos, Mission Viejo, Rancho Santa Margarita, San Juan Capistrano, Villa Park, and Yorba Linda. Cash contract cities are not within the structural fire fund boundaries. Cash contract cities are not required to commit a specific portion of property tax revenues to fire protection. Rather, cash contract cities are responsible for providing their own fire protection services and pay an annual charge to OCFA. The cash contract cities are Buena Park, Placentia, San Clemente, Seal Beach, Stanton, Tustin, and Westminster. The OCFA Board is considering a study to investigate the financial benefits/ penalties for cities that are either SFF or cash contract. The study's purpose is to equalize the payment structure for each city, eliminating donor cities (cities that pay more than their fair share for service). OCFA charges for plan review and inspections, including development, fire sprinklers and alarms, and architectural structure. It also charges fees for hazardous materials based on the number of chemicals and quantity located on site. In 2002, OCFA's Board of Directors adopted a resolution to adjust fees on July 1 of each year to recover the cost of providing the service. It increased fees 6.61 % in July 2004. The Orange County Health Care Agency has authority over the ambulance service rates charged by OCFA. The County Board of Supervisors, which approves the rates, has directed the Health Care Agency to review rates annually and adjust the maximum Advanced Life Support (ALS) paramedic assessment and transport fee by the same percentage change as the maximum Basic Life Support (BLS) emergency ground ambulance rate for the same period, but not to exceed actual costs for providing ALS services. Per the ambulance ordinance, the BLS ground emergency ambulance rates are established based on the median fees for San Bernardino County, Los Angeles County, and the City of San Diego in effect on January 1 of each year. The current BLS base rate is $601.50.9 The ALS base rate is $920.25 per ambulance transport, of which $318.75 pays for paramedic services, where applicable. Water Service The agencies providing water service share water resources as well as pipeline and treatment capacity. Imported water from the Colorado River and the State Water Project is the primary source of supply from Metropolitan/MWDOC, and the agencies 9 Does not include mileage ($13.75 per mile), oxygen ($68.25 when administered), stand -by charges ($33.50 per fifteen minutes) and expendable medical supplies ($26.75 maximum per response) Section 6, Economies of Service -37- • County Oran e g Local gency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin WSI -?CX� DRAFT -A.Uy 2007 share the Metropolitan Water District's storage, transmission and treatment facilities. The agencies are avoiding the costs associated with developing new water supplies. Groundwater is managed by OCWD in collaboration with the groundwater producers. The East Orange County Water District (EOCWD) provides both wholesale and retail water services. Tustin purchases some water from EOCWD. In previous MSRs, LAFCO staff recommended exploring the reorganization of the District to determine if any efficiencies and economies of scale could be achieved. According to the MWDOC 2007 MSR, the EOCWD conducted an organizational study in 1999 to assess the existing condition of water service within their boundary, review the relationships between water providers and identify organizational possibilities for further study. The agencies included in the study were the Cities of Orange and Tustin, the Irvine Ranch Water District, the Orange Park Acres Mutual Water Company, the Serrano Water District, the Southern California Water Company (a private water company) and the Carpenter Irrigation District (subsequently dissolved as an independent district by LAFCO in 1998 and its service area was included in IRWD district). The 1999 study reviewed a number of reorganization options for the wholesale district. Each option involved dissolution of the district. Wastewater Service The costs associated with wastewater collection, treatment, beneficial reuse, and disposal are controlled through the use of shared system capacity. Full secondary treatment is provided at regional wastewater facilities owned by IRWD and OCSD. OCSD has active water recycling, biosolids management and ocean/ shoreline monitoring programs to meet the needs of its members and the requirements of applicable National Pollutant Discharge Elimination System permits. IRWD has the capacity and ability to cost - effectively manage wastewater services in the Tustin area. OCSD is providing local sewer maintenance service in a portion of Tustin and unincorporated North Tustin. The District is not equipped to maintain small diameter local sewers and must contract with private companies to clean and maintain the local sewers that have been transferred to them. The ad valorem apportionment received from the Tustin /North Tustin area does not cover the costs of service. Because there is no funding mechanism with which OCSD can charge local sewer service fees, the costs to provide this service are subsidized by the remainder of the OCSD ratepayers. In 2005 -06, this subsidy was approximately $1 million. Section 6, Economies of Service -38- Orange County Local ,Tgency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -X DRAFT OCSD and the City of Tustin should work together to find a cost - effective solution to correct this situation so that service levels are maintained or improved, and costs are covered by the local sewer users within a given service area. Animal Control Services The City contracts with the County's Animal Care Services, which is operated through the County Health Care Agency, allowing for resources to be shared within the agency. The City of Tustin has adopted rate structures which cover the cost of service; however funding for local sewer maintenance services provided by OCSD is inadequate. The City shares facilities and resources as appropriate to provide efficient, cost - effective services. Section 6, Economies of Service -39- AMU, Orange County Lo - F. icy Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07-XX) DRAFT "Mo Orange County Local g ty gency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -VO DRAFT A&Y49Lp- GOVERNMENT The nine determinations required of LAFCO in conjunction with this municipal service review include an examination of government structure options. Staff has addressed this determination by preparing a list of all possible government structure options as well as the advantages and disadvantages of each potential option. The purpose is to identify those options that encourage the current and future orderly formation of local government agencies, create logical boundaries, and promote the efficient delivery of services. The MSR report is an informational document that will be used by the LAFCO staff, the Commission, agencies/ organizations, communities, stakeholder working group, and the public to discuss future governance options for the MSR area. Advantages that might accrue from the reorganization of agencies include the simplification of boundaries, improved service delivery, and reduction in costs or fees due to economies of scale. Disadvantages from a change in governmental boundaries can include no actual or limited costs savings (or actual loss in revenue), little improvement in service efficiency, loss of local autonomy, and political opposition. Pursuing reorganization without the support of residents or the governing board typically increases the time and effort involved. The area within the City of Tustin's Sphere of Influence, North Tustin, has repeatedly rebuffed efforts to annex into an adjacent city, making any proposal at this time subject to potential rejection by area residents. LAFCO is not required to implement any of the governmental structure options noted in this report. However, LAFC® must update the agencies' spheres of influence, an action that will be taken concurrently by the Commission with the MSR report. Snnr -Unn 7, Gavernmens Struclu a (OpMen-9 -41- C4Y of Yiusiiii Grange County LocallOggency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -XX) DRAFT The City of Tustin was incorporated in 1927. The City is bounded by the Cities of Irvine and Santa Ana and unincorporated portions of the County of Orange. The city's sphere of influence currently includes portions of unincorporated County land. -f e r Sphere of Influence (North Tustin) a' ` The sphere of influence is bounded by the City of Orange and the City ofd /Tustin. In an earlier MSR, the North Tustin area within the SOI of Tustin was not co�'sidered for annexation into the City of Orange. Past attempts to annex this area Vito the City of Santa Ana and the City of Tustin were met with resistance by resid its. The sphere area is no longer contiguous with the City of Santa Ana, a a small portion of North `Yus in Venue within the City's boundaries separates the sphere from the City of Santa Ana, making the area non - contiguous. The City would have to relinquish that portion o North Tustin Avenue' o create a clean boundary for Santa Ana. s Any annexation of the North Tustin Area is problematic due to the lack of interest from the area's residents. Concerns over zoning and tax rates have been frequent arguments against annexation. There are solutions to these concerns that are reasonably cost - effective for the annexing jurisdiction to implement to ease the concern and fears of the North Tustin Residents. One solution could be to create a zoning overlay to preserve the non -city feel the area residents prefer. Existing regulations regarding kennels, horses, lot size, sidewalks, and street lighting can be grandfathered into any city zoning code. The current sphere extends along Fairhaven Avenue from Tustin Avenue to Newport Avenue. Tustin's sphere of influence should be expanded to include all unincorporated area. Although portions are within the boundaries of the Orange Unified School District, the identity of this area is associated with North Tustin and it should be considered as one planning area. The MWDOC 2007 MSR discussed alternative government structures for the East Orange County Water District. EOCWD conducted an organizational study in 1999 to assess the existing condition of water service within their boundary, review the relationships between water providers and identify organizational possibilities for id LA County L ocal Agency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -XX) DRAFT A&Y 2007 further study. The agencies included in the study were the Cities of Orange and Tustin, the Irvine Ranch Water District, the Orange Park Acres Mutual Water Company, the Serrano Water District, the Southern California Water Company (a private water company) and the Carpenter Irrigation District (subsequently dissolved as an independent district by LAFCO in 1998 and its service area was included in IRWD boundaries). The seven alternative options identified for further exploration in that study included: Formation of a Joint Powers Agency (JPA) to replace EOCWD Development of a joint Powers contract among the EOCWD sub- agencies and subsequent dissolution of the district Dissolution of the EOCWD and division of its assets and service responsibility between the Cities of Orange and Tustin Dissolution of the EOCWD and division of its assets and service responsibility between the Cities of Orange and Tustin and the Southern California Water Company (now Golden State Water Company) Reorganization of EOCWD and Municipal Water District of Orange County ( MWDOC) with MWDOC assuming the assets and responsibility of the EOCWD Dissolution of the EOCWD with MWDOC serving as an interim agency until final disposition of assets is completed ' Privatization of wholesale services. No alternative was singled out for further study at that time. A phase two study of alternatives was recommended but has not been commissioned to date. In addition to the reorganization options identified in the EOCWD study, LAFCO identified the following options: Reorganization with Orange Park Acres Mutual Water Company — although the Orange Park Acres MWC is a mutual water company and not subject to LAFCO review, it participated in the MSR process and had a representative on the stakeholder working group. Recently the Orange Park Acres MWC and IRWD have discussed the possibility of IRWD acquiring the Orange Park Acres MWC. Reorganization with the Irvine Ranch Water District —IRWD is adjacent to the EOCWD and has some facilities located within its territory. Recently IRWD began providing contract services for the Orange Park Acres Mutual Water Company. Section 7, Government Structure Options -43- ® Orange Coup Loca fiY gency Formation Commission Municipal. Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -W DRAFT While the EOCWD is not the subject of this MSR, it is important to note that other agency reorganizations could be considered in any action taken to streamline service delivery in the event of any government structure change within the City of Tustin SOI. Government Code Section 56425 identifies the following factors that should be considered by LAFCO when determining an agency's sphere of influence: 1. The present and planned land uses in the area, including agricultural and open - space lands. 2. The present and probable need for public facilities and services in the area. 3. The present capacity of public facilities and adequacy of public services that the city provides or is authorized to provide. 4. The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. 71P► 15 4OL- as OF Vil07 The City of Tustin provides a full range of municipal servic an area of approximately 11 square miles and a population people. The City directly provides police, water, and parks and recreation services. The City contracts with various service providers for fire, animal control, and solid waste services. Other service providers include the Irvine Ranch Water District (water and sewer), East Orange County Water District (water), Orange County Sanitation District (sewer), Orange County Public Library, and the County of Orange (animal control). The statement of determinations that follows is based on the analysis of the City of Tustin's provision of services which precedes this section of the report. Staff recommends that the Commission reaffirm the City of Tustin's current sphere of influence, as shown in Figure 2.1. One area was noted which will require additional research with city and county staff. This includes the following: The current sphere extends along Fairhaven Avenue from Tustin Avenue to Newport Avenue. Tustin's sphere of influence should be expanded to include all Section 7, Government Structure Options -44- Orange County �C g ty . Local c�ency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07_XX) DRAFT unincorporated area. Although portions are within the boundaries of the Orange Unified School District, the identity of this area is associated with North Tustin and it should be considered as one planning area. &. 00- The City of Tustin's current boundaries include 11.08 square miles d the sphere of influence encompassing unincorporated North Tustin includes square miles. Land d, use within this area is varied and includes residential (single- and multi- family), u� commercial, industrial, public /semi- public, park and recreation, and open space. A ajor reuse program for the former Marine Corps Air Station -Tustin is underway; development includes residential communities, commercial, institutional and park uses. b The unincorporated North Tustin area includes primarily residential land uses with some institutional use for schools and water district facilities. No significant changes to are anticipated. w Vol 1.0 10 �b Population within the City of Tustin is expected to increase 4 Z4� bg28t6, primarily due to development of the former Marine Corps base. Growth tapers off between 26" 2-015 and 2030. The overall increase between 2005 and 2030 is people, or /o. The extension of infrastructure and services will be significant as the former Marie Corps base is developed. ! (P) t 25 V 22-.2 The estimated population for the North Tustin unincorporated area was 23,462 in 2003, approximately one -third the population of the City of Tustin. Projected population in 2020 is approximately 25,000 residents. Minimal growth is anticipated. There will be continued need for public facilities and services in both incorporated and unincorporated areas. In this MSR study, no significant infrastructure or service constraints were identified except for those noted below: Section 7, Government Structure Options -45- Orange County L.ocal7� � ty gency Formation Commission Municipal. Service Review & Sphere of Influence Study for City of Tustin (MSR 07-XX) DRAFT ' North Tustin is an isolated island, surrounded b Santa Ana range, and Tustin, making response times for Orange County Sheriff patrols problematic and potentially longer than those that can be provided by Tustin. There may be service level improvements and a potential cost savings through the County contracting with Tustin for police services within the North Tustin Area. The City's boundaries and ability to provide outstanding law enforcement services make a contract situation desirable. µ Id g %nd, GAte--4 ' Portions of the City of Tustin and unincorporated North Tustin a local sewer collection systems operated and maintained by the Oran e n Sanitation District. Some areas within North Tustin are still o septic systems, but currently have no opportunity to connect to the local sewer system. tough OCSD will be undertaking environmental review of these parcels connecting to the OCSD system, no local sewer service provider has been identified. Funding for local sewer system maintenance and capital needs is inadequate; this condition is expected to worsen with increasingly. stringent regulations regarding local sewer system design, maintenance, and operation. This is a significant infrastructure deficiency for this MSR study area. All of the residences, commercial/ industrial facilities, and institutional uses have a social and economic interest in the activities and services provided by the City of Tustin. In addition, the special districts which provide service within the City of Tustin also have an economic interest in the services provided. The unincorporated North Tustin area benefits from the quality of services provided by the City; in many cases the public is not aware of the differentiation between service providers in incorporated and unincorporated areas. Section 7, Government Structure Options -46- 0 ■ N Orange County Local Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07AX) DRAFT Plja�ggg r� Orange County LocaOlgency Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -VO DRAFT The City of Tustin is a General Law City, governed by a Council- Manager form of government, which consists of an elected City Council and a City Manager appointed by the Council. The Tustin City council is elected at large by popular vote. The following summarizes the governance-and local accountability of the City: Cit3f of Tustin Council Members Lou Bone Title Mayor Term Expiration 200810 Compensation $675 /month Jerry Amante Mayor Pro -Tem 2008 Doug Davert Councilmember 2010 Tony Kawashima Councilmember 2008 Jim Palmer Councilmember 2010 The City Council members are eligible for medical /dental benefits paid for by the City. The City Council also sits as the Redevelopment Agency Board of Directions, and is eligible for a $30 /meeting stipend in addition to their council compensation. The City's governing structure ensures fair and equitable representation in which City Council is responsible for policy making. The City Manager provides policy advice, directs the daily operations of City government, handles personnel functions (including the power to appoint and remove employees) and is responsible for preparing the City budget. 4e.+r 10 The City of Tustin has term limits for council members. Mr. Bone will reachiris term limitsin 2008. U- Mr. i�RWAS�ov►1�. Section 8, Local Accountability and Governance -48- ■ Orange County Local gene Formation Commission Municipal Service Review & Sphere of Influence Study for City of Tustin (MSR 07 -= DRAFT The City's website ( ) offers a wide range of information 1. including meeting notices, agendas and minutes, City services, conservation and education, public documents, and project information. City - Council meetings are held at the City Council Chambers at 300 Centennial Way and they are open and accessible to the public. Council meetings are televised on the local access cable channel. No issues of local accountability and governance were identified. Section 8, Local Accountability and Governance -49-