OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Sacramento LAFCO Meeting - May 16, 2024: Del Paso Manor Water District Dissolution Consideration

Boards and CommissionsThursday, May 16, 2024
BodySacramento County, California
SessionBoards and Commissions
DateThursday, May 16, 2024
StatusFILED
Video Record

STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE

Transcript — Verbatim
0:04

Okay, it is uh 532 and I'll call this meeting of the local agency formation commission to order and um I'm actually going uh and ask the clerk please call the role to establish quorum.

0:17

Commissioner Frost here, Commissioner Jones, here commissioner Carter.

0:23

Here Commissioner Murphy in place for Commissioner Little Little.

0:27

Here Commissioner Kaplan.

0:31

Here, Commissioner Walton.

0:33

Here.

0:33

And Chair Desmond.

0:34

Here.

0:35

You have a quorum.

0:36

Okay.

0:37

Uh well, please will you everybody in the chambers and my colleagues please join me in for the Pledge of Allegiance.

0:48

And to the Republic for which you stand one nation under God, individual with liberty and justice.

0:57

So before we we get started on our agendized item, I am going to read a uh script because we do have um quite a few people in chambers today and others who are I think paying a little more attention to our our meeting today.

1:10

So I'll read an introductory script that I won't read it at every meeting, but I think it's important to read just to remind folks about um LAFCO, what LAFCO does.

1:20

Um I'm the chair of this year.

1:22

Uh the Commissioners of LAFCO are volunteer citizens appointed by the Sacramento County Board of Supervisors.

1:27

Our role is to oversee boundary changes of cities and special districts, the formation of new agencies, including the incorporation of new cities and districts, and the consolidation or reorganization of special districts and or cities.

1:40

The broad goals of the Commission's directive are to ensure the orderly formation of local governmental agencies to preserve agricultural and open space lands and to discourage urban sprawl.

1:52

Commissions must, by law, create municipal service reviews and update spheres of influence for each independent local governmental jurisdiction within their countywide jurisdiction.

2:04

Sacramento LAFCO joins with LAFCOs across the state in working to diligently comply with the new statutes and in doing so accepting more responsibility towards overseeing the orderly provision of local government services.

2:18

Our meetings are always open to the public, and regularly scheduled meetings are shown live on Metro Cable Channel 14, webcast live on the Metro Cable TV website and posted on the county's website.

2:30

Comments are welcome.

2:31

Please complete a speaker slip and return it to the clerk.

2:35

Time will be limited to two minutes per person for public comment just to keep the meeting going and to keep us on on schedule.

2:42

And we ask that you address your comments to the commission rather than uh to each other or others in the audience.

2:48

Um and thank you for for listening or sitting through that.

2:52

Um so now we will move to our first item.

2:56

Uh Mr.

2:57

Chair, let me announce that the you do have a quorum at the recording was on mute at the time, so we do have a quorum for this LAFCO meeting.

3:04

And I will go ahead and read.

3:05

And you don't have to take a roll again.

3:08

I will like to read the announcement.

3:10

Yes, please.

3:11

Okay, this meeting of the local agency formation commission is cable cast live on Metro Cable 14th, the local government affairs channel on Comcast Consolidated Communications and ATT Uverse Cable Systems.

3:22

This meeting is closed captioned and live stream at Metro 14Live.sackCounty.gov.

3:28

Today's meeting replays Friday, May 3rd at 2 p.m.

3:31

on Channel 14.

3:32

This meeting can also be viewed at YouTube.com forward slash Metro Cable 14.

3:38

The Sacramento Local Agency Formation Commission fosters public engagement during the meeting and encourages public participation, civility, and use of courteous language.

3:47

The board does not condone the use of profanity, vulgar language, gestures, or other inappropriate behavior, including personal attacks or threats directed towards any meeting participant.

3:58

Each speaker will be given two minutes to make a public comment and are limited to making one comment per agenda off agenda item.

4:05

Please be mindful of the public comment procedures to avoid being interrupted or disconnected while making your comment.

4:11

To make a comment in person, please fill out a speaker request form and hand it to the clerk's staff.

4:16

The chairperson will open public comments for each agenda off agenda item and direct the clerk to call the name of each speaker.

4:23

When the clerk calls your name, please come to the podium and make your comment.

4:27

If a speaker is unavailable to make a comment prior to the closing of public comments, the speaker waves their request to speak and the clerk will file the speaker request form in the record.

4:36

The clerk will manage the timer and allow each speaker two minutes to make a comment.

4:41

You may send by email at Board Clerk at SACCounty.gov.

4:46

Your comment will be routed to the board and filed in the record.

4:49

If you need an accommodation pursuant to the Americans with Disabilities Act or for medical or other reasons, please see clerk staff for assistance or contact the clerk's office at 916-874-5451 or by email at Board Clerk at SAC County.gov.

5:05

Thank you in advance for your courtesy and understanding of the meeting procedures.

5:09

Okay, thank you, uh Larise.

5:11

And I had assumed that my my written remarks kind of preempted that script, so thank you for uh for uh completing that.

5:18

So now we'll move on to our first agenda item.

5:20

The first item is the public is encouraged to address the commission concerning any matter not on the agenda.

5:25

Public comments are limited to two minutes.

5:28

The commission is prohibited from discussing or taking any action on any item not appearing on the posted agenda.

5:34

We did have a uh email of comment in as well.

5:37

It's been passed out.

5:38

But we have also a gentleman that would like to make a public comment, Mr.

Discussion Breakdown — Share of Meeting
Water Management█████████████████████████████████████████████51%
Public Comment█████████████15%
Procedural█████████10%
Public Safety██████7%
Cemetery Services██████7%
Personnel Matters██2%
Budget and Finance██2%
Governance Options██2%
Public Engagement██2%
Summary of Proceedings

Sacramento Local Agency Formation Commission Meeting - May 16, 2024

The Sacramento Local Agency Formation Commission (LAFCO) met on May 16, 2024, from 5:32 PM to 7:01 PM. The primary agenda item was a public hearing to consider adopting the addendum to the Municipal Service Review (MSR) for the Del Paso Manor Water District (DPMWD) and a resolution of intent to initiate dissolution of the district due to chronic service deficiencies. The Commission also approved the consent calendar and a letter of support for a CalAFCO omnibus bill. All votes were unanimous.

Consent Calendar

  • Items 2–4 were approved unanimously as part of the consent calendar. No items were pulled for separate discussion.

Public Comments & Testimony

  • Dave Ross (DPMWD ratepayer): Requested a 30-day extension for ratepayers and the board to review the 45-page staff report, citing concerns about the impact of dissolution discussions on district employees and the need for adequate time to review facts.
  • Trish Harrington (35-year resident and former board member): Expressed strong support for LAFCO’s action, stating the district cannot survive independently due to high costs and that delays have already been extensive.
  • Gwyn Pratt (DPMWD director and ratepayer): Supported the resolution, noting that any delay would signal cold feet to Sacramento Suburban Water District (SSWD) and jeopardize consolidation opportunities and grant funding.
  • Carl Doak (Vice President of DPMWD Board): Supported the resolution, detailing that infrastructure costs of $52 million for pipes plus $5 million for meters would result in unsustainable rates for a community with a median household income of $86,262.
  • Robert Mattioli (DPMWD director): Requested the matter be tabled so the board could formally meet and review the information, alleging incorrect information about revolving funds and metering requirements.
  • Adam Collyan (General Manager, DPMWD): Reported that Well 4’s motor had been replaced but noted that the casing is 70 years old and could fail. He stated the district cannot meet maximum day demand or residential fire flow without interties with SSWD, and supported the resolution to compel consolidation.

Discussion Items

  • Executive Officer Jose Enrique presented an extensive overview of the DPMWD’s chronic deficiencies, including:
    • 1,800 residential and 11 commercial connections; estimated 2020 population 4,854; median household income $86,262.
    • 21 miles of water lines, 20 miles over 60–70 years old requiring replacement within 20 years.
    • 8 wells, only 3 operational; Well 2 capped, Well 3 contaminated, Well 4 motor failure (repaired), Well 7 at risk from Bridgestone plume, Well 8 contaminated with PCE.
    • No water storage; system throttled to control leaks.
    • Prop 218 rate increase approved covering only $9.2 million of needed short-term capital; total infrastructure needs estimated at $52–57 million (plus $5 million for meters by 2032).
    • Failure to independently meet residential fire flow (relies on interties with SSWD); by 2032 must be independent.
    • Upcoming PFAS remediation mandates will add further costs.
    • High staff turnover (5 general managers in 4 years) and board instability (half the board resigned in 2021, president resigned in 2024).
    • Consolidation with another water district would make DPMWD eligible for up to $100 million in state grants and principal forgiveness funding.
  • Commissioner Discussion:
    • Several commissioners noted that the $52 million+ infrastructure cost, if borne by 1,900 ratepayers, would amount to roughly $30,579 per household, an unsustainable burden.
    • Insurance implications were raised: inability to meet fire flow could lead to cancellation of fire insurance for residents.
    • Commissioners emphasized LAFCO’s fiduciary duty to ratepayers and that the 12-month remediation period in the resolution provides ample time for the district to pursue consolidation or other remedies.
    • A motion was made to adopt the staff recommendation, including clerical cleanup of the resolution and an additional finding regarding fire flow deficiencies and risk of fire insurance loss. The motion was seconded and passed unanimously.

Key Outcomes

  • Unanimous approval (voice vote) of:
    1. CEQA statutory exemption (15061(b)(3)) for the MSR addendum and resolution.
    2. Adoption of the addendum to the Municipal Service Review for DPMWD (LAFCO Project 2022-01).
    3. Resolution of intent to initiate dissolution of Del Paso Manor Water District (LAFCO Project 2024-01), establishing a 12-month remediation period through May 2025, with a required status report to LAFCO in November 2024.
  • The resolution does not dissolve the district immediately; it allows the district to remedy deficiencies or pursue voluntary consolidation with SSWD. If deficiencies are resolved, the Commission may rescind the resolution.
  • Unanimous approval of a letter of support for CalAFCO’s omnibus bill (AB X?) regarding property tax exchange process streamlining.
  • The Commission also discussed future work, including ADA compliance for the LAFCO website and a request to examine cemetery district viability.

Meeting Transcript

Okay, it is uh 532 and I'll call this meeting of the local agency formation commission to order and um I'm actually going uh and ask the clerk please call the role to establish quorum. Commissioner Frost here, Commissioner Jones, here commissioner Carter. Here Commissioner Murphy in place for Commissioner Little Little. Here Commissioner Kaplan. Here, Commissioner Walton. Here. And Chair Desmond. Here. You have a quorum. Okay. Uh well, please will you everybody in the chambers and my colleagues please join me in for the Pledge of Allegiance. And to the Republic for which you stand one nation under God, individual with liberty and justice. So before we we get started on our agendized item, I am going to read a uh script because we do have um quite a few people in chambers today and others who are I think paying a little more attention to our our meeting today. So I'll read an introductory script that I won't read it at every meeting, but I think it's important to read just to remind folks about um LAFCO, what LAFCO does. Um I'm the chair of this year. Uh the Commissioners of LAFCO are volunteer citizens appointed by the Sacramento County Board of Supervisors. Our role is to oversee boundary changes of cities and special districts, the formation of new agencies, including the incorporation of new cities and districts, and the consolidation or reorganization of special districts and or cities. The broad goals of the Commission's directive are to ensure the orderly formation of local governmental agencies to preserve agricultural and open space lands and to discourage urban sprawl. Commissions must, by law, create municipal service reviews and update spheres of influence for each independent local governmental jurisdiction within their countywide jurisdiction. Sacramento LAFCO joins with LAFCOs across the state in working to diligently comply with the new statutes and in doing so accepting more responsibility towards overseeing the orderly provision of local government services. Our meetings are always open to the public, and regularly scheduled meetings are shown live on Metro Cable Channel 14, webcast live on the Metro Cable TV website and posted on the county's website. Comments are welcome. Please complete a speaker slip and return it to the clerk. Time will be limited to two minutes per person for public comment just to keep the meeting going and to keep us on on schedule. And we ask that you address your comments to the commission rather than uh to each other or others in the audience. Um and thank you for for listening or sitting through that. Um so now we will move to our first item. Uh Mr. Chair, let me announce that the you do have a quorum at the recording was on mute at the time, so we do have a quorum for this LAFCO meeting. And I will go ahead and read. And you don't have to take a roll again. I will like to read the announcement. Yes, please. Okay, this meeting of the local agency formation commission is cable cast live on Metro Cable 14th, the local government affairs channel on Comcast Consolidated Communications and ATT Uverse Cable Systems. This meeting is closed captioned and live stream at Metro 14Live.sackCounty.gov. Today's meeting replays Friday, May 3rd at 2 p.m. on Channel 14. This meeting can also be viewed at YouTube.com forward slash Metro Cable 14. The Sacramento Local Agency Formation Commission fosters public engagement during the meeting and encourages public participation, civility, and use of courteous language. The board does not condone the use of profanity, vulgar language, gestures, or other inappropriate behavior, including personal attacks or threats directed towards any meeting participant. Each speaker will be given two minutes to make a public comment and are limited to making one comment per agenda off agenda item. Please be mindful of the public comment procedures to avoid being interrupted or disconnected while making your comment. To make a comment in person, please fill out a speaker request form and hand it to the clerk's staff. The chairperson will open public comments for each agenda off agenda item and direct the clerk to call the name of each speaker. When the clerk calls your name, please come to the podium and make your comment. If a speaker is unavailable to make a comment prior to the closing of public comments, the speaker waves their request to speak and the clerk will file the speaker request form in the record. The clerk will manage the timer and allow each speaker two minutes to make a comment. You may send by email at Board Clerk at SACCounty.gov. Your comment will be routed to the board and filed in the record. If you need an accommodation pursuant to the Americans with Disabilities Act or for medical or other reasons, please see clerk staff for assistance or contact the clerk's office at 916-874-5451 or by email at Board Clerk at SAC County.gov.

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