City of Dos Palos Municipal Service Review - LAFCO Merced

1 Draft Report City of Dos Palos Municipal Service Review Prepared for: Merced County local Agency Formation Commission Prepared by: Economic & Planning Systems, Inc. in association with Berkson Associates October 2017. EPS #151046. Table of Contents 1. INTRODUCTION .. 1 Background and Purpose .. 1 Approach and Methodology .. 2 Reorganization and Service Issues .. 2 Projected Growth and Development .. 3 Fiscal Conditions .. 7 City of Dos Palos Governance .. 7 2. POLICE DEPARTMENT .. 9 3. FIRE DEPARTMENT .. 10 4. STORM DRAINAGE .. 12 5. WATER .. 13 6. SEWER .. 15 7. DETERMINATIONS .. 16 List of Figures Figure 1 City of Dos Palos General Plan 5 Figure 2 City of Dos Palos Sphere of Influence .. 6 Figure 3 Organizational Chart .. 8 1. INTRODUCTION. This Draft Report updates the Municipal Service Review (MSR) prepared for the City of Dos Palos in The MSR presents revised findings and conclusions along with updated research. This MSR addresses the City of Dos Palos and includes the required data and analysis linked to organizational issues facing the City.

2 Dos Palos is located 23 miles south-southwest of Merced and its incorporated city limits encompass square In general, issues involved in this MSR include the City's potential annexation of unincorporated territory into the City, and the City's ability to provide adequate and efficient governmental services for existing and future residents. Background and Purpose In 1997, the State Legislature convened a special commission to study and make recommendations about how to accommodate California's rapidly accelerating growth. The Commission on local Governance for the 21st Century focused on empowering the already existing County LAFCOs governed by the Cortese-Knox local Government Reorganization Act of 1985. The Commission's final report, Growth within Bounds, recommended various changes to local land use laws and LAFCO statutes to allow LAFCOs more influence in shaping California's growth. Assembly Speaker Robert Hertzberg encompassed the recommendations of the Commission in Assembly Bill 2838, which passed into the Cortese-Knox-Hertzberg local Government Reorganization Act of 2000.

3 The law endows LAFCO with both more responsibilities and more influence to direct growth in California. One of LAFCO 's responsibilities requires preparation of Municipal Service reviews (MSRs) prior to or in conjunction with reviews of city and district spheres of influence (SOIs). Government Code Section 56425 directs LAFCOs to Review and update agencies' SOIs, as necessary. Section 56430 requires MSRs to be conducted before or in conjunction with the sphere updates. The local Government Reorganization Act requires that this MSR address the following factors: 1. Growth and population projections for the affected area 2. The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence 3. Present and planned capacity of public facilities, adequacy of public services , and infrastructure needs or deficiencies including needs or deficiencies related to sewers, Municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence 4.

4 Financial ability of agencies to provide services 5. Status of, and opportunities for, shared facilities 1 City of Dos Palos Municipal Service Review , Final Report as Approved by LAFCO March 25, 2010. 2 Dos Palos (City) QuickFacts, United States Bureau. Economic & Planning Systems, Inc. 1 P:\151000s\151046 MercedLafco\Report\Admin Drafts\DosPalos\ City of Dos Palos Municipal Service Review Draft Report October 2017. 6. Accountability for community Service needs, including governmental structure and operational efficiencies 7. Any other matter related to effective Service delivery, as required by commission policy Approach and Methodology Economic & Planning Systems, Inc. (EPS) has been retained by LAFCO to update the MSR for the City of Dos Palos in Merced County. EPS reviewed the various plan documents provided by LAFCO and City staff, the City's current budget, the prior MSR document, and other readily available information to prepare this Report.

5 The Report presents a summary of Service issues and trends, and provides details of each Service in subsequent sections of the report. The seven State-mandated issue areas are reviewed for each Service category examined in the Report and presented in Chapter 7. Reorganization and Service Issues The prior 2010 MSR identified a number of issues. Following is a summary of the current status or resolution of those issues. 1. Land Use Planning The City of Dos Palos General Plan was adopted in 1991, and the Housing Element was updated in 2003, and the City is overdue for submittal of the State Department of Housing and Community Development 5th planning period update. Although the City was considering an update to the General Plan in 2010, it has yet to complete the update due to ongoing financial The current document pinpoints areas identified for future development, which are a combination of areas to the south and west of the Other areas are identified as having development potential; however, the City is focusing on those areas with some development and infrastructure in place, already served with City water and sewer services , rather than predominantly agricultural lands.

6 The outcome of the planning process may influence future Service provision, especially any desire to annex land to the east which was formerly part of Fresno County. 2. Contract Service Provision In April 1988, the City entered into the Water Quality Improvement Joint Powers Agency for the Dos Palos Area for the City provision of potable water supplies to five other agencies and the Wastewater Disposal Joint Powers Agency for the Dos Palos Area for the City provision of sewer Service to three other agencies. In addition to the City, the Water Quality Joint Powers Authority (JPA) involves Merced County, Midway Community services District, North Dos Palos Water District, and South Dos Palos County Water District. The Wastewater Disposal JPA involves the City, the Midway Community services District and the South Dos Palos County Water District. 3. Future Infrastructure Funding Although the City of Dos Palos is currently charging development impact fees (fire, park, police, storm drainage, traffic, wastewater, and water), the fees have not been updated since 1991.

7 The 3 Provided by returned initial data request, May 2017. 4 City of Dos Palos General Plan, 1991. Economic & Planning Systems, Inc. 2 P:\151000s\151046 MercedLafco\Report\Admin Drafts\DosPalos\ City of Dos Palos Municipal Service Review Draft Report October 2017. fees have also not been adjusted for inflation. No update for the fees are in progress, however, studies to increase infrastructure fees may be considered as funding becomes available. In addition to potential development impact fee updates, the City is applying to State and Federal programs to support infrastructure funding. 4. Future Growth The City of Dos Palos experienced the fastest growth rate in Merced County for the 2011 to 2016. time period at based on State Department of Finance data (an increase of 380 people). The second fastest growth rate was in nearby Los Banos which grew by over the same period. The City's current General Plan identifies growth areas to the south and west.

8 Other areas are identified as having development potential; however, the City is focusing on those areas with some development and infrastructure in place, already served with City water and sewer services , rather than predominantly agricultural In 2007, the boundary between Merced and Fresno Counties was modified through the annexation of square miles into Merced County located southeast of the Dos Palos city limits. This area would now qualify for annexation although it is not reflected in the City's current General Plan or sphere of influence. As mentioned in the 2010 MSR, the City should update their General Plan to indicate plans for future growth and annexation given this County boundary change. 5. Sphere of Influence Amendment During the 2017 MSR update effort, it was discovered that the City's 39 acre sewage treatment plant site located west of town on Swift Road was never reflected in the City's sphere of influence or city limit maps by LAFCO , even though it was annexed into the City in 1975.

9 Therefore, following adoption of this MSR Update, the Commission should approve a sphere of influence amendment to include this territory within the sphere as reflected in Figure 2. Projected Growth and Development The City of Dos Palos is responsible for the full range of Municipal services and provides storm drainage services as well as police, fire, and general government services . As mentioned earlier, the City entered into the Water Quality Improvement Joint Powers Agency for the Dos Palos Area for the provision of potable water supplies and the Wastewater Disposal Joint Powers Agency for the Dos Palos Area for the provision of sewer Service to other districts and a portion of unincorporated Merced County east of the City. The City of Dos Palos is located in western Merced County near the Fresno County border along State Route 33. The existing jurisdiction covers approximately 954 acres or square miles. See Figure 1 for the City of Dos Palos General Plan map.

10 The City of Dos Palos ' General Plan encompasses the City and the unincorporated communities of Midway and South Dos The City's Sphere of Influence is shown in Figure 2. 5 City of Dos Palos General Plan, 1991. 6 Storm Drainage Master Plan for the City of Dos Palos , September 2009. Economic & Planning Systems, Inc. 3 P:\151000s\151046 MercedLafco\Report\Admin Drafts\DosPalos\ City of Dos Palos Municipal Service Review Draft Report October 2017. The majority of the land in Dos Palos consists of residential development. The areas identified for future development in the General Plan are primarily in agricultural use to the east and northwest, and contains partially developed and fallow land to the southwest within the boundaries of the Midway Community services District and the South Dos Palos County Water The City of Dos Palos had a population of approximately 5,400 people in January 2017, increasing approximately 1 percent annually from According to MCAG, the City of Dos Palos is projected to have a population of approximately 5,600 by 2020, although annexation of the existing Midway and/or South Dos Palos communities would add more population based on existing In 2060, the City is projected to have a total population of 8,900.