Agenda packet — Lathrop City Council, July 11, 2022 (part 2 of 6)

Prepared by Siegfried
17208 Offsite Estimate- GASB 34 Report
265

CITY OF LATHROP

PROJECT ACCEPTANCE
GASB 34 REPORT)
Date: 06/ 15/ 2022
Submitted by: Phelan Haugen Development Company
Lathrop Gateway Phase 1- Offsite Improvemenis
Based on Improvement and Grading Plans prepared by Siegfried Engineering

ITEM UNIT QUANTITY UNITCOST AMOUNT

DOMESTIC WATER SYSTEM
44 12" WATER- BUSINESS PARK COURT( PVC C900- 16 CLASS 150) LF 2, 308 75. 00 173, 100 45 12" WATER- BUSINESS PARK COURTTO EXISTING WATER TANK( PVC C900- 16 CLASS 150) LF 1, 095 75.00 82, 125 46 12" WATER- EXTEND ON YOSEMITE LF 176 50.00 8, 800
47 12" WATER LATERAL EA 7 5, 000. 00 35, 000
48 3" WATER LATERAL EA 8 2, 000. 00 16, 000
49 2" IRRIGATION LATERAL EA 2 1, 000. 00 2,000
50 2" WATER LATERAL FOR PUMP STATION EA 1 1, 000.00 1, 000 51 WATER BLOW- OFF EA 2 1, 500. 00 3, 000
52 FIRE HYDRANT- BUSINESS PARK COURT( INCLUDES LATERALS AND VALVES) EA 11 5, 500. 00 93,500 53 WATER AIR RELEASE VALVE EA 2 4, 000. 00 8,000
54 FIRE HYDRANT- YOSEMITE AVENUE( INCLUDES LATERALS AND VALVES) EA 2 8, 500. 00 77, 000 55 WATER VALVE EA 7 4, 000. 00 28, 000
56 WATER BENDS EA 12 550. 00 6, 600
DOMESTIC WATER SYSTEM SUBTOTAL $ 474,125

RECYCLED WATER SYSTEM
57 12" RECYCLED WATER- BUSINESS PARK COURT( PVC ANNVA C900- 16 OR LATEST EDITION) LF 2, 526 70. 00 176,820 58 RECYCLED WATER VALVE EA 6 4, 000. 00 24,000
59 RECYCLED WATER BENDS EA 7 550. 00 3,850
60 RECYCLED WATER FIRE HYDRANT- YOSEMITE AVENUE( INCLUDES LATERALS AND VALVES) EA 1 8, 500. 00 8, 500 61 RECYCLED WATER FIRE HYDRANT- BUSINESS PARK COURT( INCLUDES LATERALS AND VALVES) EA 2 8, 500.00 17, 000
62 RECYCLED WATER AIR RELEASE VALVE EA 2 4, 000. 00 5, 000 RECYCLED WATER SYSTEM SUBTOTAL $ 238,170

ELECTRICAL
63 STREET LIGHTS EA 24 6, 800. 00 163, 200
64 CONDUITS AND CONDUCTORS LF 3, 695 45. 00 166, 275
65 PULL BOXES EA 29 500. 00 14, 500
ELECTRICAL SUBTOTAL $ 343,975

SEWER PUMP STATION
66 LIFT STATION MECHANICAL AND YARD PIPING LS LUMP SUM 275,000.00 275, 000 67 LIFT STATION ELECTRICAL AND LIGHTING LS LUMP SUM 113, 000. 00 113, 000 68 LIFT STATION GENERATOR AND FUEL TANK LS LUMP SUM 150, 000.00 150, 000 69 2" COMMUNICATION LWE LF 2, 408 40.00 96, 320
70 4" SANITARY SEWER FORCE MAIN( PVC C900- 16, CLASS 150 OR GREATER) LF 2, 418 60.00 145, 080 71 6" SANITARY SEWER FORCE MAIN( PVC C900- 16, CLASS 150 OR GREATER) LF 2, 418 80. 00 193, 440 72 SANITARY SEWER FORCE MAIN VALVE EA 4 4, 000. 00 16, 000 73 SANITARY SEWER FORCE MAIN BEND EA 28 550.00 15, 400
74 SANITARY SEWER FORCE MAIN CLEANOUT EA 2 2, 000. 00 4, 000 75 BORE AND JACK INC. CASING AND CONDUITS LF 207 750. 00 155, 250 SEWER PUMP STATION SUBTOTAL $ 1, 163, 490

TRAFFIC SIGNAL
76 TRAFFIC SIGNAL MODIFICATIONS LS WMP SUM 300,000.00 300,000 TRAFFIC SIGNAL SUBTOTAL $ 300,000
GRAND TOTAL $ 8, 060, 980

Page 2 of 2 ends

Prepared by Siegfried 17208 Offsite Estimate- GASB 34 Report 266
267
ITEM 4. 6

CITY MANAGER' S REPORT
7ULY 11, 2022 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS WITH ASSOCIATED
CONDITION FOR TRACT 4062, PHASE 1C, IN THE

CENTRAL LATHROP SPECIFIC PLAN FROM LATHROP

LAND ACQUISITION, LLC
RECOMMENDATION: Adopt Resolution Accepting Public Improvements with Associated Condition for Tract 4062, Phase 1C,
in the Central Lathrop Specific Plan from Lathrop
Land Acquisition, LLC
SUMMARY:

Lathrop Land Acquisition, LLC ( Saybrook), the developer for the Central Lathrop Specific Plan ( CLSP), has substantially completed construction of the public improvements listed in the GASB 34 report, included as Attachment " C", for Tract 4062, Phase 1C, in accordance with their Subdivision Improvement Agreement ( SIA).

These improvements have been inspected by staff and deemed completed by the City Engineer. A Vicinity Map for Tract 4062 is included as Attachment B".

Saybrook has provided a one- year warranty bond based on 10% of the completed improvement construction cost and lien releases for the improvements being accepted. Due to delays with the procurement of PG& E transformers, the Tract is not energized. Staff recommends City Council accept Public Improvements contingent on the Tract being energized. Approval to accept the improvements contingent on completion will accelerate the construction of the homes by allowing Saybrook to sell the land to the builders, rather than waiting for a full acceptance during a later City Council meeting.

BACKGROUND:

On October 5, 2006, the City approved a Vesting Tentative Map ( VTM) for Tract 3533 to create 62 parcels on 960 acres of land. On March 20, 2007, the City approved a VTM for Tract 3647 to subdivide a portion of Tract 3533 into 1, 071 parcels on 190 acres of land. On August 13, 2018, the City approved VTM 3967 to subdivide a portion of Tract 3533 into 113 parcels on 18 acres to replace the previously planned school location with residential lots. The land for Tract 4062 is within the geographic boundaries of the VTMs for Tracts 3647 and 3967.

On October 11, 2021, City Council approved Tract 4062, establishing 191 singlefamily lots. As required by the City' s subdivision ordinance, the approved Tract 4062 included an SIA to guarantee certain public improvements associated with the final map. Saybrook has completed most of the improvements associated with the SIA for Tract 4062.
268
CITY MANAGER' S REPORT PAGE 2
JULY 11, 2022 CITY COUNCIL REGULAR MEETING

ACCEPT PUBLIC IMPROVEMENTS WITH ASSOCIATED CONDITION FOR TRACT 4062, PHASE 1C, IN THE CENTRAL LATHROP SPECIFIC PLAN FROM

LATHROP LAND ACQUISITION, LLC
To guarantee the completion of the unfinished improvements, Performance Bond No.

PB01987300005 for $ 13, 125, 066. 26 and Labor & Materiais No. PB01987300005 for 6, 562, 533. 13 will remain in place until the Tract is energized and inspected by staff.

The bonds will be released, and maintenance will begin upon inspection and confirmation by City staff that all items listed in the GASB 34 Report, included in Attachment " C", are completed in compliance with the approved plans and City Standards.

Saybrook has provided one- year warranty bonds based on 10% of the completed improvements construction cost and both developer lien releases and lien releases from each contractor. The warranty bond values and descriptions are detailed in Table 1 below. Due to delays with PG& E transformers, the Tract is not energized. Approval to accept the improvements contingent on completion will accelerate the construction of the homes by allowing Saybrook to sell the land to the builders, rather than waiting for a full acceptance during a later City Council meeting. Staff recommends City Council accept the public improvements contingent on the Tract being energized.

Table 1
Contractor Scope of Work Bond Number Bond Value
Teichert Construction Mass Gradin 070214770 262, 322
Teichert Construction Underground 070214792 807, 841
and To Side
David Hall Masonr Sound Walls 1001086880 53, 226
Green Valley Landscaping ES00008909 36, 2215
Landsca in
REASON FOR RECOMMENDATION:

Construction of the public improvements for Tract 4062 is substantially complete and have been inspected by City staff to ensure conformance with the approved plans.

Saybrook has submitted lien releases and a one- year maintenance bond for the improvements being accepted. Conditional acceptance of the improvements will allow for the continued development of Tract 4062.

City staff will confirm when the condition has been met and will subsequently release the Performance and Labor & Materials bonds as well as allow for the City to start maintenance of the improvements.

FISCAL IMPACT:

The City' s maintenance costs will increase because of the additional improvements that have to be maintained. The City' s Service Maintenance CFD 2019- 02 has been established to help fund City maintenance and operating costs. 269
CITY MANAGER' S REPORT PAGE 3
ULY 11, 2022 CITY COUNCIL REGULAR MEETING

ACCEPT PUBLIC IMPROVEMENTS WITH ASSOCIATED CONDITION FOR TRACT 4062, PHASE 1C, IN THE CENTRAL LATHROP SPECIFIC PLAN FROM

LATHROP LAND ACQUISITION, LLC
The one- year warranty bond covers any repairs or replacements that become . necessary during the one- year period, beginning with this acceptance, due to defective materials or workmanship in connection with the completed improvements.

ATTACH M ENTS:

A. Resolution Accepting Public Improvements with Associated Condition for Tract 4062, Phase 1C, in the Central Lathrop Specific Plan from Lathrop Land Acquisition, LLC
B. Tract 4062 Acceptance Vicinity Map
C. GASB 34 Report for Tract 4062
270
CITY MANAGER' S REPORT PAGE 4
ULY 11, 2022 CITY COUNCIL REGULAR MEETING

ACCEPT PUBLIC IMPROVEMENTS WITH ASSOCIATED CONDITION FOR TRACT 4062, PHASE 1C, IN THE CENTRAL LATHROP SPECIFIC PLAN FROM

LATHROP LAND ACQUISITION, LLC
APPROVALS:
0 2 g 2Z
Beilal Nabizadah Date
Assistant Engineer
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Brad ylor Date
City Engineer
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Cari Jam Date
Finance rector
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Michael King Date
Assistant City Mana er
z Y' zo ZSalvador Navarrete Date
City Attorney
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Stephen J. Salvatore Date
City Manager
271
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP ACCEPTING PUBLIC IMPROVEMENTS WITH ASSOCIATED CONDITION FOR TRACT 4062, PHASE 1C, IN THE CENTRAL LATHROP SPECIFIC PLAN FROM LATHROP LAND

ACQUISITION, LLC
WHEREAS, on October 5, 2006, the City approved a Vesting Tentative Map VTM) for Tract 3533 to create 62 parcels on 960 acres of land. On March 20, 2007, the City approved a VTM for Tract 3647 to subdivide a portion of Tract 3533 into 1, 071 parcels on 190 acres of land; and
WHEREAS, on August 13, 2018, the City approved VTM 3967 to subdivide a portion of Tract 3533 into 113 parcels on 18 acres to replace the previously planned school location with residential lots. The land for Tract 4062 is within the geographic boundaries of the VTMs for Tracts 3647 and 3967; and
WHEREAS, on October 11, 2021, the City Council approved one Final Map for Tract 4062, establishing 191 single- family lots. As required by the City' s subdivision ordinance, the approved Tract 4062 included an SIA to guarantee certain public improvements associated with the final map; and
WHEREAS, Lathrop Land Acquisition, LLC ( Saybrook) has completed most of the improvements associated with the SIA for Tract 4062. Due to delays with the procurement of PG& E transformers, the Tract is not energized. Staff recommends City Council accept Public Improvements contingent on the Tract being energized; and
WHEREAS, approval to accept the improvements contingent on completion will accelerate the construction of the homes by allowing Saybrook to sell the land to the builders, rather than waiting for a full acceptance during a later City Council meeting; and
WHEREAS, to guarantee the completion of the unfinished improvements, Performance Bond No. PB01987300005 for $ 13, 125, 066. 26 and Labor and Materials No. PB01987300005 for $ 6, 562, 533. 13 will remain in place until the remaining improvement is complete and inspected by staff; and
WHEREAS, the bonds will be released and maintenance will begin upon inspection and confirmation by City staff that all items listed in the GASB 34 Report, included as Attachment " C" of the City Manger' s Report, are completed in compliance with the approved plans and City Standards; and
WHEREAS, Saybrook has provided one- year warranty bonds based on 10% of the completed improvements construction cost and both a master lien release and lien releases from each contractor. The warranty bond values and descriptions are detailed in Table 1 below:
272
Table 1
Contractor Scope of Work Bond Number Bond Value
Teichert Construction Mass Gradin 070214770 262, 322
Teichert Construction Underground 070214792 807, 841
and To Side
David Hall Masonr Sound Walls 1001086880 53, 226
Green Valley Landscaping ES00008909 36, 2215
Landscapin
WHEREAS, City staff will confirm when the condition has been met and will subsequently request the City Engineer to release the Performance and Labor & Materials bonds as well as allow for the City to start maintenance of the improvements; and
WHEREAS, the City' s Service Maintenance CFD 2019- 02 has been established to help fund City maintenance and operating costs.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby accept the public improvements associated with the Subdivision Improvement Agreement for Tract 4062 in the Central Lathrop Specific Plan from Lathrop Land Acquisition, LLC in accordance with City specifications, contingent on the Tract being energized. The City Engineer is to confirm when this condition has been met and upon satisfaction of the condition, the Performance and Labor & Materials bonds will be released and the City will begin maintenance of the improvements.
273
The foregoing resolution was passed and adopted this 11t'' day of July 2022, by the following vote of the City Council, to wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:

Teresa Vargas Salvador Navarrete
City Clerk City Attorney
274

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ATTACHMENT C

CITY OF LATHROP

PROJECT ACCEPTANCE
GASB 34 REPORT)
Date: 6/ 15/2022
Submitted by: MacKay& Somps
Tract 4062- Lathrop, CA
Based on Improvement and Grading Plans prepared by MacKay& Somps dated June 2021 Item Unit Quantit Unit Cost Cost
Structural Section( 4" AC, 4" AB, 12" LTB) SF 371, 718 4. 00 $ 1, 486,872. 00 Survery Monuments EA 59 800. 00 $ 47, 200. 00
Community Wall LF 2, 284 150. 00 $ 342,600.00
6" Standard curb and gutter LF 19, 964 16. 00 $ 319,424. 00 9" Median curb& apron( Type F) LF 693 33. 50 $ 23,215.50 6" Sidewalk SF 74, 311 5. 00 $ 371, 555. 00
Curb Return and ADA ramp
EA 26 2, 500. 00 $ 65,000. 00
Driveways EA 191 725. 00 $ 138, 475. 00
Manholes including reset to finish grade and vacuum test EA 38 6, 000. 00 $ 228,000.00 8" Pipe including backfill LF 8, 797 32. 00 $ 281, 504. 00 4" Laterals w/ cleanouts EA 191 1, 000. 00 $ 191, 000.00 Storm drain manhole including reset to finish grade EA 8 3, 200. 00 $ 25, 600. 00 Storm drain manhole including reset to finish grade( with EA 5 5, 500. 00 $
27, 500. 00 saddle type base)
8" PVC Storm drain pipe( Linear Park) LF 3, 081 18. 00 $ 55, 458. 00 15" RCP Storm drain pipe LF 4, 482 65. 75 $ 294, 691. 50 18" RCP Storm drain pipe LF 2, 694 66. 00 $ 177,804.00
24" RCP Storm drain pipe LF 842 85. 00 $ 71, 570. 00
36" RCP Storm drain pipe LF 1, 289 124. 00 $ 159,836. 00 48" RCP Storm drain pipe LF 1, 300 198. 00 $ 257,400. 00 72" RCP Storm drain pipe LF 98 310. 00 $ 30, 380. 00
Curb inlet EA 86 3, 800. 00 $ 326,800. 00
Curb inlet( with saddle type manhole base) EA 5 5, 500. 00 $ 27, 500. 00 Area Drain Riser( Linear Park) EA 35 100. 00 $ 3, 500. 00 Drainage Inlet( Linear Park) EA 11 3, 000. 00 $ 33, 000. 00 Drainage Inlet( Park) EA 2 3, 000. 00 $ 6, 000. 00
8" Potable Water Main including fittings LF 10, 516 30. 00 $ 315,480.00 6" Recycled Water Main inciuding fittings LF 458 24. 00 $ 10, 992. 00 Fire hydrant assembly EA 20 5, 500. 00 $ 110, 000.00
1" Service Lateral including meter box EA 191 1, 200. 00 $ 229, 200.00 8" Butterfly Valves EA 41 800. 00 $ 32, 800. 00
6" Recycled Water BOV EA 1 1, 500. 00 $ 1, 500. 00
8" Potable WaterARV EA 4 1, 500. 00 $ 6, 000. 00
Water sampling station EA 1 2, 500. 00 $ 2, 500. 00
Total 5, 700, 357. 00
276
277
ITEM 4. 7

CITY MANAGER' S REPORT
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
ITEM: MUNICIPAL SERVICE REVIEW UPDATE AND SPHERE

OF INFLUENCE PLAN
RECOMMENDATION: Adopt Resolution Authorizing Staff to Submit the Municipal Service Review Update and Sphere of
Influence Plan to the San 7oaquin Local Agency
Formation Commission for Review and Approval.

SUMMARY:

The City of Lathrop has prepared a Municipal Services Review ( MSR) and Sphere of Influence ( SOI) Plan for the San Joaquin County Local Agency Formation Commission LAFCO) in compliance with the Cortese- Knox- Hertzberg Local Government Reorganization Act of 2000 ( CKH Act), and codified as Government Code Section 56000. The CKH Act requires each LAFCO to prepare an MSR for each service provider with a Sphere of Influence. The Government Code requires a Municipal Service Review to be prepared for local municipalities every five ( 5) years or whenever a SOI is updated.

This MSR has been prepared as an update to the City' s 2016 MSR and SOI Plan, which was adopted by LAFCO on April 16, 2016.

BACKG ROU N D:

The Cortese- Knox- Hertzberg Local Government Reorganization Act of 2000 outlines the specific responsibilities of Local Agency Formation Commissions ( LAFCOs).

Pursuant to this State law, the San Joaquin LAFCO is required to conduct a Municipal Service Review of each City in the County to evaluate the City' s ability to provide services.

In practice, San Joaquin LAFCO has allowed individual cities to prepare an administrative draft for LAFCO' s consideration. This is helpful because most of the information must come from the City.

This process is intended to be collaborative whereby agreement is reached between the affected City and LAFCO so that the final draft document becomes the Executive Officer' s recommendation to LAFCO. Because LAFCO allows the affected agency to contract for preparation of these documents, it raises some confusion as to the ultimate responsibility of the document and its determinations. Therefore, the Executive Director of LAFCO has emphasized that the Municipal Service Review is not the City of Lathrop' s analysis and determinations of the adequacy of its services. The MSR must reflect the independent judgement of LAFCO.
278
CITY MANAGERS REPORT PAGE 2
7ULY 11, 2022 CITY COUNCIL REGULAR MEETING

MUNICIPAL SERVICE REVIEW UPDATE AND SPHERE OF INFLUENCE PLAN Planning Commission
At their regular meeting of June 15, 2022, the Planning Commission voted unanimously ( 5- 0), to recommend the City Council review and authorize staff to submit the Municipal Service Review Update and Sphere of Influence Plan to the San Joaquin Local Agency Formation Commission. Attached is the Planning Commission Resolution No. 22- 3 for reference ( Attachment # 3).

ANALYSIS:

Municipal Service Review
The term " Municipal Services" generally refers to the full range of services that a public agency provides or is authorized to provide. The review must present information on future projections and plans tied to the 10- and 30- year sphere horizons and must demonstrate that adequate services can be provided. As part of its review of municipal services, LAFCO is required to prepare a written statement of its determination with respect to each of the following categories:

1. Growth and population projections.

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 and adequacy of public services, including 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. Financial ability of agencies to provide services.

5. Status of, and opportunities for, shared facilities.

6. Accountability for community service needs, including governmental structure and operational efficiencies.

The Administrative Draft versions of the MSR and SOI Plan were reviewed, commented and edited by City Departments, the Lathrop Manteca Fire District LMFD), French Camp McKinley Fire District and San Joaquin LAFCO Staff. This final version of the Lathrop MSR incorporates City Department and San ) oaquin LAFCO Staff comments and has been prepared to meet the above determinations required by law.

The MSR affirms the City' s and it' s partnering special districts' ability to provide adequate services to existing and future populations within the City and its SOI. The MSR and SOI Plan are attached to this Staff Report as Attachment 2.

Sphere of Influence
The San Joaquin LAFCO is also required to adopt a Sphere of Influence boundary map for each local governmental agency within its jurisdiction. An SOI is defined as a plan for the probable physical boundaries and service area of a local agency as determined by LAFCO.
279
CITY MANAGERS REPORT PAGE 3
JULY 11, 2022 CITY COUNCIL REGULAR MEETING

MUNICIPAL SERVICE REVIEW UPDATE AND SPHERE OF INFLUENCE PLAN LAFCO' s and locai agencies use SOI' s to:

1. Promote orderly growth and urban development.

2. Promote cooperative planning efforts among cities, the county and speciai districts.

3. Serve as a master plan for future local government reorganization.

4. Guide consideration of proposals and studies for changes or organization and reorganization.

The City' s existing SOI contains two ( 2) primary unincorporated areas that the City anticipates to annex within the next ten ( 10) years; one area north of the City' s boundary and one area south. The north SOI areas contain approximately 134- acres located north of Roth Road ( east of Pilot Flying J) and west of Interstate 5, west of Manthey Road and north & south of Roth Road. The south SOI area contains approximately 58- acres designated in the General Plan for Service Commercial uses as part of the adopted Lathrop Gateway Business Park Specific Plan. The City is proposing to expand the SOI to include one ( 1), 10. 3- acre property west of the existing northwest SOI boundary. No properties are within the 30- year growth horizon. In total, the proposed SOI contains approximately 197- acres of land, as described in the table below and illustrated on Figure 2- 2 on Page 2- 6 of the MSR.

The MSR and SOI Plan are attached to this Staff Report as Attachment 2.

General Plan Land Use Acres2 Existing Time Proposed
Horizon Time Horizonl
Lathrop Gateway
S ecific Plan Area
Public/ Quasi Public 5 10 10
Service Commercial 58 10 10
Other Areas
Freewa Commercial 65 10 10
Limited Industrial 69 10 10
Total: 197
1 Estimated time horizon for annexation to the City.
2 Acreages include public right of way and are based on Lathrop GIS calculations.
280
CITY MANAGERS REPORT PAGE 4
ULY 11, 2022 CITY COUNCIL REGULAR MEETING

MUNICIPAL SERVICE REVIEW UPDATE AND SPHERE OF INFLUENCE PLAN CEQA REVIEW:

The MSR and SOI Plan are Statutorily Exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15262 Feasibility and Planning Studies".

RECOMMENDATION:

The Planning Commission and Staff recommend that the City Council adopt a Resolution authorizing staff to submit the Municipal Service Review Update and Sphere of Influence Plan to the San Joaquin Local Agency Formation Commission for review and approval.

FISCAL IMPACT:

The Municipal Service Review Update and Sphere of Influence Plan was prepared by J. B. Anderson Land Use Planning per Task Order No. 15 for Professional Services between the City of Lathrop and J. B. Anderson Land Use Planning, including preparation of the report.

ATTACH M E NTS:

1. Resolution Authorizing Staff to submit the Municipal Service Review Update and Sphere of Influence Plan to the San Joaquin Local Agency Formation Commission for review and approval.

2. Municipal Service Review Update and Sphere of Influence Plan, dated June 2022.

3. Planning Commission Resolution No. 22- 3.
281
CITY MANAGERS REPORT PAGE 5
JULY 11, 2022 CITY COUNCIL REGULAR MEETING

MUNICIPAL SERVICE REVIEW UPDATE AND SPHERE OF INFLUENCE PLAN APPROVALS:
2 Z°2
David Niskanen Date
Contract Planner
Z
John B. Anderson Date
Contract Planner
ck Ca u at Dat
Assistant Community Development Director
I
Z Z
rk M is ner Dat
ommu i y Development Director
z- 2., zZ
Salvador Navarrete Date
City Attorney
r$•L'?
Ste en J. Salvatore Date
City Manager
282
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP

AUTHORIZING STAFF TO SUBMIT THE MUNICIPAL SERVICE REVIEW UPDATE

AND SPHERE OF INFLUENCE PLAN TO SAN JOAQUIN LOCAL AGENCY

FORMATION COMMISSION FOR REVIEW AND APPROVAL
WHEREAS, the San Joaquin Local Agency Formation Commission requires the City of Lathrop to provide a Municipal Services Review in accordance with the Cortese- Knox- Hertzberg Local Government Reorganization Act of 2000 ( CKH Act) and codified as Government Code ( GC) § 56000; and
WHEREAS, the Government Code requires a Municipal Service Review to be prepared for local municipalities every 5 years or whenever a Sphere of Influence is updated; and
WHEREAS, the City of Lathrop' s Municipal Service Review Update has been prepared to meet the update requirement; and
WHEREAS, the City of Lathrop is suggesting minor changes to the 10- year growth horizon that would result in expanding the SOI ( 10- year growth horizon) by approximately 10. 30- acres; and
WHEREAS, in accordance with the California Environmental Quality Act, the City of Lathrop Municipal Service Review Update and Sphere of Influence Plan qualifies for a Statutory Exemption pursuant to Section 15262 Feasibility and Planning Studies" of the CEQA Guidelines; and
WHEREAS, the City of Lathrop has prepared the proposed Municipal Service Review Update and Sphere of Influence Plan, dated June 2022; and WHEREAS, the City of Lathrop Planning Commission held a duly noticed public hearing on June 15, 2022, to consider the proposed Municipal Service Review Update and Sphere of Influence Plan and after reviewing and considering all information provided and submitted, and after taking and considering all public testimony adopted Resolution No. 21- 3 recommending City Council review and recommendation to submit the Municipal Service Review and Sphere of Influence Plan to the San Joaquin Local Agency Formation Commission; and
WHEREAS, the City Council has utilized its own independent judgement in adopting this Resolution.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lathrop hereby authorize staff to submit the Municipal Service Review Update and Sphere of Influence Plan to San Joaquin Local Agency Formation Commission for review and approval, dated June 2022.

Resolution No. 22-
283
The foregoing resolution was passed and adopted this 11th day of July 2022 by the following vote of the City Council, to wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

SIGNED:

Sonny Dhaliwal, Mayor
APPROVED AS TO FORM:

Salvador Navarrete, City Attorney Teresa Vargas, City Clerk Resolution No. 22-
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ATT,4CHMENT " -2 "

MUNICIPAL SERVICE REVIEW AND SPHERE

OF INFLUENCE PLAN

PUBLIC REVIEW DRAFT

PREPARED BY CITY OF LATHROP

FOR SAN OAQUIN LAFCO
JuNE 2022
J. B. ANDERSON

LAND USE PLANNING
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TABLE OF CONTENTS

TABLE OF CONTENTS
PAGE
ExecutiveSummary................................................................................................................ E- 1

1. Introduction ....................................................................................................................... 2- 1 A. LAFCo and the Sphere of Influence ............................................................................. 2- 1 B. California Environmental Quality Act ........................................................................... 2- 2

2. Sphere of Influence Plan ................................................................................................... 2- 3 A. Factors ........................................................................................................................ 2- 7

1. Present and Planned Land Uses ............................................................................ 2- 7

2. Present and Probable Need for Public Facilities and Services .............................. 2- 19

3. Present Capacity of Public Facilities and Adequacy of Public Services ................. 2- 20

4. Social and Economic Communities of Interest ...................................................... 2- 20 B. Sphere Analysis ........................................................................................................ 2- 20

1. Existing and Projected Population ......................................................................... 2- 20

2. Sphere Capacity ................................................................................................... 2- 22 C. Development Projections ........................................................................................... 2- 22

3. Municipal Service Review ............................................................................................ 3- 1 A. Growth and Population Projections............................................................................... 3- 1

1. Population and Demographics ................................................................................ 3- 1

2. Population Projections............................................................................................. 3- 3

3. Development Projections......................................................................................... 3- 4

4. Determination.......................................................................................................... 3- 6 B. Location and Characteristics of any Disadvantaged Unincorporated Communities within or Contiguous to the Sphere of Influence...................................................................... 3- 6 C. Present and Planned Capacity for Public Facilities and Adequacy of Public Services, Including Infrastructure Needs or Deficiencies.............................................................. 3- 7

1. Fire Protection......................................................................................................... 3- 7

2. Law Enforcement .................................................................................................. 3- 23

3. Water Supply, Conservation and Treatment ......................................................... 3- 26

4. Wastewater Collection and Treatment .................................................................. 3- 41

5. Storm water Drainage ........................................................................................... 3- 48

6. Determination ....................................................................................................... 3- 58 JUNE 2022 i
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D. Financial Ability of Agency to Provide Service ............................................................. 3- 62

1. Development Fees ............................................................................................... 3- 62

2. Ad Velorum, Property Tax .................................................................................... 3- 63

3. Economic Conditions and Outlook ........................................................................ 3- 65

4. Long Term Financial Planning .............................................................................. 3- 65

5. Connection and Usage Charges............................................................................ 3- 67

6. Special Districts and Benefit Districts..................................................................... 3- 67

7. Financial Management .......................................................................................... 3- 69

8. Financial Statements............................................................................................. 3- 70

9. Financial Analysis................................................................................................... 3- 72

10. Financial Analysis of the City' s Funds................................................................... 3- 78

11. Determination....................................................................................................... 3- 80 E. Status of and Opportunities for Shared Facilities........................................................ 3- 82

1. Background .......................................................................................................... 3- 82

2. Determination ....................................................................................................... 3- 85 F. Accountability for Community Service Needs, including Governmental Structure and Operational Efficiencies ............................................................................................. 3- 86

1. Background .......................................................................................................... 3- 86

2. Determination ....................................................................................................... 3- 86

4. References ........................................................................................................................ 4- 1 JUNE 2022 ii
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PAGE
List of Tables
2- 1 Proposed SOI Capacity...................................................................................................... 2- 7 2- 2 Residential Build Out- Lands Within the Existing City Limits ............................................ 2- 19 2- 3 Growth Projections- Growth Rate Method......................................................................... 2- 21 3- 1 UWMP Population - Current and Projected........................................................................ 3- 2 3- 2 Population and Household Trends..................................................................................... 3- 3 3- 3 Housing Inventory.............................................................................................................. 3- 4 3- 4 City of Lathrop Groundwater Well Capacity...................................................................... 3- 28 3- 5 Water Demand Management Measures........................................................................... 3- 36 3- 6 Water Supplies— Projected ( AFY) ................................................................................... 3- 39 3- 7 Normal Year Supply and Demand Comparison ( AFY) ..................................................... 3- 40 3- 8 WDR Recycled Effluent Discharge Limitations................................................................. 3- 45 3- 9 WDR Groundwater Limits ................................................................................................ 3- 45 3- 10 Projected Wastewater Flow and Treatment Capacity at Lathrop CTF............................ 3- 46 3- 11 Projected Wastewater Flow and Treatment Capacity at MWQCF .................................. 3- 47 3- 12 Projected Wastewater Flow and Treatment Capacity, Citywide...................................... 3- 47 List of Figures
2- 1 Existing City Limits and SOI .............................................................................................. 2- 4 2- 2 Sphere of Influence Land Use Designations ...................................................................... 2- 6 2- 3 General Plan Land Use Map.............................................................................................. 2- 9 2- 4 Existing Williamson Act Contracts.................................................................................... 2- 12 2- 5 Existing and Pending Developments................................................................................ 2- 15 2- 6 Proposed SOI and 10 Year Horizon................................................................................. 2- 24 3- 1 Lathrop Population Projection............................................................................................ 3- 3 3- 2 LMFIRE Fire Station Locations ........................................................................................ 3- 12 3- 3 FRCFIRE Fire Station Locations...................................................................................... 3- 17 3- 4 Future Fire Station Locations........................................................................................... 3- 21 3- 5 Police Station Location .................................................................................................... 3- 25 3- 6 Lathrop Water Service Area............................................................................................. 3- 29 3- 7 Lathrop Wastewater Service Area.................................................................................... 3- 42 3- 8 Reclamation and Drainage District Boundaries................................................................ 3- 51 3- 9 FEMA Flood Insurance Rate Map.................................................................................... 3- 52 3- 10 Storm Water Basins....................................................................................................... 3- 56 3- 11 200 Year Flood Plain ..................................................................................................... 3- 57 JUNE 2022 iii
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EXECUTIVE SUMMARY
The City of Lathrop ( City) has prepared this update to the adopted Municipal Services Review MSR) of 2016 for the San Joaquin Local Agency Formation Commission ( LAFCo) in compliance with the 2000 Cortese- Knox- Hertzberg Act, which requires each LAFCo to adopt and have a current MSR for each service provider with a Sphere of Influence ( SOI). In addition, San Joaquin LAFCo has adopted " Service Review Policies" December 14, 2012. This MSR complies with these policies as well. This updated Lathrop MSR will be used by San Joaquin LAFCo to expand the Lathrop SOI and to re- align the 10-year growth horizon.

State law and San Joaquin LAFCo Service Review Policies ( updated December 14, 2012) require an MSR to make six ( 6) written determinations. This MSR is organized to provide a section for each of the following determinations:

Growth and Population Projections
Location and Characteristics of any Disadvantaged Unincorporated Communities within or Contiguous to the Sphere of Influence
Present and Planned Capacity for Public Facilities and Adequacy of Public Services, Including Infrastructure 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
Financial Ability of the Agency to Provide Service
Status of, and Opportunities for, Shared Facilities
Accountability for Community Service Needs, including Governmental Structure and Operational Efficiencies

1. SPHERE OF INFLUENCE PLAN
The following factors affirm the City' s ability to provide adequate services to existing and future populations within Lathrop' s City limits and Sphere of Influence.

Lathrop's existing SOI contains two primary unincorporated areas, one area north of the City's boundary and one area south. The majority of the north area is located north of Roth Road east of Pilot Flying J) and west of Interstate 5, west of Manthey Road. The City of Lathrop is proposing to expand the adopted SOI to include one ( 1) property approximately 10. 3 acres in size west of the existing SOI boundary. This additional property will accommodate realignment of Manthey Road at Roth Road with a sufficient distance east of Interstate 5 to meet Caltrans intersection spacing requirements. The existing SOI areas in the north are designated for Freeway Commercial ( FC) and Limited Industrial ( LI) uses.

In addition, there are approximately 58 acres south of the City boundary pre-zoned for service commercial uses, which is part of the approved Lathrop Gateway Business Park Specific Plan.

The City' s proposed expansion of the ten-year growth horizon would include 10. 3 acres west of the Roth/ Interstate 5 Interchange, west of the existing SOI boundary. The City would therefore propose no properties in the thirty- year growth horizon.

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Chapter 2, Sphere of Influence Plan, includes the four factors ( Present and Planned Land Uses, Present and Probable Need for Public Facilities and Service, Present Capacity of Public Facilities and Adequacy of Public Services and Social and Economic Communities of Interest) required by State law for SOIs. The factors discussed in Chapter 2 are regarding the City's ability to provide adequate services to existing and future populations within the amended SOI.

2. DETERMINATIONS
The following six determinations affirm the City' s ability to provide adequate services to existing and future populations within the existing Lathrop SOI.

A. Growth and Population Projections
There is a tremendous amount of growth opportunity planned for Lathrop given existing entitlements for several large residential projects and non- residential development anticipated, east of Interstate 5 ( I- 5), and north and south of Highway 120 at Yosemite Avenue. The recent uptick in the residential housing market has led to the revival of the City' s largest master plan community River Islands. River Islands at build- out is anticipated to generate 15, 010 homes and 5 million square feet office retail. The Central Lathrop Specific Plan ( CLSP) CLSP is anticipated to generate 6, 790 new homes and 5 million square feet of retail opportunities along I- 5. Phase 1 began construction in 2019 and is expected to generate 1, 820 residential units. In total, Growth within the City, over the next 10 years will continue in the major sectors of the City; River Islands, Central Lathrop, Lathrop Gateway Business Park and South Lathrop.

The City Council approved the South Lathrop Specific Plan which is 315 acres in total with 246 acres of light industrial uses, 10 acres of commercial uses, 31. 5 acres of open space and 27 acres of roads and quasi- public uses. The South Lathrop Specific Plan was annexed into the City of Lathrop in 2016. The Lathrop Gateway Business Park Specific Plan is a commercial and industrial specific plan that was annexed into the City in 2012 and in 2016. The project includes approximately 167 acres of limited industrial, 83 acres of service commercial, and 57 acres of office and commercial retail uses. The City is also currently processing a request by Singh Petroleum on the property westerly of the Roth Road/ I- 5 Interchange to allow a truck travel center on the south side of Roth Road, west of I- 5. The Singh Petroleum project will ultimately result in a request for annexation by the City of a total of approximately 21. 7 acres of land.

B. Location and Characteristics of any Disadvantaged Unincorporated Communities within or Contiguous to the Sphere of Influence
SB 244 requires the identification and description of all Disadvantaged Unincorporated Communities" ( DUC' s) located within or contiguous to the existing sphere of influence of cities and special districts that provide fire protection, sewer, and/ or water services. Disadvantaged unincorporated communities are defined as inhabited unincorporated areas with an annual median household income that is 80% or less than the statewide annual median household income. The identified disadvantaged unincorporated communities are required to be addressed by LAFCo when:

Considering a City Annexation proposal involving 10 acres or more with an existing disadvantaged unincorporated community contiguous to the proposed area; and JUNE 2022 E_ 2
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Approving sphere of influence and municipal service review determinations associated with the updated or established sphere of influence for local agencies subject to SB 244 requirements.

SJ LAFCo has identified the French Camp DUC as part of their development of modified Sphere of Influence policies adopted December 14, 2012. The French Camp DUC has three ( 3) Districts and District 3 adjoins the Lathrop Sphere of Influence to the north of Roth Road.

Based on an aerial review, confirmed by a physical windshield survey, the area in question adjacent to the Lathrop SOI contains a mixture of industrial and large rural ranchette uses and does not contain compact urban development lacking municipal services. We are unaware of any failing water and sewer infrastructure in the area. The proposed growth horizon changes involve lands westerly of the Union Pacific Railroad Tracks and the DUC area immediately north of the proposed change is used for industrial purposes. Therefore, the requirement to consider extending services to this area appears to be unnecessary.

C. Present and Planned Capacity for Public Facilities and Adequacy of Public Services, Including Infrastructure Needs and Deficiencies

1. Fire Protection
To meet the 3- 4 minute standard response time as outlined in the General Plan, the LathropManteca Fire District ( LMFD) would have to expand their number of fire stations and personnel.

This has been partially accounted for with the most recent construction of Fire Station # 35 in 2019. Fire Station # 35, located at 19001 Somerston Parkway in the River Islands development, was built in anticipation of future development projects and their fire protection needs. LMFD has developed a master plan adopted in 2018 to provide adequate coverage for the potential urban growth of the City. The master planning effort undertaken by the District will aid with efforts to anticipated future fire protection services necessary for Lathrop City limits and SOI.

The master plan and financing strategies suggest the need for a total of three ( 3) new fire stations.

The City of Lathrop and LMFD will work cooperatively to ensure new development pays its fair share of facilities and manpower associated with new growth. The imposition of Fire Mitigation Fees and participation in fire services Community Facilities District ( CFD) combined with property tax and Measure C funds provide the financial tools necessary to guarantee capacity is available.

2. Law Enforcement
The proposed development projects in the City would result in additional demands for police service. Capital costs for new facilities and equipment would be funded through development impact fees and the operational costs would be funded through the increased tax base and the imposition of a police services Community Facilities District ( CFD). In accordance with the General Plan, a new police station was constructed in River Islands to meet future law enforcement demand throughout the City and SOI. The new Police Station is located on River Islands Parkway. This new police station will replace the temporary station located in French Camp currently being utilized by Lathrop Police Services.

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At the March 22, 2021, Special City Council Meeting, Council directed City staff to create Capital Improvement Project CG 21- 11, to begin the creation of a new Lathrop Police Department and implement the transition of law enforcement services from the San Joaquin County Sheriff to the City. The new Police Department identifies 46 new sworn and non- sworn positions and on May 10, 2021, the City approved a Master Consulting Services Agreement with CPS HR Consulting ( CPS) to begin recruitment of personnel for the new City of Lathrop Police Department and authorized the creation of a new Police Chief Position. The City continues to recruit for the various levels of staffing, purchase necessary equipment, such as Police vehicles, and coordination with other jurisdictions for the purpose of evidence storage and 911 operations. The Lathrop Police Department will initiate operations on July 1, 2022.

The Police Department has 24 sworn officers including 1 Lieutenant, 2 Sergeants, 2 Detectives, 19 Deputy Sheriffs, and 3 civilian staff members. If needed, additional assistance can be summoned under a mutual aid agreement with surrounding cities and the County. Existing police staffing levels in the City are approximately 1. 18 officers per 1, 000 residents. The current City Wide Priority 1 average response time is 4 minutes.

3. Water Supply, Conservation and Treatment
The City currently uses both surface water and groundwater as the water supply source. The City's most recent water supply planning documents are the 2018 Water System Master Plan and the 2020 Urban Water Management Plan ( UWMP). These water studies evaluate existing and anticipated supplies. The results provide alternatives for additional sources of water to meet build- out demands within the City and future development suggested in the SOI.

Groundwater treatment for Total Dissolved Solids ( TDS) removal is expensive. Therefore, alternative sources and alternative water management practices were analyzed. The City identified ten water supply and management alternatives which could be implemented to compensate for the limited use of groundwater. The City plans to implement an optimized combination of these alternatives to ensure reliable water supplies for the future. The recommended water system improvements to meet the City' s future demands include Well 21 WTF Phase 2 improvements, installation of backup power at SSJtD Turnout, SCWSP Phase 2 Improvements and Expansion of SSJID turnout capacity from 5. 1 mgd to 11. 5 mgd. According to the Urban Water Management Plan, the City would have a net surplus of 1, 317 acre feet of water in 2045, plus the non- potable water supply generated from waste water recycling.

4. Wastewater Collection and Treatment
Wastewater from the City is currently treated at the Lathrop Consolidated Treatment Facility LCTF) and the Manteca- Lathrop Water Quality Control Facility ( WQCF). The City owns LCTF and 14. 7 percent of the WQCF by contract. The City's Wastewater System Master Plan prepared in 2019), the 2020 Urban Water Management Plan, and CV- RWQCB Order Number R5-2016- 0028- 01 are the primary documents that outline long term strategy for meeting future discharge and capacity requirements for a planning horizon that extends to build- out.

The LCTF has a current capacity of 2. 5 MGD. The City has plans to increase the treatment capacity, and improve operational flexibility of LCTF. The City has planned for a total combined treatment capacity at build- out of 7.45 MGD of which 6. 0 MGD would be processed by LCTF JUNE 2022 E- 4
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and the balance processed by the Manteca- Lathrop WQCF. A total combined treatment capacity is planned by the City at build- out of 11. 9 MGD through a combination of expansions at the LCTF and WQCF. The 11. 9 MGD of capacity would be able to adequately serve major planned development within the City and SOI. The City' s current WDR from the CV- RWQCB limits the treatment capacity of the City to 6. 0 MGD.

5. Storm Water Drainage
The City has developed a Storm Water Management Plan, Best Management Practices BMPs), and Storm water Development Standards to address storm water quality within the City and meet the Clean Water Act National Pollutant Discharge Elimination System ( NPDES) requirements. The BMPs are intended to maintain surface water quality discharged from the City. New development within the City is required to comply with these requirements. The City is also responsible for monitoring and reporting on BMPs. The Storm water Development Standards specify design requirements to be used during development design that, in turn, met the NPDES requirements for the City.

Any significant urban expansion would require major additions to the City' s storm water collection system. The General Plan requires that new development must address storm water issues and mitigate increased storm water runoff. Additionally, development is required to construct storm water infrastructure such as curbs, gutters, and detention basins. These requirements ensure that adequate infrastructure would be in place at build- out within the City limits and SOI. New development would be required to prepare a drainage master plan to serve as addendums to previous master plans.

To ensure that appropriate funding is available when public services ( e. g., law enforcement and fire protection) and water, wastewater and storm water drainage infrastructure are needed, developers are required through Development Agreements to cover all the costs of needed infrastructure upfront even if they are only responsible for a portion of cost. Developers are then reimbursed at a later time ( e. g., when additional development fees are collected) for any payments in excess of their responsibility.

6. SB 5— 200 Year Flood Protection
RD 17 created a Joint Powers Authority that included San Joaquin County, Stockton, Manteca and Lathrop to issue bonds to fund the local share of Phase 1- 3 Improvements to the RD 17 levees. Lathrop coordinated with RD 17 and the other cities and the County to update the San Joaquin Area Flood Control Agency ( SJAFCA) JPA to add Lathrop and Manteca to that JPA, to fund the local share of the needed Urban Level of Protection ( ULOP) improvements to the RD 17 levees, to adopt development impact fee programs and/ or exactions paid and advanced from property owners in areas of entitled and planned development within RD17, a new Overlay Assessment District and a new Enhanced Infrastructure Financing District. Initially, Lathrop and Manteca funded the required Urban Levee Design Criteria analysis of the RD 17 levees, identified the 200- year floodplain, calculated an estimated cost to provide the ULOP improvements, and requested State funds for the State share of this work. The State Legislature passed Assembly Bill 838 in 2020 to extend the deadline for SJAFCA to complete the ULOP improvements, from 2025 to 2028. Lathrop will continue to work with all public agencies within SJAFCA to provide for final design and construction of ULOP improvements JUNE 2022 E- 5
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that will allow findings of Adequate Progress toward providing ULOP as the improvements are constructed.

Financial Ability of Agency to Provide Service
The City receives funds for the provision of public services through development fees, property taxes, and connection and usage fees. As land is developed within the City or annexed into the City from the SOI, these fees apply. The cost of providing on-going services for annexed land is offset by the increased tax base provided by new development. Any shortfall in required service costs is covered by Community Facilities Districts ( CFD' s) that impose a supplemental tax on the new properties. The City has budgeted for current and future expenses, debts and revenues. The City of Lathrop' s financial statements show that they are fiscally sound. The City will continue to manage and report their financial condition on an annual basis.

Moreover, as discussed above, the General Plan requires new development to pay its fair share to offset capital, maintenance, and operating costs for law enforcement, water, wastewater, and storm drain. The City' s Department of Public Works, Finance, Planning, and Building are responsible for continuous oversight that the fee structure is adequate. Capital Facilities Fees were updated in 2018. Additionally, Capital Facilities Fees were created for the South Lathrop Specific Plan in 2017 and for the Lathrop Gateway Business Park in 2020.

D. Status of Opportunities for Shared Facilities
The City has existing and planned shared facilities, both within the City and through relationships with other service providers, including the City of Manteca and San Joaquin County. These shared facilities include fire protection, law enforcement, water supply and wastewater collection and treatment and a need for improvements to levees.

Multiple planning processes are in place to identify future opportunities for shared facilities that would improve levels of service in a cost effective manner, and contribute to meeting General Plan goals. These planning processes include the City' s annual budgeting process, and planning studies for utilities ( e. g., water and wastewater management plans) and processes to identify deficiencies in fire and law enforcement services. It is through these processes that the City will continue to monitor and assess whether future opportunities for shared facilities will improve levels of service in a cost- effective manner.

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E. Accountability for Community Service Needs, Including Governmental Structure and Operational Efficiencies
The City' s ability to serve the anticipated growth within the existing SOI is not expected to have a significant effect on the City' s governmental structure or its ability to provide the required services. The areas within the City' s SOI are either agricultural/ open space or designated for industrial/ commercial use and, as reported in Chapter 3 of this MSR, can be adequately served by the City. In addition, mechanisms are in place within the City' s departments to effectively provide public participation in the planning and development process to address future growth within the SOI. The City will continue to work with service providers and neighboring municipalities, such as the South San Joaquin Irrigation District and the City of Manteca, to address government structure options to provide efficient and cost- effective public facilities and services.

The City' s use of its budget process and long- range infrastructure planning processes ensure that it is able to provide directly, and through contract, adequate levels of service in a costeffective manner within its service areas. Long- term planning processes include capital improvement plans, urban water management plan, wastewater management plan and developer fee review. Contribution to these planning processes by City departments, as well as community input, will ensure management effectiveness.

The City has demonstrated the ability to work with other service providers and municipalities to ensure that adequate services are provided in a cost effective and efficient manner. Efforts to ensure effective government structure for the provision of public services and utilities demonstrates the City's foresight to plan for future services needed for potential growth within the SOI, as well as for the planned development and population increases anticipated within the City. Assuming the City continues to evaluate existing government structure and seek opportunities for improvement, no significant barriers are expected in regard to government structure during the ten- and thirty- year planning horizons.

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1. INTRODUCTION
The City of Lathrop ( City) has prepared this Municipal Service Review ( MSR) for the San Joaquin Local Agency Formation Commission ( LAFCo) in compliance with the 2000 CorteseKnox-Hertzberg Act, which requires each LAFCo to adopt and have a current MSR for each service provider with a Sphere of Influence ( SOI). This MSR will be used by San Joaquin LAFCo to consider amendments to the Lathrop SOI consistent with the City' s 1991 General Plan, as amended through June 2021 and to re-align the 10- year growth horizon.

Promote orderly growth and urban development
Promote cooperative planning efforts among cities, the county, and special districts to address concerns regarding land use and development standards, premature conversion of agricultural and open space lands, efficient provisions of services, and discouragement of urban sprawl
Serve as a master plan for future local government reorganization by providing longrange guidelines for efficient provision of public services Guide consideration of proposal and studies for changes of organization and reorganization
An SOI is defined as a " plan for the probable physical boundaries and service area of a local agency, as determined by the Commission" ( Government Code Section 56076). In simple terms, an SOI is a planning boundary within which a city or district anticipates to grow over time.

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The purpose of an SOI is to encourage " logical and orderly development and coordination of local government agencies so as to advantageously provide for the present and future needs of the county and its communities." SOI' s serve a similar function for LAFCo determinations as general plans do for cities and counties.

An MSR must be prepared and updated to establish, update or confirm an existing SOI, and the MSR must address the six determinations previously outlined. LAFCo is required to prepare the MSR and adopt written determinations either prior to, or in conjunction with, any action to establish or update an SOI. Adopted LAFCo policies emphasize the use of existing plans, data and information currently available for preparation of MSRs rather, than requiring preparation of new service documents.

San Joaquin LAFCo' s procedural guidelines adopted December 14, 2012, require documentation through preparation of an MSR of the City' s ability to meet the requirements of the 2000 Cortese- Knox- Hertzberg Act. The Sphere Plan, along with this updated MSR and the City' s 1991 General Plan, provide the basis for consideration of amendments to the City' s existing SOI.

B. California Environmental Quality Act (CEQA)
The update to Lathrop's MSR is not defined as a " Project" under CEQA; however, the proposed amendment to the SOI is subject to CEQA. The City of Lathrop intends to file a Notice of Exemption pursuant to Section 15262 " Feasibility and Planning Studies" for the proposed minor adjustments to the City' s 10- year growth horizon.

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2. SPHERE OF INFLUENCE PLAN
The Sphere of Influence ( SOI) Plan for the City of Lathrop ( City) described in this chapter analyzes the City' s ability to serve existing and future residents within the existing SOI. LAFCo is responsible for the sufficiency of the documentation and the SOI Plan' s consistency with State law and LAFCo policy. In reviewing Lathrop' s MSR update and SOI, LAFCo must consider and prepare determinations for the following four factors pursuant to Government Code Section 56425 of the 2000 Cortese- Knox- Hertzberg Act:

Present and planned land uses in the area, including agricultural and open space lands Present and probable need for public facilities and services in the area Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide
Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency In order to consider Lathrop' s SOI request, LAFCo is required to conduct a review of municipal services provided within the City and existing SOI. The standards, policies and procedures for service reviews are contained in San Joaquin LAFCo' s policies and procedures. San Joaquin LAFCo requires that the SOI Plan include maps and explanatory text that describe the boundary of the service area and the City' s sphere. The SOI Plan must be consistent with the determinations of the Municipal Service Review ( MSR).

San Joaquin LAFCo is being asked to consider Lathrop' s adjusted SOI boundary at this time in conjunction with its review of the updated MSR. Detailed determinations as to the City' s ability to provide adequate services to existing and future residents within the existing SOI are contained in subsequent chapters of this MSR.

Lathrop' s existing SOI contains two primary unincorporated areas, one area north of the City' s boundary and one area south. The majority of the north area is located north of Roth Road east of Pilot Flying J) and west of Interstate 5, west of Manthey Road and north/ south of Roth Road. The City of Lathrop is proposing to expand the adopted SOI to include one ( 1) property west of the existing SOI boundary. The existing SOI areas are designated for Service Commercial ( SC), Freeway Commercial ( FC) and Light Industrial ( LI) uses.

In addition, there are approximately 58 acres south of the City boundary pre- zoned for Service Commercial ( CS), which is part of the approved Lathrop Gateway Business Park Specific Plan.

The City' s proposed ten- year growth horizon would include 10. 30 acres westerly of the Roth/ Interstate 5 Intersection, west of the existing SOI boundary. No_properties are within the thirtv- vear qrowth horizon.

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Figure 2- 1 ( Existing City Limits and SOI)
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The Lathrop General Plan designates a smail area north of the City limits northerly of Roth Road for Light Industrial uses and west of I- 5 for Freeway Commercial uses. The City's ultimate land use intended in its SOI is consistent with the San Joaquin County General Plan and the State' s Delta Plan of 2013.

South of Lathrop City boundary is an additional 63 acres as part of the Lathrop Gateway Business Park Specific Plan. The 63 acres are pre-zoned for service commercial and public/ quasi- public uses. The approved South Lathrop Specific Plan annexation, comprised of 315 acres and a portion of the Lathrop Gateway Business Park Specific Plan ( 99 acres), were annexed to the City of Lathrop in 2016. In total, the City' s SOI contains 197 acres of land designated on the Lathrop General Plan for a variety of Industrial and Commercial uses. Please refer to Figure 2- 2, General Plan designations for the SOI. Table 2- 1 ( SOI Capacity) provides a summary of the land uses, acreages, and modified time horizon for annexation for the areas within the City' s SOI.

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Figure 2- 2 ( Sphere of Influence Land Use Designations)

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Table 2- 1: Proposed SOI Capacity (Does not include lands in the City Limits) fi, " '
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Public/ Quasi Public 5 10 10
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Estimated time horizon for annexation to the City.

Z Acreages include public right of way and are based on Lathrop GIS calculations.

A. Factors
This section includes the four factors required by State law for SOI' s. The proposed SOI Plan does propose changes to the existing SOI, the determinations presented below discuss the City' s ability to provide adequate services to existing and future populations within the proposed SOI.

1. Present and Planned Land Uses
Present and planned land uses are appropriate for serving existing and future residents of the City. The General Plan' s main concept is the redevelopment and expansion of the City as a New Town." Planned land uses within the City include low, medium and high density residential, office, retail, industrial, commercial and agricultural/ open space. Figure 2- 3 ( General Plan Land Use Map) illustrates the City' s current General Plan Land Use Designations.

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Aqricultural Preservation
The Lathrop General Plan inciudes goals, policies and implementing programs aimed at managing growth and conserving open space and agricultural land. There are three parcels that have active Williamson Act contracts in the City of Lathrop, Assessor' s Parcel No' s 191- 190- 01, 72 and 213- 280- 09 ( refer to Figure 2- 4, Existing Williamson Act Contracts). These parcels have maintained Williamson Act contracts since 1973 and have maintained this status to the present time. These Williamson Act parcels were included in the West Lathrop Specific Plan that was annexed into the City of Lathrop on October 7, 1997. The City SOI does contain lands which have been identified as Important Farm Land and designated as Prime Agricultural, lands of State Wide Significance, lands of Unique Characteristics and lands of Local Significance.

The preservation of agricultural lands was also enhanced during the previous 2016 MSR update by re- designating approximately 2, 101 acres in the SOI as an " Area of Interest" and the same area being part of the Delta Plan adopted by the State of California in 2016. Delta Plan Policy DP- P1 requires new development within the Secondary Zone of the Delta to be limited to areas already designated for residential, commercial or industrial uses in the City and County General Plans in effect as of the date of the Delta Plan' s adoption, which was May 16, 2013. In the case of the Area of Interest, a majority of the approximately 2, 101 acres was designated on the San Joaquin County General Plan as Agriculture at the time of the Delta Plan' s adoption.

City of Lathrop Municipal Code- Agricultural Land Preservation ( Title 15. 48.040) The City of Lathrop Right- to- Farm Ordinance ( 15. 48. 030) of the City' s Agricultural Land Preservation Ordinance ( 15. 48. 040), was adopted in 1991 to conserve and protect agricultural operations in the City and protect adjacent agricultural landowners from nuisance complaints related to cultivation, irrigation, spraying, fertilizing, and other activities related to normal agricultural operations. A disclosure statement is required whenever adjacent property is sold or building permit application is submitted, notifying the prospective buyer/applicant of adjacent agricultural land and possible discomforts and nuisance factors related to agricultural operations. The focus of the ordinance is to reduce the loss of agricultural resources in the City by clarifying the circumstances under which agricultural operations may be considered a nuisance.

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San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (SJMSCP) The San Joaquin County Multi Species Habitat Conservation and Open Space Plan ( SJMSCP) provide comprehensive measures for compensation and avoidance of impacts on various biological resources, which includes ancillary benefits to agricultural resources. For instance, many of the habitat easements that are purchased or facilitated by the SJMSCP program are targeted for the protection of Swainson' s hawk or other sensitive species habitat that are dependent on agricultural lands ( i. e. alfalfa and row crops). The biological mitigation for these species through the SJMSCP includes the purchase of certain conservation easements for habitat purposes. The conservation easements are placed over agricultural land, such as alfalfa and row crops ( not vines or orchards). As such, the SLSP fees paid to SJCOG as administrator of the SJMSCP will result in the preservation of agricultural lands in perpetuity.

City of Lathrop Agricultural Mitigation
The City of Lathrop adopted an agricultural mitigation program in 2005, as a result of the settlement of a water transfer lawsuit against the cities of Lathrop, Manteca, and Tracy by the Sierra Club. The mitigation program adopted by the City of Lathrop required that future development pay $ 2, 000/ acre for agricultural mitigation. Half of the mitigation ($ 1, 000/ acre) will be paid to the Central Valley Farmland Trust ( CVFT). The other $ 1, 000/acre will be collected by the City of Lathrop and may be passed to the CVFT or other trust, or may be retained by the City of Lathrop to be applied to local easements or other agricultural mitigation. This fee structure included an automatic escalator, so the fee as of July 1, 2021, is $ 3, 026 per acre.

Since 2005 the City of Lathrop has entered into several Settlement Agreements related to Agricultural Mitigation which is summarized below:

1. River Islands was required to pay $2, 759 per acre.

2. Central Lathrop Specific Plan ( CLSP) projects are required to pay $4,539 per acre.

3. All other developments in the City are required to pay $ 3, 026 per acre.

These Agricultural Mitigation amounts discussed above are in addition to fees imposed as part of the San Joaquin Multi- Species Conservation Plan ( SJMSCP). The adopted SJMSCP includes a commitment to spend 75% of the dollars collected on lands which would benefit agricultural resources. The SJMSCP fee amounts to approximately $ 17, 363per acre ( 2021 Agriculture Fee Category), meaning $ 13, 022 per acre is assigned to purchase easements on lands with Agricultural Resources. The SJMSCP fees are considered a separate Mitigation Fee obligation from the Agricultural Mitigation fees, but in many cases serve the same purpose. The SJMSCP is a voluntary program in lieu of conducting independent biological assessments.

Most development proponents chose to comply with the SJMSCP.

Locally, the agricultural mitigation fees in San Joaquin County are as follows: San Joaquin County $3, 037. 08 per acre ; City of Stockton $ 14, 352 per acre ( single- family residential) ; City of Manteca $ 2, 909. 65 per acre; City of Tracy $ 3, 037. 08 and, City of Lodi requires a one-to-one replacement for all lands removed from agricultural production.

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Development in the Citv of Lathrop and Pendinq Developments The City of Lathrop has a number of large development projects planned for the City. The approved and/ or pending projects are illustrated below in Figure 2. 5 and include:

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Figure 2- 5 ( Existing and Pending Developments)
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River Islands
The 4, 995- acre River Islands development is located west of the San Joaquin River and east of Paradise Cut on land known as the Stewart Tract. The development includes a mixture of low, medium, and high- density residential uses, employment center, mixed use development areas, a transit- oriented development mixed use area, active and passive parks, schools, fire and police stations. River Islands is anticipated to be developed in two phases. Phase 1 includes 4,284 total residential units, a 154 acre employment center, 95 acres of Town Center, a police station, two schools, 13 lakes, and 98. 6 acres of parks. Modifications to Phase 2 were approved by City Council in June 2021, that include additional multi- family dwellings ( condominiums, apartments, etc.) and additional attached single-family residences similar to units already constructed as part of Phase 1. Phase 2 includes development of 10, 726 residential units, 61. 9 acres of the employment center, 149. 5 acre Paradise Cut Village Center, 116 acre Transit Oriented Development adjacent to the employment center and proposed Valley Link station, and 230. 3 acres of parks. The total amount of residential units anticipated is 15, 010. Construction began in River Islands in 2013 with the completion of an elementary school for the Banta Elementary School District ( now Banta Unified School District) as well as the construction of a Charter School. About 2, 800 low density residential units were constructed and occupied by mid- 2021. The estimated project completion date is 2040.

Mossdale Landing
Mossdale Landing is a mixed- use master planned community that is anticipated to be completed by 2030. Construction at Mossdale Landing began in 2003 and approximately 1, 570 residential units have been constructed thus far. An additional 66 low density and 62 high density units are anticipated by project completion. In addition, the development is allocating approximately 35 acres of land for two ( 2) schools, 40 acres for parks, and 25 acres for commercial development.

Mossdale Landing East
Mossdale Landing East ( formerly referred to as Lathrop Station) is proposed to be completed by 2030. Approximately 151 low density and 293 medium density residential units have been constructed so far. An additional 38 low density and 144 high density units are anticipated by project completion. The development plan also includes 6.5 acre of commercial, 13. 2 acres of service commercial, and 27.5 acres of highway commercial land uses.

Mossdale Landing South
Mossdale Landing South is a proposed 104- acre development that is to be completed by 2030. The development will consist of 280 medium density residential units and 150 high density residential units, of which 140 medium density unit have been constructed so far.

In addition, the project proposes 28 acres of commercial, 25 acres of open space and

9. 5 acres of parks.

Mossdale Landing West
The City has an additional 169- acres of undeveloped infill land for development within Mossdale Landing along River Islands Parkway adjacent to the San Joaquin River. The City anticipates 658 low density dwelling units and 72 high density dwelling units will be JUNE 2022 2- 16
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built by City buildout. The City is currently processing entitlement applications for the Mossdale Landing West project which includes the subdivision of the 169-acres into 829 single-family residential lots ranging in size from approximately 3, 000 sq. ft. to 5, 000 sq. ft.

Historic Lathrop Infill and Other Developments East of I- 5 Currently, this area consists of approximately 3, 076 low density and 78 medium density units, commercial and industrial areas, and public parks. Future residential growth of this area is expected on undeveloped/ underutilized and redeveloped parcels consolidated from large lots where low- density residential units would be demolished. New residential projects are estimated to consist of 34 low density, 158 medium density, and 25 high density residential units, increasing the total existing residential unit count by 217 total units.

Central Lathrop Specific Plan
The Central Lathrop Specific Plan proposes development of 1, 520 acres located west of Interstate 5. The Specific Plan proposes approximately 6, 790 low, medium and highdensity residential units and commercial land uses ( offices, retail, and mixed- use). The project also includes two ( 2) schools and 161 acres of recreational land use and open space. Phase 1 and 2 of the Project are anticipated to be completed by 2040, adding 274 high density units, 2, 236 variable residential units, and 173 acres of commercial land uses.

Lathrop Gateway Business Park Specific Plan
The Lathrop Gateway Business Park Specific Plan proposes commercial and industrial development of approximately 384 acres to be completed by 2025. The City annexed 213 acres of this area in June of 2012, and 99 acres of the remaining 117 acres in May 2016. This would result in construction of approximately 4.7 million square feet of service commercial, light industrial, distribution, and research and development related uses, and approximately 741, 000 sq. ft. of commercial office and retail uses. The project includes approximately 167 acres of limited industrial, 83 acres of service commercial, and 57 acres of office and commercial retail uses and is anticipated to be completed by 2030. The Phelan Development was approved by the City in 2018 and includes the construction of ten concrete tilt- up buildings totaling 3, 035, 000 sq. ft. of industrial warehouse development. Phase 1 includes 990, 350 sq. ft. of industrial warehouse development completed in 2021. Phase 2 includes 890, 375 sq. ft. of industrial warehouse development and is under construction and expected to be completed in 2022. Phase 3 includes 1, 154, 275 sq. ft. of industrial warehouse development and is expected to begin construction in 2022.

South Lathrop Specific Plan
The South Lathrop Specific Plan was recently approved by the City Council on July 20, 2015 which includes a 315 acre plan area. The Specific Plan proposes approximately 10 acres of commercial office use, 246 acres of limited industrial, 31 acres of open space, and 27 acres of roads and public facilities. The South Lathrop Specific Plan area was annexed into the City in May 2016. The South Lathrop Commerce Center contains approximately 272 acres within the South Lathrop Specific Plan and is anticipated to be completed by 2030. The South Lathrop Commerce Center will encompass nearly all of JUNE 2022 2- 17
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the South Lathrop Specific Plan area with the exception of approximately 24 acres of light industrial, 1. 2 acres of office commercial, and 19 acres of open space and pubiic roads. One- million sq. ft. of light industrial space was constructed in 2019.

Approximately two- million sq. ft. of additional light industrial are currently under construction.

Sharpe Army Depot
During World War II the US Army created the Sharpe Army Depot ( 1941) in the rural Lathrop Community to allow shipment of major army supplies to the western United States. The Sharpe Army Depot is comprised of a 724 acre facility south of Roth Road and has served both the Army and Air Force with a variety of supplies depending on the demand of goods and supplies created by war time efforts. The Depot is occupied by the Army & Air Force Exchange Services ( AAFES) West Coast Distribution Center that employs 348 workers. Prior to September 30, 2014, the Defense Logistics Agency was also housed at the Depot; its workforce of 700 workers has since been transferred to the larger Tracy Army Depot. Sharpe Army Depot was included in the City limits as part of the 1989 incorporation and is entirely self- contained; meaning all public services normally necessary to serve urban development such as water, sewer, storm drainage, police and fire services are provided by the US Army.

The City has agreed to provide water and sewer services to the AAFES property, including the West Coast Distribution Center and Building 240, and these connections are currently under construction. The City has also agreed to provide water and sewer service to the California National Guard. These connections should be operational by 2022 and were evaluated as part of the IWRMP. The Army has indicated it intends to transfer the remaining property within Sharpe Depot to the Port of Stockton, to be used as an inland port. Port of Stockton staff have asked if Lathrop would be willing to provide water and sewer service to the remaining Depot property, but the Port does not yet have a development plan. Once a plan is prepared, and the anticipated demand for water and sewer service can be calculated, the City will review whether it can provide the requested services.

The City of Lathrop is proposing a modification to the 10 year growth horizon previously approved by LAFCo to allow the annexation of approximately 21. 7 acres of land west of Manthey Road near Interstate 5 to allow a regional truck fueling station and to accommodate realignment of Manthey Road at Roth Road with a sufficient distance east of Interstate 5 to meet Caltrans intersection spacing requirement. In total, the current City of Lathrop includes existing and/ or planned developments which would generate approximately 28, 112 residential units, 340 acres of office, 150 acres of retail/ commercial, 203 acres of industrial land uses, and 542 acres of land designated for parks, schools and open).

Projected residential Build out of the City is summarized in Table 2- 2 below:

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Table 2- 2: Residential Build Out— Lands within the Existing City Limits r - 11 t`` t
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Historic Lathrop 3, 371 12, 708
Mossdale Landing 1, 698 6, 401
Mossdale Landing East 626 2, 360
Mossdale Landing South 414 2, 314
Central Lathrop 6, 790 25, 598
River Island 15, 010 45, 030z
Total: 28, 112 94, 411
Estimated population using the 2010 census figure for persons per household ( 3. 77 Pph)•
Since River Islands contains a much higher percentage of multifamily and highensity dwellings than the balance of the City, a factor of 3. 0 persons per dwelling units is used instead for future River Islands development.

2. Present and Probable Need for Public Facilities and Services The City currently provides and/ or contracts for adequate services to meet the needs of the existing population of 28, 503.' Services provided by the City of Lathrop directly include water, wastewater, storm water drainage and animal control. Services provided by contract with San Joaquin County include Police and Animal Control services for animal sheltering. The City is in the process of establishing its own Police Department and will begin operations on July 1, 2022 refer to Chapter 3, Section 2, Law Enforcement for additional information). The City contracts with the City of Manteca for Animal Sheltering. Fire service for the Lathrop City limits is provided by the Lathrop- Manteca Fire Protection District. Fire protection Services for lands north of Roth Road are currently provided by the French Camp- McKinley Fire Protection District.

Solid waste service is contracted with Republic Services. New development within the City and within the City' s SOI would lead to population growth and the need for additional public services.

The anticipated tax base, payment of development impact fees and the establishment of special maintenance assessment districts with new development provide the necessary funding for expanded City services. Development Impact fees continue to address all capital facilities costs created by new development and General Plan policies are in place to ensure the provision of adequate services for current and future populations through the management and creation of new maintenance districts. For details regarding the City' s ability to meet the needs of the existing and future population, refer to Chapter 4 ( Present and Planned Capacity). 1 State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties and the State— January 1, 2011- 2021. Sacramento, California, May 2021.

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3. Present Capacity of Public Facilities and Adequacy of Public Services The City' s existing SOI contains two primary unincorporated areas, one area north of the City' s boundary and one area south. The north area is located north of the Roth Road east of the Pilot Flying J annexation area and has a General Plan land use designation of Limited Industrial ( LI).

There is an additional smaller area west of the City boundary ( approximately 65 acres) along Roth Road and west of Manthey Road that is designated Freeway Commercial. In addition, there are approximately 63 acres south of the City boundary pre- zoned for industrial and public/quasi- public uses, of which was approved as part of the Lathrop Gateway Business Park Specific Plan. The approved South Lathrop Specific Plan annexation, comprised of 315 acres, and a portion of the Lathrop Gateway Business Park Specific Plan ( 99 acres) were annexed to the City of Lathrop in 2016. In total, the City' s SOI contains 197 acres of land designated on the Lathrop General Plan for a variety of Industrial and Commercial uses.

This MSR Update of 2021 includes an amendment to the adopted growth horizons to add one 1) parcel, 10. 3 acres in size, in the 10- year growth horizon. This would increase the 10-year growth horizon to 197 acres.

The most recent annexation into Lathrop occurred in 2017 with the annexation of 27.65 acres north of Roth Road as part of the Pilot Flying J Project. The determinations included in Chapter 3 of this MSR indicate that the public facilities and services provided by the City are adequate to meet the needs of the current population, and would be improved so as to meet the needs of future populations.

4. Social and Economic Communities of Interest
The City of Lathrop is proposing to expand the sphere of influence westerly of the City. This change is not anticipated to adversely affect any adjacent social and economic communities of interest.

B. Sphere Analysis
The following section provides the City' s projected development for ten- and thirty- year sphere horizons.

1. Existing and Projected Population
According to U. S. Census data, the population of the City of Lathrop was 18, 023 in 2010. The most recent population estimate for the City developed by the California Department of Finance DOF) indicates that the City' s population, as of January 1St, 2022, is 31, 331. The population projections included in the City' s General Plan were not used in this MSR because they are not based on the most current Census data and do not include all of the latest Specific Plans which have been approved by Lathrop since 1991. As such, the 2000 and 2010 Census and the DOF 2021 population estimates were used. The San Joaquin County Council of Governments SJCOG) population estimates prepared by University of Pacific ( UOP) as part of the 2018 Regional Transportation Plan ( RTP) were used as a basis for the population projections described below for the Growth Rate Method.

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Population projections using the growth rate method are shown in Table 2- 3 ( Growth Projections — Growth Rate Method) and are based on the 1990, 2000, 2010, and 2020 Census as well as the DOF' s population projections for 2020. The future growth projections beyond 2020 were based on the adopted population projections published by San Joaquin Council of Governments ( SJCOG) in an adopted report dated September 10, 2020, for 2022 the Regional Transportation Plan/ Sustainable Communities Strategy ( RTP/ SCS) ( currently being updated by SJCOG). The growth rate suggests a population growth rate for Lathrop after 2020 between two ( 2) to four (4) percent.

Table 2- 3: Growth Projections— Growth Rate Method
s
r- ,' Af x; [ l
C11 U 1 1 1 " -
u atr n; _ .,_ , _
1990 6, 841
2000 10, 445 3, 604 3. 45%
2010 18, 023 7, 578 4. 20%
2020 28, 701 10, 678 3. 72%
2025 33, 203 4, 502 2. 71%
2030 40, 955 7, 752 3. 79%
2035 48, 472 7, 517 3. 10%
2040 56, 164 7, 692 2. 74%
2045 64, 142 7, 978 2. 49%
2050 72, 347 8, 205 2. 27%
The population projections presented in Table 2- 3 take into account the following factors:
1990, 2000, 2010, and 2020 Census figures
California Department of Finance Estimates ( 2022)
Housing Element 5 h Cycle, dated December 9, 2019
Local jurisdiction input
Current economic and housing market conditions
Planned residential projects currently underway
As shown in Table 2- 3, the City is expected to grow at a modest rate over the next 30 years. By the year 2050, the City is expected to add approximately 46, 912, people, which would increase the City' s total population to 72, 347 residents. The City' s Housing Element, adopted by City Council on December 9, 2019, shows that the City is expected to grow to approximately 82,292 persons upon buildout of lands within the City limits. 2 Economic cycles in the housing market continue to play a dramatic role in forecasting of growth potential for all Central Valley Cities.

The economic downturn of 2007 through 2012 had a substantial impact on Lathrop and the projected growth did not come to fruition. The City of Lathrop continues to work with State and Federal Agencies concerning the interpretation and implementation of flood control work necessary to satisfy Senate Bill 5 ( State initiated 200- year flood protection). At this point, it is uncertain what impact SB5 might have on the timing and construction of the previously approved and entitled developments, within the 200- year floodplain, that have not started Z
City of Lathrop, Final Housing Element, December 9, 2019 J U N E 2022 2- 21
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construction. It is likely that absent significant financial resource commitments to certain levee improvements, future urban development that is subject to the provisions of SB5 will be adversely affected.

2. SPHERE CAPACITY
Figure 2- 1 shows the current City boundaries and SOI. The City' s existing SOI contains two primary unincorporated areas, one area north of the City' s boundary and one area south. The north area is located north of the Roth Road east of the Pilot Flying J annexation area and has a General Plan land use designation of Limited Industrial ( LI). There is an additional smaller area west of the City boundary (approximately 65 acres) along Roth Road and west of Manthey Road that is designated Freeway Commercial. In addition, there are approximately 63 acres south of the City boundary pre- zoned for industrial and public/ quasi- public uses, of which was approved as part of the Lathrop Gateway Business Park Specific Plan. The approved South Lathrop Specific Plan annexation, comprised of 315 acres, and a portion of the Lathrop Gateway Business Park Specific Plan ( 99 acres) were annexed to the City of Lathrop in 2016.

In total, the City' s proposed SOI contains 197 acres of land. Refer to Figure 2- 6 and Table 2- 1 for an illustration and summary of the types of land uses, acres and estimated time horizon within the City' s existing SOI.

The unincorporated areas within the City' s SOI will not result in any significant amount of population growth. The commercial/industrial area adjacent to Roth Road and Manthey Road, and the remaining Lathrop Gateway Business Park Specific Plan area will require the extension of public services from the City. All public improvements to support new urban development are the obligation of the developer. Funding mechanisms for long-term maintenance of infrastructure and services have been addressed through the preparation of Fiscal Impact analysis for each project. In most cases, this has created the need to establish special financing districts which have created dedicated funding sources for City services including police and fire. Consequently new development will have no adverse effect on the City' s ability to provide adequate public services. ( Refer to Chapter 3, Present and Planned Capacity).

C. Development Projections within the Adopted Sphere of Influence This section describes the relationship of the City Boundaries with the adopted SOI and in proposes an adjustment in growth horizons to reflect current development interests.

Figure 2- 6 ( proposed SOI and 10- Year Horizons) illustrates the existing City Limits, proposed SOI and Area of Interest, and the proposed ten- year growth horizons. As shown in Figure 2- 6, the City' s ten- year horizon includes the balance of the Lathrop Gateway Business Park ( 63 acres) remaining as part of the 2012 annexation effort; 69 acres of land easterly of Interstate 5 and north of Roth Road; and 65 acres westerly of the Roth/ Interstate 5 intersection.

The build- out of the projects already within the City and shown in Figure 2- 1 are anticipated to be built out by 2045, as current economic and housing market conditions continue to have high absorption rates. These projects are expected to add a significant amount of new residents to the City through the year 2045. In addition to residential development planned for the City over the next 30 years, a significant amount of industrial, commercial and recreational uses are also JUNE 2022 2- 22
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planned. Although these uses would not increase the City' s population, they would require the need for municipal services and, therefore, are analyzed as part of this MSR.

The population estimates proposed by San Joaquin County, the City of Lathrop' s population could increase to 72, 347 by 2050 adding 46, 894 persons ( Table 2- 3). The City of Lathrop will continue to plan all infrastructure necessary to serve a residential build out of 95, 391 persons.

The proposed SOI is not expected to add population growth to the City since the areas within the SOI are planned forjob growth and open space.

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Figure 2- 6 ( Proposed SOI 10 Year Horizon)
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e, su, ainwr ua a. ou n w, n1 no ,,: ccu aro ani.;> rcv rnaFarng aa,. pou s any.- ZN J: .« t + r9r: tore: n wn.: n JUNE 2022 2- 24
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3. MUNICIPAL SERVICE REVIEW
A. Growth and Population Projections
This section identifies future growth projections for the City of Lathrop ( City) and its Sphere of Influence ( SOI) that need to be taken into consideration when planning for the provision of services. A detailed discussion of existing and future municipal services to meet the future demand identified in this section is presented in Section B of this Chapter ( Present and Planned Capacity for Public Facilities and Adequacy of Public Services, Including Infrastructure Needs and Deficiencies).

1. Population and Demographics
The City and San Joaquin County ( County) experienced dramatic population growth between 1990 and 2005 and more recently from 2013 to 2022 are expected to continue to grow over the next 30 years. In fact, the City has experienced major growth in residential development over the last several years. Since 2019, the City has issued approximately 2, 000 residential permits for single-family residences and multi- family development. The following is a discussion of the County and City' s historic and anticipated population growth, as well as their demographic profiles.

San Joaquin County
In general, San Joaquin County' s population has been growing at a faster pace than the state and the nation. The strongest growth in the County was in the 1980' s and between 2000 and 2005. In general, the County has grown more than two percent per year, which is approximately one and a half times the nation' s annual growth over the past 35 years. This trend in exponential growth seen between 2000 and 2005 has been followed by eight years of substantial slowdown in population growth. However, the City has experienced a major growth in residential development over the last several years ( since 2015). As noted above, the City has issued approximately 2, 000 residential permits for single-family residences and multi- family development since 2019. According to the San Joaquin Council of GovernmenYs ( SJCOG) Demographic and Employment Forecast, dated September 10, 2020, the County is expected to continue growing at a rapid rate as a result of both natural population increases and strong migration. Between the year 2015 and 2050, the population is expected to grow an average of

1. 5 percent per year, well above the state' s one percent and the nation' s 0. 8 percent projected growth rates. 3 It is anticipated that the County' s population could reach over one million residents by 2050.

Citv of Lathrop
The City in many ways parallels the historic growth seen in San Joaquin County over the last decade and a half. As such, between 1990 and 2010, the City witnessed an extremely high amount of growth. In 1990, the City had a total of 6, 841 residents. 4 By 2010, the City had grown
3 San Joaquin Council of Governments, Countywide Population/ Household/ Employment Update, September 10, 2020.
4 U. S. Census Data, 1990
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to a population of 18, 023; almost tripling its population in 20 years.3 According to the California Department of Finance ( DOF), Lathrop' s current population ( 2021) is estimated at 28,503.

SJCOG based on the population forecasting performed by the Business Forecasting Center at the University of the Pacific ( UOP) for the 2022 Regional Transportation Plan/ Sustainable Communities Strategy ( currently being updated) has predicted an annual growth rate for Lathrop between 2015 and 2020 of 4. 65 percent, between 2020 and 2025 of 5. 45 percent, between 2025 and 2030 of 4. 28 percent and between 2030 and 2035 of 3.42 percent. The City of Lathrop 2020 Urban Water Management Plan, dated June 2021 projects that with approved Specific Plans, recorded Final Maps and pace of building permit issuances could result in a City Build Out" population of about 95, 391 as shown in Table 3- 1 below.

Table 3- 1: UWMP Population — Current and Projecteds
Population
2020 2025 2030 2035 2040
2045
Served Buildout)
26, 833 40, 466 54, 473 65, 267 76, 058 95, 391
NOTES:
a) Current population is based on population estimates by the California DOF for the City of Lathrop. b) Data present herein for 2045 reflects conditions at buildout for planning purposes. However, the City does not anticipate all buildout development to occur before 2045.

San Joaquin County has assigned a population percentage to Lathrop of 7. 07% and has suggested that Lathrop could grow to 72, 347 by 2050. A reasonable rate of growth for Lathrop can be determined using the existing population as determined by DOF and adding in a reasonable amount of new housing based on approved subdivision projects. Most notably has been the amount of construction activity associated with the River Islands project and the Central Lathrop Specific Plan and the anticipated population those projects might bring to Lathrop. River Islands building permit activity continues to be significant since the beginning of construction in 2013 and is expected to continue at a pace of about 500 permits per year.

Additionally, with the approval of the River Islands Phase 2 Project in 2021, the overall build- out of the River Islands Project ( Phase 1 and Phase 2) was increased by over 4,000 dwelling units to a total buildout of 15, 010 dwelling units ( Phase 1 and Phase 2). The Central Lathrop Specific Plan ( Phase 1) has started construction in 2020 and expected to continue at a rate of about 300 permits per year. The City of Lathrop population projection represents a significant increase in projected population for Lathrop as compared with SJCOG' s projections.

Reqardless, all Lathrop infrastructure planninq is beinq conducted based on a City Build Out population of 95, 391 as demonstrated in the City' s 2020 UWMP.

Table 3- 2 ( Population and Household Trends) illustrates the City' s growth and trends over the past 30 years.
3 U. S. Census Data, 2010
5 EKI Environment& Water, Inc., 2020 Urban Water Management Plan, May 2021 JUNE 2022 3- 2
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Table 3- 2: Population and Household Trends
1 r `` r ' 3 k 10 ,`:; . ' t{}: ; . .: t
Po ulation 6, 841 10, 445 `
y y
18, 023 20, 353 26, 806
Annualized Growth Rate 3. 45% 4. 20% 2. 28% 5. 66%
Total Housin Units 2, 095 2, 991 5, 261 5, 801 7, 284
Avera e Household Size 3. 53 3. 59 3. 77 3. 86 3. 88
Sin le Famil Units 1, 687 2, 473 4, 659 5, 202 7, 171
Multi- Famil Units 115 113 113 113 113
As shown in Table 3- 2, the City' s population has grown significantly over the past 30 years.

Lathrop's percent increase in population from 1990 to 2020 represents an annual growth rate of

4. 65 percent and ranks fifth in the state. Also of particular note is the significant increase in residential units in the City, which from 2000 to 2020 increased by approximately 58. 9 percent.

2. Population Projections
There are various methodologies available to determine population trends for a city. For the purposes of this MSR, the City chose to use the population projections from the City' s Urban Water Management Plan, dated June 2021 and as depicted in Table 3- 1, above.

Lathrop Population Prolections
Figure 3- 1: Lathrop Population Projection — City of Lathrop Projections szaoao
1OQ00Q
80000
60t? 00
4CJ000
2000d
0 202d 2025 2030 2035 2040 2045
Population
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3. Development Projections
This section provides an overview of projected development to accommodate growth in the City.

Further detail related to development projections is provided in Chapter 2.

Recent and Proposed Annexations
The San Joaquin Local Agency Formation Commission ( LAFCo) approved the annexation of the 213 acre portion of the Lathrop Gateway Business Park Specific Plan in 2012. LAFCo approved the annexation of the South Lathrop Specific Plan ( SLSP) and a portion of LGBPSP in 2016 465 acres). LAFCo approved the annexation of the Pilot Flying J project ( 27. 65 acres) in 2017.

Residential Housinp Approvals
Table 3- 3 presented below describes the inventory of approved residential tract maps in Lathrop.

Table 3- 3: Housing Inventory
Housinq Inventory
City of Lathrop, Community Development
April, 2022
Read Lots A roved Final Ma Read to Build
TractlSubdivision Name Total Units Units Remainin Final Ma MSDL Tract 3338 66 2 1/ 27/ 2003
MSDL Tract 3410 132 4 1/ 27/ 2003
MSDL Tract 3490 Villa e 7 52 4 8/ 14/ 2014
RI South River Bend Tract 3840 48 1 3/ 21/ 2015
RI East Villa e Tract 3826 24 1 8/ 1/ 2016
RI East Villa e Tract 3835 74 1 6/ 11/ 2018
RI East Villa e Tract 3892 35 3 2/ 11/ 2019
RI East Villa e Tract 3904 36 1 10/ 2/ 2017
RI East Villa e Tract 3938 38 2 10/ 8/ 2018
RI Lakeside East Tract 3989 50 4 10/ 8/ 2018
RI Lakeside East Tract 3990 24 1 9/ 9/ 2019
RI Lakeside East Tract 3991 48 8 12/ 10/ 2018
RI Lakeside East Tract 3992 38 1 10/ 14/ 2019
RI Lakeside East Tract 3994 51 6 10/ 8/ 2018
RI Lakeside East Tract 3997 36 1 6/ 10/ 2019
RI akeside East Tract 3998 33 2 8/ 10/ 2020
RI Lakeside East Tract 4001 103 2 11/ 19/ 2018
RI Lakeside East Tract 4002 25 1 10/ 26/ 2020
RI Lakeside East Tract 4021 44 1 5/ 11/ 2020
RI Lakeside East Tract 4022 120 5 4/ 13/ 2020
RI Lakeside East Tract 4031 48 12 7/ 27/ 2021
RI Lakeside East Tract 4050 33 4 12/ 8/ 2020
RI Lakeside East Tract 4051 61 47 6/ 14/ 2021
RI Lakeside West Tract 4052 30 1 1/ 4/ 2021
RI Lakeside West Tract 4053 47 7 9/ 23/ 2021
RI Lakeside West Tract 4055 42 1 12/ 18/ 2020
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RI Lakeside West Tract 4056 80 21 6/ 30/ 2021
RI Lakeside West Tract 4063 141 67 2/ 2/ 2021
RI Lakeside West Tract 4067 95 68 2/ 25/ 2021
RI Lakeside West Tract 4069 59 28 8/ 10/ 2021
RI Lakeside West Tract 4071 51 11 3/ 2/ 2021
RI Lakeside West Tract 4093 23 12 5/ 28/ 2021
RI Lakeside West Tract 4101 42 20 8/ 2/ 2021
RI Old River Tract 4089 48 20 8/ 25/ 2021
RI Old River Tract 4091 48 12 8/ 4/ 2021
CLSP Phase 1A Tract 3809 96 28 12/ 9/ 2019
CLSP Phase 1A Tract 3812 89 1 12/ 9/ 2019
CLSP Phase 1 B Tract 4017 311 205 1/ 11/ 2021
CLSP Phase 1 B Tract 4018 292 252 6/ 14/ 2021
CLSP Phase 1 C Tract 4062 191 191 10/ 11/ 2021
CLSP Phase 1 D Tract 4105 271 271 2/ 14/ 2022
Total 2 713 868
Entitled Lots (Approved Tentative Map. Pendinq Final Map) MSDL VTM Tract 3225 66 66 1/ 27/ 2003
MSDL VTM Tract 3073 Unit 2 62 38 3/ 2/ 2004
RI VTM Tract 3694' 4, 284 492 3/ 27/ 2007
RI VTM Tract 6716 10 726 10 726 6/ 14/ 2021
Total 15 138 11 322
Non- Residential, Commercial and Industrial Approvals
The City of Lathrop is located in a prime location along the Interstate 5 corridor and in close proximity to SR 205 and SR 120. This has afforded Lathrop many opportunities for job generated land uses. The City has seen a tremendous amount of industrial growth over the last six ( 6) years, approving over 12 million square feet of industrial warehouse buildings. Recently the City has approved a variety of new Industrial developments including:

Project Year Approved Square Status
Foota e
SimploYs Fabric Warehouse 2015 18, 000 Completed
Buildin
Super Store' s Warehouse 2015 18, 866 Completed
Freezer Ex ansion
LBA North 2015 517, 600 Com leted
Crossroads Lo istics Center 2015 560, 000 Completed
I- 5 Lo istics Warehouse 2016 745, 640 Com leted
Tesla Warehouse 64, 750 Com leted
Excel ( Pratt) Warehouse and 2016 627, 620 Completed
Distribution Center
South Lathrop Commerce 2016 and 2018 4, 850, 000 Under Construction Center Phase 1 and Phase 2
Murphy Parkway Warehouse 2017 870, 240 Completed
Pro' ect
Phelan Lathro Gatewa 2018 3, 035, 000 Phase 1
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Phase 1 through 3) Completed. Phase
2 in Under
Construction
North Crossroads Business 2020 1, 000, 000 Under Construction Center
Seefried Warehouse 2020 189, 000 Under Construction
Scannell Properties Industrial 2021 191, 160 Approved
Pro' ect
Total 12, 687, 876
The future forecast is that lease rates in San Joaquin County will continue to increase as the market experiences a shortage of space. The current occupancy levels for industrial buildings are at the highest levels in modern history. New construction being delivered in 2021 may not relieve the pressure of rising lease rates or demand as new speculative space is expected to lease at or close to the asking rates. Steady absorption of industrial space and the increased demand for larger footprint buildings will directly correspond to more land being put into production by institutional developers and Fortune 1000 corporate space users in San Joaquin County.

Sphere of Influence
As described in Chapter 2, the unincorporated areas within the proposed SOI consist of lands designated by the General Plan as Freeway Commercial and Light Industrial near Roth Road, and the Lathrop Gateway Business Park Specific Plan area. These areas represent nonresidential growth requiring public services. Section B of this Chapter concludes future development contemplated by the Lathrop General Plan would not result in a substantial impact on the City' s ability to provide services.

4. Determination
Growth within the Lathrop' s SOI within the ten- year horizon would be limited non- residential, job generating types of uses. These projects include the remainder of the Lathrop Gateway Project area easterly of McKinley Avenue and the 134 acres north of Roth Road east and west of Interstate 5.

B. Location and Characteristics of any Disadvantaged Unincorporated Communities within or Contiguous to the Sphere of Influence
SB 244 requires the identification and description of all " disadvantaged unincorporated communities" ( DUC' s) located within or contiguous to the existing sphere of influence of cities and special districts that provide fire protection, sewer, and/ or water services. Disadvantaged unincorporated communities are defined as inhabited unincorporated areas with an annual median household income that is 80% or less than the statewide annual median household income. The identified disadvantaged unincorporated communities are required to be addressed by LAFCo when:

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Considering a City Annexation proposal involving 10 acres or more with an existing disadvantaged unincorporated community contiguous to the proposed area; and
Approving sphere of influence and municipal service review determinations associated with the updated or established sphere of influence for local agencies subject to SB 244 requirements.

SJ LAFCo has identified the French Camp DUC as part of their Sphere of Influence policies adopted December 14, 2012. The French Camp DUC has three ( 3) Districts and District 3 adjoins the Lathrop Sphere of Influence to the north of Roth Road. Based on an aerial review, confirmed by a physical windshield survey, the area in question adjacent to the Lathrop SOI contains a mixture of industrial and large rural ranchette uses and does not contain compact urban development lacking municipal services. There is no evidence of any failing water and sewer infrastructure in the area. The proposed growth horizon changes involve lands westerly of the Union Pacific Railroad Tracks and the DUC area immediately north of the proposed change is used for industrial purposes. Therefore, the requirement to consider extending services to this area appears to be unnecessary.

C. Present and Planned Capacity for Public Facilities and Adequacy of Public Services, Including Infrastructure Needs or Deficiencies
The purpose of this section is to evaluate the infrastructure needs and efficiencies of services provided by the City of Lathrop ( City), especially as they relate to current and future users.

Infrastructure needs and deficiencies are evaluated in terms of supply, capacity, condition of facilities, and service quality with correlations to operational, capital improvement, and finance plans.

This section addresses the provision of the following services, some of which are directly provided by the City and others which are provided through contract or special district services:

Fire Protection
Law Enforcement
Water Supply, Conservation, and Treatment
Wastewater Collection and Treatment
Storm water Drainage/ Flood Protection

1. Fire Protection
The Lathrop Sphere of Influence ( SOI) is covered by two independent Fire Protection Districts, the Lathrop- Manteca Fire Protection District ( LMFD) and French Camp- McKinley Fire District French Camp). The Lathrop- Manteca Fire Protection District provides fire protection services for all lands within the City of Lathrop being primarily lands south of Roth Road in addition to providing service to some 84.7 square miles of rural area around Manteca in the southern San Joaquin County area. The LMFD also provides Hazardous Materials Response and mutual aid to the recently developed area north of Roth Road ( Pilot Flying J).

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LMFD was established in 1936 to provide fire protection for the township of Lathrop, rural Lathrop and the rural areas surrounding Manteca. The Fire District was organized under the laws of the State of California, Health and Safety Code Section 13800, known as the Fire Protection District law of 1987. LMFD is governed by a five- member Board of Directors who are elected at- large to serve a four- year term. Since 1936 the Fire District has developed into a proactive Fire Department covering 100 square miles including the City of Lathrop. LMFD staff is comprised of 41 uniformed full- time personnel and 35 Reserve Personnel. LMFD personnel includes a Fire Chief, deputy Fire Marshal, Administrative Division Chief, 3 Battalion Chiefs, 15 Fire Captains, 12 Engineers, 9 Firefighters, 35 on- call/ reserve Firefighters and 7 administrative staff. The Fire District is organized to maintain career personnel on duty, 24 hours a day, yearround, to respond to emergencies from the strategically located fire stations. LMFD has five ( 5) Fire Stations, three ( 3) of which are located in the City of Lathrop. The most recent fire station Station # 35) was constructed in 2019 and is located at 19001 Somerston Parkway in River Islands.

The French Camp District provides fire protection for the rural area primarily south of Stockton and north of Roth Road both east and west of Interstate 5. French Camp service boundaries include approximately 16 square miles, including a small portion of Stockton. Approximately 805 acres of the French Camp Fire District is in the Lathrop Area of Interest and about 115. 76 acres is in the SOI. The District was established in 1946 to provide fire protection for the French Camp Community and surrounding area. The Fire District was organized under the laws of the State of California, Health and Safety Code Section 13800, known as the Fire Protection District law of 1987. French Camp is governed by a five- member Board of Directors who are elected at- large to serve a four-year term. The District consists of 16 employees, of which 10 are line staff, 5 are reserve personnel, and 1 administrative staff member. The French Camp Fire District also contracts with Mountain House community and provides fire protection services with 16 Fire personnel assigned to Mountain House.

Existing Facilities and Services
Lathrop- Manteca Fire Protection District( LMFD)
Since the incorporation of Lathrop in 1989, the Fire District has worked with the City Council to develop plans to provide adequate coverage for potential urban growth of the City. This has included the imposition of Fire Facilities Fees for new development as well as a sharing in the Special Sales Tax, Measure C, passed City- wide.

The Fire District- wide fire suppression force is organized into three shifts consisting of 13 members each. Each of the shifts is on duty for rotating periods of 24 hours. A minimum of three full time firefighters are on duty at the satellite fire stations at all times. Each of the fire stations within the City of Lathrop, J Street ( Station 31), Mossdale ( Station 34), and River Islands ( Station 35), have three full time firefighters assigned to each station, 24 hours a day seven days a week. Additionally, one Battalion Chief is assigned to a station within the city to manage the day to day operations and provide scene management for emergency operations.

Station 35 also includes the Fire Chief, administrative services, and Fire Prevention staff.

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Per the LMFD 2018 Master Plan, the next planned Stations will be located as follows:

South Lathrop near the Yosemite Avenue and McKinley Avenue Corridor ( Station# 36); Klo Road, north of Lathrop City limits (Station# 37); and River Islands Parkway, within the Phase 2 development area ( Station # 38).

The LMFD District boundaries spread over about 100 square miles, with the bulk of the District' s population ( 70%) within the City limits of Lathrop. Locations of the existing LMFD fire stations are presented in Figure 3- 2 ( Fire Station Locations).

In 2014 the LMFD switched dispatch providers. LMFD calls are now being dispatched by the City of Stockton along with the Manteca Fire Department, Stockton Fire Department, South County Fire Authority ( Tracy) and Lodi Fire Departments. LMFD tracks the following times segments and continuously works to improve response times. These times are provided from LMFD' s records, specific to the City of Lathrop' s capturing data from Jan 1, 2020 to Dec 31, 2020.

Alarm Processing Time: Defined as the time elapsed between receipt of alarm and the dispatch of apparatus to the emergency call. The LMFD benchmarks this according to the National Fire Protection Association Standard 1221: Installation, Maintenance, and Use of Emergency Services Communications Systems. Section 7. 4. 3 of this standard identifies the that elapsed alarm processing for the highest priority of life-threatening calls shall have an alarm processing time of 60 seconds for at least 90 percent of these total calls. The Lathrop Manteca Fire District currently contracts with the City of Stockton for dispatch services. In addition, the Fire District has moved its primary alerting system to an internet protocol system that increases the speed of which alarms are " pushed" to the emergency responding units. The Fire District meets this standard one hundred ( 100) percent of the time.

Turnout Time: This time is calculated from the receipt of the alarm by the station of unit and ends at the time the unit begins its rolling travel time. Benchmarks for these time standards are 60 seconds for 90°/ o of the total Emergency Medical Calls and 80 seconds for 90% of the total Fire Calls. The Fire District' s data shows a 60 second turnout time for EMS Calls for 88% percent of occurrences and have an 80 second turnout time for 95% of the fire occurrences.

Response Time: Response time is reflected by the turnout time and travel time that are added together to create a complete picture of the Fire District response time. In 2020, the Fire District responded to emergency incidents 70% of the time within five minutes at the 90th percentile with all combined responses. It should be noted that due to growth demands and development planning the fire district responds to areas of new development that are often outside of the existing service zones. While call volumes in those areas are generally lower, they do have an impact on the overall analyses. The District has plans to add two ( 2) to three ( 3) additional fire stations/ companies in order to service these developments. At buildout, the Fire District expects to be closely meeting travel distance times that are closer in alignment with LMFD standards. 6
6 Joshua Capper, Fire Chief, Personal Communication( via email), October 27, 2021 and Larry Madoski, Admin. Division Chief, October 26, 2021
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The Fire Prevention Bureau administers the DistricYs fire prevention and code enforcement program. Plan checks are done by the Fire Prevention staff or a third- party plan check company along with construction and business inspections. Fire Company personnel conduct annual pre- incident inspections. Additional fire safety programs include smoke detector installation for the elderly and disabled and fire safety and awareness in the schools.' The Fire District responds, not only to fires of all types, but also medical emergencies, traffic accidents, service calls, Hazardous Material incidents, technical rescue incidents, and water rescues. The Fire District is an active member of the San Joaquin County Hazardous Materials Response Team. The Fire District is also part of the Urban Search and Rescue Team.$ ISO Rating for LMFD
The Insurance Services Office ( ISO) Public Classification Program currently rates the LMFD as a community classification of 3 for the City of Lathrop9. This is an improved rating since 2011 which reported an ISO rating of 4 for LMFD. The ISO ratings are on a scale of 1- 10 with 1 being the highest rating. The ISO rating measures individual fire protection agencies against a national Fire Suppression Rating Schedule which includes such criteria as facilities and support for handling and dispatching fire alarms, first- alarm responses and initial attack, and adequacy of the local water supply for the fire suppression purposes.

Lathrop- Manteca Fire Protection District website, httn:// www. lmfd. or, 8 Ibid
9 Lathrop-Manteca Fire District, Lathrop- Manteca Fire District Master Plan, 2018 JUNE 2022 3- 10
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French Camp McKinley Mountain House Fire Protection District( French Camp) The authorized personnel strength of French Camp consists of 16 employees, of which 7 are line staff and 9 are reserve personnel. The French Camp and Montezuma Fire Protection Districts rotate Fire Chiefs in order to provide coverage for the respective Fire Stations. The fire district is organized to maintain three personnel with automatic aid agreements with other agencies. On May 15, 2015, the District and Mountain House Community Services District Mountain House CSD) entered into an agreement for the District to provide fire protection and emergency medical services to the community served by the Mountain House CSD. The District provides staffing to Mountain House CSD based on staffing response guidelines established by the jointly adopted Service Level Criteria using vehicles, equipment and apparatus of both Districts.

The District charges Mountain House CSD an established daily rate with the rate renegotiated every year. The District also bills Mountain House CSD for service, supplies and apparatus as needed. The original contract term extended from September 15, 2015 through June 30, 2020.

The contract was extended through June 30, 2025. Station 16- 1 in Mountain house is staffed with five ( 5) personnel on- duty.' o
French Camp maintains one Fire Station located at 310 East French Camp Road and also operates out of the Mountain House Fire Station located at 911 Traditions Street, Mountain House. The French Camp station is staffed by 2 engine companies and is staffed 24- hours per day. The organization responds to approximately 1, 800 calls between Mountain House and French Camp.

The French Camp District boundaries and location of the fire station is presented in Figure 3- 3 Fire Station Location). According to response data by Lifecom Dispatch Center, and confirmed by Former Chief Paul Tualla, the District' s 90 percentile " turnout time" and " travel" times in 2015 were 1: 50 minutes and 6: 01 minutes respectively to the Roth Road area. These times were below the average 90 percentile time for all rural fire districts at 2: 42 minutes turnout time and 7: 38 minutes response time. The Chief estimates the longest travel time was 7: 24 minutes." 12 The Fire District responds, not only to fires of all types, but also medical emergencies, traffic accidents, and water rescues. The Fire District is an active member of the San Joaquin County Hazardous Materials Response Team. The Fire District is also part of the Urban Search and Rescue Team. 13
ISO Rating for French Camp Fire
The Insurance Services Office ( ISO) Public Classification Program rates the French Camp in their November 23, 2010 report, as a
community classification of 4/ 8b for the District. The ISO ratings are on a scale of 1- 10 with 1 being the highest rating. The ISO rating measures lo French Camp- McKinley Fire District website, frenchcampfire. com, October 15, 2021 11 French Camp- McKinley Fire MSR adopted by SJ LAFCo October 21, 2011 12 Former Paul Tualla, Fire Chief of FRCFIRE, Personal Communication, September 12, 2015 and e- mail of November 12, 2015.
13 Ibid
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individual fire protection agencies against a National Fire Suppression Rating Schedule which includes such criteria as facilities and support for handling and dispatching fire alarms, firstalarm responses and initial attack, and adequacy of the local water supply for the fire suppression purposes.

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Provisions for Future Growth and System Improvements
The Hazard Management Element of the City of Lathrop Comprehensive General Plan ( General Pian) includes policies to ensure that adequate fire personnel related facilities are funded and provided to meet future growth. These policies include:

Policy 1 The City will continue to give high priority to the support of police protection, and to fire suppression and prevention and life safety functions of the Fire District. Ultimate expansion of the City' s fire service is to include additional stations affording adequate response within a maximum of 3- 4 minutes to all parts of the urban area.

Policy 2 The City will work to maintain a fire flow standard of 3, 000 gpm for all commercial and industrial areas of the community, and 1, 500 gpm for residential areas, to assure the capability to suppress urban fires. In strategic areas, the City should provide above ground water storage with capacities sufficient to supply the City for required durations.

Policy 3 The City will maintain a street system which is capable of providing access to any fires that may develop within the urban area, and which is capable of providing for the adequate evacuation of residents in the event of an emergency condition of magnitude.

Policy 4 The City will continue to maintain and update its existing Emergency Service Plan, including plans for managing emergency operations, the handling of hazardous materials and the rapid cleanup of hazardous materials spills.' a LMFD
In order to meet the 3- 4 minute standard response time as outlined in the General Plan, the Fire District would have to expand their number of fire stations and personnel. This has been partially accounted for with the construction of Fire Station 34 ( located in Mossdale Landing) and Fire Station # 35 ( located in River Islands). Additional Fire Stations are planned in River Islands ( northern portion of the project on River Islands Parkway) and in southeast Lathrop near the Yosemite/ McKinley Ave. intersection) The River Islands fire station (Station # 35) was built in anticipation of future development projects and their fire protection needs. Additionally, each development has prepared an Environmental Impact Report ( EIR) subject to the requirements of the California Environmental Quality Act ( CEQA). These EIRs have evaluated projects impacts on public services including Fire Protection and have included mitigation requirements as necessary to maintain service levels including the requirement to participate in a Fire Services Community Facilities District ( CFD) to fund additional fire service personnel to accommodate the new growth. The Fire Services CFD is established as a special tax which does not sunset. In addition, LMFD has adopted fire facilities fees which are assessed at time of building permit issuance to all new development. These fire facilities fees are administered by LMFD in cooperation with the City of Lathrop. LMFD continues to evaluate and have input to determine the appropriate combination of fire CFD' s and fire facilities fees to maintain adequate fire service needs of Lathrop according to the Lathrop General Plan and the LMFD Master Plan City of Lathrop, Comprehensive General Plan,, November 9, 2004 JUNE 2022 3- 19
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of 2018. Each new project is required to perform a Fiscal Impact Analysis to determine fiscal neutrality on City services as well as those of special districts including LMFD.

The LMFD Master Plan of 2018 has identified the need for three ( 3) future stations to provide future fire protection service. 15 The general locations of these stations include:

McKinley Avenue and Yosemite Avenue
River Islands ( Phase 2 area)
Klo Road ( unincorporated San Joaquin County)
ls Lathrop-Manteca Fire District, Lathrop- Manteca Fire District Master Plan, 2018 JUNE 2022 3- 20
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Figure 3- 4 ( Future Fire Station Locations)
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The exact location of these stations and timing of their construction is at the discretion of LMFD.

LMFD is a partner with the City of Lathrop on all future developments and therefore establishes triggers to start new fire station construction based on the demand of services. New stations are funded by the property taxes, fire facilities fees and CFD' s placed on new development.

The most recent fire station constructed was Fire Station # 35, located in River Islands. Station 35 was funded by Fire Mitigation fees for the construction of the facility and manpower will be funded by a combination of Special District Taxes, Fire CDF Assessments and Measure C tax assessments ear marked by the Lathrop City Council for Fire Protection Services.

The Fiscal Year 2021- 2022 budget for LMFD is $ 12, 908, 121. Of this $ 5. 9 million came from the Districts share of property tax increment at 9. 9% received ( average rural fire district increment is

11. 7%), $ 2. 9 million came from Intergovernmental Revenues such as license/ permits, plan check fees, property override tax, etc. and $ 3. 0 million came from Miscellaneous Revenues such as Measure C ( a local tax measure passed by the Lathrop voters in 2012 of which the City Council entered into as an agreement with LMFD to allocate 40% of the tax proceeds for fire protection services) and CFD tax assessments associated with the Central Lathrop Specific Plan Area ( CFD 2006- 02).

French Camp Fire District
As of 2015, French Camp has expanded Fire protection service to the community of Mountain House by contract basis. French Camp will manage and maintain existing fire stations established as part of the Mountain House development. As noted above, the contract was e ended through June 30, 2025.

The Fiscal Year 2019- 2020 budget is $ 3, 291, 390 which came from the Districts share of property tax increment at 8. 1% received ( average rural fire district increment is 11. 7%), the Mountain House contract for Fire and EMS service ($ 1, 970, 095), and other revenues ( licenses and permits, special assessments, homeowner property tax relief, etc.

Future Annexations into the Citv of Lathrop
The areas within Lathrop' s SOI are currently under the jurisdictions of the respective Fire Protection Districts indicated above. LMFD is the service provider for all land within the incorporated city limits at this time. French Camp is the service provider for land north of Roth Road in Lathrop' s sphere of influence. When future annexations of lands north of Roth Road are submitted, the two Fire Districts will engage in a dialog to discuss if the districts want to proceed with a detachment or proceed with no detachment. There are several options that can be explored to address the financial impact of the fire district which loses territory when annexations occur. Several alternatives exist, including: short-term backfill agreements, not detaching, incorporating the interest of the fire districts in the tax sharing agreement, or providing financial reimbursement through an agreement ( e. g. development agreement).

Please see the Final Municipal Service Review for Rural Fire Protection Districts in San Joaauin Countv, dated October 21, 2011, for additional information on fire service areas, service adequacy, and MSR determinations.

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2. Law Enforcement
Existinq Facilities and Services
Law enforcement services in the City are provided through contract with the San Joaquin County Sheriff' s Department. Lathrop Police Services' officers are Deputy Sheriff' s assigned to the City. They have unique training to include traffic enforcement, specific to an incorporated City.

Lathrop Police Services is currently located at 7000 Michael Canlis Boulevard in French Camp.

The City recently constructed a new Police Station in River Islands located in Phase 1, along River Islands Parkway. The location of the police station is presented in Figure 3- 5 ( Police Station Location). Since the City was incorporated, police service has been expanded to include eleven patrol cars. Lathrop Police Services is staffed 24 hours a day in a series of 3 patrol shifts with a minimum of 2 patrol officers per shift. Minimum staffing levels are set at 6 officers per day. Lathrop Police Services has 26 sworn officers, including 1 captain serving as police chief, 1 lieutenant, 2 sergeants, 2 detectives, 20 deputy sheriffs and 3 civilian staff. If needed, additional assistance can be summoned under a mutual aid agreement with surrounding cities and the County. Existing police staffing levels in the City are approximately

1. 1 per 1, 000 residents. The current city- wide priority 1 average response time is 4 minutes.

Priority 1 calls are where a threat is posed to life or a crime of violence.

Provisions for Future Growth and SVstem Improvements
The approval and/ or pending development projects in the City will result in additional demand for law enforcement services. Capital costs for new facilities and equipment is funded through development impact fees and operational costs are funded through a combination of an increased tax base, participation in Community Facility District ( CFD) and Measure C funding ( A City initiated special tax which does not have a sunset clause). The City of Lathrop has been proactive with all new developments to require a Fiscal Impact Analysis of all developments and to create financing strategies to cover any and all funding projected short- falls. In accordance with the City' s General Plan, the City of Lathrop is planning to relocate the existing police station by creating a new police station in the River Islands project area, as noted above.

At the March 22, 2021, Special City Council Meeting, Council directed City staff to create Capital Improvement Project CG 21- 11, to begin the creation of a new Lathrop Police Department and implement the transition of law enforcement services from the San Joaquin County Sheriff to the City. The new Police Department project identifies 46 new sworn and nonsworn positions. On May 10, 2021, the City Council approved a Master Consulting Services Agreement with CPS HR Consulting ( CPS) to begin recruitment of personnel for the new City of Lathrop Police Department and authorized the creation of the new Police Chief position. Since May 10, 2021, CPS has advertised positions for the various levels of Staffing, including Police Chief, Police Commander, Police Sergeants, Police Officers, and non- sworn personnel. 16 In September 2021, the City hired the first Police Chief for the new Department and two ( 2) Commanders in February, 2022.
16 City of Lathrop, Lathrop Police Department Transition Website( https:// www. ci. lathrop. ca. us/ citymana er/ pa e/ lathrou- police- department- transition), accessed December 7, 2021 and May 31, 2022.

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The City continues to recruit for the various levels of staffing, purchase necessary equipment, such as Police vehicles for the new Police Department, and coordination with other jurisdictions for the purposes of evidence storage and 911 operations. The Lathrop Police Department will initiate operations on July 1, 2022.

The City has adopted a police staffing standard of 1. 5 officers per 1, 000 residents. The City plans to contract for additional officers to attain a 1. 5 officer per 1, 000-residents ratio, as directed by the City Council. It is anticipated that a total of 30 sworn officers would meet this standard, requiring four additional officers to meet the current population estimate.

The areas within the City' s SOI are currently under the jurisdiction of San Joaquin County Sheriff' s Office. Lathrop Police Services will provide police service to development occurring within the City limits until July 1, 2022, when the City of Lathrop Police Department will take over the responsibility to police the City.

In 2013 Lathrop City Council commissioned a special study of the Law enforcement services by engaging the expertise of Municipal Resources Group, Inc. ( MRG). In a report published on December 10, 2013, the MRG group compared the services provided with the Cities of Ripon, Patterson, Oakdale, Riverbank, Galt, Manteca and Tracy and concluded their Comparative Data Findings which suggests:

Lathrop' s Officers per 1, 000 population is currently at the norm for comparison agencies; Per officer costs are average for similarly organized/ sized agencies; Lathrop' s crime rates are comparable with similar sized cities; Lathrop' s crimes per officer and 1, 000 population are average; A majority of the comparison agencies use only General Fund revenue to support law enforcement services;
Funding for Lathrop' s law enforcement activities is significantly enhanced through the use of Community Facilities Revenue and the Sales Tax Measure proceeds; Lathrop' s total public safety expenditures ( police and fire) are significantly reduced because the City does not have direct Fire service responsibilities; Lathrop' s relatively high per capita General Fund revenue permits funding ` quality of life' services such as recreation facilities and programs, parks and other amenities.

In summary, the MRG report found that the City of Lathrop compares favorably on key elements including crime rate, ratio of officers to the population and crime; costs for law enforcement are as low as the average; and the City benefits from the additional revenue sources which fund public safety costs freeing General Fund Revenues for `quality of life' services.

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Figure 3- 5 ( Po ice Station Location)
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3. Water Supply, Conservation and Treatment
The City makes water service available to all of its estimated 26, 821 residents. Annexed properties connect to City water service over time. The ultimate water service area is determined by the Lathrop General Ptan. The service area includes the City limits and proposed SOI and includes the railroad cargo container commercial enterprise that is located outside of City limits." The extent of the water service area is presented in Figure 3- 6 ( Lathrop Water Service Area).

This section summarizes the findings of the City' s existing and in- progress documents regarding the City' s ability to provide adequate water service at build- out within the City limits and SOI.

These documents include the 2001 Potable Water Supply and Distribution Master Plan, the 2004 Water Supply Study ( WSS) by RBF Consulting, the 2005 Urban Water Management Plan prepared by Nolte Engineering published in 2009 and the 2010 Urban Water Management Plan and Water Supply Study ( WSS) prepared by West- Yost, the 2018 Water System Master Plan, developed as part of the City' s Integrated Water Resources Master Plan ( IWRMP) Update, and the 2020 Urban Water Management Plan ( UWMP). Each of these reference documents are available at Lathrop City Hall and are posted on the Cities website.

The City's most recent water supply planning document is the 2018 Water System Master Plan and 2020 UWMP. These studies evaluate historical, existing and anticipated water supplies and demands and provide alternatives for additional sources of water supply. The 2020 UWMP is a foundational document and source of information about the City' s historical and projected water demands, water supplies, supply reliability and potential vulnerabilities, water shortage contingency planning, and demand management programs. The 2020 UWMP, prepared by EKI Environment & Water, Inc. was adopted by City Council on June 14, 2021.

Existing Supply and Demand
This section discusses the City's three water sources:

Groundwater from the San Joaquin groundwater basin
Surface water from the South San Joaquin Irrigation District ( SSJID) Recycled water from the Lathrop Consolidated Treatment Facility ( LCTF) Ground Water
The City overlies the Tracy Subbasin of the San Joaquin Valley Groundwater Basin. The Tracy Subbasin is not adjudicated, and it is not in a condition of critical overdraft. The Tracy Subbasin is designated as a medium priority basin under DWR' s 2019 Phase 2 Basin Prioritization'$.

Under this prioritization process, basins are ranked on eight components, and if a basin is assigned between 15 and 21 total points, it is defined as " medium priority." The Tracy Subbasin covers an area of approximately 373 square miles. The Subbasin is bounded on the northwest by the Old River south to the tri- county confluence point on the south by the Clifton Forebay where it then follows the Contra Costa- Alameda County line to the foothills of the Coastal EKI Environment& Water, Inc., 2020 Urban Water Management Plan, June 2021 18 DWR, Sustainable Groundwater Management Act 2018 Basin Prioritization, January 2019 JUNE 2022 3- 26
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Range mountains. The northeast boundary follows the San Joaquin River south to the San Joaquin County Line with a slight jog to include the City of Lathrop on the west side of the river.

The southern border of the Subbasin generally follows the San Joaquin- Stanislaus County line, with some irregular areas belonging to the Delta- Mendota Subbasin to the south. The western border follows the Coastal Range foothills from the San Joaquin- Stanislaus County line; north to the Contra Costa- Alameda County line. The Subbasin is a mix of Delta island ( mostly agriculture) and waterways along with urban and agricultural communities on the southern edge.

Formerly, the City straddled two ( 2) groundwater basins — the western portion of the City overlied Tracy Subbasin while the eastern portion of the City overlied the Eastern San Joaquin ESJ) Subbasin. The ESJ Subbasin is a high- priority, critically- over drafted basin. Both basins are Subbasins of the San Joaquin Valley Groundwater Basin and the San Joaquin River used to form the boundary between the basins. Lathrop submitted a Basin Boundary Modification Request ( BBMR) in June 2018 to modify the boundaries of the ESJ Subbasin and the Tracy Subbasin to align with the City's City Limit and include the entire City with the Tracy Subbasin.

During development of the BBMR, the City consulted with Sharpe Army Depot and J. R. Simplot Company ( Simplot), the affected public water systems of this request19, and received their support. Additionally, the City notified all Groundwater Sustainability Agencies ( GSAs) within both basins of the request and met individually with interested parties to discuss the BBMR.

This BBMR was approved on February 11, 2019 in the Final 2018 Basin Boundary Modifications, and therefore the City only overlies the Tracy Subbasin. As discussed above, the Tracy Subbasin is designated by DWR as a medium priority basin. As such, the Tracy Subbasin is subject to the requirements of the Sustainable Groundwater Management Act SGMA), which include the formation of one or more GSAs and the development and implementation of one or more Groundwater Sustainability Plans (GSPs).

Banta- Carbona Irrigation District, Byron- Bethany Irrigation District (West Side Irrigation District has officially merged with Byron- Bethany Irrigation District in September 2020), City of Lathrop, City of Tracy, San Joaquin County and Stewart Tract are the six ( 6) GSAs in the Tracy Subbasin and are working cooperatively to develop a single GSP. The Tracy Subbasin GSAs were awarded a DWR Grant to develop the GSP. Pursuant to the Grant Agreement20, each GSA designated as appointee to form the GSP Coordination Committee, and the San Joaquin County was appointed as the Grant Administrator. The Grant Administrator and any two ( 2) appointees may call meetings of the GSP Coordination Committee as needed to in the GSP development process.

The GSP for the Tracy Subbasin is currently under preparation and is anticipated to be complete and submitted to DWR by the statutory deadline of January 31, 2022. As of June 2021, the initial drafts of sections describing the plan area, hydrogeologic conceptual model and groundwater conditions have been prepared and are available for public review on the Tracy Subbasin website: https:// tracvsubbasin. orq/ qsp- chaptersl. 9 EKI Environment& Water, Inc., 2020 Urban Water Management Plan, June 2021 20 The Grant Agreement could be found in the Tracy Subbasin website: https://tracysubbasin.org/resources/ JUNE 2022 3- 27
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Currently, four (4) groundwater weils supply potable water to Lathrop residents: Well Nos. 6, 7, 8, and 10. Well No. 9 is currently offline and may be used in the future as_an emergency well.

Groundwater from Wells 6, 7, 8, and 10 is treated to remove arsenic at the Louse Avenue Water Treatment Facility ( LAWTF), which came online in 2012.

The City owns an additional well located on the southeast side of the water system, Well No. 21, which includes a treatment facility ( Well No. 21 WTF) designed for disinfection and manganese treatment. The City last operated Well No. 21 between January 2012 and November 2013.

Well No. 21 has remained inactive since November 2013 due to sanding in the well and elevated levels of arsenic and uranium. The City does not currently plan to bring Well No. 21 back online due to poor water quality.

Groundwater well capacities are presented in Table 3-4 ( City of Lathrop Groundwater Well Capacity). The combined maximum pumping capacity of the City's wells, excluding Wells 9 and 21, is 5, 850 gpm, which is lower than the treatment capacity of the LAWTF ( 6, 250 gpm). The UWMP assumed that the City' s wells are pumped at 50% of their maximum capacity on an annual basis for this evaluation21. Given this supply assumption, the City' s current annual groundwater supply capacity is equivalent to approximately 4, 720 AFY.

Table 3- 4: City of Lathrop Groundwater Well Capacityzz Gcoir tvi ater Wel[
E t sting Product« l1te[ S, c tes
tt i Ann( I lti Ic .
l leasured 1c`V r naF ct`![ ; W II Na n W t! Sta# s
Rafe 3+
m fr r,: .

Well No. 6 Existing 1, 650 1, 330
Well No. 7 Existing 1, 400 1, 130
Well No. 8 Existing 1, 100 890
Well No. 9 Existing ( not in service) 0 0
Well No. 10 Existing 1, 700 1, 370
Well No. 21 Existing ( not in service) 0 0
Subtotal 5, 850 4, 720
LAWTF Treatment Capacity ( b) 6, 250 5, 040
Well Capacity 5, 850 4, 720
gpm = gallons per minute
AFY= acre feet per year
a) Assumes wells are operating at 50°/o maximum capacity on an annual basis. b) Maximum capacity of LAWTF is 6. 250. Estimated annual yield assumes that annual yield of Wells 6, 7, 8, and 10 is not limited by LAWTF capacity on an annual basis.

Z' EKI Environment& Water, Inc., 2020 Urban Water Management Plan, June 2021 Ibid
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Figure 3- 6 ( Lathrop Water Service Area)
Fr ch Carnp
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FIGURF: 3- 6
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Lathrop Water Service Area A lvcterTenka P ceollnTuma
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p:= City of Lathrop L CityLimits
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8 ne ataSAex nmdyn,?t:,+ sr.cura: ea.wlr.afp: tnaFpmy( wrp.rpy1G+!y Go LttY' eC,( orI»Atektf0.'mNi Ln JUNE 2022 3- 29
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Surface Wafer
The City currently receives treated surFace water from South San Joaquin Irrigation District SSJID) through the South County Surface Water Supply Project ( SCWSP). SSJID is the owner and operator of the SCWSP. The SCWSP water supply is based on SSJID' s senior, pre- 1914 appropriative water rights to the Stanislaus River, a tributary of the San Joaquin River, coupled with a 1988 agreement with the United States Bureau of Reclamation ( USBR) to store water in the New Melones Reservoir. This agreement recognized and protected SSJID' s senior water rights on the Stanislaus River because those rights could potentially be affected by the USBR' s operation of the New Melones Reservoir as part of the Central Valley Project. The agreement entitles the senior water rights holders, SSJID and Oakdale Irrigation District, to access up to 600, 000 AFY of water from New Melones Reservoir in years in which inflow to the reservoir exceeds 600, 000 AF. SSJID' s share of this allotment is 300, 000 AF. In years in which inflow does not meet this threshold, the entitlement is reduced based on a pre-determined formula23.

On October 1, 1995, the City signed a Water Supply Development Agreement ( Development Agreement) with SSJID as part of the SCWSP. The Development Agreement e ends through 2029 and appropriates potable water to the City. The Development Agreement allots the City a maximum total of 8, 007 AFY and 11, 791 AFY of treated potable water during Phase I and Phase II of the project, respectively. 24 In August of 2013, the City Council agreed to sell 1, 120 AFY of SSJID Phase I allocation to the City of Tracy, reducing the maximum Phase I allocation for Lathrop to 6, 887 AFY and a total of 10, 671 AFY after completion of Phase II.

The SCWSP transmission system has been designed to deliver seasonal peak flows to each City through a transmission pipeline to turnout facilities. The transmission system is currently operated by gravity flow. In Phase II, a treated water pump station will be installed at the DeGroot Water Treatment Plant ( DGWTP) to deliver pumped flows. The SCWSP will deliver flows to Lathrop at two ( 2) locations:

The existing turnout at Lathrop Road, east of McKinley Avenue ( Lathrop SSJID Turnout 1); and
The new turnout at Stewart Road, west of Manthey Road ( Lathrop SSJID Turnout 2) which is constructed and is about to begin service.

The City' s existing SSJID Turnout 1 supplies a portion of Lathrop' s allocated Phase 1 peak flows. Lathrop' s SSJID Turnout 2 is designed to supply the remaining Phase 1 peak flows and to deliver Lathrop' s Phase II peak allocation.

Recycled Water
The City currently uses recycled water instead of potable water for limited land applications including irrigation of agricultural crops. The Lathrop Consolidated Treatment Facility ( LCTF) treats municipal wastewater from residential and commercial land uses. The system consists of approximately 30.3 miles of recycled water piping infrastructure and six booster pump stationsz5. 23 EKI Environment& Water, Inc., Water System Master Plan, 2018 24 EKI Environment& Water, Inc., 2020 Urban Water Management Plan, June 2021 25 EKI Environment& Water, Inc., 2020 Urban Water Management Plan, June 2021 J U N E 2022 3- 30
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The pond parcels have a combined capacity of approximately 289 million gallons26. These distributed storage ponds are used to store recycled water during low irrigation demand periods i. e., winter) for use during high irrigation demand periods ( i. e., summer).

The storage ponds and agricultural land application areas are located in East Lathrop, Mossdale Landing, Mossdale Landing East, Central Lathrop, and River Islands areas. The total area of agricultural land currently receiving recycled water from the City is approximately 140 acres.

Recycled water is applied to land application areas for irrigation of fodder crops, predominantly alfalfa and rye grass, by flood irrigation at agronomic rates for both nitrogen and water application.

Recycled water uses in the City are regulated under WDR Order No. R5- 2016- 0028- 01.

Permitted uses under the WDR include the following:

Irrigation of agricultural fields;
Irrigation of public landscape areas, including roadway medians, parks, pond berms, and open spaces; and
Percolation into the ground at former land application site LAS- 3, which has been converted into a percolation pond PB- 1.

The City currently only uses recycled water for agricultural irrigation on selected sprayfields, consistent with the 2019 Recycled Water Master Plan. During 2020, the City recycled 934 AF of tertiary effluent from the Lathrop CTF.

The City plans has begun to supply recycled water for landscape irrigation in Central Lathrop and in Mossdale. To support the use of recycled water for landscape irrigation, the City recently obtained coverage under General Order WQ 2019- 0058- DDW- R5017 for landscape irrigation areas in the River Islands, Mossdale, and Central Lathrop areas in addition to those permitted under WDR Order No. R5- 2016- 0028- 01. As part of the General Order permitting process, the City submitted Addendum to the City of Lafhrop CTF Engineering Report for the Production, Distribution, and Use of Recycled Water( Title 22 Report Addendum), dated March 202027.

The original Title 22 report prepared in 2014 describes the areas of tertiary effluent storage basins and areas used to dispose CTF' s final effluent by landscape and agricultural irrigation.

The recently submitted Title 22 Report Addendum further describes proposed irrigation areas not covered in the original report, as well as proposed recycled water uses including a recycled water fill station and several recycled water hydrants. It is anticipated that commercial users will be using the recycled water fill station for non- potable uses including dust control, construction, hardscape cleaning, etc. A series of recycled water hydrants will provide recycled water for construction- related purposes.

The City has applied for an NPDES permit to dispose of highly treated recycled water into the San Joaquin River. Upon receipt of this permit, and construction of the river outfall facility and the required de-chlorination facilities at the CTF, the City will no longer need the agricultural z6 EKI Environment& Water, Inc., Technical Memorandum— CTF Effluent Discharge and Recycled Water Systems Operations, May 13, 2020.

Z
EKI Environment& Water, Inc., Recycled Water System Master Plan, December 2019.

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disposal fields and most of the recycled water storage ponds, and they will be reverted to the developer who dedicated them to the City. The City anticipates receipt of the NPDES permit and delivery of recycled water to the San Joaquin River in late 2022.

Existinq Transmission and Distribution System
The following list describes the major components of the City's water transmission and distribution system. These facilities include City- owned or operated infrastructure required to operate groundwater, surface water, and recycled water supplies.

Groundwater Wells and Pumps. Currently, five groundwater wells ( Nos. 6, 7, 8, 9 and 10) supply potable water to City residents. Well No. 9 is currently offline and may be used in the future as an emergency well. Groundwater from Wells 6, 7, 8, 9 ( when operating) and 10 is treated to remove arsenic at the LAWTF, which came online in 2012. The City owns an additional well located on the southeast side of the water system, Well No. 21, which includes a treatment facility (Well No. 21 WTF) designed for disinfection and manganese treatment. The City last operated Well 21 between January 2012 and November 2013. Well No. 21 has remained inactive since November 2013 due to sanding in the well and elevated levels of arsenic and uranium. The City does not currently plan to bring Well No. 21 back online due to poor water quality The operational groundwater wells have a combined capacity of approximately 4, 720 AFY ( 4. 2 MGD).

Municipal wells pump water from depths of less than 1, 000 feet below the surFace.

Groundwater is treated for Arsenic and chlorinated at the LAWTF prior to entering the water distribution system.

Water Mains and Pipelines. The piping system for water distribution includes approximately 80 miles of piping ranging from 2 to 24-inches in diameter used to distribute water to the City' s approximately 7, 934 residential, commercial, industrial, institutional/ governmental, irrigation, agricultural, and other/ construction service connections, of which approximately 196 services are dedicated for irrigation uses. 28 Since 2013, the following major water system improvements were completed:
o Lathrop Road/ UPRR Overhead: A new 24- inch transmission line was constructed on Lathrop Road between the SSJID turnout and 5th Street. o Mossdale water infrastructure: Water distribution system improvements for Mossdale Tract 3490 and Unit 5A developments were installed. o River Islands water infrastructure: Water system improvements for Phase 1 of the River Islands Development, including approximately 17 miles of distribution mains and approximately 1. 6 miles of transmission mains at Bradshaw' s Crossing were installed.
o Well 10 Emerqencv Generator: Well 10 was equipped with an emergency generator.
29 28 EKI Environment& Water, Inc., 2020 Urban Water Management Plan, June 2021.

Z9 EKI Environment& Water, Inc., Water System Master Plan, December 2019.

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Water Storage. The City has seven ( 7) water tanks totaling approximately 4. 5 million gallons of water storage capacity. Three ( 3) of the City's water tanks store 1, 000, 000 gallons each in above ground steel tanks located at the LAWTF, at the intersection of Howland Road and Vierra Road and the intersection of Harlan Road and Warren Avenue. The fourth water tank has a capacity of approximately 425, 000 gallons and is located at J Street and Ruby Court. The fifth water tank has a capacity of approximately 1, 100, 000 gallons and is located on Manthey Road. The sixth water tank has a capacity of 1. 6 MG gallons and is located in CLSP on Stanford Way at Spartan Way. A seventh water tank has been constructed but is not yet in service. That tank has a capacity of

1. 2 MG gallons and is located on Cirrus Court near the future Golden Valley Parkway in River Islands. Some of the water storage tanks have at least one booster pump with an additional fire booster pump. The City' s groundwater basin can account for a portion for the City' s emergency storage requirement. Groundwater credit for emergency storage is defined as the quantity of groundwater which can reliably be produced in the event of an emergency over an 18- hour period. The groundwater credit is calculated based on the firm groundwater supply of facilities equipped with backup power ( i. e., the total capacity of all the wells with backup power minus the capacity of the largest well with backup power). This is equates to the 18- hour maximum capacity of Wells 6, 7, 8, and 10 equals 7. 6 million gallons of water storage capacity.
30 The entire water system is
controlled by an electronic system called SCADA ( Supervisory Control and Data Acquisition). The total storage capacity, including tank storage capacity and groundwater credit is 12. 2 million gallons.

Water Qualitv
The City surface water supply from the SCWSP complies with or exceeds all State and federal drinking water requirements. The City's groundwater supply complied with all State and federal drinking water requirements except for arsenic. Arsenic is a metal that over many years can cause skin damage or problems with circulatory systems and may increase the risk of getting cancer. The maximum contaminant level was lowered from 50 micrograms per liter to 10 micrograms per liter by the U. S. Environmental Protection Agency to protect public health in 2001. All community water systems, such as the City, have been required to comply with this regulation as of January 2006. The City routinely monitors the water that is treated and served to customers to ensure that water delivered to customers meets water quality standards. There are two ( 2) general types of drinking water standards:

Primary Maximum Contaminant Levels ( MCLs) are health protective standards and are established using a very conservative risk-based approach for each constituent that takes into potential health effects, detectability and treatability, and costs of treatment.

Public water systems may not serve water that exceeds Primary MCLs for any constituent.

Secondary MCLs are based on the qualities of the water such as taste, odor, color, and certain mineral content, and are considered limits for constituents that may affect consumer acceptance of the water.
30 EKI Environment& Water, Inc., Water System Master Plan, December 2019.

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The results of this testing are reported to the State Water Resources Control Board ( SWRCB), Division of Drinking Water ( DDW) following each test and are summarized in Water Quality Reports ( also known as " Consumer Confidence Reports"), which are provided to customers by mail and made available on the City' s website at
https:// www. ci. lathrop. ca. uslpublicworks/ page/ water- quality- reports.

Arsenic and Uranium
Wells 6 through 10 are currently treated for arsenic at Louise Avenue Water Treatment Facility LAWTF) to reduce concentrations below the MCL of 0. 010 milligrams per liter ( mg/ L). The City' s Well 21 also experienced elevated concentrations of arsenic and uranium and is currently projected to be inactive. The 2020 Water Quality Report confirmed that Arsenic levels were found to be below the federal drinking water limit.

Total Dissolved Solids
The City' s groundwater supply reliability is also impacted by the potential to induce migration of groundwater from TDS concentrations in excess of the secondary MCL of 500 mg/ L. For example, Wells 6 through 10 are located immediately east of groundwater with high TDS concentrations, based on water quality data from City wells and sampling and analysis from both shallow and deep monitoring wells collected by private entities. The City has historically investigated the option of drilling a new wellfield near Well 21 and determined that it would not be feasible due to the potential for expanded pumping to induce the migration of high TDS water.

Industrial Contamination
Groundwater contamination has been identified at several locations in the City due to industrial processes. Contamination plumes are associated with pollution from Sharpe Army Depot and the former Occidental Chemical Corporation ( OCC) site, which is now owned by J. R. Simplot.

Contamination of groundwater at the Sharpe Army Depot consists primarily of trichloroethene, tetrachloroethene, and cis- 1, 2- dichloroethene. The plume is located approximately 50 to 150 feet below ground surtace ( ft bgs). Due to concerns of potential contamination from the plume, the City abandoned Well 5 and constructed Well 10 as a replacement well. Three ( 3) groundwater extraction and treatment systems are located at Sharpe Army Depot and are used to treat existing groundwater contamination. 31
The groundwater remedial system consists of extraction and injection wells as well as granular activated carbon and aeration treatment. The treated water is then re- injected into the confined aquifer beneath the Corcoran Clay layer, which is located between 230 and 300 ft bgs.

To help prevent a sulfolane containment plume originating from the former OCC site from impacting the City' s groundwater supply, the City temporarily reduced its groundwater production and significantly limited groundwater production between 2018 and 2020. Efforts to 3I EKI Environment& Water, Inc., 2020 Urban Water Management Plan, June 2021 JUNE 2022 3- 34
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improve the OCC groundwater extraction and treatment system were completed in March 2020.

The City restarted Well 6, 7, 8, and 10 and the LAWTF beginning in April of 2020.

Nitrate
Nitrate concentration detected at Well 10 has recently shown increasing trends. During April and November 2020, nitrate ( as nitrogen) at Well 10 was detected at 8. 1 mg/ L and 7. 5 mg/ L, respectively, approaching the MCL of 10 mg/ L. The City is closely monitoring for nitrate in Well 10 at least once per quarter and evaluating the possible contaminant source.

Per- and Polvfluoroalkyl Substances
PFAS is a group of emerging man- made contaminants that were used in firefighting foam, protective coatings, and stain and water- resistant products into the 2000s. The current regulatory setting for PFAS is as follows:

The USEPA established a lifetime health advisory for the two most common PFAS, Perflourooctanoic acid ( PFOA) and Perflourooctanesulfonic acid ( PFOS), at the combined 70 nanograms per liter ( ng/ L). USEPA is moving forward with the enforceable MCL process for PFOA and PFOS. In February 2020, USEPA announced it was initiating a two-year period for the agency to formally propose MCLs for PFOA and PFOS. Once MCLs are formally proposed, the agency has another 18 months to finalize its drinking water requirements. The USEPA is also gathering and evaluating information to determine if regulation is appropriate for additional individual PFAS.

The SWRCB Division of Drinking Water ( DDW) established drinking water Notification Levels ( NLs) and Response Levels ( RLs) for PFOA and PFAS. 32 Under the authority of Health and Safety Code section 116400, detections above the NL require agencies to notify the governing body for the areas where the water has been served within 30 days of receiving verified test results. If the RL is exceeded in drinking water provided to consumers, DDW recommends that the water agency remove the water source from service or provide treatment.

A series of sampling events in the City' s production wells during 2019 and 2020 showed that PFOA and PFOS concentrations in groundwater from Well 9 exceeding both the NLs and RLs.

The NLs for PFOS were also exceeded in one or more samples collected from Wells 6, 7, 8, and 10. The PFOA concentrations in groundwater from Wells 6, 7, 8, and 10 were below reporting limits. Based on these and historical sampling results, the City took Well 9 offline so that the PFOA concentrations in the blended flow from remaining wells is well below the RLs.

Water Conservation Measures
The City has implemented several water conservation measures, including adopting a water conservation ordinance.33 The City's 2020 Urban Water Management Plan ( UWMP) identifies a series of Demand Management Measures ( DMM), also known as Best Management Practices 32 EKI Environment& Water, Inc., 2020 Urban Water Management Plan, June 2021 33 City of Lathrop, Ordinance No. 91- 55 and Resolution No. 91- 123, 1991 JUNE 2022 3- 35
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BMP). These measures, which are designed to maximize efficient water use and minimize wastewater, are summarized in Table 3- 5 ( Water Demand Management Measures). The City has not yet implemented all of these DMM due to staff and budget constraints. As City revenues increase with City growth, these programs will be funded. These measures are similar measures presented in the 2016 Municipal Services Review.

Table 3- 5: Water Demand Management Measures3a
Demand ".

Management Description City Program
Measure
The City is updating its prohibition of
wastewater requirements as part of the Water
DMM 1 — Shortage Contingency Plan ( WSCP) update, Prohibitions of water Wastewater which will be adopted by ordinance as part of use to prevent water Prevention the Lathrop Municipal Code ( LMC) 13. 08. 030 waste were in place Ordinance and 13. 08. 120. The updated prohibitions are during 2016— 2020. in place at all times, regardless of the water
su I conditions or sta e of action.

All water service connections in the City are
metered and billed monthly according to the
volume of use. The City is installing
Advanced Metering Infrastructure ( AMI)
anticipating full implementation by 2023. The
City has installed radio- capable water meters
at all of its water service connections.

All accounts are
DMM 2- Metering Currently, a portion of these meters can sendmetered and read on signals to antennae installed in several
a monthly basis. neighborhoods, while the remainder require City staff to drive a route around the City to
receive signals from each meter. The ability
to perform meter readings remotely via radio
enhances data acquisition and can potentially
alert customers or the City when there is a
leak, potentiall reducin wasted water.

The City' s water rate structure consists of a
base service rate and commodity rate. The
City' s service rate is tied to the size of each
customer' s meter. Current ( 2020) water
DMM 3— service charges range from $ 16. 30 per month The City does not Conservation of a 5/ 8- inch diameter meter to$ 2, 845. 00 for currently implement Pricing a 12- inch meter. The City' s current( 2020) conservation pricing. commodity rate is $ 3. 99 per 1, 000 gallons.

The City Council maintains the authority to
adopt conservation pricing and waste use
surchar es in times of need.
34 EK[ Environment& Water, Inc., 2020 Urban Water Management Plan, June 202] JUNE 2022 3- 36
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Demand .

Managemen# Description Gityr Program
Measure
77 water
conservation kits
have been
distributed from 2016
to 2020.

The City has booths
focused on water
conservation at
several city- wide or
school events,
including Lathrop
The City distributes information about water
Beautification Day,
conservation to the public through information
National Night Out,
DMM 4— Public
in water conservation kits, website updates,
and the Manteca
Education and Unified School
Outreach
annual Consumer Confidence Reports
District Planet Party CCRs), monthly city newsletters, and Earth Day.
community events.

The City maintains
the water
conservation
website.

Annual Consumer
Confidence Report
CCR) is distributed
to all single-family
residential and multifamily residential
customers.

The City currently evaluates monthly
consumption reports for extreme variations,
and, if a variation is noted, the City checks the
meter for leaks. If a leak is detected, the City
notifies the customer to repair the leak. The
DMM 5— City completes an AWWA Water Loss
Programs to Worksheet annually. Completion of this
Assess and
Worksheet allow the City to estimate real
2020 AW1NA Validity
Manage
Water loss, which consists of water loss
Score = 68.

Distribution System
attributable to the distribution system and
Real Loss includes physical water loss from the
pressurized system and storage tanks up to
the point of customer consumption. City staff
have also attended Water Loss Technical
Assistance Program ( TAP) workshops and
trainings to receive instruction on proper
utilization of this software.

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emand ':

Management Desaription ' City Program
Measure ':

DMM 6— Water The City currently
Conservation
The City Water Conservation Coordinator is has one ( 1) staff Program
responsible for coordinating the members assigned
Coordination and
implementation of DMMs and providing water as a water
Staffing Support
conservation information to residents. conservation
coordinator.

Other DMMs provided by the City, in addition
to those discussed above, include the
following:

Large Landscape Conservation
Programs: The City has a large
landscape conservation program
which was started in 2005. As of
2020 the City had 192 landscape
accounts. The City currently complies
with the State Water Model Ordinance
Standards for design of new
landscaping. The City has also
implemented a program in which
evapotranspiration ( ET) irrigation
controllers are installed for lawns, The City has 192
parks, and other landscaped areas irrigation service
within future developments at the connections in 2020.

DMM 7— Other
expense of the homebuilders. All of
DMMs
the existing parks and most of the 77 water
streetscapes are currently controlled conservation kits by ET irrigation controllers. have been
distributed from 2016
Water Conservation Kits: The City to 2020.
offers free water conservation kits
free of charge to all residents ( as the
budget allows for the City' s program).

Each kit contains a low flow
showerhead, a faucet aerator for the
kitchen or bathroom, a waster
displacement bag for toilet tanks, a fill
cycle diverter, toilet leak detection dye
tablets, and a shower timer. Also
included with the kits is an
instructional booklet with installation
instructions and other water saving
tips. The City gave out 77 water
conservation kits between 2016 and
2020.

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Future Supplv and Demand and Improvements to Svstem
There are two main sources of water available to the City, surface water supplied by SSJID and groundwater. The projected supplies under normal water year conditions exceed the projected demand. This is because groundwater supplements surFace water to make up for any unmet demand after surFace water supplies are used. Groundwater will also be utilized to meet peak flow events and emergencies.

The City's SSJID supply is anticipated to increase from 6, 887 AFY to 10,671 AFY with the implementation of Phase 2 of the SCWSP and is assumed to be available to the City by 2040.

The City' s current estimated annual groundwater yield is 4, 720 AFY. The City does not have plans to install additional groundwater wells. However, the City has a goal of providing treatment to bring Well # 9 back online and as of 2020 is in the early phase of evaluating projects that could provide additional supply reliability and/ or groundwater production capacity.

Water Supplies thouqh CitV
Water supplies through City build- out are shown in Table 3- 6 ( Water Supplies - Projected). The description below is based on estimated water supplies projected into the future.

Table 3- 6: Water Supplies— Projected ( AFY)
Q S 2 30: 20 20 2045( But(d
a`.; a
x . ,.= #' s -
4 .,, :
r. s.. s„
e} ,. ) iSHE ' ''', `'* a v. „ y ',> :
t,-r ",,.``*„`: '
c.,.,
r ra-z x ;` _ s. :-^.; +?, s ; ' a.`
a„' g''
t . } , w..- . ,
F nM
S. r`,. a:..;
r':.-

3.,. . ': 14.., , .'",',"`„ ' i
3?'"= h, : T-.` t., l;
A a
t
i
k_, , d . ., .. s > e _- M .., 4_... a,.,: . ..... . s=.,. .... :., v,<. , Purchased or SSJID SCWSP 6, 887 6, 887 6, 887 6, 887 6, 887 Im orted Water Phase I a
Purchased or SSJID SCWSP 0 0 0 3, 784 3, 784
Im orted Water Phase II ( a)
Groundwater( not b) 4, 720 4, 720 4, 720 4, 720 4, 720
desalinated)
Recycled Water c) 997 1, 543 2, 010 2, 472 2, 610
Total 12, 604 13, 150 13, 617 17, 863 18, 001
Notes:
a) The City' s Phase I allotment of SCWSP water is 6, 887 AFY. The City' s Phase II allotment of SCWSP water is 10, 671 AFY, i. e., 3, 847 AFY additional to the Ci ' s Phase I allotment.

Water demand projections through City build- out are shown in Table 3- 7 ( Normal Year Supply and Demand Comparison). The projected demand is based on known proposed new development projects within the City and a reasonable amount of projected growth. The water demand estimates are specific to each product type within each proposed development as described by the developers and relevant land use planning documents.35 3s EKI Environment& Water, Inc., 2020 Urban Water Management Plan, June 2021 JUNE 2022 3- 39
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Table 3- 7: Normal Year Supply and Demand Comparison ( AFY) 2025 2030 2035 2040
2045( BuildOut)
Su I totals 12, 604 13, 150 13, 617 17, 863 18, 001
Demand Totals 8, 679 10, 691 12, 263 14, 188 16, 684
Difference 3, 925 2, 459 1, 354 3, 675 1, 317
Potable water demand presented in Table 3- 6 above is substantially lower for year 2025 and into the future. The build- out water demands presented above in Table 3- 6 are based on actual water usage versus projected demand, and reflect the large impact of conservation by the community and the required use of water conserving fixtures for new development.

The projected use of non- potable recycled water is greatly understated, and will be increased based upon the recent RWQCB adjustment to the TDS limitation that will now allow use for urban irrigation. The end result is that water supply will continue to outpace water demand in Lathrop.

Groundwater treatment for TDS removal is expensive. Therefore, alternative water management practices that can minimize the use of groundwater and maintain the quality of the City' s groundwater supply were analyzed as part of the 2019 Water System Master Plan. The City identified ten water supply and management alternatives which could be implemented to compensate for the limited use of groundwater. The City plans to implement an optimized combination of these alternatives to ensure reliable water supplies for the future. The recommended water system improvements to meet the City' s future demands include but not limited to the following:

Replacement of Well No. 21 pump and modify Well No. 10 pump ( Project WS- 3).

Well 21 WTF Site Improvements, including installation of a filder and piping, site work, sludge tank, etc. and installation of a 12- inch parallel raw water pipeline from McKinley to Well No. 21 ( Project WS- 3).

Construction of a 1- MG storage tank at Well No. 21 ( Project WS-4).

Installation of a 6. 5- MGD of pumping capacity at Well No. 21 ( Project WS- 4).

Installation of a new 16- inch transmission main from Well No. 21 WTF to Yosemite Avenue ( Project WS- 4).

The City could also implement one or more of the other water supply alternatives as deemed necessary.
36 The City completed the Water System Master Plan that identified infrastructure needed for new development and recommended Capital Improvement Program. To ensure that appropriate funding is available when the water related infrastructure is needed, developers are required through development agreements to cover all the costs of the infrastructure upfront even if they are only responsible for their portion of costs. Developers are then reimbursed at a later point e. g., when additional development fees are collected) for any payments in excess of what they 36 EKI Environment& Water, Inc., Water System Master Plan, December 2019 JUNE 2022 3- 40
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are responsible. The infrastructure would be built by the projects and includes distribution pipelines, tanks, and booster pump stations.37

4. Wastewater Collection and Treatment
The wastewater collection system in the City is owned and operated by the City of Lathrop.

Wastewater is treated within the City at the Lathrop Consolidated Treatment Facility ( LCTF) which became operational August 25, 2015 and at the Manteca- Lathrop Wastewater Quality Control Facility ( WQCF). The City owns the LCTF and a percentage of the WQCF ( 14. 7 percent). The Urban Water Management Plan ( adopted in June 2021), and the Wastewater System Master Plan, dated December 2019, and the Central Valley Regional Water Quality Control Board ( CVRWQCB) Order R5- 2015- 0026 are the primary sources of information included in this section. These documents outline a long- term strategy for meeting future discharge and capacity requirements in order to meet community needs for a planning horizon that extends to build- out of the City limits and SOI regardless of when build- out occurs. 38 As planning level documents, the master plans estimate build- out needs with the understanding that land uses and specific projects may change in the future. Thus, the master planning documents provide general recommendations of future needs. As specific infrastructure projects are needed, they would have to be individually designed. The different wastewater collection service areas are defined as presented in Figure 3- 7 ( Lathrop Wastewater Service Area).
37 Ibid
38 City of Lathrop Public Works website, https:// www. ci. lathrop. ca. us/ publicworks/ page/ sanitary- sewer, October 2021
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Figure 3- 7 ( Lathrop Wastewater Service Area)
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l,+ 1/ LI
CiryLiMts Lathrop CTF or M anteca WOCf
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Wastewater 3ercke Boundary Paaels
Lathrop CTF Tdbutary Area
a. me. ta. a s., w. e msY rt, tc a< cr» a a-.+ c trrma,: z./{, t r,rvv. cn_' A4< ac .., i rar r, m i,, a i.: n JUNE 2022 3- 42
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Wastewater Collection and Treatment
The wastewater collection system consists of gravity sewer lines that range from 6 to 36 inches in diameter, pumping stations, and force mains. A portion of the existing City' s wastewater is conveyed via gravity sewer and pump stations to a regional pump station. The regional pump station conveys wastewater to a force main, which discharges to the Manteca- Lathrop WQCF.

A sewer project was recently completed that allows the McKinley Corridor area to pump wastewater to the WQCF through a new sewer force main pipeline. The City owns 14. 7 percent of the Manteca- Lathrop WQCF by contract with the City of Manteca. The City of Lathrop, however, does not participate in the operation of the plant. Most wastewater generated in the areas east of I- 5 and north of Louise Avenue is conveyed to the Manteca- Lathrop WQCF.

The LCTF has a current capacity of 2. 5MGD. 39 Wastewater treatment and disposal at the City' s LCTF is regulated under Waste Discharge Requirements ( WDR) Order No. R5- 2016- 0028-01.

The City has plans to increase the treatment capacity and improve operational flexibility of LCTF. The City has planned for a total combined treatment capacity at build- out of 11. 9 MGD of which 9. 1 MGD would be processed by LCTF and the balance processed by the MantecaLathrop WQCF. This implies development impact fees and capital accounts have been established to fund the construction of needed future capacity when needed.

Wastewater Treatment Plant Permittinq and Capacity
Wastewater from the City is currently treated at the LCTF and the Manteca- Lathrop WQCF.

Information about the LCTF is presented in this document. Recently completed upgrades to the WQCF increased the City' s
capacity at the WQCF to approximately 1. 45 MGD. Additional information about the Manteca- Lathrop WQCF can be found in the Manteca Municipal Services Review dated July 16, 2015.

The LCTF has a current capacity of 2. 5MGD. 40 Wastewater treatment and disposal at the City' s LCTF is regulated under Waste Discharge Requirements ( WDR) Order No. R5- 2016- 0028- 01.

The City has plans to increase the treatment capacity, upgrade the treatment technology, and improve operational flexibility of LCTF. The City has planned for a total combined treatment capacity at build- out of 11. 9 MGD of which 9. 1 MGD would be processed by LCTF and the balance processed by the Manteca- Lathrop WQCF. This implies development impact fees and capital accounts have been established to fund the construction of needed future capacity when needed. The City' s current Waste Discharge Report ( WDR) from the CV- RWQCB limits the treatment capacity of the City in the future to 9. 0 MGD. The treatment technology described in the WDR permit consists of fine screening, grit removal, flow measurement, influent pumping, influent equalization, emergency storage, nitrification/ denitrification activated sludge by means of a membrane bioreactor and effluent pumping.
41 39
per EKI Environment& Water,[ nc., 2020 Urban Water Management Plan, June 2021, the LCTF is currently permitted for 213 MGD based on the City' s existing ponds and spray field capacity. 40 Per EKI Environment& Water,[ nc., 2020 Urban Water Management Plan, June 2021, the LCTF is currently permitted for 2. 13 MGD based on the City' s existing ponds and spray field capacity. 41 Central Valley Regional Water Quality Control Board, Order No. RS- 2015- 0006: Waste Discharge Requirements and Master Reclamation Permit for the City of Lathrop Water Recycling Plant, 2006 JUNE 2022 3- 43
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Wastewater Disposal and Reuse
Wastewater will be treated to meet recycled water requirements as defined in the California Water Code Section 13050 and in Title 22 Section 60301. 230 ( disinfected tertiary recycled water). LCTF effluent disposal and reuse is currently regulated by the Central Valley Regional Quality Control Board under Waste Discharge Requirements ( WDRs) and Master Recycling Permit Order No. R5- 2016- 0028- 01. Under the WDRs, the City may store disinfected tertiary treated CTF effluent in aboveground lined storage ponds before pumping it to the distribution system for irrigation of agricultural land application areas ( LLAs) and public landscape areas and in a percolation basin ( PB- 1).

The City has applied to the Central Valley Regional Water Quality Control Board ( RWQCB) staff to obtain a National Pollutant Discharge System ( NPDES) permit for a surface water discharge.

The permit will allow the City to expand treatment capacity at the CTF without being limited by the capacity of recycled water ponds and sprayfields. It will further allow the City to optimize its recycled water system to support recycled water needs of existing and proposed developments.

Upon obtaining the NPDES permit, the City plans to discharge a portion of the future treated effluent to the San Joaquin River.

In this regard, on September 13, 2021, the City Council approved funding agreements, a professional service agreement, ratified material purchases and agreement with Reclamation District 17 ( RD 17) and approve a budget amendment associated with CIP W1N 20- 17 Surface Water Discharge. The Surface Water Discharge project includes dechlorination facilities at the City' s Lathrop CTF plus a pipeline from the LCTF to the San Joaquin River, and an outfall structure into the river. The project will make available 1, 500 acres of developable land that would have been required to create ponds and sparyfields to store and dispose of recycled water on agricultural crops. The City intends to obtain an initial NPDES permit to discharge up to 2. 5 mgd ADWF of dechlorinated treated effluent ( current ADWF treatment capacity of the LCTF) to the San Joaquin River.

Wastewater Qualitv
The LCTF' s WDR specifies that effluent from the LCTF must not exceed the limits presented in Table 3- 8 ( WDR Recycled Effluent Discharge Limitations). Recycled water from the LCTF is delivered to land application areas or storage ponds until it is used. The storage ponds are lined to minimize percolation.

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Table 3- 8: Waste Discharge Report Recycled Effluent Discharge Limitations4z G . B ' t n
It.. t`-,`` c
u_-.•„ w E . . _ h
BODS mg/ L 10 Monthly average
Total N mg/ L 10
Flow- weighted annual
avera e
TDS mg/ L 950
Flow-weighted annual
avera e
Median Concentration < 2. 2 per 100 mL
Total Coliform Max once per month MPN > 23 per 100 mL
MPN < 240 per 100 mL at all times
Not exceed 0. 2 NTU > 5% time w/in 24 hr
Turbidity
Not exceed 0. 5 NTU at any time
The CV- RWQCB regulates the LCTF and use of recycled water through Board Order Number R5-2016-0028- 01. The order allows land application only to those areas subject to review in a final document adopted pursuant to the California Environmental Quality Act ( CEQA) and prior to the date of adoption of the order.

The WDR specifies that recycled water application from the LCTF must not cause groundwater constituents referenced above to exceed concentrations greater than present in the current ground water as described in Table 3- 9 ( WDR Groundwater Water Limits). Recycled water application must not impart taste, odor, toxicity, or color that creates nuisance or impairs any of the beneficial uses of the groundwater basin identified by the CV- RWQCB. a3 Table 3- 9: WDR Groundwater Limitations
Coris#f e.;, . s s' L`o af an `'
a CEm um uttab e
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N, _'. ConG , . a`t
TDS Mossdale, River Island Current Ground Water quality' TDS CLSP 1, 000 mg/ L
TDS LAS- 2, LAS- 3 Current Groundwater Quality'
Nitrate as N Mossdale, River Island, LAS- 2 10 mg/ L
Nitrate as N LSPz 10 mg/ L, Current Groundwater
Qualit '
Nitrate as N Northern Lathrop, LAS- 3 Current Groundwater Quality' Boron LAS- 3 Current Groundwater Quality'
Sulfate LAS- 3 Current Groundwater Quality'
Manganese LAS- 3 Current Groundwater Quality'
Current Groundwater Quality" means the quality of groundwater as evidenced by monitoring completed as a 32 March 2016 and as determined in the report described in Provision H. 1. b for each of the specified compliance monitoring wells listed in the Monitoring and Reporting Program. 42 CVRWQCB Order RS- 2016- 0028- 01
3 CVRWQCB Order RS- 2016- 0028- 01
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2 Nitrate as N concentrations are spatially variable within the CLSP area. The compliance weils to which the maximum allowable concentration applies to are specified in the Monitoring and Reporting Program.

Future Wastewater Demand and System Improvement
The Wastewater System Master Plan projects wastewater generation with anticipated future development as an estimate using the updated wastewater flow factors and the anticipated acreages and number of dwelling units associated with each proposed development. 44 The Wastewater System Master Plan summarizes the City' s projected wastewater generation by sector and development area in five- year increments between 2020 and 2040 and at buildout, based on development projections. Based on these projections, it is anticipated that total Average Dry Weather Flow ( ADWF) in 2040 will be 5. 34 MGD, whereas the ADWF Buildout is estimated to be 6.48 MGD. Of these totals, ADWFs of 1. 40 MGD and 1. 47 MGD are anticipated to flow to MWQCF from Historic Lathrop in 2040 and at buildout, respectively. ADWFs of 3. 94 MGD in 2040 and 5. 01 MGD at buildout are projected to flow to the Lathrop CTF. The majority of the anticipated increase in wastewater generation at the CTF is associated with the River Islands and Central Lathrop development areas.

Table 3- 10: Projected Wastewater Flow and Treatment Capacity at Lathrop CTF Estimated ADWF Influent and Treatment Ca acit MGD
Existing 2020 2025 2030 2035 2040 Buildout
2016
Pro' ected Influent ADWF a
ADWF Pro ection 0. 58 1. 28 2. 20 2. 90 3. 45 3. 94 5. 01 Existin Capacit and Future Expansions
Lathro CTF Phase 0 0. 75 0. 75 0. 75 0. 75 0. 75 0. 75 0. 75 Lathro CTF Phase 1 0. 25 0. 25 0. 25 0. 25 0. 25 0. 25 0. 25 Lathro CTF Phase 2 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50
Lathrop CTF Phase 3 2. 5 2. 5 2. 5 2. 5 2. 5
Lathro CTF Phase 4 1. 0 1. 0
Total Ca acit 1. 00 2. 50 5. 0 5. 0 5. 0 6. 0 7. 0
Notes:
a) Wastewater influent to Lathrop CTF is the combination of wastewater flow from all city areas except for the Historic Lathrop area and Sharpe Army Depot.

EKI, Wastewater System Master Plan, December 2019
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Table 3- 11: Projected Wastewater Flow and Treatment Capacity at MWQCF Estimated ADWF Influent and Treatment Ca acit MGD
Existing 2020 2025 2030 2035 2040 Buildout
2016
Pro' ected Influent ADWF ( a)
ADWF Pro ection 1. 08 1. 24 1. 36 1. 38 1. 39 1. 40 1. 47 Existin Ca acit
MWQCF 1. 45 1. 45 1. 45 1. 45 1. 45 1. 45 1. 45
Notes:
a) Wastewater influent to Lathrop CTF is the combination of wastewater flow from all city areas except for the Historic Lathrop area and Sharpe Army Depot.

As shown in Table 3- 10, the Lathrop CTF Phase 2 Expansion, completed in Summer 2018, is projected to have sufficient treatment capacity to meet projected flows from new development and Crossroads through 2027. The City' s current capacity allocation at MWQCF ( Table 3- 11) is projected to be sufficient to meet projected flows from Historic Lathrop infill beyond 2040, although additional capacity is needed by buildout. The City is evaluating alternatives that would reroute portions of the areas currently tributary to MWQCF to the Lathrop CTF, which would change each treatment facility' s projected flows. as The MWQCF is permitted for future expansions of up to 26. 97 MGD, of which the City would be allocated up to 3.97 MGD, should the City elect to maintain is proportional allotment. as Table 3- 12: Projected Wastewater Flow and Treatment Capacity, Citywide Estimated ADWF Influent and Treatment Ca acit ( MGD)
Existing 2020 2025 2030 2035 2040 Buildout
2016)
Pro ected Influent ADWF a
Total ADWF

1. 66 2. 52 3. 56 4. 28 4. 84 5. 34 6. 48
Pro' ection
Existin Ca acit and Future Ex ansions
Manteca WQCF 1. 45 1. 45 1. 45 1. 45 1. 45 1. 45 1. 45
Lathro CTF Phase 0 0. 75 0. 75 0. 75 0. 75 0. 75 0. 75 0. 75 Lathro CTF Phase 1 0. 25 0. 25 0. 25 0. 25 0. 25 0. 25 0. 25 Lathro CTF Phase 2 1. 50 1. 50 1. 50 1. 50 1. 50 1. 50
Lathro CTF Phase 3 2. 5 2. 5 2. 5 2. 5 2. 5
Lathro CTF Phase 4 1. 0 1. 0
Total Capacit 2. 45 3. 95 6. 45 6. 45 6. 45 7.45 7.45
Notes:
a) Flow projections include total Citywide ADWF projections. as bid
46 EKl Environment& Water, Inc., 2020 Urban Water Management Plan, June 2021 JUNE 2022 3- 47
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5. Storm Water Drainage
Lathrop' s storm water drainage system is managed by the City' s Public Works Department. The gravity-based system consists of collection and trunk pipelines, detention basins, pump stations, and surface infrastructure such as gutters, alleys, and storm ditches. Several of the storm water detention basins ( particularly within the Historic Lathrop) are operated by the City to control peak storm runoff events. These detention basins also function as recreational facilities parks, ball fields, green areas, etc.). Storm water is disposed by routing it through various interconnected detention basins and discharging storm waters into one of three locations along the San Joaquin River. Several Storm water Master Plans have been developed to address drainage issues in the City. These include:
1973 Storm Drainage Study and Master Plan for San Joaquin County47 1987 Master Storm Drain Plan for Lathrop48
1992 City of Lathrop Storm Drain Master PIan49
2003 Northern Area Portion Master Plan of Drainageso
2003 Stewart Tract Drainage Area Master Plan
City of Lathrop Storm Water Management Plan, January 2003 City of Lathrop Storm Water Development Standards, June 2008 The 1992 Storm Drain Master Plan served as a basis for providing storm water infrastructure at that time. It concluded that subsequent master plans for specific areas throughout the City would be required to update the 1992 plan. As such, both 2003 Drainage Master Plans updated the 1992 plan for their respective study areas.

Under the requirements of the Clean Water Act of 1972, the City of Lathrop was required to apply for coverage under the National Pollution Discharge Elimination System ( NPDES) Phase II permit and developed and implemented a Storm water Management Plan ( SWMP) and Storm water Development Standards to control and prohibit the discharge of pollutants into the Municipal Storm Sewer System. The Cities of Lathrop, Lodi, Manteca, Patterson, and Tracy, and portions of the County of San Joaquin ( collectively Agencies) are each classified as Phase II Municipal Separate Stormwater Sewer System ( MS4) communities. In 2013, the California State Water Resources Control Board ( State Water Board) adopted a National Pollutant Discharge Elimination System ( NPDES) general permit for Phase II MS4 communities to regulate stormwater and non- stormwater discharges from MS4s to waters of the United States.

As part of the Phase II Permit, the Agencies are required to develop/ update post- construction standards to address stormwater quality for regulated new development and redevelopment projects.
47 RW Siegfried& Associated and George S Nolte& Associates, Storm Drainage Study and Master Plan for San Joaquin County, 1973
S Thompson- Hysell Engineers, Master Storm Drain Plan for Lathrop, 1987 49 Lew-Garcia- Davis Engineers/ Surveyors, Lathrop Storm Drain Master Plan, July 1992 so RBF, Northern Area Portion Master Plan of Drainage, May 2003 JUNE 2022 3- 48
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The Agencies collaborated in 2015 and prepared the Multi- Agency Post- Construction Stormwater Standards Manual to assist the development community in complying with the requirements of the Phase II Permit and local ordinances.

The SWMP consists of six elements that, when implemented together, are expected to reduce pollutants discharged into receiving water bodies to the maximum extent possible. The City has developed Best Management Practices ( BMPs) to address storm water quality within the City.

The BMPs are intended to maintain surface water quality due to storm water discharged from the City. New developments within the City are required to comply with the requirements of the SWMP. The City is also responsible for monitoring and reporting on BMPs as a method to fulfill minimum SWMP control measures. The Storm water Development Standards specify design requirements to be used during development design that, in turn, meets the NPDES requirements for the City. s,, sz
Existinq Storm Water Drainaqe Svstem
The City' s existing storm drain infrastructure includes approximately 916 inlets, 691 manholes, 4 outfalls, 13 detention basins totaling 23 acres, in addition to 36 miles of storm water collection and conveyance piping.
s3
Storm drain infrastructure has primarily been studied and developed by the City for the areas of historic Lathrop, Mossdale Landing, Stonebridge, River Islands and the Central Lathrop Specific Plan area. The storm drainage systems within these areas consist of pipe networks connected to detention basins and pump stations. The operation of the system relies on detention basins to prevent flooding because the peak capacities of the pumps are far lower than peak runoff rates into the system. In some locations, pumps fill the detention basins; in other locations pumps drain the detention basins. Other pumps boost flows along the storm drains that lead and discharge to the San Joaquin River. The existing system requires some simple manual operations to drain some of the detention basins after storm events. Actual system functions, however, considering the interconnections, pump curves and set points, reversing flow directions in some pipes, and overland releases, can be quite complex.s4 Levees within the City are owned and maintained by Reclamation Districts 17, Reclamation District 2107 and Reclamation District 2062. 55 The levees are designed to protect the City from flooding that might occur from the San Joaquin River, Old River or Paradise Cut per Figure 3- 8 Reclamation Districts). Flood protection provided by the levees has been assessed by the Federal Emergency Management Agency ( FEMA). According to the FEMA Flood Insurance Rate Maps ( FIRM), urbanized areas within Reclamation Districts 17 and 2062 are located within Flood Zone X. Flood Zone X is defined as an area of 0. 2 percent annual chance of flood ( 500- year storm event), an area with 1. 0 percent annual chance of flood ( 100- year storm event) with average depths of less than one foot or with drainage areas less than one square mile, and sl City of Lathrop, NPDES Phase II Storm Water Management Plan, November 04, 2003 s WGR Southwest, Inc., City of Lathrop Storm Water Development Standards, June 03, 2008 s' City of Lathrop, Geographic Information System( GIS) Data, November 2021 sa City of Lathrop, Geographic Information System( GIS) Data, November 2021 ss City of Lathrop, Geographic Information System( GIS) Data, November 2021 JUNE 2022 3- 49
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areas protected by levees from 1. 0 percent annual chance of flood. 56 FEMA updated the FIRM maps for San Joaquin County. FEMA currently only identifies the 100 and 500- year fiood plain areas as shown on Figure 3- 9 ( FEMA Flood Map). FEMA issued a Letter of Map Revision LOMR) for the River Islands Phase 2 Project Area ( Case No. 20- 09- 0630P) on July 7, 2021.

This LOMR became effective on November 18, 2021 and removed the majority of the River Islands Phase 2 area from the 100- year Flood ( Flood Zone AE). s, sa The City, DWR and Reclamation Districts 17 and 2062 are addressing requirements for public awareness and improvements to the levee system. Lathrop participates in the National Flood Insurance Program ( NFIP) that makes available federally- backed flood insurance for all structures, whether or not they are located within the floodplain. The City has provided its property owners with information regarding flood protection, new FEMA mapping and insurance requirements. DWR has developed a plan called Flood SAFE California that will assess the existing conditions of the levees, recommend maintenance activities, and improvements to the State's levees in the near future. Reclamation Districts 17 and 2062 have a plan to upgrade its levees to improve flood protection.
sb FEMA, FIRM City of Lathrop, CA Panel 615 of 950: Map Number 06077C0615F, Effective Date October 16, 2009 and Pane1620 of 950: Map Number 06077C0620F, Effective Date October 16, 2009 57 FEMA, Letter of Map Revision Determination Document, Case No. 20- 09- 0630P, November 18, 2021 s$ Figure 3- 9 includes the latest mapping Shapefiles available from San Joaguin Counry and FEMA and do not reflect the LOMR issued by FEMA on July 7, 2021 and eJfective November 1 S, 2021 ( Case No. ZO- 09- 0630P).

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Figure 3- 8 ( Reclamation and Drainage District Boundaries) City of
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Figure 3- 9 ( FEMA Flood Insurance Rate Map)
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Senate Bill No. 5 ( SB 5)— 200-Year Flood Protection
In 2007, the State of California approved the SB 5 bilis that require 200- year Urban Level of Flood Protection ( ULOP) for urban areas in the Central Valley. Briefly summarized, the SB 5 Bills require that urban ( population > 10, 000) and urbanizing areas ( population > 10, 000 within ten years) have 200- year flood protection no later than 2025. After July 2, 2016, the City is prohibited from issuing new discretionary permits and residential building permits in areas that may be inundated to a depth of more than three feet during a 200-year flooding event unless the City confirms that 1) 200- year flood protection is provided, or 2) " adequate progress" has been made toward providing 200- year flood protection by 2025.

SB 5 requires that the 200-year flood protection requirements be incorporated into amendments of the City' s General Plan and zoning. General plan amendments must be completed by July 2015; zoning amendments must be completed by July 2016. The City of Lathrop adopted a General Plan amendment in July of 2015 which satisfied this requirement.

Assembly Bill 838 ( Eggman) was signed into law on September 28, 2020, and amended Government Code Sections 65865. 5, 65962, and 66474. 5, and added Section 65962. 1 to extend the requirement for the Mossdale Tract to achieve the Urban Level of Flood Protection from 2025 to 2028. The Mossdale Tract means an area of land identified as Reclamation District 17, along with such contiguous urban and urbanizing areas to the east of the tract as would be subject to flooding from the San Joaquin River at an urban level of flood protection.

There are three local reclamation districts ( RDs) in the City: RD 2107, RD 2062, and RD 17.

The following are the intended SB 5 compliance measures for each district:

RD 2107: This district includes Dell' Osso Farms and other areas south of the Union Pacific Railroad and southeast of I- 5. This land does not presently have 100- year flood protection and is neither urban nor urbanizing. The SB 5 Bills therefore do not impose the requirement for 200- year flood protection within RD 2107.

RD 2062: This district includes the River Islands master planned community located on the Stewart Tract. RD 2062 has 100- year FEMA approved levees for the River Islands Phase 1 and Phase 2 areas and prepared the engineering evidence to demonstrate adequate progress toward 200- year certification of these levees.

RD 17: This district includes land east of the San Joaquin River in Lathrop, Manteca, Stockton, and San Joaquin County. Lathrop and Manteca recently joined SJAFCA, and that agency is taking over planning 200- year levee improvements along the east bank of the San Joaquin River to provide 200-year flood protection by 2028, and to once again demonstrate " adequate progress" by July 2, 2022. In order to make a Finding of Adequate Progress, the affected jurisdictions are working cooperatively to complete engineering studies, a financial plan, and construction of improvements. At this time, there has been significant progress on all of these fronts.

RD 17 created a Joint Powers Authority that included San Joaquin County, Stockton, Manteca and Lathrop to issue bonds to fund the local share of Phase 1- 3 Improvements to the RD 17 levees. Lathrop coordinated with RD 17 and the other cities and the JUNE 2022 3- 53
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County to update the San Joaquin Area Flood Control Agency ( SJAFCA) JPA to add Lathrop and Manteca to that JPA to fund the local share of the needed Urban Level of Flood Protection ( ULOP) improvements to the RD 17 levees, to adopt Development Impact Fee programs and/ or exactions paid and advanced from property owners in areas of entitled and planned development within RD17, a new Overlay Assessment District and a new Enhanced Infrastructure Financing District. Initially, Lathrop and Manteca funded the required Urban Levee Design Criteria analysis of the RD 17 levees, identified the 200- year floodplain, calculated an estimated cost to provide the ULOP improvements, and requested State funds for the State share of this work. Lathrop will continue to work with SJAFCA to provide for final design and construction of ULOP improvements that will allow findings of Adequate Progress toward providing ULOP as the improvements are constructed.

If the City is not able to confirm that 1) 200- year flood protection is provided, or 2) " adequate progress" has been made toward providing 200- year flood protection by 2028, the City will comply with State Law and not issue permits until the appropriate flood protection is provided or adequate progress" has been made. If development in RD 17 is put " on hold" due to issues concerning 200-year flood protection, the City will still continue to experience growth and development in RD 2062 ( River Islands). River Islands was constructed with levees built to a 200- year flood standard. Phase 1 of River Islands includes entitlements for over 4, 000 residential lots, a commercial town center, school sites, and an employment center. Phase 2 of River Islands includes entitlements for over 10, 000 residential lots, a village town center ( mixed use), a Transit Oriented Development mixed use area, school sites, portion of the employment center. Phase 1 and 2 are protected by levees designed to be certified as 200- year levees, and available for development as the real estate market demands. The City will not be " shut down"; rather, growth would be focused in the western portion of the City known as River Islands.

Since 2018, the San Joaquin Flood Control Agency ( SJAFCA) has prepared Annual Adequate Progress Reports and most recently, on June 29, 2021, SJAFCA staff submitted the 2021 Annual Report to the CVFPB. The 2021 Annual Report can be found on the SJAFCA' s website. 59 The 2021 Annual Report includes a number of changes from the previous plan, including but not limited to the following:

Climate Adaptation pursuant to SJAFCA Resolution 19- 06, Policy on Adapting Design Standards for the Mossdale Tract Area of SJAFCA. The 2021 Annual Adequate Progress Report reflects an updated project that addressed additional improvements needed to conform to the adopted SJAFCA Climate Adaptation Policy. The 2021 Annual Report presents SJAFCA' s addendum to the Engineer' s Report that contains the supporting evidence required for Adequate Progress. The costs of the program have been updated and the Financing Plan have been updated to reflect both the increased cost and the new 2028 deadline ( discussed above).

The Financing Plan for the project was updated to reflect Climate Adaptation and the new 2028 deadline. Numerous changes are reflected that impact the projected amount of revenues to come from three ( 3) planned funding mechanisms: 1) Development s9 https:// www. siafca. ors/proiects/ mossdale- tract, accessed December 6, 2021.

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Impact Fee, 2) Overlay Assessment District, and 3) Enhanced Infrastructure Financing District. so
As noted above, the Financing Plan for the 2021 Annual Adequate Progress Report is planned to come from three ( 3) mechanisms. The City continues to collect a Mossdale Tract Regional Levee Impact Fee based on the square footage the development and location ( subject to 200- year flooding). The current fee ( effective July 1, 2021) is as follows:

Single Family— Residential - $ 18, 845 per acre
Multi- Family— Residential - $ 17, 160 per acre
Commercial - $ 17, 847 per acre
Industrial - $ 14, 850 per acre
SJAFCA is continuing to work on two ( 2) additional funding mechanisms: Overlay Assessment District and Enhanced Infrastructure Financing District. The Overlay Assessment District would be levied on properties ( parcels) directly receiving flood damage reduction benefit from the construction and long- term Operations & Maintenance ( O& M) of the Project. SJAFCA entered into contracts with Wildan Financial Services ( Willdan) to prepare the requisite Assessment Engineer's Report and administer the legislative processes required by Proposition 218 and the underlying statutory authority for the imposition of the assessment. s' To date, Willdan has prepared a Draft Preliminary Analysis for review by SJAFCA and member agencies.

A new Enhanced Infrastructure Financing District would capture a portion of the growth in general property taxes and dedicate the revenue toward the construction of the 200-Year Flood Protection Levees. This revenue, in conjunction with the OAD revenues could be pledged to the repayment of bonds, the proceeds of which could fund the construction of the project. SJAFCA commenced the formation effort of the EIFD in May 2019 and is advancing the effort in coordination with the member agencies. It is expected that the EIFD will be in place prior to August 2022 and generating revenues by FY 2022/ 2023. 62 bo San Joaquin Area Flood Control Agency, Board Meeting, July 22, 2021, Item 5. 1, Receive Briefing on the Mossdale Tract Program Status and Update.
61 San Joaquin Area Flood Control Agency, 2021 Annual Adequate Process Report Update for Urbal Level of Protection, dated June 25, 2021.
bz Ibid
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Future Storm Water Drainaqe Demand and Svstem Improvements Any significant urban expansion will require additions to the existing collection system. The General Plan requires that new development projects must address storm water issues and mitigate increased storm water runoff. Additionaily, the developments are required to construct storm water infrastructure such as curbs, gutters, and detention basins and provide a storm drainage master plan update for that area.
63 These requirements ensure that adequate
infrastructure will be in place at build- out within the City limits and SOI.

A Drainage Master Plan for the Sub Plan Area # 3 ( Stewart Tract) was approved by the City of Lathrop in 1996 and updated in 2003 as part of the West Lathrop Specific Plan. This document identifies the required improvements of the development area to meet storm water requirements. These improvements would be made as part of the construction of the development. To ensure that appropriate funding is available when the infrastructure is needed, the developers are required through development agreements to cover all the costs of the infrastructure upfront even if they are only responsible for their portion of costs. Developers are then reimbursed at a later point ( e. g., when additional development fees are collected) for any payments in excess of what they are responsible. 6a

6. Determination
As the City of Lathrop continues to grow and portions of the Sphere of Influence ( SOI) are incorporated into the City, there will be a need to expand public services. The demands for services have been estimated primarily from approved and/ or pending projects within the City limits and SOI. Additionally, future projects within the SOI will generate minimal demand as these areas are not planned for residential development. The following is a summary of the major City actions that may be required to ensure adequate provision of services.

Fire Protection
As development expands, the Lathrop- Manteca Fire District ( LMFD) expects to expand their number of fire stations and personnel. This has been partially accounted for with the construction of Fire Station 34 and 35. These fire stations were built in anticipation of future development projects and their fire protection needs. The Fire District has developed a master plan to provide adequate coverage for the potential urban growth of the City. The master planning effort undertaken by the District will aid with efforts to anticipated future fire protection services necessary for Lathrop City limits and SOI. The master plan and financing strategies discussed above suggest the need for a total of three ( 3) new fire stations.

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Law Enforcement
The proposed development projects in the City would result in additional demands for police service. Capital costs for new facilities and equipment would be funded through development impact fees and the operational costs would be funded through the increased tax base and the imposition of a police services Community Facilities District ( CFD). In accordance with the General Plan, the new police station, located in River Islands, is planned to be operational in 2021. This new police station will replace the current French Camp station currently being utilized.

Lathrop Police Services is staffed 24 hours a day in a series of 3 patrol shifts with a minimum of 2 patrol officers per shift. Minimum staffing levels are set at 6 officers per day. Lathrop Police Services has 26 sworn officers, including 1 captain serving as police chief, 1 lieutenant, 2 sergeants, 2 detectives, 20 deputy sheriffs and 3 civilian staff. If needed, additional assistance can be summoned under a mutual aid agreement with surrounding cities and the County.

Existing police staffing levels in the City are approximately 1. 1 per 1, 000 residents. The current city-wide priority 1 average response time is 4 minutes. Priority 1 calls are where a threat is posed to life or a crime of violence. The current City-Wide Priority 1 average response time is 4 minutes.

At the March 22, 2021, Special City Council Meeting, Council directed City staff to create Capital Improvement Project CG 21- 11, to begin the creation of a new Lathrop Police Department and implement the transition of law enforcement services from the San Joaquin County Sheriff to the City. The new Police Department project identifies 46 new sworn and nonsworn positions. On May 10, 2021, the City Council approved a Master Consulting Services Agreement with CPS HR Consulting ( CPS) to begin recruitment of personnel for the new City of Lathrop Police Department and authorized the creation of the new Police Chief position. Since May 10, 2021, CPS has advertised positions for the various levels of Staffing, including Police Chief, Police Commander, Police Sergeants, Police Officers, and non- sworn personnel. 65 In September 2021, the City hired the first Police Chief for the new Department and two ( 2) Commanders in February, 2022. The City continues to recruit for the various levels of staffing, purchase necessary equipment, such as Police vehicles for the new Police Department, and coordination with other jurisdictions for the purposes of evidence storage and 911 operations.

The Lathrop Police Department will initiate operations on July 1, 2022.

The City of Lathrop will ensure that new development pays its fair share of facilities and manpower associated with new growth. The imposition of Police Mitigation Fees and participation in police services CFD' s combined with property tax and Measure C funds provide the financial tools necessary to guarantee capacity will be able in the future.

Water Supply Conservation and Treatment
The City currently uses both surface water and groundwater as the water supply source. The City's most recent water supply planning documents are the 2018 Water System Master Plan and the 2020Urban Water Management Plan ( UWMP). These water studies evaluate existing 65 City of Lathrop, Lathrop Police Department Transition Website( https:// www. ci. lathrop. ca. us/ citvmana er/pa e/ lathron-police- department-transition), accessed December 7, 2021 and May 31, 2022.

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and anticipated supplies. The results provide alternatives for additional sources of water to meet build- out demands within the City and SOI.

Groundwater treatment for Total Dissolved Solids ( TDS) removal is expensive. Therefore, alternative sources and alternative water management practices were analyzed. The City identified ten water supply and management alternatives which could be implemented to compensate for the limited use of groundwater. The City plans to implement an optimized combination of these alternatives to ensure reliable water supplies for the future. The recommended water system improvements to meet the City' s future demands include Well 21 WTF Phase 2 improvements, installation of backup power at SSJID Turnout, SCWSP Phase 2 Improvements and Expansion of turnout capacity from 5. 1 mgd to 11. 5 mgd. According to the Urban Water Management Plan, the City would have a net surplus of 1, 317 acre feet of water in 2045, plus the non- potable water supply generated from waste water recycling.

Wastewater Collection and Treatment
Wastewater from the City is currently treated at the Lathrop Consolidated Treatment Facility LCTF) and the Manteca- Lathrop Water Quality Control Facility ( WQCF). The City owns LCTF and 14. 7 percent of the WQCF by contract. The City' s Wastewater System Master Plan prepared in 2019), the 2020 Urban Water Management Plan, and CV- RWQCB Order Number R5- 2016- 0028- 01 are the primary documents that outline long term strategy for meeting future discharge and capacity requirements for a planning horizon that extends to build- out. The pending NPDES permit will update the City's disposal program, allow disposal of highly treated recycled water into the San Joaquin River, and will eliminate the need for additional storage ponds and agricultural disposal fields.

The LCTF has a current capacity of 2. 5MGD. The City is currently designing the next expansion of treatment capacity. The City has planned for a total combined treatment capacity at build- out of 11. 9 MGD of which 9. 1 MGD would be processed by LCTF and the balance processed by the Manteca- Lathrop WQCF. A total combined treatment capacity is planned by the City at buildout of 11. 9 MGD through a combination of expansions at the LCTF and WQCF. The 11. 9 MGD of capacity would be able to adequately serve the major planned development within the City and SOI. The City' s current WDR from the CV-RWQCB limits the treatment capacity of the City to 6. 0 MGD.

Storm Water Drainaqe
The City has developed a Storm Water Management Plan ( SWMP), Best Management Practices ( BPM' s), and Storm water Development Standards to address storm water quality within the City and meet the Clean Water Act NPDES requirements. The BMPs are intended to maintain surface water quality discharged from the City. New development within the City is required to comply with these requirements. The City is also responsible for monitoring and reporting on BMPs. The Storm water Development Standards specify design requirements to be used during development design that, in turn, meets the National Pollutant Discharge Elimination System ( NPDES) requirements for the City.

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issues anQ mitigate increased storm water runoff. Additionally; development is required to construct storm water infrastructure such as curbs, gutters, and detention basins. These requirements ensure that adequate infrastructure would be in place at build- out within the City limits and SOI. New development would be required to prepare a drainage master plan to serve as addendums to previous master plans.

To ensure that appropriate funding is available when public services ( e. g., law enforcement and fire protection) and water, wastewater and storm water drainage infrastructure is needed, developers are required through Development Agreements to cover all the costs of needed infrastructure upfront even if they are only responsible for a portion of cost. Developers are then reimbursed at a later time ( e. g., when additional development fees are collected) for any payments in excess of their responsibility.

SB5 200- Year Flood Protection
SB5, and its amendments, limit any city/ county in the Central Valley from issuing certain permits unless either an Urban Level of Protection ( ULOP or 200- year flood protection per California Department of Water Resources) is confirmed, or the city/ county makes a finding of Adequate Progress toward providing that ULOP.

There are three major waterways within Lathrop: San Joaquin River, Old River, and Paradise Cut. The Stewart Tract portion of Lathrop is surrounded by Paradise Cut on the south, Old River on the north and San Joaquin River on the east. The balance of Lathrop is located east of the San Joaquin River.

Lathrop is composed of three separate flood basins, represented by the three reclamation districts that cover the City: Reclamation District 2107 located on Stewart Tract, southeast of the UPRR tracks, Reclamation District 2062 located on Stewart Tract, northwest of the UPRR tracks and also known as the River Islands development project, and Reclamation District 17 located east of the San Joaquin River. Per the recently amended General Plan, RD 2107 is not subject to SB5. RD 2062 is expected to confirm that they already provide ULOP flood protection prior to July 2022. On January 8, 2018, the Lathrop City Council approved the Amended and Restated Joint Exercise of Powers Agreement ( JEPA) for the San Joaquin Area Flood Control Agency ( SJAFCA) to include the City of Lathrop and the City of Manteca as Members of the JEPA. The main purpose of the re- organization of the SJAFCA to include the Cities of Lathrop and Manteca is for the SJAFCA to start advancing 200-Year flood control in the Mossdale Tract area. Since 2018, SJAFCA has prepared the Adequate Progress Findings for ULOP as a
joint effort between the agencies involved in the JEPA. Lathrop is working with SJAFCA to explore various funding programs, such as the new Enhanced Infrastructure Financing District and Overlay Assessment District. As noted previously, the Mossdale Tract Regional Levee Impact Fee is in effect and the City continues to collect monies as development occurs. Lathrop will continue working with all public agencies within RD17 and SJAFCA to provide final design and construction of ULOP improvements that will allow findings of Adequate Progress toward providing ULOP as the improvements are constructed.

The General Plan requires new development to pay its way, including its fair share of required improvements for 200- year flood protection. If the Finance Plan for 200- year flood protection does not have sufficient funding to construct improvements, then the City will not be able to JUNE 2022 3- 61
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make a Finding of Adequate Progress. New development in the affected area will not be ailowed to proceed. This would result in land remaining faliow until the SB 5 issues are resolved.

D. Financial Ability of Agency to Provide Service
This section evaluates the funding mechanisms available for the provisions of expanded services in the City of Lathrop ( City) to meet future needs for fire protection, law enforcement, water, wastewater, and storm water drainage infrastructure. Law enforcement is funded primarily through tax-revenues passing through the General Fund and fire protection is funded primarily by property tax revenue and by a portion of Measure " C" funds allocated by City Council. The City of Lathrop has supplemented these sources by requiring the creation of public service Community Facilities Districts CFD's for all new developments to fund the identified fiscal short fall associated with additional manpower needs for police and fire protection. Water, streets, wastewater, and storm water drainage are funded by impact fees AB1600), connection fees ( capacity charges) and user fees ( O& M) administered through Enterprise and Capital Facilities Funds. Maintenance of such things as streets, street lighting, parks and streetscape, and storm drainage are administered by special maintenance Districts which are generally project and/ or area specific.

1. Development Fees
The City of Lathrop Comprehensive General Plan ( General Plan) requires developers of land to meet all of the costs of public infrastructure that are reasonably related to and which are generated by their projects." To satisfy this requirement, and Pursuant to the AB 1600 Mitigation Fee Act), the City has established fees which are imposed upon development projects for the purpose of mitigating the impact that the development projects have upon the City' s ability to provide specified public facilities. These requirements are incorporated in the section of the Municipal Code referred to as " Impact Fee Ordinance." 66 The Impact Fee Ordinance requires development impact fees ( Capital Facility Fees) to be charged to fund improvements to the City' s infrastructure storm drainage, sewer, water supply and distribution system, and roadway network, as well as government facilities, including police, fire and parks and recreation. The amount of the fee is determined by the zoning and location of the project.

Fees for municipal service facilities are collected per dwelling unit for residential uses and per 1, 000 square feet for non- residential uses. Water and Sewer Connection Fees are based on the size of the connection. Storm drainage fees are collected on a per gross acre basis.

Development fees are typically paid at the time building permits are issued. These fees are pooled into different funds for water, sewer, library, etc. Investment in infrastructure is carried out as instructed by the City Council through the adoption of the annual Capital Improvement 66 City of Lathrop, Municipal Code, Chapter 3. 20 Capital Fees, http:// qcode. us/ codes/ lathrop/ view. php? topic= 3- 3 20& frames= on, accessed October 14, 2008. California Code Government Section 66000 et seq. sets forth the procedural requirements for establishing and collecting development impact fees. These procedures require that a reasonable relationship" or nexus, exist between the improvements and facilities required to mitigate the impacts of new development and the impact fee. The requirements of Section 66000 are also incorporated into the"[ mpact Fee Ordinance."
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Program ( CIP). The City is responsible to ensure that appropriate funding is available when the infrastructure is needed. When the balance of the respective fund are not sufficient to cover anticipated expenditures, developers are required to cover all the costs of the infrastructure upfront even if they are only responsible for their portion of the costs. Developers are then reimbursed at a later point ( e. g., when additional development fees are collected) for any payments in excess of what they are responsible for.

In some instances, particularly for large projects, the City of Lathrop has also negotiated Development Agreements with the developer to require the construction of public improvements in- lieu of payments of development fees. The City Council has also required that new development projects be assessed fees for public safety including additional police and fire staff on a per project basis based on the terms of the Development Agreement and as a result of findings of the project specific fiscal impact analysis.

In accordance with the General Plan, the Impact Fee Ordinance requires the impact fees to be revised to reflect any changes in construction costs resulting from inflation or to replace estimated actual costs with actual costs to provide specified public facilities. The City of Lathrop continues to rely on the 2005 version of the CFF program with annual adjustments to these fees every January 15t to take into consideration adjustments in the Consumers Price Index ( CPI).

The City of Lathrop prepared Capital Facilities Fee Studies for the South Lathrop Specific Plan SLSP) and Lathrop Gateway Business Park Specific Plan in 2019 and were added to the CFF Fee Schedule. Additionally, a Capital Facilities Fee Study was prepared in 2020 for impact fees for four ( 4) reimbursement agreements between the City of Lathrop and developers who have constructed sewer facilities. Revision of the Development Fees structure will ensure that an appropriate level of funding is available for any needed capital improvements.

2. Ad Velorum, Property Tax
In 1978, Proposition 13 was enacted limiting the ability of local public agencies to increase property taxes based on a property' s assessed value. Until then, property taxes were the main source of local government revenue.

The City receives revenue from property taxes from land within the City limits. The City has a tax sharing agreement with San Joaquin County ( County), which addresses the adjustment of the allocation of property tax revenue between the City and County when a jurisdictional change occurs, such as annexation of unincorporated land into the City. The agreement was most recently updated in November of 2012 and is effective until July 31, 2019. The agreement was extended via an Addendum to Master Property Tax Agreement in 2020 to extend the Agreement for an additional ten ( 10) years, up to and including July 31, 2029. Additionally, a Tax Sharing Agreement between San Joaquin County and the City of Lathrop was executed for the allocation of property tax and apportionment of sales tax for the " Pilot- Flying J Travel Center" property annexation. The master agreement specifies property tax sharing for additional land annexed into the City. The City receives 20 percent of San Joaquin County' s share of the property taxes for annexations that involve detachment from the Fire District. For JUNE 2022 3- 63
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annexations that do not require detachment from the Fire District, the City also receives 20 percent of property taxes since the district was established before June 15, 1996. 67 The "Pilot- Flying J Travel Center" Tax Sharing Agreement stipulates the following:

Sales Tax
The County continues to receive, every fiscal year, 100% of the 1% Bradley- Burns Uniform Local Sales and Use Tax Revenues received attributable to sales from Pape Kenworth or it successor in interest.

The City will receive 100% of the 1% Bradley-Burns Uniform Local Sales and Use Tax Revenues generated in the Annexation Area except Pape Kenworth.

The City will receive 100% of the 1% Measure C Tax Revenues generated in the Annexation Area.

Propertv Tax
The County will continue to receive, every fiscal year, property tax currently received plus the California Consumer Price Index ( CCPI) adjustment for the annexed area.

The City will receive the portion of property tax in excess of the County' s share. This would include any new construction in the Annexation Area.

The master agreement does not apply to annexation areas where the County is currently receiving transient occupancy tax ( TOT) revenues, or where gross taxable sales exceed $ 1 million per year. The agreement does not apply to annexations that include more than 50 acres of County- Owned property. Annexation agreements for such areas are individually negotiated between the County and City to address the potential loss of revenues to the County. 6s The City currently collects the following taxes:

Property Taxes
o Secured Property Taxes
o Other Property Taxes
Sales and Related Taxes
o Retail Sales Tax
o Sales Tax In Lieu
o Measure " C" one cent sales tax (Tax does not sunset) Transient Occupancy Tax
Franchise Taxes
o Electric Tax
o Natural Gas Tax & Surcharge
o Cable Tax, Solid Waste Tax
o Industrial Waste Tax
67 The agreement states that fifteen percent of San Joaquin County' s share of property taxes will go to the City if the Fire District was established between June 15, 1996, and June 15, 2003; ten percent will go to the City if the Fire District was established after June 15, 2003. However, the Lathrop- Manteca Fire District was established in 1936, therefore, neither of these rules applies. 68 County of San Joaquin& City of Lathrop Agreement for Property Tax Allocation Upon Annexation A- 12- 472
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License and Permit Taxes
o Animai Licenses
o Dangerous Animal Permits
o Business Licenses
o Construction Permits
o Other Permits

3. Economic Conditions and Outlook
According to the Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2020, the City has recently begun to enjoy a strong economic base from years of smart growth and planning initiatives resulting in stable property tax revenue, modest transient occupancy taxes and diverse sales tax revenues. The City' s sales tax revenues remain stable and, over the past several years, have continued to experience annual increases. The City' s sales tax revenues are expected to show modest annual increases as population and consumer activity continue to rise and businesses continue to view Lathrop as an attractive location.

Like all government agencies throughout California, the City is faced with increased ongoing annual operating costs and rising retirement related liabilities. For Lathrop, some of these challenges include increased funding needs for pavement maintenance, facility and park maintenance, new programs and departments, additional personnel, retiree health care costs, and rising pension costs due to new funding policies adopted by the California Public Employees Retirement System ( CaIPERS). While the City has been successful over the years in balancing these issues with its strategic use of contract staffing and services, the City will continue to experience rising costs. Additionally, with the anticipation of significant impacts to revenues in the coming year, coupled with ongoing growth in expenditures over the next five years, the City will be challenged. The continued COVID- 19 pandemic uncertainty in the near future also adds another layer of complexity to the General Fund' s finances.

In fiscal year 2020, the City of Lathrop economy began the year experiencing a modest improvement similar to the rest of the State— as did many other cities. This improvement halted as the local economy began to suffer from the effects of the COVID- 19 pandemic and related shelter in place orders that either limited or prohibited operations of many businesses in the community. Although the impacts can be seen in the year over year revenue collection, the City still met its budget projections. The ability to budget conservatively has paid dividends with the uncertainty that has come with the COVID- 19 pandemic.

4. Long Term Financial Planning
The City incorporates long-term financial planning into its budget process in several ways. Each year, during the budget process the City Council receives an updated General Fun Ten-Year Forecast and CIP Five- Year Forecast that includes all special revenue funds associated with each project. The long-term financial revenue model used for the General Fund and CIP looks forward ten years, because of the volatile nature of tax revenues in a commercial growth based economy, and various one-time special revenue funds associated with development activity making it difficult to predict revenues with any certainty beyond the immediate term. The forecast is used as a tool and maintained by Finance staff.

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These projections allow management to see what the future couid look like given a set of assumptions and is evaluated in the context of whether decisions are sustainable over the long term. The ten- year financial forecast is a tool for strategic decision making and presents further context for balancing short- term and long- term goals and provides an " order of magnitude" feel for the General Plan' s ability to continue services and preserve fiscal sustainability.

Management encourages its departments to project their resource needs for a period longer than the traditional annual budget. In addition, the City faces increasing expenses in several areas of operations, including the relation of its Police Department. The City has elected to proactively address its unfunded OPEB obligation by establishing an irrevocable trust and significantly increasing its contributions. At the same time, rising pension contributions requirement, while helping to reduce the unfunded pension liability, result in a decrease of financial resources available for other uses. The City will need to continue to explore options to increase its revenue base, while keeping expenses manageable.

COVID- 19 will have a lasting impact over the course of several years, possibly beyond the scale of the Great Recession. The significant revenue impacts to sales tax and TOT will likely continue through FY 2020- 21 with gradual recovery, and full recovery back to FY 2018/ 19 revenue levels not anticipated until FY 2024- 25. Property tax revenue has not been affected yet as the assessed values do not show the impact of economic volatility in a short period.

Moreover, low interest rates and a short supply of homes available for sale has kept the local real estate market strong and robust. Over time, these revenue sources will continue to cause significant year-to- year variances and create challenges for long- term revenue forecasting.

Lastly, on November 6, 2012, the Citizens of Lathrop approved Measure C by 77%. Measure C is a general purpose 1% additional sales tax Measure to be used for the purpose of maintaining and enhancing essential City services, such as police and fire protection and youth and senior services within the City. During FY 2019/ 20, Measure C supported personnel and operating expenditures to manage the Lathrop Generations Center, a multipurpose facility aimed to promote healthy recreational opportunities for our youth. Furthermore, Measure C funded additional Lathrop Police personnel to strengthen prevention and intervention services around the community.

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FINANC/AL SUMMARY

FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources on June 30, 2020 by $ 514. 7 million ( net position). Of this amount, $ 130. 3 million ( unrestricted net position) may be used to meet the City' s ongoing obligations to residents and creditors.

During the fiscal year 2020, the City' s governmental activities revenues exceeded expenses by $ 40. 3 million due in large part to $ 43. 3 million in capital grants and developer contributions.

The total revenue from all sources decreased $ 11. 7 million from the prior year due to impacts associated with the coronavirus restrictions at the State and Federal level.

The General Fund reported excess revenues over expenditures ( including transfers) of

3. 7 million, thereby increasing the fund balance.

Sales and use tax collections decreased by $ 1. 5 million, a 12. 5 percent decrease from June 30, 2019.

On June 30, 2020, the City' s governmental funds reported combined ending fund balances of $ 107. 9 million, an increase of $ 16. 9 million in comparison with June 30, 2019. Of this $ 107. 9 million total amount, $ 4. 3million or 3. 9 percent is unassigned fund balance.

On June 30, 2020, the unassigned fund balance for the General Fund was $ 4. 3 million, compared to last year' s unassigned actual fund balance of $ 31. 1 million. The decrease is due to $ 29. 7 million in committed funds being represented in the FY 2020 CAFR.

5. Connection and Usage Charges
The City has many sources of revenue for the provision of potable water and the collection, treatment, and disposal of wastewater. In addition to impact fees and property taxes, the City receives funds for the on- going provision of water and sewer service. The cost of capital improvements to each system are recovered through a structure of " connection fees" that is usually paid when a building permit is obtained. Revenue for maintenance and operations is generated by monthly service charges paid by the users of the system through their utility bills.

Both the water and wastewater systems are operated as Enterprise Funds by the City, and as such have their own fund tracking mechanisms and are accounted separately in the City' s ledger.

The Water Utility Enterprise treats and distributes clean drinking water to Lathrop residents and pertorms repair and maintenance functions of existing water lines, as well as builds additional water distribution systems funded through its Capital Improvement Master Plan. The Sewer Utility Enterprise collects treats and disposes of treated sewerage for Lathrop residents and performs repair and maintenance functions of existing sewer mains, as well as builds additional system capital improvements.

6. Special Districts and Benefit Districts
In addition to the funding mechanisms described above, the City also has created various Community Facilities Districts ( CFDs), Landscape and Lighting Districts ( LLMDs), 1913/ 15 Act JUNE 2022 3- 67
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Assessment Districts ( ADs) and Benefit Assessment Districts ( BADs) to pay for ongoing maintenance and some capital improvement replacements. In 1982, the Mello- Roos Community Facilities Act of 1982 ( Government Code Section 53311- 53368. 3) was created to provide an alternate method of financing needed improvements and services in response to the limitations created by Proposition 13. The Act allows counties, cities, special districts, or joint powers authorities to establish a Mello- Roos Community Facilities District ( CFD), which allows for financing of public improvements and services.
69 Additionally, state law allows for the creation of
BADs, LLMDs and ADs to link the cost of public improvements to those landowners who specifically benefit from these improvements.

The City' s Storm Water Management System ( SWMS), for example, is funded from storm drainage maintenance districts. Lathrop currently has three Storm Drain Maintenance Districts Stonebridge and City Zone 1, and City Zone 1A) that are used to fund capital improvements to the storm water system as well as maintenance and operations. New development projects require new storm drainage maintenance districts with funding for storm water systems which comply with the Phase II MS4 Regional Water Quality Control Board requirements. For example, the Mossdale CFD includes funding for its share of the City' s SWMS in addition to maintaining the storm drain facilities and landscaping. 70 The CFD 2005- 1 for Historic Lathrop also includes funding for storm drainage maintenance and operations as well as Central Lathrop CFD 2006- 2 and River Island CFD 2013- 1.

The City of Lathrop has 27 special financing districts which provide a funding source to maintain a variety of infrastructure and services. They include:

Assessment District 1 Sanitary Sewer District
Zone 1 Storm Drainage
Industrial Landscape Maintenance District
Residential Landscape Maintenance District
Zone 1A Storm Drainage
Woodfield Landscape Lighting Maintenance District 93- 1 Crossroads Assessment District Series 2001A
Louise Ave Assessment District Series 1993
Stonebridge Drain and Light
Stonebridge landscape
Mossdale Landscape Lighting Maintenance District
Standby Charge District No. 2005- 01
North Harlan 99- 1
Mossdale Assessment District Series 2005
Lathrop Community Facilities District 2003- 1
Lathrop Community Facilities District 2003- 2
Lathrop Community Facilities District 2004- 1
Lathrop Community Facilities District 2005- 1
Central Lathrop Specific Plan Community Facilities District 2006- 2 ( Operations & Maintenance)
69 California Tax Data, www. mello- roos. com/ pdf/mrpdf. pdf, accessed September 22, 2008 70 City of Lathrop Storm Water Management Plan, NPDES Phase II, 2015 JUNE 2022 3- 68
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Central Lathrop Specific Plan Community Facilities District 2006- 2 ( Police and Fire Services)
Community Facilities District CLSP Infrastructure Agency Fund Community Facilities District CLSP 2018- 1
Community Facilities District CLSP 2018- 2
Historic Lathrop Community Facilities District 2005- 1
River Island Specific Plan Community Facilities District 2013- 1 South Lathrop Community Facilities District 2019- 1
Central Lathrop Community Facilities District 2019- 2
Due to the economic downturn starting in 2007, Community Facilities District 2006- 01 in the Central Lathrop Specific Plan was unable to meet its financial obligations. CFD 2006- 01' s obligations consisted primarily of payment of principal and interest on its Special Tax Bonds, Series 2006. The property owners within the boundaries of CFD 2006- 1 were unable to pay principal payments on the 2006- 1 Bonds since 2007 and only made minimal interest payments to the owners of the 2006- 1 bonds. On August 13, 2018, the City Council approved a Restructuring Agreement in order to create a process to pay the financial obligations of CFD 2006- 1 which would allow the project to move forward.

Pursuant to the Restructuring Agreement, the City established CFD 2018- 1 and CFD 2018- 2 in 2018 (Approved by City Council on November 19, 2018) for the purpose of paying off the obligations of the 2006- 1 Bonds now owned by Saybrook. The boundaries of CFD 2018- 1 and CFD 2018- 2 are identical but the parcels within CFD 2018- 1 and CFD 2018-2 are only the parcels owned by Saybrook that made up CFD 2006- 1. This action allowed the City to issue the Series 2018- 2 Bonds on behalf of CFD 2018- 1 and the Series 2018- 2 Bonds on behalf of CFD 2018-2 in the collective approximate amount of$ 71. 8 million for the purposes of paying off in full and cancelling the CFD 2006- 1 Bonds owned by Saybrook.

7. Financial Management
Budqetary Controls
In addition to internal controls, the City also maintains budgetary controls. Budgets for the General, Special Revenue, and Capital Project Funds are adopted on a basis consistent with generally accepted accounting principles. The budget for the General and Special Revenue Funds are the only legally adopted budgets.

Budgets for the Debt Service and Capital Project Funds are used for management and control purposes only.

Expenditures may not legally exceed budgeted amounts at the department level. If the expenditures exceed appropriations, the City Manager is authorized to transfer budgeted amounts between line items within any department or between divisions within a department.

The City maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Under this system, governmental funds are encumbered when purchase orders, contracts, or other commitments are signed or approved. Encumbered amounts may be carried over to the following fiscal year with the City Manager' s approval.

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Risk Manaqement
The City of Lathrop is a member of the Central San Joaquin Valley Risk Management Authority CSJVRMA), a 55- city self- insurance pool. CSJVRMA provides liability coverage up to 1, 000, 000 per occurrence. CSJVRMA is a member of the California Affiliated Risk Management Authorities ( CARMA), which provides liability coverage above $ 1 million up to $ 29 million. The City has a self-insured retention ( SIR) of $ 25, 000, however, the CSJVRMA pays claims from first dollar up and allocates the amount of the claim the city is liable for, their SIR, back to the city through a retrospective adjustment process that takes place five years after the program year ends.

The City is also a member of ERMA ( Employment Risk Management Authority) which covers wrongful employment practices. The City has a $ 25, 000 SIR and the total limit of coverage is 2, 000, 000. Coverage above the City' s SIR up to $ 1, 000, 000 per occurrence is provided through ERMA' s pooled layer and excess coverage is purchased above $ 1, 000,000 with a limit of$ 1, 000, 000 per occurrence.

Independent Audit
State statutes require an annual audit of the City' s accounts by an independent certified public accountant. The City of Lathrop selected the accounting firm of Maze and Associates. The auditor's report on the basic and combining financial statements and schedules is included in the financial section of the City' s Comprehensive Annual Financial Report.

The City of Lathrop receives funds for the provision of public services through development fees, property taxes, and connection and usage fees. As land is developed within the City and annexed in the City of Lathrop, these fees apply. The City of Lathrop reviews these fee structures to ensure that they provide adequate financing to cover the provision of City services.

The City' s Community Development, Public Works, and Finance Departments are responsible for continual oversight that the fee structure is adequate.

8. Financial Statements
Comprehensive Annual Financial Report
The City prepares a Comprehensive Annual Financial Report ( CAFR) each year with their financial statements. The CAFR includes a Government- wide Financial Statement and the Fund Financial Statement. These two sets of financial statements provided two different views of the City' s financial activities and financial position. The financial statements are discussed below.

Government- Wide Financial Statements
The government- wide financial statements are designed to provide readers with a broad overview of the City of Lathrop' s finances using accounting methods similar to a private- sector business.

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The statement of net assets presents information on all the City of Lathrop's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Lathrop is improving or deteriorating.

The statement of activities presents information showing how the government' s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods ( e.g. uncollected taxes and earned but unused compensated absences).

Both of these government-wide financial statements distinguish functions of the City of Lathrop that are principally supported by taxes and intergovernmental revenues ( governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business- type activities). The governmental activities of the City of Lathrop include general government, community development, public safety, public works, culture and leisure, and debt service. The business- type activities of the City of Lathrop include the City' s water and sewer utility enterprise functions.

The government- wide financial statements include solely the operations of the City of Lathrop itself. There are no additional discrete or blended component units.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives, or as required by legal enabling legislation. The City of Lathrop, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of the funds of the City of Lathrop can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government- wide financial statements.

However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government' s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements.

By doing so, readers may better understand the long- term impact of the government' s near- term financing decisions. Both the governmental fund balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and government- wide activities.

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The City of Lathrop maintained 42 individuai governmental funds in 2020. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in funds balances for the general fund, landscape maintenance speciai revenue fund, developer projects speciai revenue fund, and streets and roads capital projects fund, all of which are designated as major funds. Data from the remaining 37 non- major governmental funds are shown as other supplementary information.

The City of Lathrop adopts an annual appropriated budget for all of its funds. A budgetary comparison compliance schedule is provided for each of the major funds and a like schedule is provided for the non- major governmental funds shown as other supplementary information.

Proprietary funds. Proprietary funds provide the same type of information as the government- wide business- type activity financial statements, only in more detail, and are used to account for services for which customer fees are intended to finance the costs of operations.

There are two types of proprietary funds — internal service funds and enterprise funds. Internal service funds account for services rendered between City departments. Enterprise funds are used to report the same functions presented as business- type activities in the government- wide financial statements. The City has one internal service fund in its fund structure, which is used to quantify compensated activities between departments. The City of Lathrop uses enterprise funds to account for its water and sewer utility functions.

Fiduciary funds. Fiduciary or agency funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government- wide financial statements because the resources of those funds are not available to support the City of Lathrop' s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has 12 fiduciary funds.

9. Financial Analysis
Summary of Net Assets
Net assets may serve as a useful indicator of a government' s financial position since it represents the difference between the City' s resources and its obligations. In the case of the City of Lathrop, assets exceeded liabilities by $ 514 million at the close of Fiscal Year 2019/ 2020.

By far the largest portion of this year's net assets reflects the City's investment in capital assets of $ 366 million ( e. g., utility system construction, utility plant improvements, water rights acquisition, land acquisition, building improvements, equipment, vehicles, roads and streets) less any related debt used to acquire those assets that is still outstanding. The City of Lathrop uses these capital assets to provide services to residents; consequently, these assets are not available for future spending. Although the City' s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Additional capital asset information can be found in the Capital Asset and Debt Administration section of the City's Fiscal Year 2019/2020 Comprehensive Annual Financial Report.

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A portion of the City of Lathrop' s total net position represent resources that are subject to external and internal restrictions ( municipal code and/ or State mandates and reserves required by debt obligation covenants) on how they may be used. Restricted net assets amount to $ 17 million or 3. 4 percent of total net position. The remaining balance of $ 130 miliion ( 25. 3 percent of total net position) is unrestricted and may be used to meet the City' s ongoing obligations to residents and creditors.

The table below shows the government-wide assets, liabilities and net assets for both fiscal years ended June 30, 2019 and 2020.

City of Lathrop Summary of Net Assets
For the Fiscal Years Ended June 30
in Thousands)
Governmental Business- Type Total Primary
Total
Activities Activities Government Percent
Change
2019 2020 2019 2020 2019 2020
Assets:

Capital assets 209, 561 $ 209, 561 $ 171, 651 $ 354, 792 $ 354, 792 $ 389, 794 9. 87% Otherassets 108, 872 125, 064 39, 341 49, 248 147, 213 174, 312 18. 41% Total Assets 291, 013 334, 625 210, 992 229, 481 502, 005 564, 106 12. 37% Deferred Outflows
Deferred Outflows
2, 211 6, 564 205 212 2, 416 6, 776 180. 46%
Related to Pension
Liabilities:

Current liabilities 16, 042 15, 726 3, 991 3, 717 20, 033 19, 443 - 2. 95% Long- term liabilities 10, 514 11, 244 20, 324 20, 408 30, 838 31, 652 2. 64% Total Liabilities 26, 556 26, 970 24, 315 24, 125 50, 871 51, 095 0. 44°/a Deferred Inflows
Deferred Inflows
968 989 67 62 1, 035 1, 051 1. 55%
Related to Pension
Net Position:

Invested in Capital
Assets,
Net of Related Debt 179, 501 206, 211 150, 453 160, 481 329, 954 366, 692 11. 13% Restricted 13, 553 16, 013 1, 652 1, 652 15, 205 17, 665 16. 18% Unrestricted 72, 646 87, 006 34, 710 43, 373 107, 356 130, 379 21. 45% Total Net
265, 700 $ 309, 230 $ 116, 515 $ 205, 506 $ 452, 515 $ 514, 736 13. 75% Position
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increased by 13. 75 percent during the 2019- 2020 budget years, from $ 452. 5 million at June 30, 2019 to $ 514. 7 million at June 30, 2020.

Although the net position of the City' s business- type activities is $ 205. 5 million, the City generally can only use these net assets to finance the continuing operations of the businesstype activities.

Changes in Net Position
The City' s total program expenses of $ 54. 5 million are less than the revenues of $ 116. 8 million for an increase in net assets as of June 30, 2020, of $62.3 million. The table on the following page shows the summarized revenues and expenses for both fiscal years 2018/ 19 and 2019/ 20.

The City' s fiscal year 2019/ 20 change in net position was 19. 2 percent lower than fiscal year 2018/ 19, due to a decrease of 9. 1 percent in total revenues and a increase of 6 percent in total expenditures in fiscal year 2019/ 20. The expenditure decrease is largely found in the governmental activities, which is a result of capital projects in the area.

Governmental program activities and general revenues of$ 80.4 million and transfers out of$ 3. 2 million, supported expenses of $ 40. 1 million, for a total net increase in net position in taxsupported activities of $ 43 million. The reason for the increase in the governmental net assets is due to an increase in one-time capital contributions from development activity, such as infrastructure installed as part development of a project.

Business- type activities revenues of $ 36. 3 million supported expenses of $ 14. 4 million and transfers in of$ 3. 2 million, for a total change in net position in utility enterprise activities of$ 18. 7 million. The reason for the increase in the business- type net position is due to the continued growth of the City' s customer base paired with developer contributions of capital assets, such as expanded water and wastewater infrastructure constructed as part of a project. The increase to net position of $ 18. 7 million is available for future water and sewer improvement needs as required by projected City population increases and development needs.

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City of Lathrop Changes in Net Position
For the Fiscal Years Ended June 30
in Thousands)
Governmental Business- Type Total Primary Total
Activities Activities Government Percent
Change
2019 2020 2019 2020 2019 2020
Revenues:

Charges for Services 7, 400 $ 8, 236 $ 16, 977 $ 18, 986 $ 24, 377 $ 27, 222 11. 67% Operating grants and contributions 5, 674 6, 106 5, 674 6, 106 7. 61°/ o Capital grants and contributions 40, 921 43, 292 32, 556 11, 692 73, 477 54, 984 - 25. 17% General Revenues:

Sales and use taxes 12, 002
10, 502
10, 002 $ 10, 502 - 12. 50%
Property taxes 4, 710 5, 334 4, 710 5, 334 13. 25%
Franchisetaxes 1, 204 1, 241 1, 599 4, 910 2, 803 6, 161 119. 44% Transition occupancy taxes 667 583 667 583 - 12. 59%
Other taxes
Motor Vehicle in lieu 1, 898 2, 194 1, 898 2, 194 15. 60% Other miscellaneous 149 184 149 184 23. 49%
Unrestricted investmentearnings 1, 997 2, 786 782 741 2, 779 3, 527 26. 92% Total Revenues 76, 622 80, 458 51, 914 36, 329 128, 536 116, 787 - 9. 14% Expenses:

Governmental activities:

General government 5, 307 $ 5, 944 5, 307 $ 5, 944 12. 00% Community development 978 1, 318 978 1, 318 34. 76%
Publicsafety 11, 285 12, 121 11, 285 12, 121 7. 41%
Publicworks 16, 835 19, 196 16, 835 19, 196 14. 02%
Culture and leisure 1, 442 1, 468 1, 442 1, 468 1. 80%
Interest on long- term debt 46 89 46 89 93. 48%
Business- type activities:

Water enterprise 6, 303 6, 906 6, 303 6, 906 9. 57%
Sewer enterprise 9, 207 7, 477 9, 207 7, 477 - 18. 79%
Total Liabilities 35, 893 40, 136 15, 510 14,383 51, 403 54, 519 6. 06% Excess before transfers 40,729 $ 40,322 $ 36,404 $ 21, 946 $ 77, 133 $ 62,268 - 19. 27% Transfers 2, 439 3, 255 2, 439 3, 255
Change in Net Position: 43, 168 43, 577 33, 965 18, 691 77, 133 62, 268 - 19. 27% Net Position- Beginning 222,532 265, 700 152, 850 186, 815 375, 382 452, 515 20. 55°/a Prior Period Adjustment 47) 47)
Net Position, Beginning, Restated 222, 532 265, 653 152, 850 186, 815 375, 382 452, 468 20. 54% Net Position - Ending 265, 700 $ 309, 230 $ 186, 815 $ 205,506 $ 452,515 $ 514, 736 13. 75% JUNE 2022 3- 75
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Governmental Activities
Governmental funds' expenditures usually match or exceed program revenues. Under full accrual accounting, developer contributions are program revenues, yet their contributed assets are not shown as a
corresponding expense on the City' s financial statements. Program revenues for public works excluding infrastructure contributions resulted in expenditures in excess of revenues. General government services and public safety delivery costs exceeded program revenues by $ 5. 4 million and $ 11. 0 million, respectively. 2020 REVENUES BY SOURCE- GOVERNMENTAL ACTIVITIES
Operating grants and
conCributions
8%
Charges for services
10%
Unrestricted investment
earnings
3,
Franchise taxes
1 Other miscellaneous
Motor Vehicle in( ieu
ther taxes Transient occupancy taxes
3% 196
Revenues and expenditures in the governmental funds continue to increase as the population of Lathrop has grown. Property tax revenue is a major revenue source for the General Fund.

During fiscal year 2019/20, property tax revenues increased by $624 thousand.

The following table shows the cost of the City' s major programs and the net cost of the programs. Net cost is the total cost less fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the City' s taxpayers by each of the programs. The cost of all governmental activities this year was $ 40. 1 million. The net cost of all services indicates that the overall cost of government is less than revenue generated to support it. However, the higher revenue reflected in FY2019/ 20 is due to the contributions from developer built capital improvement projects.

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City of Lathrop Net Cost of Governmental Activities
For the Fiscal Years Ended June 30
in Thousands)
Total Cost of Services Net( Expense) Revenue of Services 2019 2020 Percent 2019 2020 Percent
Change Change
General government 5, 307 $ 5, 944 12. 00% $ ( 4, 776) $ ( 5, 476) 14. 66% Community development 978 1, 318 34. 76% 2, 903 5, 254 80. 99% Publicsafety 11, 285 12, 121 7. 41% 8, 591) 11, 031) 28.40% Publicworks 16, 835 19, 196 14. 02% 29, 712 29, 981 0. 91% Culture and leisure 1, 442 1, 468 1. 80% 1, 100) 1, 142) 3. 82°/o Other 46 89 93. 48°/a 46) 89) 93. 48%
Total 35, 893 $ 40,136 11. 82% $ 18, 102 $ 17,497 - 3. 34% Business- type Activities
Business- type activities increased the City' s net position by $ 18. 7 million. The bar chart below illustrates how total program revenues and expenses compare and includes both current operating and capital categories combined. The pie chart shows the distribution of businesstype revenues by category. 202U EXPENSES& PROGRAM REVEIdUES 2020 REVENUES BY SOURCEBUSINESS- TYPEACTIVITIES r, a, p, BUSINESS- TVPEACTIVITIES
ov, y, r, a• 3t,,,, n rE, v mr,
ars
S u 5'°
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nveshntnt Ca' nfngs
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50 r ...'.'-' ._... , `.__. .._...._. Cor,l ihulionsantl wa er srwe Grants
3U
Water Fund
The Water Utility Enterprise treats and distributes clean drinking water to Lathrop' s residential and commercial customers and performs repairs and maintenance functions of existing water lines, as well as builds additional water distribution systems through its capital improvement master plan.

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The bar chart above illustrates program revenues exceeding program expenses by $ 3.4 million.

In the Water Enterprise Fund, a monthly service availability fee and usage rate is charged to residential and commercial customers to meet the Water Fund' s operating expenses. Under full accruai accounting, developer contributions are program revenues, yet contributed assets are not shown as a
corresponding expense. Program revenues exceeding developer contributions and bond proceeds were $ 10. 3 million. This shows operating revenues exceeding operating expenses by $ 3. 4 million. In February 2016, the City adopted a 5-Year water rates program based on the Water Rate Study findings.

Sewer Fund
The Sewer Utility Enterprise collects and treats sewer for Lathrop' s residential and commercial customers and perForms repair and maintenance functions of existing sewer mains, as well as builds additional system capital improvements. In the Sewer Utility Enterprise Fund, a monthly service fee is charged to residential and commercial customers. The bar chart above illustrates program revenues exceeding program expenditures by $ 1. 2 million. This signifies that sewer operating income is meeting standard operating income is meeting standard operating and infrastructure renewal and replacement costs. In February 2016, the City adopted a 5- Year sewer rate program based on the Sewer Rate Study findings.

10. Financial Analysis ofthe City's Funds
As noted earlier, the City of Lathrop uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements.

Governmental Funds
The focus of the City of Lathrop' s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. This information is useful in assessing the City of Lathrop' s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government' s net resources available for spending at the end of the fiscal year.

As of June 30, 2020, the City' s governmental funds ( general, special revenue, and capital project funds) reported combined ending fund balances of $ 107. 9 million, an increase of $ 16. 8 million in comparison with the prior fiscal year. Approximately 3. 8 percent of this total amount

4. 3 million) constitutes unassigned fund balance, which is available for spending, at the City' s governing body' s discretion. Of the remainder fund balance, $ 3. 5 million is non- spendable, $ 9. 1 million is restricted, $ 87. 9 million is committed and $ 4. 3 million is assigned and are not available for new spending.

The General Fund is the chief operating fund of the City of Lathrop. At the end of the 2020 fiscal year, fund balance of the general fund was $ 40 million, of which $ 4. 3 million is unassigned fund balance. The decrease in unassigned fund balance of the General Fund for Fiscal Year 2019/20 was due to the committed balances being moved from the unassigned category to committed. As a measure of the General Fund' s liquidity, it may be useful to compare fund balance to total fund expenditures. Total general fund balance represents 216 percent of total General Fund expenditures of $ 18. 5 million in 2020. This means the City's general JUNE 2022 3- 78
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governmental operations could continue for about 25- months without any additional revenue generation.

In Fiscal Year 2019/ 20, taxes are the General Fund' s largest source of revenue at 76. 1 percent.

Property taxes represent 23 percent, or $ 5. 3 million, of this total tax amount in the General Fund.

The Developer Projects fund had an ending fund balance of$ 0.4 million on June 30, 2020. The monies in this fund are collected from developers for specific projects. The committed fund balance can only be used to fund specific developer projects in future fiscal years.

The Capital Facilities Fees fund had an ending balance of $ 31. 3 million as of June 30, 2020.

The monies in this fund are collected from developers for specific projects. The committed fund balance can only be used to fund specific developer projects in future fiscal years.

The Building Safety and Inspection and Development Engineering funds had a combined ending fund balance of $ 4. 6 million as of June 30, 2020. The monies in these funds are collected from cost recovery fee sources for specific projects and operations associated with the fee nexus. The committed fund balance can only be used to fund specific projects in future fiscal years.

Proprietary Funds
The City proprietary funds provide similar information to that which is found in the governmentwide financial statements, but in more detail. Each funds' financial transactions, both near- term and historic, are provided in the statement of net assets and the statement of revenues, expenses, and changes in net assets. In addition, these proprietary funds also present a statement of cash flows.

Water Fund
In Fiscal Year 2014/ 15, the water utility enterprise fund increased its net position from $ 61. 9 million to $ 69. 2million. Unrestricted net assets at the end of the fiscal year amounted to $ 27. 8 million and are available for future capital water system improvements. $ 39 million of the Water Fund' s net assets are invested in capital assets, net of related debt and are not available for liquidation to support operations. The remaining $ 1. 7 million is restricted to satisfy debt service obligations and covenants.

Sewer Fund
In Fiscal Year 2019/ 20, the sewer utility fund increased its net assets from $ 124. 9 million to 136. 2 million. Unrestricted net assets at the end of the fiscal year amounted to $ 15. 5 million and, are available for future capital sewer system improvements. $ 120. 7 million of the Sewer Fund' s net assets are invested in capital assets, net of related debt and are not available for liquidation to support operations.

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Other factors concerning the finances of these funds have already been reviewed in the discussion of the City' s business- type activities. The capital assets section on the following pages will provide additional discussion and analysis of the business- type financial activities.

Pension Liabilitv
In June of 2014, the City evaluated its Pension liability for Post- Employment Benefits ( OPEB) through an actuarial. This actuarial identified a substantial unfunded liability. To achieve fiscal sustainability, the City Council directed staff to seek a substantial reduction in OPEB obligations. Through negotiations with its labor unions, the City was able to substantially reduce post- retirement health benefit obligations for active employees and new hires, adjust postretirement schedules for new hires, secure health benefits for active employees between the ages of 55 and 65 by establishing a trust which, over time, investment income will be the majority contributor versus City funds. This effort was implemented by City Council adoption of Resolution 14- 3778 .

11. Determination
The City receives funds for the provision of public services through development fees, property taxes, and connection and usage fees. As land is developed within the City or annexed into the City from the SOI, these fees apply. The cost of providing on- going services for annexed land is offset by the increased tax base provided by new development. The City has budgeted for current and future expenses, debts and revenues. The City' s financial statements show that they are fiscally sound. The City will continue to manage and report their financial condition on an annual basis.

The City' s financial statements include the collection of Measure C funds, which was approved on November 6, 2012, by the Citizens of Lathrop by 77%. Measure C is a general purpose 1% additional sales tax Measure to be used for the purpose of maintaining and enhancing essential City services, such as police and fire protection and youth and senior services within the City.

During FY 2019/20, Measure C supported personnel and operating expenditures to manage the Lathrop Generations Center, a multipurpose facility aimed to promote healthy recreational opportunities for the City' s youth. Furthermore, Measure C funded additional Lathrop Police personnel to strengthen prevention and intervention services around the community.

Debt Administration
At the end of the current fiscal year, the City had a total of $ 23. 1 million in outstanding debt.

The total outstanding debt on June 30, 2019 was $ 24. 8 million. Overall in Fiscal Year 2019/ 20, the City' s outstanding debt was reduced by $ 1. 7 million.

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City of Lathrop Outstanding Debt
For the Fiscal Years Ended June 30
in Thousands)
Governmental Business-Type Total
Activities Activities
2019 2020 2019 2020 2019 2020
Revenue Bonds— Water
2017 Bank Loan 10, 208 9, 550 10, 208 9, 550
State Revolving Fund Loan 6, 897 6, 456 6, 897 6, 456
Compass Bank Loan 4, 094 3, 745 4, 094 3, 745
Capital Lease— City Hall 3, 640 3, 350 3, 640 3, 350
Total 3, 640 $ 3,350 $ 21, 199 19, 751 24,839 23, 101
The City Continues to Maintain its Credit Ratings on all of its Rated Debt.

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E. Status of and Opportunities for Shared Facilities
Currently, the City of Lathrop ( City) provides an appropriate level of law enforcement, water, wastewater and stormwater drainage services in a cost-efficient manner to areas within the City limits. The focus of this section is on opportunities for reducing overall costs and improving services by sharing facilities and resources. The following discussion outlines existing and potential opportunities for the City to share facilities and resources.

1. Background
The City has already identified opportunities for reducing overall costs and/ or meeting General Plan goals through sharing facilities with other agencies and establishing multi- use facilities.

Fire Protection
The City of Lathrop is served by the Lathrop- Manteca Fire District ( LMFD) which provides fire protection for the City in addition to rural properties surrounding the City of Manteca. The LMFD employees consist of 33 uniformed full-time personnel and 20 reserve firefighters that staff strategically located fire stations. The LMFD main fire station is located in the center of the City.

LMFD is part of an automatic mutual aid response agreement with the Manteca Fire Department. This agreement is designed to automatically send units from one jurisdiction to another when needed in an emergency. In addition, the LMFD is a member of the San Joaquin County ( County) Hazardous Materials Response Team and Urban Search and Rescue Team, which provides a countywide service. LMFD will continue to work with the City of Manteca and the County in order to provide efficient and effective fire protection for their service area.

Law Enforcement
Law enforcement services in the City are provided through a standing contract with the San Joaquin County Sheriff's Department. The Lathrop Police officers are Deputy Sheriffs assigned to the City, and have unique training to include traffic enforcement specific to the City. The City' s Police Department is located at 7000 Michael Canlis Boulevard in French Map, and is staffed by 26 sworn officers. The City recently constructed a new Police Station in River Islands located in Phase 1, along River Islands Parkway. If needed, additional assistance can be summoned under a mutual agreement with surrounding cities and San Joaquin County.

At the March 22, 2021, Special City Council Meeting, Council directed City staff to create Capital Improvement Project CG 21- 11, to begin the creation of a new Lathrop Police Department and implement the transition of law enforcement services from the San Joaquin County Sheriff to the City. The new Police Department project identifies 46 new sworn and nonsworn positions. On May 10, 2021, the City Council approved a Master Consulting Services Agreement with CPS HR Consulting ( CPS) to begin recruitment of personnel for the new City of Lathrop Police Department and authorized the creation of the new Police Chief position. Since May 10, 2021, CPS has advertised positions for the various levels of Staffing, including Police Chief, Police Commander, Police Sergeants, Police Officers, and non- sworn personnel." In City of Lathrop, Lathrop Police Department Transition Website( https:// www. ci.lathrop. ca. us/ citvmana er/paEe/ lathron- police- denartment- transition), accessed December 7, 2021 and May 31, 2022.

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September 2021, the City hired the first Police Chief for the new Department and two ( 2) Commanders in February 2022. The City continues to recruit for the various levels of staffing, purchase necessary equipment, such as Police vehicles for the new Police Department, and coordination with other jurisdictions for the purposes of evidence storage and 911 operations.

The Lathrop Police Departmentwill initiate operations on July 1, 2022.

The City, in conjunction with San Joaquin County will continually review the level of service provided by the County in order to meet response time goals as new development is implemented until July 1, 2022 where the City' s Police Department initiates operations.

Following July 1, 2022, the City will continually review service levels in order to meet response time goals.

Water Suqply, Conservation and Treatment
The City' s water service area includes the City limits. The City' s existing transmission and distribution system includes groundwater wells and pumps, water mains and pipelines and water storage facilities ( e. g., water tanks and booster pumps). The City shares surtace water resources through its agreement with the South San Joaquin Irrigation District's South County Surface Water Supply Project ( SCSWSP). The SCSWSP is being constructed in two phases, with Phase I completed in July 2005. The initiation of Phase II would occur when the project participants ( Escalon, Lathrop, Manteca and Tracy) request the initiation of the second phase.

The City signed a Water Supply Development Agreement ( Development Agreement) with the San Joaquin Irrigation District as part of the SCSWSP. The Development Agreement extends through 2029 and appropriates potable water to the City. The City is allotted a maximum of 8, 007 acre feet per year (AFY) of treated potable water under Phase I. The cities of Escalon 2, 015 AFY), Manteca ( 12, 700 AFY) and Tracy ( 10, 000 AFY) also have rights to SCSWSP water. In 2014, the City sold 1, 129 AFY of SSJID allocations to the City of Tracy. SCSWSP Phase II would give the City an additional 3, 784 AFY, if and when Phase II is completed.

Wastewater Collection and Treatment
The wastewater collection system is owned and operated by the City. The collection system consists of gravity sewers, pumping stations and force mains. Wastewater is treated at one of two treatment facilities. The City owns the Lathrop Combined Treatment Facility ( LCTF) and owns 14. 7 percent of the Manteca- Lathrop Wastewater Quality Control Facility ( WQCF) by contract with the City of Manteca. The City of Lathrop, however, does not participate in the operation of the Manteca plant. LCTF has undergone an expansion and has increased its current capacity to 1. 0 MGD. The City has plans to upgrade LCTF to increase the treatment capacity in increments to correspond with the pace of development to 6. 0 MGD and then to 11. 9 MGD to accommodate build- out of the City General Plan area.

Stormwater Drainaqe
The City' s stormwater drainage system is managed by the Public Works Department. The gravity- based system consists of collection and trunk pipelines, detention basins, pump stations, and surface infrastructure. Stormwater collected by the City's stormwater drainage system is ultimately discharged into the San Joaquin River.

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Levees within the City are owned and operated by the Reclamation Districts 17, 2107 and 2062. 72 The levees protect the City from flooding that might occur from the San Joaquin River.

According to the Federal Emergency Management Agency ( FEMA) Flood Insurance Rate Maps FIRM), the urban areas of the City are located within Flood Zone X, and provide protection from the 100- year flood. Flood Zone X is defined as an area of 0. 2 percent annual chance of flood 500- year storm event), an area with one percent annual chance of flood ( 100- year storm event) with average depths of less than one foot or with drainage areas less than one square mile, and areas protected by levees from one percent annual chance of flood. The levees in Reclamation District 2107 do not provide protection from the 100- year flood. Aiso noted in the FIRM is that much of Lathrop is protected by a levee dike or other structure subject to possible failure during larger floods. 73
In addition to levees, Reclamation District 2062 maintains public recreational lakes within the River Islands development, as well as the pump systems and transmission mains to fill the lakes from the San Joaquin River, and to evacuate water from the lakes when they are full.

SB5 impact on Lathrop
SB5, and its amendments, limit any city/ county in the Central Valley from issuing certain permits unless either an Urban Level of Protection ( ULOP or 200- year flood protection per California Department of Water Resources) is confirmed, or the city/ county makes a finding of Adequate Progress toward providing that ULOP.

Lathrop is composed of three separate flood basins, represented by the three reclamation districts that cover the City: Reclamation District 2107 located on Stewart Tract, southeast of the UPRR tracks, Reclamation District 2062 located on Stewart Tract, northwest of the UPRR tracks and also known as the River Islands development project, and Reclamation District 17 located east of the San Joaquin River. Per the amended General Plan, RD 2107 is not subject to SB5. On January 8, 2018, the Lathrop City Council approved the Amended and Restated Joint Exercise of Powers Agreement ( JEPA) for the San Joaquin Area Flood Control Agency SJAFCA) to include the City of Lathrop and the City of Manteca as Members of the JEPA. The main purpose of the re-organization of the SJAFCA to inciude the Cities of Lathrop and Manteca is for the SJAFCA to start advancing 200- Year flood control in the Mossdale Tract area. Since 2018, SJAFCA has prepared the Adequate Progress Findings for ULOP as a joint effort between the agencies involved in the JEPA. Lathrop is working with SJAFCA to explore various funding programs, such as the new Enhanced Infrastructure Financing District and Overlay Assessment District. As noted previously, the Mossdale Tract Regional Levee Impact Fee is in effect and the City continues to collect monies as development occurs. Lathrop will continue working with all public agencies within RD17 and SJAFCA to provide final design and 72 San Joaquin County, Geographic Information System, Reclamation Districts Map, December l7, 2007 73 FEMA, FIRM, City of Lathrop, CA Pane1590 of 925: Map Number 063780595A, Effective Date December 16, 2005
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construction of ULOP improvements that will aliow findings of Adequate Progress toward providing ULOP as the improvements are constructed.

2. Determination
The City has existing and planned shared facilities, both within the City and through relationships with other service providers, including the City of Manteca and San Joaquin County. These shared facilities include fire protection, law enforcement, water supply and wastewater collection and treatment and a need for improvements to levees.

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F. Accountability for Community Service Needs, Including Governmental Structure and Operational Efficiencies
This section considers the benefits and constraints of the City of Lathrop' s ( City) government structure in regard to the provision of public services. The Local Agency Formation Commission LAFCo) is required to consider the advantages and disadvantages of any options that might be available to provide services. In reviewing potential government structure options, consideration may be given to financial feasibility, service delivery quality and cost, regulatory or government frameworks, operational practicality, and public reference.

1. Background
The City is a General Law city that operates under the City Council/ City Manager form of municipal government. Therefore, residents of the City ultimately have oversight of the provision of public services since the City is run by an elected City Council that answers to the public through the ballot process. When and if the City annexes property within its sphere of influence SOI), the City will need to provide these subject areas with a wide range of public services. In some cases, annexation will require services that are not currently available in the SO.

The City undertakes long- range programs to better plan and budget for needed improvements to services and facilities. In addition, the City' s annual budgeting process is used to balance expenditures for provision of needed services. This process allows the City to analyze the need for staffing, equipment and facilities for the following year. City departments are encouraged to identify areas to minimize costs for providing services while maintaining adequate levels of service. The annual budget is an effective planning process utilized by the City.

2. Determination
Since the City is an incorporated city, the City Council will make final decisions concerning fee structures and provisions of service. As discussed in previous chapters, the City reviews its fee structures for fire protection, law enforcement, water, sewer and stormwater drainage on an annual basis. The City of Lathrop Comprehensive General Plan ( General Plan) also includes numerous goals, objectives, policies and actions to ensure that adequate services are provided in a cost- effective manner in order to accommodate new growth.

The ability to serve the anticipated growth within the existing SOI is not expected to have a significant effect on the City' s governmental structure or its ability to provide the required services. The areas within the City' s amended SOI are designated for industrial/ commercial use and as reported in Chapter 3 of this Municipal Service Review ( MSR), and can be adequately served by the City. In addition, mechanisms are in place within the City's departments to effectively provide public participation in the planning and development process to address future growth within the SOI. The City will continue to work with service providers and neighboring municipalities, such as the South San Joaquin Irrigation District and the City of Manteca, to address government structure options to provide efficient and cost- effective public facilities and services.

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The City' s use of its budget process and long- range infrastructure planning processes ensure that it is able to provide directly, and through contract, adequate levels of service in a costeffective manner within its service areas. Long-term planning processes include capital improvement plans, urban water management plan, wastewater management plan and developer fee review. These planning processes are contributed to by City departments and community input and will ensure management effectiveness.

The City has demonstrated the ability to work with other service providers and municipalities to ensure that adequate services are provided in a cost effective and efficient manner. Efforts to ensure effective government structure for the provision of fire and law enforcement personnel, water, wastewater treatment and stormwater drainage facilities demonstrates the City' s foresight to plan for future services needed for potential growth within the SOI, as well as for the planned development and population increases anticipated within the City. Assuming the City continues to evaluate existing government structure and seek opportunities for improvement, no significant barriers are expected in regard to government structure during the ten- and thirtyyear planning horizons.

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REFERENCES

4. REFERENCES
A. Documents
California Department of Finance, E- 1: Population Estimates for Cities, Counties and the State with Annual Percentage Change — January 1, 2020 and 2021. Sacramento, California, May 2021
California Department of Finance, E- 5: Population and Housing Estimates for Cities, Counties, and the State— January 1, 2011- 2021. Sacramento, California, May 2021 Central Valley Regional Water Quality Control Board, Order No. R5- 2015- 0094: Waste Discharge Requirements and Master Reclamation Permit for the City of Lathrop Water Recycling Plant, 2006
City of Lathrop, Adopted Budget Fiscal Year 2019- 2021
City of Lathrop, Adopted Capital Improvement Program: Fiscal Year 2019-2021 City of Lathrop, Annual Water Quality Report, 2020
City of Lathrop, Capitai Facility Fee Funds Report 2019- 2020, December 18, 2020 City of Lathrop Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2020 City of Lathrop, Comprehensive General Plan, July 2015
City of Lathrop, Finai Housing Element, December 9, 2019 City of Lathrop, Police Services, 2019/2020 Budget and Summary Review Presentation, 2020 City of Lathrop, Geographic Information System ( GIS) Data, 2021 City of Lathrop, Municipal Code
City of Lathrop, Ordinance No. 91- 55 and Resolution No. 91- 123, 1991 City of Lathrop, Sewer Rate Study for the East Lathrop, Mossdale Village, and Crossroads Sewer Service Areas, November 24, 2008 and " Water Rate Study" November 17, 2008.

City of Lathrop, Zoning Ordinance
County of San Joaquin & City of Lathrop Agreement for Property Tax Allocation upon Annexation A- 12- 472
CV- RWQCB Order R5- 2015- 0006
CV-RWQCB Order R5- 2016- 0028- 01
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REFERENCES
De Novo Planning Group ( 2019) Final Housing Element, City of Lathrop, December 9, 2019.

DSWA and Associated Firms, Engineering Services for Design and Construction of Municipal Water Supply Wells Arsenic Reduction Facilities, 2007
EDAW, Draft Environmental Impact Report for the Central Lathrop Specific Plan, July 2004 EKI Environment & Water, Inc., 2020 Urban Water Management Plan, June 2021 EKI Environment & Water, Inc., Water System Master Plan, December 2019 EKI Environment & Water, Inc., Recycled Water System Master Plan, December 2019 EKI Environment & Water, Inc., CTF Effluent Discharge and Recycled Water Systems Operations, May 2020
EKI Environment & water, Inc., Addendum to City of Lathrop Engineering Report for the Production, Distribution, and Use of Recycled Water, March 2020 Federal Emergency Management Agency, Flood Insurance Rate Maps, FEMA, FIRM, City of Lathrop, CA Panel 590 of 925: Map Number 063780595A, Effective Date December 16, 2005 Federal Emergency Management Agency, Letter of Map Revision Determination Document, City of Lathrop, CA, Case No. 20-09-0630P, November 18, 2021 Lathrop- Manteca Fire District, Lathrop- Manteca Fire District Master Plan, 2018 Lew-Garcia- Davis Engineers/Surveyors, Lathrop Storm Drain Master, July 1992 RBF Consulting, City of Lathrop Water Supply Study, September 2008 RBF Consulting, Arsenic Treatment System Support, 2008
RBF Consulting, Draft Historic Lathrop Storm Drainage Maser Plan, October 2006 RBF Consulting, Northern Area Portion Master Plan Drainage, May 2003 R. W. Siegfried & Associates and George S. Nolte & Associates, Storm Drainage Study and Master Plan for San Joaquin County, 1973
Rural Fire Protection Districts MSR adopted by SJLAFCo October 21, 2011 San Joaquin Area Flood Control Agency ( SJAFCA), 2021 Annual Adequate Progress Report Update for Urban Level of protection, prepared by Larsen Wurzel & Associates, Inc., dated June 25, 2021
San Joaquin Council of Government' s Demographic and Employment Forecast, , September 10, 2020
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REFERENCES
San Joaquin County Local Area Formation Commission, Service Review Policies adopted 6/ 21, amended 12/ 14/ 2012
San Joaquin County, Geographic Information System ( GIS), Reclamation Districts Map, December 17, 2007
State of California, Department of Finance, E-5 Population Estimates for Cities, Counties, and the State— January 1, 2021 — 2022. Sacramento, California, May 2022.

SWRCB, Water Quality Order No. 2013-0001- DWQ, NPDES General Permit No. CAS000004, February 5, 2013
Thompson- Hysell Engineers, Master Storm Drain Plan for Lathrop, 1987 U. S. Census Data, Population and Demographic Profiles- San Joaquin County/ City of Lathrop, 1990
U. S. Census Data, Population and Demographic Profiles — San Joaquin County/ City of Lathrop, 2000
U. S. Census Data, Population and Demographic Profiles — San Joaquin County/City of Lathrop, 2010
WGR Southwest, Inc., City of Lathrop Storm Water Development Standards, June 03, 2008 B. Websites
California Tax Data, www. mello- roos. com/ pdf/ mrpdf. pdf City of Lathrop Police Department Website, http://www.ci.lathrop. ca. us/Ipd/ City of Lathrop, Public Works Department Website, http:// www. ci. lathrop. ca. uslpwd/ utilities/ sewer, 2021
City of Lathrop, City Manager Website, Lathrop Police Department Transition, https:// www. ci. lathrop. ca. us/ city- manager/ page/ lathrop- police- department- transition, 2021 and 2022 Lathrop- Manteca Fire Protection District website, http:// www. lmfd. org San Joaquin Area Flood Control Aqencv ( SJAFCA), Mossdale Tract. https:// www. siafca. orq/ proiects/ mossdale- tract, 2021 U. S. Department of Health and Human Services, Agency for Toxic Substances & Disease Registry, http://www.atsdr.cdc.qov/ hac/ pha/ sharpe/ sad p1. html, January 2009 JUNE 2022 4- 3
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C. GIS Data
City of Lathrop, Lathrop Geographic Information System ( GIS) Data, accessed October 2021 and Aprii 2022
San Joaquin County, GIS Data, accessed October 2021
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ATTACHMEIVT " -3 "'
RESOLUTION NO. 22- 3

A RESOLUTION OF THE PLANNING COMIVIISSION OF THE CITY OF LATHROP

RECOMMENDING CITY COUNCIL REVIEW AND RECOMMENDATION TO

SUBMIT THE MUNICIPAL SERVICE REVIEW AND SPHERE OF INFLUENCE PLAN

TO THE SAN JOAQUIN LOCAL AGEI TCY FORMATION COMMISSION
WHEREAS, the San Joaquin Local Agency Formation Commission requires the City of Lathrop to provide a Municipal Service5 Review in accordance with the Cortese- Knox-Hertzberg Locai Government Reorganization Act of 2000 ( CKH Act) and codified as California Government Code ( GC) § Sb000; and
HEREAS, the Government Code requires a Municipal Services Review to be prepared for local municipalities every 5 years or whenever a Sphere of Influence ( SOI) is updated; and t'4' HEREAS, the City of Lathrop' s Municipal Service Review Update has been prepared to meet the update requirement; and
HEREAS, the City of Lathrop is suggesting minor changes to the 10- year growCh horizon that auld result in expanding the SOI ( 10- year growth horizon) by approximately

10. 30- acres; and
WHER AS, in accardance with the California Environmental Quality Act, the City of Lathrop Municipal Services Review Update and Sphere of Influence Plan qualifies for a Statutory Exemption purs lant Section 15262 " Feasibility and Planning St ldies" of the CEQA Guidelines; and
WHEREAS, the City of Lathrop has prepared the proposed Municipal Service Review Update and Sphere of Infliience Plan, dated May 2022; and NOW, THEREFORE SE IT RESOLVED that the Municipal Service Review Update and Sphere of Influence Plan, dated May 2022 is exempt from CEQA pursuant to Section 15262; and
1\ TOW, THEREFORE, BE IT FURTHER RESOLVED that the Planning Coinmission of the City af Lathrop does hereby recommend City Council review and recommendation to submit the Municipal Service Revie and Sphere of Influence Pian, dated May 2022 to the San Joaquin Local Agency Formation Commission, as illustrated and incorporated by reference as Attachment 2 of the Plannina Commission Staff Report.

Resolution No. 22- 3 Page 1 of 2
413
PASSED AND ADOPTED by the Planning Commission of the City of Lathrop on the 15th day of June, 2022 by the following vote:

AYES: Dresser, Rhodes, Ishihara, Gatto, Ralmilay
NOES: None
ABSTAIN: None
ABSENT: None
Steve resser, Chair
ATTEST: APPROVED AS TO FORM:
e ss r, Se retary Salvador Navarrete, City Attorney
c
Resolution No. 22- 3 Page 2 of 2
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ITEM 4.8

CITY MANAGER' S REPORT
7ULY 11, 2022 CITY COUNCIL REGULAR MEETING
ITEM: CREATE CAPITAL IMPROVEMENT PROJECT PS 23- 01

CITY- WIDE TRAFFIC SYSTEMS AND SAFETY

UPGRADES PROJECT, AND APPROVE RELATED

BUDGET AMENDMENT
RECOMMENDATION: Adopt Resolution Creating CIP PS 23- 01 City- Wide Traffic Systems and Safety Upgrades Project, and
Approve Related Budget Amendment
SUMMARY:

Staff is proposing the creation of Capital Improvement Project ( CIP) PS 23- 01 CityWide Traffic Systems and Safety Upgrades Project for various upgrades that will maintain and improve the reliability, safety and function of various traffic control devices in the City. These upgrades will include the replacement of obsolete traffic controllers, installation of video & radar detection systems, communication upgrades, and safety upgrades including guard rails, signs, striping and bicycle facilities.

Staff is requesting that City Council approve the creation of CIP PS 23- 01 City- Wide Traffic Systems and Safety Upgrades Project to maintain and improve the City' s traffic infrastructure. Staff also requesting that City Council approve the related budget amendment of $ 312, 000.

BACKGROUND:

The number of vehicles traveling through and around the City has increased with the population as development progresses, emphasizing the importance of traffic reliability, safety and function. Staff is proposing the creation of CIP PS 23- 01 CityWide Traffic Systems and Safety Upgrades Project for various upgrades and improvements to the City' s traffic infrastructure.

Of the City' s 19 traffic signals, 12 are currently operated by the McCain Model 170 traffic signal controller, which has been discontinued and is no longer supported by the manufacturer. City Standards currently require the installation of the McCain Model 2070E traffic signal controller, which the remaining seven ( 7) of the total 19 traffic signals currently utilize. To maintain the reliability and safety of our traffic signals, the 12 traffic signals that are operated by Model 170 controllers need to be upgraded to Model 2070E controllers at a rough cost of $ 30, 000 per intersection.

Staff recommends replacing four Model 170 controllers with Model 2070E controllers per year for the next three years at the cost of $ 120, 000 per year.

With the traffic signal controller upgrade, the technology of the detection system should be upgraded as well. The 12 intersections eligible for the Model 2070E upgrade utilize inductive loops as the vehicle detection system. 416
CITY MANAGER' S REPORT PAGE 2
ULY il, 2022 CITY COUNCIL REGULAR MEETING
CREATE CAPITAL IMPROVEMENT PROJECT PS 23- 01 CITY- WIDE TRAFFIC

SYSTEMS AND SAFETY UPGRADES PROJECT, AND APPROVE RELATED

BUDGET AMENDMENT
The current City Standard for new traffic signals requires installing the Iteris Next Vector detection system ( Iteris). Iteris uses a combination of video and radar to not only detect vehicles but also provide the City with data such as vehicle speeds, counts, types and pedestrian and bicycle counts. This data will help the City optimize traffic flow through our most congested corridors and improve safety with features like dilemma zone extension and red light run hold. In addition, this system detects, identifies and provides a green light for bicycles. Staff proposes to upgrade four intersections with Iteris Next Vector per year for the next three years at the cost of 112, 000 per year.

The connection of traffic signals to the City' s network is critical to monitoring the operation and function of each signal. 7 out of the City' s 19 traffic signals are not currently connected to the network therefore, staff proposes upgrades for a fiber optic connection to each of the intersections at an approximate cost of $ 30, 000 per year for the next three years.

Staff proposes prioritizing the traffic signal upgrades based on intersection traffic in the order shown in Table 1 below.

Table 1 — Traffic Si nal Up rade Priority
U rade Needed
Intersection
F scal Year 2070E Iteris Fiber
for U rade Controller Detection O tic
Louise Avenue & Harlan
Road FY 22/ 23
Louise Avenue &
Cambridge Drive FY 22/ 23
Louise Avenue & Fifth
Street FY 22/ 23
Louise Avenue & McKinley
Avenue FY 22/ 23
Golden Valley Parkway &
River Islands Parkway FY 23/ 24
Golden Valley Parkway &
Marketplace Drive FY 23/ 24
Golden Valley Parkway &
Somerville Street FY 23/ 24
417
CITY MANAGER' S REPORT PAGE 3
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
CREATE CAPITAL IMPROVEMENT PROJECT PS 23- 01 CITY- WIDE TRAFFIC SYSTEMS AND SAFETY UPGRADES PRO7ECT, AND APPROVE RELATED

BUDGET AMENDMENT
Golden Valley Parkway &
Towne Centre Drive FY 23/ 24
Lathrop Road & Harlan
Road FY 24/ 25
Lathrop Road & Fifth
Street/ Woodfield Drive FY 24/ 25
Harlan Road & Crossroads
Business Park FY 24/ 25
Harlan Road & J Street
FY 24/ 25
Traffic safety improvements such as signs, striping, guardrails, bicycle facilities, lighting and education are also critical as the City' s population increases. Often, these improvements are installed as a response to an incident and to prevent future incidents; therefore, staff is proposing an additional budget of $ 50, 000 per year.

REASON FOR RECOMMENDATION:

Creation of CIP PS 23- 01 City- Wide Traffic Systems and Safety Upgrades Project is needed to maintain and improve the reliability, safety and function of various traffic control devices in the City. These improvements will ensure that the City' s traffic infrastructure keeps pace with the increasing population.

FISCAL IMPACT:

Staff requests City Council approve a budget amendment transferring $ 312, 000 from the Street Reserve Fund ( 1010) to the Streets CIP Fund ( 3310) as follows:

Increase Transfer Out
1010- 9900- 990- 9010 312, 000
Increase Transfer In
3310- 9900- 393- 0000 PS 23- 01 312, 000
Increase Expenditures
3310- 8000- 420- 75- 00 ( Labor) PS 23- 01 30 000
3310- 8000- 430- 37- 00 ( Materials) PS 23- 01 282 000
Decrease Reserve
1010- 251- 03- 00 312, 000
418
CITY MANAGER' S REPORT PAGE 4
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
CREATE CAPITAL IMPROVEMENT PROJECT PS 23- 01 CITY- WIDE TRAFFIC

SYSTEMS AND SAFETY UPGRADES PROJECT, AND APPROVE RELATED

BUDGET AMENDMENT
ATTACH M ENTS:

A. Resolution Creating CIP PS 23- 01 City- Wide Traffic Systems and Safety Upgrades Project, and Approve Related Budget Amendment
419
CITY MANAGER' S REPORT PAGE 5
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
CREATE CAPITAL IMPROVEMENT PROJECT PS 23- 01 CITY- WIDE TRAFFIC

SYSTEMS AND SAFETY UPGRADES PROJECT, AND APPROVE RELATED

BUDGET AMENDMENT
APPROVALS:
6 3o 2oz2
Brad aylor Date
City Engineer
q- aoTo nandes Date
In orm tion Systems Director
U
Cari Ja Date
Finance i ector
co - zq- zoz2
Michael King Date
Assistant City Manag r
z Y Zo zzSalvador Navarrete Date
City Attorney
Z2
St en J. Salvatore Date
City Manager
420
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP RESOLUTION CREATING CIP PS 23- 01 CITY- WIDE TRAFFIC SYSTEMS AND

SAFETY UPGRADES PROJECT AND APPROVE RELATED BUDGET AMENDMENT WHEREAS, the number of vehicles traveling through and around the City has increased with the population as development progresses, emphasizing the importance of traffic reliability, safety and function. Staff is proposing the creation of Capital Improvement Project ( CIP) PS 23- 01 City- Wide Traffic Systems and Safety Upgrades Project for various upgrades and improvements to the City' s traffic infrastructure; and
WHEREAS, of the City' s 19 traffic signals, 12 are currently operated by the McCain Model 170 traffic signal controller, which has been discontinued and is no longer supported by the manufacturer. Staff proposes to replace four Model 170 controllers with Model 2070E controllers per year for the next three years at the cost of $ 120, 000 per year; and
WHEREAS, with the traffic signal controllers upgrade, the technology of the detection system should be upgraded as well. The 12 intersections eligible for the Model 2070E upgrade utilize inductive loops as the vehicle detection system. The current City Standard for new traffic signals requires installing of the Iteris Next Vector detection system, which uses a combination of video and radar to not only detect vehicles but also provide the City with data such as vehicle speeds, counts, types and pedestrian and bicycle counts. Staff proposes to upgrade four intersections with Iteris Next Vector per year for the next three years at the cost of $ 112, 000 per year; and
WHEREAS, the connection of traffic signals to the City' s network is critical to monitor the operation and function of each signal. 7 out of the City' s 19 traffic signals are not currently connected to the network, and therefore staff proposes upgrades for a fiber optic connection to each of the intersections at an approximate cost of 30, 000 per year for the next three years; and
WHEREAS, Staff proposes prioritizing the traffic signal upgrades based on intersection traffic in the order shown in Table 1 below.

Table i — Traffic Signal Upgrade Priority
U rade Needed
Intersection
Fiscal Year 2070E Iteris Fiber
for U rade Controller Detection O tic
Louise Avenue & Harlan
Road FY 22/ 23
Louise Avenue &
FY 22/ 23
Cambrid e Drive
421
Louise Avenue & Fifth
Street FY 22/ 23
Louise Avenue & McKinley FY 22/ 23
Golden Valley Parkway &
River Islands Parkway FY 23/ 24
Golden Vailey Parkway &
Marketplace Drive FY 23/ 24
Golden Valley Parkway &
Somerville Street FY 23/ 24
Golden Valley Parkway &
Towne Centre Drive FY 23/ 24
Lathrop Road & Harlan
Road FY 24/ 25
Lathrop Road & Fifth
Street/ Woodfield Drive FY 24/ 25
Harlan Road & Crossroads
Business Park FY 24/ 25
Harlan Road & J Street
FY 24/ 25
and
WHEREAS, traffic safety improvements such as signs, striping, guardrails, bicycle facilities, lighting and education are also critical as the City' s population increases. Often, these improvements are installed as a response to an incident and to prevent future incidents, therefore staff is proposing an additional budget of 50, 000 per year.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby approve of the creation of CIP PS 23- 01 City- Wide Traffic Systems and Safety Upgrades Project with a budget of $ 312, 000 per year for three years; and
422
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Councii of the City of Lathrop hereby approves the budget amendment transferring $ 312, 000 from the Street Reserve Fund ( 1010) to the Streets CIP Fund ( 3310) as follows:

Increase Transfer Out
1010- 9900- 990- 9010 312, 000
Increase Transfer In
3310- 9900- 393- 0000 PS 23- 01 312, 000
Increase Expenditures
3310- 8000- 420- 75- 00 ( Labor) PS 23- 01 30, 000
3310- 8000- 430- 37- 00 ( Materiais) PS 23- 01 282 000
Decrease Reserve
1010- 251- 03- 00 312, 000
423
PASSED AND ADOPTED by the City Council of the City of Lathrop this ilth day of July 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:

Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 424
425
ITEM 4. 9

CITY MANAGER' S REPORT
7ULY 11, 2022 CITY COUNCIL REGULAR MEETING
ITEM: AMEND THE CITY OF LATHROP' S EMPLOYEE TRAVEL

EXPENSE REIMBURSEMENT POLICY AND PROCEDURE
RECOMMENDATION: Adopt a Resolution Amending the City of Lathrop Employee Travel Expense Reimbursement Policy and
Procedure
SUMMARY:

The purpose of the City of Lathrop' s Employee Travel Expense Reimbursement Policy and Procedure (" Travel Policy") is to establish guidelines for the expenditure of public funds for authorizing attendance, travel, and reimbursement of expenses for City officials and employees attending conferences, training, meetings and other City related business. The last revision to the Travel Policy occurred in March 2000 and established the maximum meal rate of $ 50 per day including tax and tip for meals not provided as part of registration of conference fees.

Staff is proposing revising the current Travel Policy to align the meals and incidental expenses with the guidelines established by the United States Internal Revenue Service. In addition, clarifying language has been added to the permitted expenses rate section regarding lodging and transportation to encourage employees to utilize the most economical lodging and ground transportation options.

Any out- of- state travel will continue to require approval by the City Council.

The proposed changes reflect practices that are in line with current municipal standards for employee travel.

BACKGROUND:

In September 1992, the City Council approved Resolution 92- 223 establishing travel expense procedures for City Officials and Employees. In March 2000, the Travel Expense Police was revised by Resolution 00- 868. Since that time, the Travel Policy has remained unchanged.

The purpose of the Travel Policy is to establish guidelines for the expenditure of public funds for authorizing reimbursement of expenses for City officials and employees attending conferences, training, meetings and other City related business. Contract employees and consultants are not covered under this policy.

The last revision to the Travel Policy was in March 2000 and established the maximum meal rate of $ 50 per day. Staff is proposing revisions the Travel Policy to align the meals and incidental expenses with guidelines established by the United States 426
CITY MANAGER' S REPORT PAGE 2
7ULY 11, 2022 CITY COUNCIL REGULAR MEETING

AMEND EMPLOYEE TRAVEL/ EXPENSE REIMBURSEMENT POLICY AND

PROCEDURE
Internal Revenue Service. Additionally, clarification language has been added to the permitted expense rates section regarding lodging and transportation to encourage employees to utilize the most economical lodging and ground transportation options.

Any out-of-state travel will continue to require approval by the City Council.

These proposed changes reflect practices that are in line with current municipal standards.

REASON FOR RECOMMENDATION:

The current Travel Policy was adopted in 2000, and needs to be updated to current industry standards. The proposed update will align the meals and incidental expenses with guidelines established by the United States Internal Revenue Service and update language on permitted expenses.

FISCAL IMPACT:

There will be a minor impact to the budget with the proposed increase in meal reimbursements. All travel expenditures will be subject to budgetary limitations within the Council approved operating budget.

ATTACH M ENTS:

A. Resolution Amending the City of Lathrop Employee Travel/ Expense Reimbursement Policy and Procedure
B. Employee Travel/ Expense Reimbursement Policy and Procedure 427
CITY MANAGER' S REPORT PAGE 3
JULY 11, 2022 CITY COUNCIL REGULAR MEETING

AMEND EMPLOYEE TRAVEL/ EXPENSE REIMBURSEMENT POLICY AND

PROCEDURE
APPROVALS:

T Roland Date
Director of Human Resources
Car Date
Directo o Finance
s zozZ
Salvador Navarrete Date
City Attorney
o- 2Z
Stephen J. Salvatore Date
City Manager
428
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP

AMENDING THE CITY OF LATHROP EMPLOYEE TRAVEL EXPENSE

REIMBURSEMENT POLICY AND PROCEDURE
WHEREAS, in September 1992 the City Council approved Resolution 92- 223 establishing travel expense procedures for City Officials and Employees; and WHEREAS, the purpose of the Travel policy is to establish guidelines for the expenditure of public funds for authorizing reimbursement of expenses for City Officials and employees attending conferences, training meetings and other City related business; and
WHEREAS, in March 2000 the City Council amended the Travel Policy by adoption of Resolution 00- 868; and
WHEREAS, the current Travel Policy establishes the maximum meal rate of 50; and
WHEREAS, staff is proposing revising the current Travel Policy to align the meals and incidental expenses with the guidelines established by the Unites States Internal Revenue Service; and
WHEREAS, clarifying language has been added to permitted expenses rates section regarding lodging and transportation to encourage employees to utilize the most economical lodging and ground transportation options; and WHEREAS, any out-of-state travel will continue to require approval by the City Council.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve the second amendment to the City of Lathrop Employee Travel Expense Reimbursement Policy and Procedure included as Attachment B in the accompanying staff report.
429
The foregoing resolution was passed and adopted this 11t" day of July 2022, by the following vote of the City Council, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:

Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 430

ADMINISTRATIVE

NUMBER PAGE
00- OS 1 of 6

REGULATION REVISION
03/ 07/2000 ES

SUBJECT

APPROVED BY EFFECTIVE DATE

EMPLOYEE TRAVEL / EXPENSE REIMBURSEMENT
2022

POLICY AND PROCEDURE
Stephen J. Salvatore
City Mana er

1. POLICY BACKGROUND:

The City Council adopted Resolution No. 22- authorizing the City Manager to approve an Administrative Policy for in-state travel expense reimbursement. The City Council retains authority to approve out- of-state travel. This Administrative Policy meets the requirements of California Government Code 53232— 53232.4 for the City Council and appointed officials.

2. PURPOSE
The purpose of this policy is to establish guidelines for authorizing attendance, travel and reimbursement of expenses for City employees and officials attending conferences, training, meetings and other City related business. Contract employees and consultants are not covered under this policy. This policy supersedes all previous policies.

3. POLICY
It is in the best interest of the City that City Officials and employees remain informed and trained in activities, developments and professional trends affecting the affairs ofthe City and maintaining licenses or certifications required, or beneficial to their position. As such, attendance at institutes, hearings, meetings, conferences or other gatherings is of value to the City and its citizens.

This policy is intended to provide the resources for the traveler which offers the greatest benefit of the trip at the most economical cost. The policy is not intended to allow travelers to receive financial gain as a result of their travel.

3. 1. Pre- Travel Authorization: City Employees must complete a Training and Travel Approval Form ( Attachment A) and secure approval from their Department Director and/or City Manager prior to attendance of any local or non- local conference, seminar or meeting. Travel arrangements should not be made until Department Director and/ or City Manager approval has been obtained. " Non- Local" shall be defined as travel requiring an overnight stay.

Requests to attend conferences, workshops, or other training related events not required by the job description must also be reviewed and approved by the Director of Human Resources, or designee, prior to attendance of any local or non- local conference, seminar or meeting.

The Department Director and/or the City Manager has the responsibility to determine the reasonableness of travel requests as justified by the purpose ofthe travel. The intent is to make travel as economical as possible:

ATTACHMENT " "
431
CITY OF LATHROP NUMBER Page
ADMINISTRATIVE REGULATION REVISION 2 2 of 6

TRAVEL POLICY
a. By examining each trip to determine necessity. Travel is not to be permitted when the same can be achieved by mail, online or telephone. b. By minimizing the number of people who must travel for a single purpose.
c. By use of commercial air transportation when it is less costly than the use ofprivate vehicle, unless otherwise approved.
d. By requiring the use of City vehicles, unless there is a valid reason for the use of a private vehicle.
e. By limiting payment or reimbursement for the expenses related to an authorized traveler only. Any expenses incurred by the authorized traveler for a companion is the responsibility of the traveler.

3. 2. Post Travel Reconciliation: The employee must file a completed Post Travel Expense Reconciliation Report (" Expense Report") ( Attachment B) with the Finance Department within ten( 10) days ofthe conclusion ofthe trip and attach all necessary receipts to document the travel expenses. Any monies advanced, but not used for authorized expenses, must be returned to the City. Failure of the employee to file an Expense Report or submission of a false Expense Report may be grounds for disciplinary action.

3. 3. Post Travel Reporting: Per California Government Code Section 53232. 3:

Members of a legislative body ( including but not limited too; City Councilmembers, Planning Commissioners, Special Commissions, etc.) shall provide brief reports on meetings attended at the expense of the local agency at the next regular meeting of the legislative body. A copy of any certificates received shall be provide to the Human Resources Department to be placed in their personnel files.

3. 4. Permitted Expenses:

3. 4. 1. Lodging: Actual cost for a single occupancy room at a motel or hotel with average quality accommodations. The government and group rates should be requested where available. Lodging will be paid at the Standard Room Rate or Conference Room Rate, whichever is lower, provided that lodging at the group rate is available to the member of a legislative body at the time of booking. If the group rate is not available, the member of a legislative body shall use comparable lodging. Receipts for lodging costs must be attached to the Expense Report. Noncompensable lodging expenses that are not considered a City expense include but are not limited to:
a. Late check- out and guarantee charges
b. Personal services ( i.e. barber/ hair salon, shoeshines, health club and/or massage)
c. Entertainment, including but not limited to in room
movies.
d. Pet related expenses
432
CITY OF LATHROP NUMBER Page
ADMINISTRATIVE REGULATION REVISION 2 3 of 6

TRAVEL POLICY
Pre- destination lodging will be allowed for travel requiring extensive travel time and must be identified on the Travel Request Form, supported by a copy of the event schedule and approved by the Director of Human Resources, or designee, if applicable, and the Department Director and/ or City Manager.

Starting time is for actual event, not registration or optional tours or sponsored events unless related to professional development as approved by the Director of Human Resources, or designee, if applicable, and the Department Director and/ or City Manager.

Lodging will be allowed for travel only ifthe length of the event is more than one day, extensive travel time is required and/ or the distance is more than 75 miles from City Hall or the employee' s residence, whichever is greater. Reasonable overnight travel for distances less than 75 miles may be approved by the City Manager on a case-by-case basis.

3. 4. 2. Transportation & Mileage: Travel by private car will be reimbursed at the current rate per mile approved the U.S.

Internal Revenue Service for use in connection with City business. When attending conferences or meetings that are of such a distance that it is more economical to take commercial air transportation, and an employee proposes to drive their private car instead, requests for reimbursement will be based on commercial air transportation rates and not based on automobile mileage.
a. Air Travel: Employees shall endeavor to book
commercial air transportation to take advantage of
discounts and non- refundable ticket fares where
practical. All flights shall be booked at coach class
or equivalent level, unless approved by the City
Manager before travel occurs.

Automobile mileage shall be reimbursed when
traveling to and from the airport, at the current
mileage rate set by the U. S. Internal Revenue
Service. When available, courtesy shuttle services
should be utilized between airports and meeting
locations. Airport parking at the economy parking
rate is reimbursable with the original receipt.
433
CITY OF LATHROP NUMBER Page
ADMINISTRATIVE REGULATION REVISION 2 4 of 6

TRAVEL POLICY
b. Mileage Reimbursement: No City employee shall
be authorized mileage reimbursement for the use of
his or her privately owned vehicle in the performance
of City business if a City-owned vehicle is available
and suitable for such use. Mileage is to be calculated
based on navigational information available and
attained at http:// www•mapquest. com ar another
equivalent internet mapping/ navigational guidance
source.

If the distance from the employee' s home to
the meeting or event site is less than the
distance from the work site, use of a private
vehicle may be authorized and the employee
will be reimbursed as set forth in this Policy.

When authorized, private vehicle usage will
be reimbursed at the current rate set by the
U. S. Internal Revenue Service. Mileage
reimbursement will be based on actual miles
traveled for City business, via the most direct
route.

In cases where more than one employee is
attending the same event, employees will
normally be expected to travel together when
feasible and mileage reimbursement will be
for one vehicle only.

Employees must adhere to the Vehicle Policy
00- 32.
c. City Vehicles: Employees are expected to use a City
vehicle, when one is available, unless there is a valid reason for the use of a personal vehicle, ( e.g. the
travel distance is reasonably less when departing
from the employee' s residence) or if approved by
Department Head.
d. Rental Vehicles: If traveling by commercial air
transportation, t i or shuttle services ( but not
limited to Uber, Lyft, etc.) should be utilized.

Vehicle rentals will be authorized if other means of
transportation are not available, or if it is reasonable and more economical to rent a vehicle. When rental
vehicles are used, the least expensive vehicle
practical will be used. In addition, extended liability and collision insurance shall be purchased.
434
CITY OF LATHROP NUMBER Page
ADMINISTRATIVE REGULATION REVISION 2 5 of 6

TRAVEL POLICY

3. 4. 3. Meals: Costs for meals not provided as part of a registration fee will be calculated according to the meals and incidental expenses per diem rate established by the U.S. General Services Administration www gsa ov/ travel/ plan- book/ per- diemrates). Meals provided by the conference or included in the registration fee will not be eligible for per diem. A continental breakfast is not considered a meal for purposes of calculating meal allowances.

Registration materials indicating which meals are provided as part of the registration must be submitted prior to receipt of per diem.

3. 4. 4. Comuensation for Travel: When travel time exceeds the employee' s normal workweek, the City' s rules for overtime apply if the employee is eligible for overtime. In determining overtime compensation, normal commute time should be
deducted from the total travel time. Normal commute time is defined as the normal time spent by an employee traveling from home to their assigned work location. Additionally, normal unpaid meal periods are not considered work time when
traveling. Overtime eligibility shall be determined according the U. S. Department of Labor Fair Labor Standards Act (" FLSA") guidelines for travel.

3. 4. 5. Other Expenses: Actual cost of conference registrations, business related telephone calls and internet connection services, parking and other legitimate expenses shall be allowed.

Employees shall document all allowable travel- related
expenditures with itemized receipts or invoices. For missing documents, the employee shall attach a Memorandum signed by the Department Director.

3. 4. 6. Unauthorized Expenses: Items of a personal nature are not reimbursable including but not limited to: movies,
entertainment, premium television services, alcoholic
beverages, dry cleaning, health club and/ or massage, barber/ hair salon, magazines, shoe shines, travel insurance, fines or traffic violations, excess baggage costs, spouse and/ or guest expenses, and other items of a personal nature. Optional tours, banquets or additional costs added to registration are solely at the discretion of the employee and will be considered as a personal expense. The Department Director and/ or City Manager shall determine what constitutes professional development.
435
CITY OF LATHROP NUMBER Page
ADMINISTRATIVE REGULATION REVISION 2 6 of 6

TRAVEL POLICY
If unauthorized expenses have been paid by the City, the employee will be responsible for reimbursement to the City within five business days. Failure of the employee to report unauthorized expenses or falsely submitting unauthorized expenses on the Post Travel Expense Reconciliation Report may be grounds for disciplinary action.

3. 4. 7. Travel for Boards and Commissions: A City employee is not required to submit a Training and Travel Approval Form prior to attendance of any local meetings and/ ar conferences.

A City employee is required to submit a Training and Travel Request Form for approval prior to attendance of any non-local meeting and/ or conference.

A City Employee is not required to submit an Expense Report concluding local or non- local meetings and/ or conferences if there is a separate travel policy adopted by the Board or Commission being served from which said Employee is entitled to seek reimbursable travel expenses

3. 5. Out of State Travel: Travel out of State shall be subject to authorization by the City Council.

4. BUDGETARY PROVISIONS
All anticipated conferences, conventions and professional meetings shall be budgeted for by the respective departments in the current year' s operating budget. The Department Director and/or City Manager may substitute one meeting for another to cover unusual or unexpected meetings of an urgent nature.

The City Manager shall review all travel and reimbursement claims for validity. The City Manager' s decision shall be final.
436

CITY OF LATHROP

TRAINING AND TRAVEL APPROVAL FORM
Attachment A

TRAVEL REOUEST/ ADVANCE
Employee:

Meeting Title:

Department:

Location:

Account Number:

Dates ( from/ to):
www sa. ov travel lan- book er diem- rates m" ;
Per Mea( L m'it
Miles ,
IRS Rate Breakfast Lunch : Dinner
round Erip}
mmJddJ
Private Vehicie ( miles x IRS Rate) 0. 580
CityCar
Mileage Total: $ -
Meals Total: $ -
Mileage/ Meals Advance Total ( Payable to Employee): $ - Check Requested By:

General Ex enses
iu
s
Re istration
Air Fare
Lodin
Fuel
Rental Car
Shuttle
Parkin
Other
i""`` """"
q""".". " n,.« mr,:, ."'-``-„'` k:
n?„,, N; ,, r` `"" =
T: . ., . A,.
e , . r.
a. -
Travel Request Total: $ -
Empioyee Signature Date
Any conferences, workshops, or ather training related events not required by the job description must atso be reviewed and approved by the Directar of Human Resources, or designee.

Department Head Signature Date Human Resaurces flirector Si' nature Date

1. Ptease prepare a separate fflrrn per employee•

2. Out-of-state travel requires Council approval. Resoiution h:\ shared\ Travel_ Request_ Reimb_ Form_ July 2022
Return All Forms to Finance

1. Req_ Adv
437

CITY OF LATHROP

POST TRAVEL RECONCILIATION REPORT

ATTACHMENT B
Employee:

Meeting Title:

Department:

Location:

Account Number:

Dates ( from/ to):
www. sa. ov travel lan- boo er- diem- rates
s
Per Meal limit
IRS Rate
Miles( raund B st Lunch ' Dinner
tnp)
mmldd!
X Private Vehicle( miles x IRS Rate) Q. 585
MileageTotal: S -
Meals Total: $ -
General Ex enses
s •
o- a e
Re istration................

Air Fare
Lod 9................................... in
Fuel
Rental Car
Shuttle
Parking
Other
Travel Expenses Total:

Le55 AdvattCe ( enter neg):

Due to Employee/( City): $ -
Employee Signature Date
Department Head Signature Date
City emptc yees must file his form within ten { 10) days after the conclusion of-the trip and att8ch all receipts to this farm. h:\ shared\ Travel_ Request_ Reimb_ Form_ July 2022 Return All Forms to Finance

2. Reimb
438
439
ITEM 4. 10

CITY MANAGER' S REPORT
ULY 11, 2022 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE THE RECLASSIFICATION OF ONE ( 1) PARTTIME SENIOR RECREATION LEADER POSITION TO A

FULL- TIME SENIOR RECREATION LEADER POSITION
IN THE RECREATION DIVISION, AND ONE ( 1) FULLTIME MAINTENANCE WORKER POSITION TO A FULLTIME MAINTENANCE SUPERVISOR POSITION IN THE

STREETS AND MAINTENANCE DIVISION OF THE

PARKS, RECREATION, AND MAINTENANCE SERVICES

DEPARTMENT
RECOMMENDATION: Adopt a Resolution Approving the Reclassification of One ( 1) Part- Time Senior Recreation Leader Position
to a Full- Time Senior Recreation Leader Position in
the Recreation Division, and One ( 1) Full- Time
Maintenance Worker to a Maintenance Supervisor in
the Streets and Maintenance Division of the Parks,
Recreation and Maintenance Services Department.

SUMMARY:

Over the ast 5 years, Lathrop' s population has grown significantly. On May 2, 2022, the California Department of Finance issued a press release, reporting Lathrop' s population of 31, 331, effective ) anuary 1, 2022; a 6. 6% change from 2021. This makes Lathrop the fastest growing City in the State of California. With this growth, it has become apparent that there is a need for further staff support with the existing and expanding Special Events in the Recreation Division, and with the growth in population, resulting in more traffic, there will be more needs from the Streets and Maintenance. In review of the Maintenance Services Supervisor job description an update was made in the Distinguishing Characteristics. The update includes removing the Utility and Streets Maintenance Superintendent title and replacing with Streets and Maintenance Manager.

BACKGROUND:

The Recreation Division of the City of Lathrop Parks, Recreation, and Maintenance Services Departments hosts over 25 annual Special Events throughout the year. Each event takes months of planning and organization, with the goal of making the best possible events for the Citizens of Lathrop in mind. This reclassification will also affect the Youth Development Teens with their day-to- day events and monthly Special Events. The Streets and Maintenance Division of the Parks, Recreation, and Maintenance Services Department is continually maintaining and repairing streets, roads, sidewalks, street signs, street lights, drain inlets, and all other aspects of Streets and Maintenance within the growing City, the continual expansion will now require a Supervisor as we have much more need in projects as well as daily supervision for the Streets and Maintenance Division.
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CITY MANAGER' S REPORT PAGE 2
JULY 11, 2022 CITY COUNCIL REGULAR MEETING

APPROVE RECLASSIFICATION OF ONE PART- TIME SENIOR RECREATION LEADER

AND ONE FULL- TIME MAINTENANCE WORKER POSITION
RECOMMENDATION:

Adopt a Resolution Approving the Reclassification of One ( 1) Part- Time Senior Recreation Leader Position to a Full- Time Senior Recreation Leader, and One ( 1) FullTime Maintenance Worker to a Full- Time Maintenance Supervisor in the Parks, Recreation, and Maintenance Services Department.

FISCAL IMPACT:

The proposed reclassifications will have total net change of $ 110, 485. The Full- Time Senior Recreation position will have a total net change of $ 59, 265. The Full- Time Maintenance Supervisor with have a total net change of $ 51, 220. The following budget amendments will be required for FY 22/ 23:

A. A Resolution of the City Council of the City of Lathrop Approving the Reclassification of one ( 1) Part- Time Senior Recreation Leader to a FullTime Senior Recreation Leader Position in the Recreation Division, and one 1) Full- Time Maintenance Worker to a Full- Time Maintenance Supervisor in the Streets and Maintenance Division of the Parks, Recreation, and Maintenance Services Department.

B. Amended Job Description Maintenance Services Supervisor 441
CITY MANAGER' S REPORT PAGE 3
7ULY 11, 2022 CITY COUNCIL REGULAR MEETING

APPROVE RECLASSIFICATION OF ONE PART-TIME SENIOR RECREATION LEADER

AND ONE FULL- TIME MAINTENANCE WORKER POSITION
APPROVALS:

I
d Seba ian Date
Director of Parks, Recreation and
Maintenance Services
22_..
r Roland Date
Director of Human Resources
z
Cari Ja s Date
Direct of Finance
6• zo Z.Z
Salvador Navarrete Date
City Attorney
7•7• 2Z
St en J. Salvatore Date
City Manager
442
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP APPROVING THE RECLASSISICATION OF ONE ( 1) PART- TIME SENIOR

RECREATION LEADER POSITION TO A FULL- TIME SENIOR RECREATION LEADER POSITION IN THE RECREATION DIVISION, AND ONE ( 1) FULL- TIME

MAINTENANCE WORKER POSITION TO A MAINTENANCE SUPERVISOR

POSITION IN THE STREETS AND MAINTENANCE DIVISION OF THE PARKS, RECREATION, AND MAINTENANCE SERVICES DEPARTMENT.

WHEREAS, over the last 5 years, Lathrop' s population has grown significantly to 31, 331 as of January 1, 2022, a 6. 6% change from 2021; and WHEREAS, this makes Lathrop the fastest growing City in the State of California; and
WHEREAS, with this growth, there is a need for additional staff support due to expanding special events in the Recreation Division; and WHEREAS, the Recreation Division of the City of Lathrop Parks, Recreation, and Maintenance Services Departments hosts over 25 annual special events throughout the year; and
WHEREAS, each event takes months of planning and organization, with the goal of making the best possible events for the residents of Lathrop in mind; and WHEREAS, this reclassification will also affect the Youth Development Teens with their day to day events and monthly Special Events; and WHEREAS, increased traffic requires increased services from the Streets and Maintenance Division of the Parks, Recreation, and Maintenance Services Department; and
WHEREAS, the Streets and Maintenance Division of the Parks, Recreation, and Maintenance Services Department is continually maintaining and repairing, streets, roads, sidewalks, street signs, street lights, Drain Inlets, and all other aspects of Streets and Maintenance within the growing City; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby approve the reclassification of one ( 1) part- time Senior Recreation Leader position to a full- time Senior Recreation Leader position in the Recreation Division, and One ( 1) Full- Time Maintenance Worker to a Full- Time Maintenance Supervisor in the Streets and Maintenance Division of the Parks, Recreation, and Maintenance Services Department; and
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BE IT FURTHER RESOLVED, The following budget amendments are approved for FY 22/ 23:

Decrease - Youth Development
1010- 30- 33- 410- 11- 00 5, 455
Increase - Special Events
1010- 30- 32- 410- 11- 00 64, 720
Increase - Park and Landscape Maintenance
1010- 30- 10- 410- 11- 00 51, 220
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The foregoing resolution was passed and adopted this llth day of July, 2022, by the following vote of the City Council, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:

Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 445
ATTACHMENT " "

CITY OF LATHROP

MAINTENANCE SERVICES SUPERVISOR
C[ ass specifications are only intended to present a descriptive summary of the range of duties and responsibilities associnted with specified positions. Therefore, specifications rrtav not include all duties performed by individunls within a classification. ln addition, specifications are intended to outline the minimum qticalifications necessary for entry into the class and do not necessarily convey the qualificntions of incumbents within the position.

DEFINITION:

Under direction, depending on assigned Department/ Division performs the full array of the most difficult and complex skilled and semi- skilled work assigned to the Maintenance Worker series, including supervising, coordinating, directing and evaluating the work of staff involved in parks maintenance, street maintenance, facility maintenance, and facility custodial activities; assists in the research and implementation of new programs and projects; ensures safe work practices, work quality and accuracy; maintains appropriate work and project records which may include timecards, contract management, tool and supply inventory and work orders; serves as a technical expert in assigned field tasks and a resource for assigned staff; performs other related duties as required.

DISTINGUISHING CHARACTERISTICS:

Depending on assigned DepartmenUDivision the Maintenance Services Supervisor is the supervisory level classification responsible for overseeing an assigned maintenance function within the Parks and Recreation Department or the Public Works Department, including planning and scheduling staff assignments, monitoring work production and performing complex skilled work in the construction, maintenance and repair of streets, parks, buildings and public facilities, and provide lead direction and training to assigned crews. The incumbent provides ongoing monitoring of service delivery, and responds to customer complaints and concerns. This classification is distinguished from the next higher classification Iofthe Stt°eets iricl ' 11s1111If' Ililill't° llai a; c• ('} li i r' tr et": a+ e+r e- w ef z in that the latter is responsible for the management of multiple operational and maintenance units within the Department.

SUPERVISION RECEIVED/ EXERCISED:

Depending on assigned Department Division, if assigned to Public Works receives direction from the Utility and Streets Maintenance Superintendent, Public Works Director, or designee. If assigned to Parks and Recreation, receives direcrions from Parks and Recreation Director, or designee. Exercises direct and indirect supervision over assigned staff; may oversee work assignments performed by contract/ contractor.

ESSENTIAL FUNCTIONS: ( include but are not limited to the following) Plans, prioritizes, assigns, supervises and reviews the work of staff involved in the construction, maintenance and repair of City streets, parks, buildings and facilities; implements safety programs and ensures safe work practices, work quality and accuracy; oversees and monitors maintenance work and activities provided by outside contractors.

Participates in the development and implementation of goals, objectives, policies and procedures; evaluates work methods and procedures for improving unit performance and meeting goals; ensures that goals are achieved; assists in the research and implementation of new programs.

Updated by Resolution ?(---
446

MAINTENANCE SERVICES SUPERVISOR

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Lathrop City CouncilJuly 11, 2022

Lathrop City Council
July 11, 2022