1 City of Merced SB 244 Analysis
Disadvantaged Unincorporated
CommuniƟes SB 244 Analysis
City of Merced
March 28, 2024
Prepared for the Merced County AssociaƟon of Governments Prepared by Rincon Consultants, Inc., in associaƟon with MinƟer Harnish ƚƚĂĐŚŵĞŶƚϮ
2 City of Merced SB 244 Analysis
Table of Contents
INTRODUCTION .................................................................................................................. ...............3 KEY TERMS ..................................................................................................................... ...................3 METHODOLOGY ................................................................................................................... ..............4 DUC IDENTIFICATION METHODOLOGY ...................................................................................................... 4 DUC SERVICE PROFILES .............................................................................................................................. 8 CITY OF MERCED DISADVANTAGED UNINCORPORATED COMMUNITIES ...............................................8 FRINGE AND ISLAND COMMUNITIES ......................................................................................................... 8 POTENTIAL FUNDING SOURCES ..................................................................................................... ... 18
3 City of Merced SB 244 Analysis
INTRODUCTION
Under Senate Bill 244 (SB 244), ciƟes and counƟes must idenƟfy Disadvantaged Unincorporated CommuniƟes (DUCs) that meet certain criteria, including their unincorporated status, parcel density, and income level. This Analysis idenƟfies DUCs for all unincorporated communiƟes that fall within the city’s sphere of influence but not within the city boundary that meet the criteria for being considered as a DUC under SB 244. Each DUC’s descripƟon will include an analysis of any legal, financial, and poliƟcal barriers that may contribute to inequality and infrastructure deficits in these communiƟes. The types of infrastructure included in this analysis are water, wastewater, storm drainage, and fire protecƟon.
KEY TERMS
Community. An inhabited area within a city’s sphere of influence or county that is comprised of no less than 10 dwelling units adjacent or in close proximity to one another.
Disadvantaged Unincorporated Community (DUC). A fringe, island, or legacy community in which the median household income is 80 percent or less than the statewide median household income.
DomesƟc Water Use. Water used for household purposes such as drinking, food preparaƟon, bathing, washing clothes, dishes, and animals, flushing toilets, and watering lawns and gardens.
Fringe Community. A community that is located within a sphere of influence but outside of a city boundary, consists of at least 10 dwelling units in close proximity to each other, and has a median household income of 80 percent or less than the statewide average.
Island Community. A community that is surrounded by one or more ciƟes, located within a sphere of influence but outside of a city boundary, consists of at least 10 dwelling units in close proximity to each other, and has a median household income of 80 percent or less than the statewide average.
Legacy Community. A geographically isolated community that has existed and been inhabited for at least 50 years, located within the unincorporated county but outside of a city boundary and its sphere of influence, consists of at least 10 dwelling units in close proximity to each other, and has a median household income of 80 percent or less than the statewide average.
Local Agency FormaƟon Commission (LAFCO). A commission within each county in California that reviews and evaluates all proposals for formaƟon of special districts, incorporaƟon of ciƟes, annexaƟon to special districts or ciƟes, consolidaƟon of districts, and merger of districts with ciƟes. Each county’s LAFCO is empowered to approve, disapprove, or condiƟonally approve such proposals. The Merced County LAFCO is made up of two members of the County Board of Supervisors, two members from ciƟes in the county, and one public member. There are also three alternate members, one each from the County, city, and public.
Million Gallons per Day (mgd). The rate of flow of water equal to 133,680.56 cubic feet per day, 1.5742 cubic feet per second, or 3.0689 acre-feet per day. A flow of one million gallons per day for one year equals 1,120 acre-feet (365 million gallons).
Municipal Service Review (MSR). A study conducted by LAFCO for a city, county, or special district that examines all public service needs for the area and recommends acƟon to promote the efficient provision of public services.
4 City of Merced SB 244 Analysis
Sphere of Influence (SOI). The probable physical boundaries and service area of a local agency, as determined by the Local Agency FormaƟon Commission (LAFCO).
Stormwater. PrecipitaƟon that accumulates in natural and/or constructed storage and stormwater systems during and immediately following a storm event.
Wastewater. Sewage (either treated or untreated) from residenƟal, commercial, industrial, and insƟtuƟonal sources.
WWTF. AbbreviaƟon for wastewater treatment facility.
METHODOLOGY
DUC IDENTIFICATION METHODOLOGY
DUCs are required to be idenƟfied based on the following criteria:
x CommuniƟes must consist of at least 10 dwelling units that are in close proximity to each other. x CommuniƟes must have a median household income of 80 percent or less than the statewide average.
x “Island communiƟes,” which are communiƟes that are surrounded or substanƟally surrounded by one or more ciƟes and located within a sphere of influence, but outside of a city boundary. x “Fringe communiƟes,” which are communiƟes that are located within a sphere of influence, but outside of a city boundary.
x “Legacy communiƟes,” which are geographically isolated communiƟes that have existed and been inhabited for at least 50 years and are located within the unincorporated county, but are outside of a city boundary and its sphere of influence.
To iniƟate the analysis, the unincorporated areas of the county were idenƟfied by assessing which parcels fell within the county boundary and the spheres of influence for each city, but were not located within any city boundaries. Then, potenƟal communiƟes were idenƟfied. This iniƟal list consisted of Census Designated Places, as well as of communiƟes that were determined to be DUCs in either the 2016 SB 244 analysis for Merced County and/or the 2020 Merced LAFCo Water and Sewer Service Provider Municipal Service Review. An approximate neighborhood density was calculated using PolicyLink methodology
1 to idenƟfy clusters of development outside of city limits that consisted of 10 or more dwelling units within close proximity of each other. Upon idenƟfying these potenƟal communiƟes, parcel data from the Merced County AssociaƟon of Governments (MCAG) was used to determine which of these developed areas have existed for at least 50 years.
Median household income data was used to determine which of these areas had a median household income at or below 80 percent of the state median household income, a requirement for DUC idenƟficaƟon. American Community Survey data from 2022 at the census tract level provides the most up-to-date informaƟon on median household incomes across Merced County; however, census tracts are oŌen quite large in rural areas and tend to be much larger than developed communiƟes. Census block group data, while sƟll larger in scale than the individual communiƟes they encompass, provide income
1 A detailed methodology can be found in the California Unincorporated: Mapping Disadvantaged CommuniƟes in the San Joaquin Valley Technical Guide published by PolicyLink in partnership with California Rural Legal Assistance, Inc. and California Rural Legal Assistance FoundaƟon (2013). 5 City of Merced SB 244 Analysis
data at a smaller scale, which, in conjuncƟon with the neighborhood density analysis, can be used to idenƟfy specific communiƟes that might otherwise be masked by larger-scale data. The most recent decennial census that provided median household income data at the block group level was the 2000 census. According to PolicyLink, while 2000 census data is certainly dated, it provides a more accurate depicƟon of income levels at the block group level than more recent American Community Survey data2.
Census block group income data from 2000 was then compared to census tract household income data from 2022 to determine if any significant economic shiŌs had occurred between 2000 and 2022 which might impact this SB 244 analysis
3. CommuniƟes located in 2000 census block groups that had a median income below 80 percent of the state median household income and were built 50 years ago or more were included in this analysis.
Using this methodology, five DUCs were idenƟfied, as required by the criteria set forth in SB 244. In addiƟon to these five DUCs, one addiƟonal community that fit most, but not all, of the DUC idenƟficaƟon criteria was found within the Merced sphere of influence. While these communiƟes are not required to be idenƟfied as DUCs by SB 244, including these communiƟes in this analysis follows the intended purpose of SB 244.
In total, six DUCs were idenƟfied within the Merced sphere of influence. Figures 1 below shows the locaƟon of all idenƟfied DUCs in the Merced sphere of influence.
2 California Unincorporated: Mapping Disadvantaged CommuniƟes in the San Joaquin Valley. California Rural Legal Assistance, Inc., California Rural Legal Assistance FoundaƟon, and PolicyLink. (2013). 3 In 2000, 80 percent of the statewide median household income in California was $37,994. In 2022, 80 percent of the statewide median income was $73,240.80. (Source: U.S. Census, Median Household Income in 1999 (Table P053). (2000).; American Community Survey, Median Income in the Last 12 Months (Table S1903). (2022).) 6 City of Merced SB 244 Analysis
Figure 1. IdenƟfied DUCs in the Merced sphere of influence
7 City of Merced SB 244 Analysis
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8 City of Merced SB 244 Analysis
DUC SERVICE PROFILES
Once all DUCs were idenƟfied, systems of services and infrastructure in each community were researched, including water, sewer, stormwater, and fire protecƟon. InformaƟon from the Merced Local Agency FormaƟon Commission (LAFCo), Community Services Districts (CSDs), the Merced County Fire Department, city and county staff, and other State and local agencies were collected. Municipal Service Reviews (MSRs) authored by the Merced LAFCo provided significant informaƟon on the water, sewer, stormwater, and fire protecƟon services available in these areas. For communiƟes that do not have sufficient documented drainage infrastructure in place, Google Maps Street View was used to determine the extent of the exisƟng infrastructure. AddiƟonally, news arƟcles daƟng to winter storms in recent years were examined to determine which communiƟes tended to flood during heavy rain events. Fire protecƟon services were determined to be adequate based on availability of staffing, fire apparatus, and proximity/average response Ɵme to various communiƟes. Adequate proximity of a fire staƟon to a community was considered to be a distance of less than five miles, which generally equates to a 10 to 15 minute response Ɵme.
CITY OF MERCED DISADVANTAGED UNINCORPORATED COMMUNITIES
FRINGE AND ISLAND COMMUNITIES
This secƟon includes a list of communiƟes that were idenƟfied as Fringe and Island DUCs, as described in the Methodology secƟon above. The following communiƟes are numbered and begin at Unincorporated Community #14, as these are only six of the DUCs from the 2024 Merced County of Associated Government Disadvantaged Unincorporated CommuniƟes SB 244 Analysis, which includes a full list of all DUCs within Merced County, including within unincorporated county land and within ciƟes’ spheres of influence.
Unincorporated Community #14
Unincorporated Community #14 is an island community located in eastern Merced County within the sphere of influence of the city of Merced. It is completely surrounded by the city boundary for Merced. It is located along E. Childs Avenue to the south and Coffee Street to the east. Unincorporated Community #14
encompasses approximately 196 acres. This DUC consists of 77 parcels and is in census tract 17. The approximate density of this community is 351 parcels per square mile.
Unincorporated Community #14
Year Census Tract Block Group Median Household
Income ($)
80% Median Household
Income (Statewide) ($)
2000 17 2 24,214 37,994
2022 17 - 42,287 73,240
9 City of Merced SB 244 Analysis
Unincorporated Community #14 Service Profile
Water
The City of Merced provides domesƟc water to a porƟon of Unincorporated Community #14 through its combined network of 19 acƟve wells, 23 deep-well pumps, and 500 miles of pipeline. Although many parcels in this community are not currently connected to the City’s water system, they have the opƟon to connect to the system in the future. City of Merced policy details that individual parcels may only be connected to the City’s water system in situaƟons where an on-site well fails and/or when a parcel is annexed by the City. These wells extract water from the Merced Groundwater Basin. Groundwater supplies the full system’s capacity of 57,800 gallons per minute, or 83 million gallons a day. While the per capita water demand has steadily decreased since 1979 as a result of the City’s conservaƟon efforts, however, as a result of overall use, the Merced subbasin was declared in overdraŌ in 2010. Several system upgrades are required to serve future areas of development within the City’s water service area, including the addiƟon of up to 19 new wells and repairs to water mains.
Wastewater
Unincorporated Community #14 is not connected to a local sanitary sewer system, and currently relies on individual or community sepƟc systems. Due to the density of development and the presence of exisƟng wells and sepƟc systems, many parcels in this community would not be allowed to install a replacement sepƟc system in the case of a failed on-site sepƟc system due to County Division of Environmental Health requirements. These requirements include setback standards from adjacent parcel wells and sepƟc systems, which many parcels in this community would not be able to comply with. In these cases, Merced may be able to approve a sewer connecƟon on an individual basis, which requires permission from LAFCo.
Stormwater
Storm drainage capture and transport is limited since there are minimal exisƟng roadside ditches, curbs, or guƩers. Only the southern porƟon of E. Childs Avenue and the eastern side of N. Coffee Street have exisƟng curb and guƩer infrastructure.
Fire
ProtecƟon
Merced County Fire Department provides fire protecƟon to Unincorporated Community #14. The closest MCFD fire staƟon is StaƟon #81. located in the city of Merced, two miles away. This staƟon has two fire captains, two fire apparatus engineers, and two personnel on shiŌ daily. The anƟcipated average emergency response Ɵme is five to 10 minutes from iniƟal dispatch.
Service Deficiencies
Although the City of Merced provides domesƟc water, and the supply is sufficient, it is sƟll important to note that the water being extracted is creaƟng a severe overdraŌ in the basin. The DWR considers the Merced Groundwater Subbasin a high priority, due to the criƟcal overdraŌ from both urban and agricultural uses, and lack of recharge into the water table. According to DWR, the Merced Groundwater Subbasin is being depleted at a rate of 54,000 afy for urban uses and 492,000 afy for agricultural uses.
Unincorporated Community #14 lacks sufficient access to a reliable wastewater treatment facility. This cluster of rural homes solely relies on individual and sepƟc systems.
Stormwater collecƟon in Unincorporated Community #14 is deficient due to lack of infrastructure to dispose and treat the excess runoff. No known major flooding issues have occurred because of this, but such areas with inadequate infrastructure commonly deal with ponding and potenƟal flooding during large rain events. While a fire staƟon is not located within the community, fire protecƟon services are 10 City of Merced SB 244 Analysis
sufficient due to the availability of fire apparatus and staffing, as well as the proximity of a fire staƟon within two miles of the community.
Unincorporated Community #15
Unincorporated Community #15 is an island community located in eastern Merced County within the sphere of influence of the city of Merced. It is surrounded by the city boundary for Merced. This community is located just east of SR 59, with Cone Avenue running through its center. Unincorporated Community #15 encompasses approximately 33 acres. This DUC consists of 33 parcels and is in census tract 16.04. The approximate density of this community is 1,712 parcels per square mile.
Unincorporated Community #15
Year Census Tract Block Group Median Household
Income ($)
80% Median Household
Income (Statewide) ($)
2000 16.02 2 30,685 37,994
2022 16.04 - 50,368 73,240
Unincorporated Community #15 Service Profile
Water
The City of Merced provides domesƟc water to a porƟon of Unincorporated Community #15 through its combined network of 19 acƟve wells, 23 deep-well pumps, and 500 miles of pipeline. Although many parcels in this community are not currently connected to the City’s water system, they have the opƟon to connect to the system in the future. City of Merced policy details that individual parcels may only be connected to the City’s water system in situaƟons where an on-site well fails and/or when a parcel is annexed by the City. These wells extract water from the Merced Groundwater Basin. Groundwater supplies the full system’s capacity of 57,800 gallons per minute, or 83 million gallons a day. While the per capita water demand has steadily decreased since 1979
as a result of the City’s conservaƟon
efforts, however, as a result of overall use, the Merced subbasin was declared in overdraŌ in 2010. Several system upgrades are required to serve future areas of development within the City’s water service area, including the addiƟon of up to 19 new wells and repairs to water mains.
Wastewater
Wastewater collecƟon and treatment is provided by the City of Merced. The system is designed to treat an average annual flow of 12 million gallons per day. Wastewater capacity in Merced has grown consistently since major porƟons of the wastewater treatment facility were constructed in 1977.
Stormwater
Storm drainage capture and transport along W. Cone Avenue is provided through roadside curb and guƩer. However, along Harrison Avenue, storm drainage capture and transport is limited since there are no exisƟng roadside ditches, curbs, or guƩers.
11 City of Merced SB 244 Analysis
Unincorporated Community #15 Service Profile
Fire
ProtecƟon
Merced County Fire Department provides fire protecƟon to Unincorporated Community #15. The closest MCFD fire staƟon is StaƟon #81, located in the city of Merced, one mile away. This staƟon has two fire captains, two fire apparatus engineers, and two personnel on shiŌ daily. The anƟcipated average emergency response Ɵme is five to seven minutes from iniƟal dispatch.
Service Deficiencies
Although the City of Merced provides domesƟc water, and the supply is sufficient, it is sƟll important to note that the water being extracted is creaƟng a severe overdraŌ in the basin. The DWR considers the Merced Groundwater Subbasin a high priority, due to the criƟcal overdraŌ from both urban and agricultural uses, and lack of recharge into the water table. According to DWR, the Merced Groundwater Subbasin is being depleted at a rate of 54,000 afy for urban uses and 492,000 afy for agricultural uses.
The City of Merced provides wastewater collecƟon and treatment at adequate levels to the community.
Stormwater collecƟon in Unincorporated Community #15 is deficient due to lack of infrastructure to dispose and treat the excess runoff. No known major flooding issues have occurred because of this, but such areas with inadequate infrastructure commonly deal with ponding and potenƟal flooding during large rain events. While a fire staƟon is not located within the community, fire protecƟon services are sufficient due to the availability of fire apparatus and staffing, as well as the proximity of a fire staƟon within one mile of the community.
Unincorporated Community #16
Unincorporated Community #16 is a fringe community located in eastern Merced County within the sphere of influence of the city of Merced. It is surrounded by the city boundary for Merced to the north and west and is bounded by Childs Avenue to the north and Tyler Road to the east, with Cone Avenue running through the center of the community. Unincorporated Community #16
encompasses approximately 185 acres. This DUC consists of 92 parcels and is in census tract 16.04. The approximate density of this community is 534 parcels per square mile.
Unincorporated Community #16
Year Census Tract Block Group Median Household
Income ($)
80% Median Household
Income (Statewide) ($)
2000 16.02 2 30,685 37,994
2022 16.04 - 50,368 73,240
12 City of Merced SB 244 Analysis
Unincorporated Community #16 Service Profile
Water
The City of Merced provides domesƟc water to a porƟon of Unincorporated Community #16 through its combined network of 19 acƟve wells, 23 deep-well pumps, and 500 miles of pipeline. Although many parcels in this community are not currently connected to the City’s water system, they have the opƟon to connect to the system in the future. City of Merced policy details that individual parcels may only be connected to the City’s water system in situaƟons where an on-site well fails and/or when a parcel is annexed by the City. These wells extract water from the Merced Groundwater Basin. Groundwater supplies the full system’s capacity of 57,800 gallons per minute, or 83 million gallons a day. While the per capita water demand has steadily decreased since 1979 as a result of the City’s conservaƟon efforts, however, as a result of overall use, the Merced subbasin was declared in overdraŌ in 2010. Several system upgrades are required to serve future areas of development within the City’s water service area, including the addiƟon of up to 19 new wells and repairs to water mains.
Wastewater
Wastewater collecƟon and treatment is provided by the City of Merced. The system is designed to treat an average annual flow of 12 million gallons per day. Wastewater capacity in Merced has grown consistently since major porƟons of the wastewater treatment facility were constructed in 1977.
Stormwater
While select porƟons of this community have exisƟng roadside ditches, curbs, and guƩers, the overall community generally lacks storm drainage capture and transport infrastructure.
Fire
ProtecƟon
Merced County Fire Department provides fire protecƟon to Unincorporated Community #16. The closest MCFD fire staƟon is StaƟon #81, located in the city of Merced, one mile away. This staƟon has two fire captains, two fire apparatus engineers, and two personnel on shiŌ daily. The anƟcipated average emergency response Ɵme is five to seven minutes from iniƟal dispatch.
Service Deficiencies
Although the City of Merced provides domesƟc water, and the supply is sufficient, it is sƟll important to note that the water being extracted is creaƟng a severe overdraŌ in the basin. The DWR considers the Merced Groundwater Subbasin a high priority, due to the criƟcal overdraŌ from both urban and agricultural uses, and lack of recharge into the water table. According to DWR, the Merced Groundwater Subbasin is being depleted at a rate of 54,000 afy for urban uses and 492,000 afy for agricultural uses.
The City of Merced provides wastewater collecƟon and treatment at adequate levels to the community.
Stormwater treatment and collecƟon in Unincorporated Community #16 is deficient due to lack of infrastructure to dispose excess runoff. No known major flooding issues have occurred because of this, but such areas with inadequate infrastructure commonly deal with ponding and potenƟal flooding during large rain events. While a fire staƟon is not located within the community, fire protecƟon services are sufficient due to the availability of fire apparatus and staffing, as well as the proximity of a fire staƟon within one mile of the community.
13 City of Merced SB 244 Analysis
Unincorporated Community #17
Unincorporated Community #17 is a fringe community located in eastern Merced County within the sphere of influence of the city of Merced. It is surrounded by the city boundary for Merced and is located along South P Street and bounded by West Childs Avenue to the north. Unincorporated Community #17
encompasses approximately 43 acres. This DUC consists of 54 parcels and is in census tract 16.03. The approximate density of this community is 1,291 parcels per square mile.
Unincorporated Community #17
Year Census Tract Block Group Median Household
Income ($)
80% Median Household
Income (Statewide) ($)
2000 16.02 1 17,500 37,994
2022 16.03 - 49,743 73,240
Unincorporated Community #17 Service Profile
Water
The City of Merced provides domesƟc water to a porƟon of Unincorporated Community #17 through its combined network of 19 acƟve wells, 23 deep-well pumps, and 500 miles of pipeline. Although a majority of the parcels in the south porƟon of this community are not currently connected to the City’s water system, they have the opƟon to connect to the system in the future. City of Merced policy details that individual parcels may only be connected to the City’s water system in situaƟons where an on-site well fails and/or when a parcel is annexed by the City.
The City’s wells extract water from the Merced Groundwater Basin. Groundwater supplies the full system’s capacity of 57,800 gallons per minute, or 83 million gallons a day. While the per capita water demand has steadily decreased since 1979 as a result of the City’s conservaƟon efforts, however, as a result of overall use, the Merced subbasin was declared in overdraŌ in 2010. Several system upgrades are required to serve future areas of development within the City’s water service area, including the addiƟon of up to 19 new wells and repairs to water mains.
Wastewater
Wastewater collecƟon and treatment is provided by the City of Merced. The system is designed to treat an average annual flow of 12 million gallons per day. Wastewater capacity in Merced has grown consistently since major porƟons of the wastewater treatment facility were constructed in 1977.
Stormwater Storm drainage capture and transport is limited since there are no exisƟng roadside ditches, curbs, or guƩers.
Fire
ProtecƟon
Merced County Fire Department provides fire protecƟon to Unincorporated Community #17. The closest MCFD fire staƟon is StaƟon #81, located in the city of Merced, two miles away. This staƟon has two fire captains, two fire apparatus engineers, and two personnel on shiŌ daily. The anƟcipated average emergency response Ɵme is seven to ten minutes from iniƟal dispatch.
14 City of Merced SB 244 Analysis
Service Deficiencies
Although the City of Merced provides domesƟc water, and the supply is sufficient, it is sƟll important to note that the water being extracted is creaƟng a severe overdraŌ in the basin. The DWR considers the Merced Groundwater Subbasin a high priority, due to the criƟcal overdraŌ from both urban and agricultural uses, and lack of recharge into the water table. According to DWR, the Merced Groundwater Subbasin is being depleted at a rate of 54,000 afy for urban uses and 492,000 afy for agricultural uses.
The City of Merced provides wastewater collecƟon and treatment at adequate levels to the community.
Stormwater collecƟon in Unincorporated Community #17 is deficient due to lack of infrastructure to capture excess runoff. No known major flooding issues have occurred because of this, but such areas with inadequate infrastructure commonly deal with ponding and potenƟal flooding during large rain events. While a fire staƟon is not located within the community, fire protecƟon services are sufficient due to the availability of fire apparatus and staffing, as well as the proximity of a fire staƟon within two miles of the community.
Unincorporated Community #18
Unincorporated Community #18 is a fringe community located in eastern Merced County within the sphere of influence of the City of Merced. It is surrounded by the city boundary for Merced. Santa Fe Avenue runs through the community, which is bounded by Stretch Road to the north and the City
boundary to the west. Unincorporated Community #18
encompasses approximately 45 acres. This DUC consists of 73 parcels and is in census tracts 14.01 and 14.02. The
approximate density of this community is 1,302 parcels per square mile.
Unincorporated Community #18
Year Census Tract Block Group Median Household
Income ($)
80% Median Household
Income (Statewide) ($)
2000 14.01 2 25,609 37,994 14.02 3 24,438
2022 14.01 - 42,839 73,240 14.02 - 49,688
15 City of Merced SB 244 Analysis
Unincorporated Community #18 Service Profile
Water
The City of Merced provides domesƟc water to a porƟon of Unincorporated Community #18 through its combined network of 19 acƟve wells, 23 deep-well pumps, and 500 miles of pipeline. Although many parcels in this community are not currently connected to the City’s water system, they have the opƟon to connect to the system in the future. City of Merced policy details that individual parcels may only be connected to the City’s water system in situaƟons where an on-site well fails and/or when a parcel is annexed by the City. These wells extract water from the Merced Groundwater Basin. Groundwater supplies the full system’s capacity of 57,800 gallons per minute, or 83 million gallons a day. While the per capita water demand has steadily decreased since 1979 as a result of the City’s conservaƟon efforts, however, as a result of overall use, the Merced subbasin was declared in overdraŌ in 2010. Several system upgrades are required to serve future areas of development within the City’s water service area, including the addiƟon of up to 19 new wells and repairs to water mains.
Wastewater
Wastewater collecƟon and treatment is provided by the City of Merced. The system is designed to treat an average annual flow of 12 million gallons per day. Wastewater capacity in Merced has grown consistently since major porƟons of the wastewater treatment facility were constructed in 1977.
Stormwater
The porƟon of the community north of E. Santa Fe Avenue (including E. Santa Fe Avenue) generally lacks storm drainage capture and transport, as there are no exisƟng roadside ditches, curb
s, or guƩers. However, the porƟon of the community
south of E. Santa Fe Avenue generally has sufficient stormwater infrastructure, including roadside curbs and guƩers.
Fire
ProtecƟon
Merced County Fire Department provides fire protecƟon to Unincorporated Community #13. The closest MCFD fire staƟon is StaƟon #81, located in the city of Merced, two miles away. This staƟon has two fire captains, two fire apparatus engineers, and two personnel on shiŌ daily. The anƟcipated average emergency response Ɵme is seven to ten minutes from iniƟal dispatch.
Service Deficiencies
Although the City of Merced provides domesƟc water, and the supply is sufficient, it is sƟll important to note that the water being extracted is creaƟng a severe overdraŌ in the basin. The DWR considers the Merced Groundwater Subbasin a high priority, due to the criƟcal overdraŌ from both urban and agricultural uses, and lack of recharge into the water table. According to DWR, the Merced Groundwater Subbasin is being depleted at a rate of 54,000 afy for urban uses and 492,000 afy for agricultural uses.
The City of Merced provides wastewater collecƟon and treatment at adequate levels to the community.
Stormwater collecƟon in Unincorporated Community #18 is deficient due to lack of infrastructure to capture excess runoff. No known major flooding issues have occurred because of this, but such areas with inadequate infrastructure commonly deal with ponding and potenƟal flooding during large rain events. While a fire staƟon is not located within the community, fire protecƟon services are sufficient due to the availability of fire apparatus and staffing, as well as the proximity of a fire staƟon within two miles of the community.
16 City of Merced SB 244 Analysis
Unincorporated Community #19
Unincorporated Community #19 is a fringe community
located in eastern Merced County within the sphere of
influence of the city of Merced. It is bounded by SR 140 to the south, with Moomjean Avenue running through the
eastern porƟon of this community. Unincorporated
Community #19 encompasses approximately 41 acres. This
DUC consists of 21 parcels and is in census tract 14.02. The approximate density of this community is 408 parcels per square mile. While this community’s census block group did not fall under the MHI requirement for the 2000 census, its census tract fell under the MHI requirement in 2022 and meets all other requirements to be considered a DUC. It is probable that the 2000 Census tract data was skewed by other residents living in wealthier neighborhoods within this census tract and is not enƟrely representaƟve of the Unincorporated Community #14 community.
Unincorporated Community #19
Year Census Tract Block Group Median Household
Income ($)
80% Median Household
Income (Statewide) ($)
2000 14.02 4 62,083 37,994
2022 14.02 - 49,688 73,240
Unincorporated Community #19 Service Profile
Water
Unincorporated Community #19 is not served by a water district. Residents get water from private wells. These wells extract groundwater from the Delta-Mendota Groundwater Basin. The producƟon capacity of the wells and average usage is unknown.
Wastewater
Unincorporated Community #19 is not connected to a local sanitary sewer system, and currently relies on individual or community sepƟc systems. Due to the density of development and the presence of exisƟng wells and sepƟc systems, many parcels in this community would not be allowed to install a replacement sepƟc system in the case of a failed on-site sepƟc system due to County Division of Environmental Health requirements. These requirements include setback standards from adjacent parcel wells and sepƟc systems, which many parcels in this community would not be able to comply with. In these cases, Merced may be able to approve a sewer connecƟon on an individual basis, which requires permission from LAFCo.
Stormwater Storm drainage capture and transport is limited since there are no exisƟng roadside ditches, curbs, or guƩers.
Fire
ProtecƟon
Merced County Fire Department provides fire protecƟon to Unincorporated Community #19. The closest MCFD fire staƟons are StaƟon #85 and StaƟon #81, located in the city of Merced. Both staƟons are located three miles away. These staƟons each have two fire captains, two fire apparatus engineers, and two personnel on shiŌ daily. The anƟcipated average emergency response Ɵme is 10 minutes from iniƟal dispatch.
17 City of Merced SB 244 Analysis
Service Deficiencies
Although the City of Merced provides domesƟc water, and the supply is sufficient, it is sƟll important to note that the water being extracted is creaƟng a severe overdraŌ in the basin. The DWR considers the Merced Groundwater Subbasin a high priority, due to the criƟcal overdraŌ from both urban and agricultural uses, and lack of recharge into the water table. According to DWR, the Merced Groundwater Subbasin is being depleted at a rate of 54,000 afy for urban uses and 492,000 afy for agricultural uses.
Unincorporated Community #19 lacks sufficient access to a reliable wastewater treatment facility. This cluster of rural homes solely relies on individual and sepƟc systems.
Stormwater collecƟon in Unincorporated Community #19 is deficient due to lack of infrastructure to dispose excess runoff. No known major flooding issues have occurred because of this, but such areas with inadequate infrastructure commonly deal with ponding and potenƟal flooding during large rain events. While a fire staƟon is not located within the community, fire protecƟon services are sufficient due to the availability of fire apparatus and staffing, as well as the proximity of two fire staƟons within three miles of the community.
18 City of Merced SB 244 Analysis
POTENTIAL FUNDING SOURCES
There are several potenƟal funding sources that the city may pursue to address the infrastructure and service deficiencies idenƟfied in this Analysis. Typical funding sources for local government infrastructure usually include taxes, bonds, and impact fees, however, many Federal and State programs can also be used to potenƟally address exisƟng deficiencies in the DUCs located in Merced County. Table 1 below provides a list of these potenƟal funding sources.
Table 1. PotenƟal Infrastructure Funding Sources
Agency Program Name Funding Use of Funds
California
Department of
Water Resources
Integrated Regional
Water Management
(IRWM)
Unknown The IRWM Grant Programs include
funding for planning, community
involvement,
implementaƟon, and
companion grant programs that
support sustainable groundwater
planning and water quality projects.
Local Governments Bonds
Varies Bonding is a funding mechanism that
can be used specifically to fund large
infrastructure projects in
disadvantaged communiƟes. There are
three bond types: revenue bonds,
lease revenue bonds, and obligaƟons
bonds.
Revenue bonds are typically
ensured by a project that is being
constructed, such as a water treatment
facility. Once the bond is paid, the
facility operaƟon and ownership is
turned over to the jurisdicƟon. Lease
revenue bonds are secured by a non-
profit or privately financed group that
constructs the infrastructure project,
then leases the completed facility back
to the jurisdicƟon. Once the bond is
paid, the facility operaƟon and
ownership is turned over to the
jurisdicƟon
. General obligaƟon bonds
are issued for the improvement and
enhancement of real property. Local
governments can raise property taxes
in order to cover the costs of a bond
and infrastructure project. Unlike the
previous two types of bonding
methods, gener
al obligaƟon bonds
require voter approval.
Local Governments Impact Fees Varies Development Impact Fees can be imposed for new development, in
order to acquire funding to construct
capital faciliƟes. Applying development
impact fees to projects does
have
substanƟal limitaƟons under The
MiƟgaƟon Fee Act, secƟons 66000.
19 City of Merced SB 244 Analysis
Agency Program Name Funding Use of Funds
Local Governments
and Public
Agencies
TaxaƟon Varies In 1982 the California State Legislature enacted the Community FaciliƟes Act,
commonly referred to as Mello-Roos.
This act authorized local jurisdicƟons
to establish community facility
districts, which would directly serve as
another funding mechanism for
financing public work projects, and
even public services. This method of
revenue generaƟon potenƟally could
be used to finance projects that will
make the necessary improvements to
the deficiencies in these communiƟes.
State Water
Resources Control
Board
Small Community
Drought Relief
Unknown The Small Community Drought Relief
Program offers immediate and near-
term financial and technical assistance
to small communiƟes facing water
supply challenges because of the
current drought.
State Water
Resources Control
Board
State Water Quality
Control Fund: Cleanup
and Abatement Account
$500,000 for
rouƟne or non-
controversial
projects. May
receive funds in
excess of $500,000
with
State Water
Board approval.
The Cleanup and Abatement Account
(CAA) was created to provide public
agencies with grants for the cleanup or
abatement of polluƟon when there are
no viable responsible parƟes available
to undertake the work. Currently, only
emergency projects that require
immediate acƟon to miƟgate a
significant threat to the environment
or a threat to public health and safety
are being accepted.
State Water
Resources Control
Board (SWRCB)
Safe Drinking Water
State Revolving Fund
Varies - past
approved projects
range from
~$30,000-
$110,000,000
The Drinking Water State Revolving
Fund (DWRSF) program assists public
water systems in financing the cost of
drinking water infrastructure projects
needed to achieve or maintain
compliance with Safe Drinking Water
Act (SDWA) requirements.
The State Water
Resources Control
Board
Clean Water State
Revolving Fund (CWSRF)
<$1 million to >$100
million
CWSRF provides financial assistance for
a wide range of water infrastructure
projects. It is a partnership between
the US EPA and state governments. The
CWSRF provides loans to eligible
recipients to construct municipal
wastewater faciliƟes and decentralized
wastewater treatment systems, among
other projects
that address states’
highest priority water quality needs.
20 City of Merced SB 244 Analysis
Agency Program Name Funding Use of Funds
U.S. Department of
the Interior Bureau
of ReclamaƟon
WaterSMART Grants $100,000 to $5
million
WaterSMART Grants offer financial
assistance for projects promoƟng
water conservaƟon, renewable energy,
water markeƟng strategies, and overall
sustainability in the western United
States.
United States
Department of
Agriculture and
Rural Development
Community FaciliƟes
Direct Loan and Grant
Program
Varies – many
projects receives a
mix of low interest
direst loans and
grants
This program provides funding to
develop essenƟal community faciliƟes
in rural areas, such as health care
faciliƟes, public
faciliƟes, and
community support services.
United States
Department of
Agriculture Rural
Development
Emergency Community
Water Assistance Grants
Water transmission
grants of up to
$150,000 and water
source grants of up
to $1 million
This program helps eligible
communiƟes prepare for, or recover
from, an emergency that threatens the
availability of safe, reliable drinking
water for households and businesses.
United States
Department of
Agriculture Rural
Development
Program
SEARCH - Special
EvaluaƟon Assistance for
Rural CommuniƟes and
Households Grant
Up to 100% of
eligible grant costs,
not to exceed
$30,000
This program helps very small,
financially distressed rural
communiƟes with predevelopment
feasibility studies, preliminary design,
engineering analysis, and technical
assistance on financial assistance
applicaƟons for proposed water and
waste disposal projects.
United States
Department of
Agriculture Rural
Development
Program
Solid Waste
Management Grants
Varies by project -
esƟmated total
program funding:
$4,000,000
This program reduces or eliminates
polluƟon of water resources by
providing funding for organizaƟons
that provide technical assistance or
training to improve the planning and
management of solid waste sites.
United States
Department of
Agriculture Rural
Development
Program
Water & Waste Disposal
Loan Guarantees
Varies – the loan
guarantee
percentage is
published annually
in a Federal Register
noƟce
This program helps private lenders
provide affordable financing to
qualified borrowers to improve access
to clean, reliable water and waste
disposal systems for households and
businesses in rural areas.
United States
Department of
Agriculture Rural
Devel
opment
Program
Water & Waste Disposal
Loans & Grants
Unknown This program provides funding for
clean and reliable drinking water
systems, sanitary sewage disposal,
sanitary solid waste disposal, and
storm water drainage to households
and businesses in eligible rural areas.
United States
Department of
Agriculture Rural
Development
Program
Water & Waste Disposal
Predevelopment
Planning Grants
Maximum of
$30,000 or 75% of
the predevelopment
planning costs.
Matching of at 25%
of project cost
required.
This program helps eligible low-income
communiƟes plan and develop
applicaƟons for proposed USDA Rural
Development water or waste disposal
projects.
21 City of Merced SB 244 Analysis
Agency Program Name Funding Use of Funds
United States
Housing and Urban
Development
Department
Community
Development Block
Grants (CDBG)
$250,000 to $100
million
These grants can fund the construcƟon
of projects such as water and sewer
faciliƟes, street maintenance, as well
as other public work projects. At least
70 percent of CDBG funds must
support individuals with low to
moderate
incomes.