FOR THE COUNCIL MEETING OF OCTOBER 4, 2022
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Community Development
SUBJECT: APPLICATION TO SANTA BARBARA LOCAL AGENCY FORMATION
COMMISSION (LAFCO) FOR AN OUT -OF -AGENCY DOMESTIC
WATER SERVICE AGREEMENT WITH RAY WATER COMPANY
RECOMMENDATION:
That the City Council:
1. Adopt a Resolution to adopt a Mitigated Negative Declaration and Mitigation Monitoring Program for a domestic water connection with Ray Water Company; and
2. Adopt a Resolution authorizing and approving an application to the Santa Barbara Local Agency Formation Commission (LAFCO) for an out -of -agency domestic water service agreement with Ray Water Company.
BACKGROUND:
Ray Water Company (RWC) is a small water company located just outside the city limits of Santa Maria, in unincorporated Santa Barbara County, serving properties located south of Mahoney Road at the E Street alignment (Attachment A — Vicinity Map). The properties served by RWC are surrounded by City jurisdiction to the north, east, and south. RWC was issued a Santa Barbara County water system permit in 1976 but existed prior to that.
RWC has been governed by various appointed residents of the water system, which have changed over time. Currently, ownership is equally distributed among ten residents.
There are a total of 13 service connections (11 residential, 2 commercial). The total population served is approximately 45 residents. RWC utilizes groundwater as its drinking water source. The capacity of this source is unknown because RWC does not meter the well or regularly monitor depth to groundwater. In addition, the RWC system uses one steel water storage tank.
Over the years, RWC has had ongoing difficulties meeting regulatory requirements, primarily due to aging and outdated infrastructure. RWC has received numerous notices of violation from Santa Barbara County dating back to 1980. The most relevant violation includes repeated nitrate concentrations above the maximum contaminant levels (MCL), but also other violations such as coliform bacteria detections, failure to perform required analytical testing, failure to properly inform residents of MCL exceedances, and failure to resolve the nitrate issue. Santa Barbara County issued RWC an enforcement action Compliance Order on March 6, 2020, due to ongoing nitrate concentrations above the MCL (Attachment B — Compliance Order). The Compliance Order required RWC to inform
all residents of the elevated nitrate concentrations, submit a progress report, and submit a corrective action plan to resolve the nitrate issue.
Through a technical assistance grant, Weber, Hayes & Associates is assisting RWC by preparing an engineering report and assisting in a proposed project to resolve the violations of the Compliance Order. The proposed project is a consolidation of RWC with the City of Santa Maria's water system. The primary project goal is to provide RWC residents with safe and reliable drinking water. The proposed project consists of a water main, a distribution line, and service connections. In total, these components include 4,860 linear feet (0.92 miles) of new pipelines. The City of Santa Maria's provision of domestic water to properties outside the City boundary requires approval from LAFCO for an out -of -agency agreement.
DISCUSSION:
According to the Compliance Order issued on March 6, 2020, Santa Barbara County Public Health, Environmental Health Services (SBC EHS) determined that Ray Water Company's water system has violated or is violating the California Safe Drinking Water Act, based on surveys indicating nitrate levels exceeding the MCL. The MCL for Nitrate is 10.0 milligrams per liter (mg/L). Two nitrate samples, one from the distribution system on February 21, 2020, and one from the groundwater well on March 4, 2020, showed nitrate concentrations of 35.0 mg/L and 46.0 mg/L, respectively. Other subsequent surveys after 2020 continue to show high concentrations exceeding the MCL.
The applicant is requesting a domestic water connection to best mitigate the violation through consolidation of RWC with the City of Santa Maria. The water main will extend along Betteravia Road, from the intersection of Mahoney Road and Rayville Lane to the intersection of Betteravia Road and A Street, to connect with the City of Santa Maria water system. The water main will be approximately 3,400 feet in length. At the intersection of Mahoney Road and Rayville Lane, the water main transitions into an 8 -inch water distribution line. This distribution line will connect the water main to each of the 15 proposed service connections on Rayville Lane.
The properties currently served by RWC are immediately outside the City limits, but still within the City's sphere of influence. Staff believes that consolidation of RWC with the City of Santa Maria's water system would be a logical solution to RWC's water quality violation affecting public health and safety. The consolidation would provide a clean, reliable long-term water source to RWC residents. RWC would share operation and maintenance costs with a larger community, and transfer water system management responsibilities to the City.
Govemment Code Section 56133 states that LAFCO may authorize a city or district to provide new or extended services outside its jurisdictional boundary to respond to an existing or impending threat to the health and safety of the public or the residents of the affected territory if the entity applying for approval has provided LAFCO with documentation of a threat to the health and safety of the public or the affected residents.
SBC EHS's citation serves as the documentation of the threat, as well as the supporting technical surveys detailing excessive nitrate levels.
2 Alternatives:
The City Council can choose not to submit an application to LAFCO for an out -of -agency domestic water service agreement; however, the applicant would remain in violation of safe drinking water standards. The engineer's report prepared by Weber, Hayes & Associates evaluated four alternatives for RWC, including: 1) no action; 2) treating the water from the existing well; 3) drilling a new well that will (hopefully) be free of nitrates; and 4) consolidation with a nearby water system that has a reliable water source. The last alternative is the current recommendation, based on review and analysis, and the conclusion that it would best mitigate the water quality violations.
Environmental:
An Initial Study and Mitigated Negative Declaration (MND) was prepared for the proposed consolidation project and circulated for public review from June 10, 2022, to July 11, 2022, as required by the California Environmental Quality Act (CEQA). The MND includes mitigation measures for the environmental impacts identified in the initial study in the topic areas of Biological Resources, Cultural Resources, Hazards and Hazardous Materials, and Tribal Cultural Resources.
CONCLUSION:
Given the information provided regarding water quality affecting public health and safety for Ray Water Company, staff asks that the City Council authorize the Director of Community Development to apply and submit an application to the Santa Barbara LAFCO for an out -of -agency domestic water service agreement with Ray Water Company.
DANA EADY
Planning Division Manager
4 CHUEN NG
Director of Community Development
Attachments:
Attachment A — Vicinity Map
Attachment B — Compliance order dated March 6, 2020, from SB County Environmental Health Services Attachment C— Final Initial Study/Mitigated Negative Declaration Attachment D — Mitigation Monitoring Program
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3 RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MARIA, CALIFORNIA, ADOPTING A MITIGATED NEGATIVE
DECLARATION FOR THE RAY WATER PROJECT
WHEREAS, the Ray Water Company received a Technical Assistance Grant to bring its aging and outdated infrastructure into regulatory compliance consisting of consolidating RWC with the City of Santa Maria's water system through the installation of a water main, a distribution line, 4,860 linear feet (0.92 miles) of new pipelines, and service connections located within the city limits in the Betteravia Road right-of-way with some components located south of Betteravia Road on Rayville Lane, and within the unincorporated Santa Barbara County, herein referred to as the Project; and WHEREAS, the provisions of the California Environmental Quality Act of 1970 (CEQA), Public Resources Code Sections 21000 et. seq., as amended, require the evaluation of environmental impacts of said projects; and WHEREAS, an Initial Study/Mitigated Negative Declaration was prepared for said Project; and the required notices were published, and the Initial Study/Mitigated Negative Declaration was circulated for public review from June 10, 2022 to July 11, 2022, and sent to every responsible agency with jurisdiction over the project and placed in a public location; and
WHEREAS, public comment letters on the draft Initial Study/Mitigated Negative Declaration were received from the California Department of Conservation, Geologic Energy Management Division (CaIGEM), and the Santa Barbara County Air Pollution Control District (SBCAPCD). The comments received on the draft Initial Study/Mitigated Negative Declaration did not result in a "substantial revision" of the document, as defined by CEQA Guidelines Seciton 15073.5, and the new information added to the final Initial Study/Mitigated Negative Declaration to address the comments merely clarifies, amplifies, or makes insignificant modifications to the document; and WHEREAS, the City Council of the City of Santa Maria has reviewed and considered the Initial Study/Mitigated Negative Declaration and Mitigation Monitoring Program, incorporated herein by reference for the Project; and WHEREAS, there is no substantial evidence in the whole record before the City Council supporting a fair argument that the project as described with mitigations in the Initial Study/Mitigated Negative Declaration will have a significant effect on the environment; and
WHEREAS, the Initial Study/Mitigated Negative Declaration and Mitigation Monitoring Program reflects the City Council's independent judgment and analysis.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Maria, that
Section 1. The above recitals are true and correct and incorporated herein by reference.
Section 2. The City Council adopts the Mitigated Negative Declaration and Mitigation Monitoring Program (Attachments C and D of
the Council Agenda Report, dated October 4, 2022,
incorporated herein by reference) for the Ray Water Company project.
Section 3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 4th day of October 2022.
ATTEST:
Chief Deputy City Clerk
Mayor
APPROVE TO FORM:
/ City Attorney
APPROVED AS TO CONTENT:
Departm nt irector
Ci Manager
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MARIA, CALIFORNIA, AUTHORIZING AND APPROVING AN
APPLICATION TO SANTA BARBARA LOCAL AGENCY FORMATION
COMMISSION (LAFCO) FOR AN OUT -OF -AGENCY DOMESTIC
WATER SERVICE AGREEMENT WITH RAY WATER COMPANY
WHEREAS, the applicant, Ray Water Company, in accordance with the Cortese - Knox -Hertzberg Local Government Reorganization Act of 2000 and Santa Barbara County LAFCO Policies and Procedures, requested an out -of -agency service agreement with the City of Santa Maria for domestic water on properties currently served by Ray Water Company located approximately south of Mahoney Road at the E Street alignment, including properties with Assessor Parcel Numbers 111-030-005, - 006, -007, -008, -009, -011, -012, -013 and 111-040-010; and WHEREAS, the properties served by Ray Water Company are located outside the city boundary of Santa Maria, but is within the Sphere of Influence of Santa Maria, as last reaffirmed on January 7, 2016, by LAFCO Resolution 15-12; and WHEREAS, the properties of Ray Water Company are currently served by ground well water; and
WHEREAS, the water quality has been determined by the County of Santa Barbara Department of Public Health Environmental Health Services to be in excess of maximum nitrate contaminant levels and in violation of the California Safe Drinking Water Act, as stated in a compliance order to Ray Water Company, dated March 6, 2020; and
WHEREAS, Govemment Code Section 56133 states that LAFCO may authorize a city or district to provide new or extended services outside its jurisdictional boundary to respond to an existing or impending threat to the health and safety of the public or the residents of the affected territory, if the entity applying for approval has provided LAFCO with documentation of a threat to the health and safety of the public or the affected residents; and
WHEREAS, provision of domestic water from the City of Santa Maria to the properties of Ray Water Company, through consolidation, would mitigate the identified health and safety threat to the public; and
WHEREAS, the City Council considered the proposed request for an application to the Santa Barbara LAFCO on October 4, 2022; and
WHEREAS, the proposed domestic water connection would not result in additional impacts since there will be no change in use. The domestic water connection would be provided solely to mitigate a threat to the health and safety of the public.
NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, Califomia, as follows:
1. That the Director of Community Development is authorized to apply and submit an application to the Santa Barbara Local Agency Formation Commission for an out -of -agency domestic water service agreement with Ray Water Company; and
2. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney conceming any changes deemed necessary.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 4"' day of October 2022.
Mayor
ATTEST:
APPROVED AS TO FORM:
Chief Deputy City Clerk
Exhibit A — Vicinity Map
BY
CITY ATTORNEY
CONTENTS:
BY:
BY:
DEPARTMENT RECTOR
CITY MANAGER