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Calaveras Local Agency Formation Commission (LAFCo) DRAFT MURPHYS SANITARY DISTRICT (MSD) MUNICIPAL SERVICE REVIEW (MSR) AND SPHERE OF INFLUENCE (SOI) UPDATE
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Page 1:   · Web viewCalaveras Local Agency Formation Commission. Murphys Sanitary. District MSR and SOI. Calaveras Local Agency Formation Commission. Murphys Sanitary. District MSR and

Calaveras Local Agency Formation Commission

(LAFCo)

DRAFT

MURPHYS SANITARY DISTRICT(MSD)

MUNICIPAL SERVICE REVIEW (MSR)

AND

SPHERE OF INFLUENCE (SOI) UPDATE

January 2019

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TABLE OF CONTENTS1 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.1 Local Agency Formation Commission (LAFCo) History . . . . . . . . . . . . . . . . . . 11.2 Preparation of the MSR and SOI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.3 Role and Responsibility of LAFCo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.4 Municipal Services Review Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.5 Municipal Services Review Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.6 Sphere Of Influence Update Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.7 Possible Approaches to the Sphere of Influence . . . . . . . . . . . . . . . . . . . . . . . 51.8 Description of Public Participation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2 MURPHYS SANITARY DISTRICT COMMUNITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.1 Murphys Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.2 Murphys History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.3 Murphys Population Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.4 Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92.5 Churches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92.6 Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92.7 Cemetery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 2.8 Fire Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92.9 Water Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.10 Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3 MURPHYS SANITARY DISTRICT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.1 Murphys Sanitary District Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123.2 Murphys Sanitary District Board of Directors and Staff . . . . . . . . . . . . . . . . . . 12

3.2.1 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.2.2 Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

3.3 Murphys Sanitary District Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133.3.1 MSD System Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133.3.2 Collection System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133.3.4 MSD Wastewater Treatment Plant Site Description . . . . . . . . . . . . . . 143.3.5 Monitoring Requirements and Results . . . . . . . . . . . . . . . . . . . . . . . . 143.3.6 Planned Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163.3.7 Capital Improvement Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

3.4 Murphys Sanitary District Finances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183.4.1 Rate Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183.4.2 Rate Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193.4.3 Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193.4.4 Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

4 MURPHYS SANITARY DISTRICT MUNICIPAL SERVICE REVIEW . . . . . . . . . . . . . 294.1 Growth and Population Projections for the Murphys Sanitary District Area . . .29

4.1.1 Murphys Sanitary District Area Population Projections . . . . . . . . . . . .294.1.2 MSR Determinations on Growth and Population Projections for the

Murphys Sanitary District Area . . . . . . . . . . . . . . . . . . . . . . . 294.2 Location and Characteristics of any Disadvantaged Unincorporated

Communities (DUC) within or Contiguous to Murphys Sanitary District . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

4.2.1 Determination of Murphys Sanitary District Area Disadvantaged Unincorporated Community Status . . . . . . . 29

4.2.2 MSR Determinations on Disadvantaged Unincorporated Communities near Murphys Sanitary District . . . . . . . . . . . . .30

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4.3 Murphy’s Sanitary District Capacity and Infrastructure . . . . . . . . . . . . . . . . . . 304.3.1 Murphy’s Sanitary District Infrastructure . . . . . . . . . . . . . . . . . . . . . . 30

4.3.2 MSR Determinations on Infrastructure for

Murphys Sanitary District . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 4.4 Financial Ability to Provide Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

4.4.1 Financial Considerations for Murphys Sanitary District . . . . . . . . . . 31 4.4.2 MSR Determinations on Financing for

Murphys Sanitary District . . . . . . . . . . . . . . . . . . . . . . . . . . . 314.5 Status of and Opportunities for Shared Facilities . . . . . . . . . . . . . . . . . . . . . . 31

4.5.1 Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 4.5.2 MSR Determinations on Shared Facilities for

Murphys Sanitary District . . . . . . . . . . . . . . . . . . . . . . . . . . . 314.6 Accountability for Community Service Needs, Government Structure and

Operational Efficiencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 4.6.1 Government Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 4.6.2 MSR Determinations on Local Accountability and Governance . . . . . 32

5 MURPHYS SANITARY DISTRICT SPHERE OF INFLUENCE UPDATE . . . . . . . . . . 335.1 Recommendation for Murphys Sanitary District

Sphere of Influence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335.2 Present and Planned Land Uses in the District

Area, Including Agricultural and Open Space Lands . . . . . . . . . . . . . 33 5.2.1 Calaveras County General Plan and Zoning for

Murphys Sanitary District SOI Area . . . . . . . . . . . . . . . . . . . . 335.2.2 SOI Determinations on Present and Planned Land Use for

Murphys Sanitary District Area . . . . . . . . . . . . . . . . . . . . . . . 335.3 Present and Probable Need for Public Facilities and Services in the

Murphys Sanitary District Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335.3.1 Municipal Service Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335.3.2 SOI Determinations on Facilities and Services Present and Probable

Need for Murphys Sanitary District . . . . . . . . . . . . . . . . . . . . 335.4 Present Capacity of Public Facilities Present and Adequacy of Public

Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

5.4.1 Capacity Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345.4.2 SOI Determinations on Public Facilities Present and Future

Capacity for Murphys Sanitary District . . . . . . . . . . . . . . . . . 345.5 Social or Economic Communities of Interest for Murphys Sanitary

District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345.5.1 Murphys Sanitary District Community Background . . . . . . . . . . . .

. . 34 5.5.2 SOI Determinations on Social or Economic Communities of

Interest for Murphys Sanitary District . . . . . . . . . . . . . . . . . . 34 5.6 Disadvantaged Unincorporated Community Status . . . . . . . . . . . . . . . . . . . . 35

5.6.1 Disadvantaged Unincorporated Communities . . . . . . . . . . . . . . . . . . 355.6.2 Murphy’s Sanitary District Disadvantaged Unincorporated

Community Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

APPENDIX A LOCAL GOVERNMENT SPENDING ISSUES . . . . . . . . . . . . . . . . . . . . . . . . . 36

APPENDIX B REVISED MONITORING AND REPORTING PROGRAM . . . . . . . . . . . . . . . . 40

ABBREVIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

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DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52PREPARERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

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1 INTRODUCTION

1.1 Local Agency Formation Commission (LAFCo) History

This report is prepared pursuant to State legislation enacted in 2000 that requires Calaveras LAFCo to complete a comprehensive review of municipal service delivery and update the spheres of influence (SOIs) of all agencies under LAFCo’s jurisdiction. This chapter provides an overview of LAFCo’s history, powers and responsibilities. It discusses the origins and legal requirements for preparation of a Service Review commonly referred to as a Municipal Service Review (MSR). Finally, the chapter reviews the process for MSR review, MSR approval and SOI updates.

After World War II, California experienced dramatic growth in population and economic development. With this boom came a demand for housing, jobs and public services. To accommodate this demand, many new local government agencies were formed, often with little forethought as to the ultimate governance structures within a given region. A lack of coordination and adequate planning led to a multitude of overlapping, inefficient jurisdictional and service area boundaries, many of which resulted in the premature conversion of California’s agricultural and open-space lands and duplication of services.

Recognizing this problem, in 1959, Governor Edmund G. Brown, Sr. appointed the Commission on Metropolitan Area Problems. The Commission's charge was to study and make recommendations on the "misuse of land resources" and the growing complexity of local governmental jurisdictions. The Commission's recommendations on local governmental reorganization were introduced in the Legislature in 1963; resulting in the creation of a Local Agency Formation Commission, or "LAFCo," operating in every county.

LAFCo was formed as a countywide agency to discourage urban sprawl and to encourage the orderly formation and development of local government agencies within its jurisdiction. LAFCo is responsible for coordinating logical and timely changes in local governmental boundaries; including annexations and detachments of territory, incorporations of cities, formations of special districts, and consolidations, mergers and dissolutions of districts, as well as reviewing ways to reorganize, simplify, and streamline governmental structure.

The Commission's efforts are focused on ensuring services are provided efficiently and economically while agricultural and open-space lands are protected or conserved to the extent possible. To better inform itself and the in compliance with the State Law; LAFCo conducts MSR’s to evaluate the provision of municipal services for service providers within its jurisdiction.

LAFCo regulates, through approval, denial, conditions and modification, boundary changes proposed by public agencies or individual voters and landowners. It also regulates the extension of public services by cities and special districts outside their boundaries. LAFCo is empowered to initiate updates to the SOIs and proposals involving the dissolution, consolidation or formation of special districts, establishment of subsidiary districts, and any reorganization including such actions. Where LAFCo is not given specific authority, LAFCo actions must originate as petitions from affected voters or landowners, or by resolutions by affected cities or special districts.

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A Plan for Services is required in Government Code Section 56653. A Plan for Services must include the following information: An enumeration and description of services to be provided, the level and range of those services, an indication of how those services are to be extended into the territory, an indication of any improvements or upgrading of structures, Information on how the services are to be financed.

1.2 Preparation of the MSR

Research for this Municipal Service Review (MSR) was conducted during the fall of 2018. This MSR is intended to support preparation and update of Spheres of Influence, in accordance with the provisions of the Cortese-Knox-Hertzberg Act. The objectives of this Municipal Service Review (MSR) are as follows:

To develop recommendations that will promote more efficient and higher quality service options and patterns

To identify areas for service improvement

To assess the adequacy of service provision as it relates to determination of appropriate sphere boundaries

While LAFCo prepared the MSR document, given budgetary constraints, LAFCo did not engage the services of experts in engineering, hydrology, geology, water quality, fire protection, accounting or other specialists in related fields, but relied upon published reports and available information. Insofar there is conflicting or inconclusive information LAFCo staff may recommend the district retain a licensed professional or expert in a particular field for an opinion.

Therefore, this MSR reflects LAFCo’s recommendations, based on available information during the research period and provided by District staff to assist in its determinations related to promoting more efficient and higher quality service patterns; identifying areas for service improvement; and assessing the adequacy of service provision by the Murphys Sanitary District (MSD). Additional information on local government funding issues in found in Appendix A at the end of this report. 1.3 Role and Responsibility of LAFCo

Local Agency Formation Commissions (LAFCos) in California are independent agencies created by the California Legislature in 1963 for the purpose of encouraging the orderly formation of local government agencies and conserving and preserving natural resources. The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Government Code §56000 et seq.) is the statutory authority for the preparation of an MSR, and periodic updates of the Sphere of Influence (SOI) of each local agency.

LAFCos are responsible for coordinating logical and timely changes in local governmental boundaries, conducting special studies that review ways to reorganize, simplify, and streamline governmental structure, preparing a review of services called a MSR, and preparing a SOI thereby determining the future “probable” boundary for each city and special district within each county.

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The Commission's efforts are directed toward seeing that services are provided efficiently and economically while agricultural and open-space lands are protected. Often citizens are confused as to what LAFCo’s role is. LAFCos do not have enforcement authority nor do they have the authority to initiate a city or district annexation or detachment proceeding. LAFCos may initiate consolidation or dissolution proceedings; however, these proceedings are subject to the voter approval or denial.

The Legislature has given LAFCos the authority to modify any proposal before it to ensure the protection of agricultural and open space resources, discourage urban sprawl and promote orderly boundaries and the provision of adequate services.

The Governor’s Office of Planning and Research (OPR) has issued Guidelines for the preparation of a MSR. This MSR adheres to the procedures set forth in OPR’s MSR Guidelines.

A SOI is a plan for the probable physical boundaries and service area of a local agency, as determined by the affected Local Agency Formation Commission (Government Code §56076). Government Code §56425(f) requires that each SOI be updated not less than every five years, and §56430 provides that a MSR shall be conducted in advance of the SOI update.

1.4 Municipal Services Review Requirements Effective January 1, 2001 and subsequently amended, LAFCo is required to conduct a review of municipal services provided in the county by region, sub-region or other designated geographic area, as appropriate, for the service or services to be reviewed, and prepare a written statement of determination with respect to each of the following six topics (Government Code §56430):

1. Growth and population projections for the affected area

2. The location and characteristics of any disadvantaged unincorporated communities (DUC) 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

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

1.5 Municipal Services Review Process

For local agencies, the MSR process involves the following steps:

1. Outreach: LAFCo outreach and explanation of the project

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2. Data Discovery: provide documents and respond to LAFCo questions3. Map Review: review and comment on LAFCo draft map of the agency’s

boundary and sphere of influence

4. Profile Review: internal review and comment on LAFCo draft profile of the agency

5. Public Review Draft MSR: review and comment on LAFCo draft MSR

6. LAFCo Hearing: attend and provide public comments on MSR

MSRs are exempt from California Environmental Quality Act (CEQA) pursuant to§15262 (feasibility or planning studies) or §15306 (information collection) of the CEQA Guidelines. LAFCo’s actions to adopt MSR determinations are not considered “projects” subject to CEQA. The MSR process does not require LAFCo to initiate changes of organization based on service review findings, only that LAFCo identify potential government structure options.

However, LAFCo, other local agencies, and the public may subsequently use the determinations to analyze prospective changes of organization or reorganization or to establish or amend SOIs. Within its legal authorization, LAFCo may act with respect to a recommended change of organization or reorganization on its own initiative (e.g., certain types of consolidations), or in response to a proposal (i.e., initiated by resolution or petition by landowners or registered voters).

Once LAFCo has adopted the MSR determinations, it must update the SOI for each jurisdiction. The LAFCo Commission determines and adopts the spheres of influence for each agency. A CEQA determination is made by LAFCo on a case-by-case basis for each sphere of influence action and each change of organization, once the proposed project characteristics are sufficiently identified to assess environmental impacts.

1.6 Sphere Of Influence Update Process

The Commission is charged with developing and updating the Sphere of Influence (SOI) for each city and special district within the county.1

An SOI is a LAFCo-approved plan that designates an agency’s probable future boundary and service area. Spheres are planning tools used to provide guidance for individual boundary change proposals and are intended to encourage efficient provision of organized community services and prevent duplication of service delivery. Territory cannot be annexed by LAFCo to a city or district unless it is within that agency's sphere.

The purposes of the SOI include the following:

to ensure the efficient provision of services

1 The initial statutory mandate, in 1971, imposed for no deadline for completing sphere designations. When most LAFCos failed to act, 1984 legislation required all LAFCos to establish spheres of influence by 1985.

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to discourage urban sprawl and premature conversion of agricultural and open space lands

to prevent overlapping jurisdictions and duplication of services

LAFCo may not directly regulate land use, dictate internal operations or administration of any local agency, or set rates. LAFCo is empowered to enact policies that indirectly affect land use decisions. On a regional level, LAFCo promotes logical and orderly development of communities as it considers and decides individual proposals. LAFCo has a role in reconciling differences between agency plans so that the most efficient urban service arrangements are created for the benefit of current and future area residents and property owners.

The Cortese-Knox-Hertzberg (CKH) Act requires LAFCos to develop and determine the SOI of each local governmental agency within its jurisdiction and to review and update the SOI every five years, as necessary. LAFCos are empowered to adopt, update and amend a SOI. They may do so with or without an application. Any interested person may submit an application proposing an SOI amendment.

While SOIs are required to be updated every five years, as necessary, this does not necessarily define the planning horizon of the SOI. The term or horizon of the SOI is determined by each LAFCo.

LAFCo may recommend government reorganizations to particular agencies in the county, using the SOIs as the basis for those recommendations. In determining the SOI, LAFCo is required to complete an MSR and adopt the six determinations previously discussed. In addition, in adopting or amending an SOI, LAFCo must make the following five determinations as required in Government Code section 56425(c):

1. Present and planned land uses in the area, including agricultural and open-space lands

2. Present and probable need for public facilities and services in the area

3. Present capacity of public facilities and adequacy of public service that the agency provides or is authorized to provide

4. Existence of any social or economic communities of interest in the area if the Commission determines these are relevant to the agency

5. For an update of an SOI of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. 2

The CKH Act stipulates several procedural requirements in updating SOIs. It requires cities to file written statements on the class of services to be provided and LAFCo must clearly establish the location, nature and extent of services provided by special districts.

2 California Government Code Section 56425 (e)(5)

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By statute, LAFCo must notify affected agencies 21 days before holding the public hearing to consider the SOI and may not update the SOI until after that hearing. The LAFCo Executive Officer must issue a report including recommendations on the SOI amendments and updates under consideration at least five days before the public hearing.

1.7 Possible Approaches to the Sphere of Influence

LAFCo may recommend government reorganizations to particular agencies in the county, using the SOIs as the basis for those recommendations. Based on review of the guidelines of Calaveras LAFCo as well as other LAFCos in the State, various conceptual approaches have been identified from which to choose in designating an SOI. These seven approaches are explained below:

1) Coterminous Sphere: A Coterminous Sphere means that the Sphere of Influence for a city or special district that is the same as its existing boundaries of the city or district.

2) Annexable Sphere: A sphere larger than the agency’s boundaries identifies areas the agency is expected to annex. The annexable area is outside the district boundaries and inside the sphere of influence.

3) Detachable Sphere: A sphere that is smaller than the agency’s boundaries identifies areas the agency is expected to detach. The detachable area is the area within the agency bounds but not within its sphere of influence.

4) Zero Sphere: A zero sphere indicates the affected agency’s public service functions should be reassigned to another agency and the agency should be dissolved or combined with one or more other agencies.

5) Consolidated Sphere: A consolidated sphere includes two or more local agencies and indicates the agencies should be consolidated into one agency.

6) Limited Service Sphere: A limited service sphere is the territory included within the SOI of a multi-service provider agency that is also within the boundary of a limited purpose district which provides the same service (e.g., fire protection), but not all needed services. Territory designated as a limited service SOI may be considered for annexation to the limited purpose agency without detachment from the multi-service provider.

This type of SOI is generally adopted when the following conditions exist: a) The limited service provider is providing adequate, cost effective and efficient

services

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b) The multi-service agency is the most logical provider of the other services

c) There is no feasible or logical SOI alternative

d) Inclusion of the territory is in the best interests of local government organization and structure in the area

Government Code §56001 specifically recognizes that in rural areas it may be appropriate to establish limited purpose agencies to serve an area rather than a single service provider, if multiple limited purpose agencies are better able to provide efficient services to an area rather than one service district.

Moreover, Government Code Section §56425(i), governing sphere determinations, also authorizes a sphere for less than all of the services provided by a district by requiring a district affected by a sphere action to “establish the nature, location, and extent of any functions of classes of services provided by existing districts” recognizing that more than one district may serve an area and that a given district may provide less than its full range of services in an area.

1.8 Description of Public Participation Process

The LAFCo proceedings are subject to the provisions of California’s open meeting law, the Ralph M. Brown Act (Government Code Sections 54950 et seq.). The Brown Act requires advance posting of meeting agendas and contains various other provisions designed to ensure that the public has adequate access to information regarding the proceedings of public boards and commissions. Calaveras LAFCo complies with the requirements of the Brown Act.

The State MSR Guidelines provide that all LAFCos should encourage and provide multiple public participation opportunities in the MSR process.

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2 MURPHYS SANITARY DISTRICT COMMUNITY

2.1 Murphys Background

Murphys is an unincorporated community located in the foothills of the Sierra Nevada Mountains. A former gold mining settlement, the main street today is lined with over two dozen wine tasting rooms and surrounded by local vineyards. The town is popular among tourists and transplants from the Central Valley and San Francisco Bay Area. Murphys is also known by its colloquial nickname as "Queen of the Sierra" and is one of the more affluent communities in Calaveras County.

Popular attractions nearby include Calaveras Big Trees State Park and Bear Valley Ski Resort. The town also hosts an annual Irish Days parade and street fair every March on Main Street, with some years seeing over 35,000 people in attendance. The population was 2,213 at the 2010 census, up from 2,061 at the 2000 census.

2.2 Murphys History

John and Daniel Murphy were part of the Stephens-Townsend-Murphy Party, the first immigrant party to bring wagons across the Sierra Nevada to Sutter’s Fort in 1844. They earned a living as merchants, but like many others, began prospecting when the California Gold Rush began. They first started in Vallecito, which was then known as "Murphys Old Diggings," before moving to another location in 1848 which became "Murphys New Diggings," "Murphy's Camp," and eventually just "Murphys" in 1935.

The first post office was established as Murphy's in 1851. The name was changed to Murphy in 1894, and finally to Murphys in 1935.3 The town is registered as California Historical Landmark #275.4

2.3 Murphys Population Data

The 2010 Census reported that 2,213 people lived in 1,053 households, out of which 219 had children under the age of 18 living in them, 378 households were made up of individuals and 226 had someone living alone who was 65 years of age or older. There were 675 households with two or more people living together. The average household size was 2.10 persons. There were 623 families (59.2% of all households); the average family size was 2.70.

The population was spread out age as follows:

MURPHYS POPULATION 2010 AGE DISTRIBUTION

Under the age of 18 401 people 18.1% Aged 18 to 24 109 people 4.9% Aged 25 to 44 327 people 14.8% Aged 45 to 64 726 people 32.8% 65 years of age or older 650 people 29 .4% Total 2,213 people 100.0 %3 Durham, David L. (1998). California's Geographic Names: A Gazetteer of Historic and Modern Names of the State. Clovis, Calif.: Word Dancer Press. p. 808. ISBN 1-884995-14-4.4 Murphys, Office of Historic Preservation, California State Parks. Retrieved 2012-10-06.

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The median age was 54.1 years. For every 100 females, there were 83.0 males. For every 100 females age 18 and over, there were 80.5 males. There were 1,256 housing units including 1,053 occupied and 203 vacant units. Of the occupied units approximately two-thirds were owner-occupied and one-third renter occupied.

2.4 Schools

Murphys is located within the Vallecito Union School District which operates the Albert A. Michelson Elementary School at 196 Pennsylvania Gulch Road, Murphys, California. It serves 227 students from grades K to 5. The middle school is in Vallecito. The Bret Harte High School is within the Bret Harte Union High School District and is located in Angels Camp.

2.5 Churches

The following five churches are located in Murphys:

1) Murphys Community Church2) First Congregational Church3) Seventh-Day Adventist Church4) Church of Christ5) Faith Lutheran Church

2.6 Business

Local business activities are primarily tourism-related, and include hotels and inns, restaurants, several wine tasting rooms, and boutique shops.

2.7 Cemetery

The Murphys Cemetery District maintains the Buena Vista Cemetery located at 186 Cemetery Lane, off Jones Street next to the Murphys Historic School, and has grave sites dating back to the early years of the Gold Rush era with the earliest known burial there in June of 1855. The older sections of the cemetery have large ornate monuments adorning many of the graves. There are also simple concrete slabs and wood markers.5

2.8 Fire Protection

The Murphys Fire Protection District (MFPD) was formed in 1935, after several severe fires occurred during the early 1930s and the community lost two sawmills and a lumber drying yard. The Murphys Fire Protection District’s boundaries encompass the State Route 4 corridor between the City of Angels Camp and Ebbetts Pass FPD. MFPD’s boundary area is about 47 square miles. The Murphys Fire Protection District has four part-time paid fire fighters and the remainder are volunteer fire fighters.6

5 Murphys Cemetery District, http://www.murphyscemetery.com/, May 28, 2018.6 Calaveras LAFCo, Calaveras Fire Municipal Service Review, Jun 17, 2013, Pages 165-180.

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2.9 Water Service

Union Public Utility District (UPUD) was formed on July 26, 1946 as an independent special district.7 The Union Public Utility District was formed to provide agricultural and domestic water services. PG&E served water to the UPUD service area until 1961 when UPUD acquired its water supply and distribution system from the Calaveras Water Users Association. The boundaries of UPUD extend in the north to the Utica Canal north of Murphys, encompass the community of Murphys, encompass Vallecito and Douglas Flat, and extends south along South Ditch to include the community of Carson Hill. The Union Public Utility District has a boundary area of approximately 19.1 square miles8 which is larger than the MSD area of about 1.77 square miles. 9

2.10 Planning

Planning and Zoning are administered by the Calaveras County Planning Department. The “Murphys-Douglas Flat Community Plan” was adopted in 1988. The Plan Area included twelve square miles.10 Although the County General Plan is being revised, the community plans have not been updated as noted below:

In January 2014 the Board of Supervisors directed County staff to proceed with the General Plan update without including the community plans. This was due to concerns about the length of time needed to ensure consistency and outstanding controversy on some of the plans. A draft General Plan was released in December 2014 that did not include community plans. However, in June 2015 the Board modified that direction. Those plans that had been previously reviewed and could easily be incorporated into the General Plan were to be included, with the intent to adopt revised plans for the rest of the county’s communities as quickly as possible following adoption of the General Plan.

The land use map shows the land use designations within each community plan and an area described as “Community Area”. While the community plans focus on the center of each community, these Community Areas are not necessarily coterminous with a boundary for the community. In some cases the historical boundary of a community extends beyond the developed part of the community, and in others the community has grown past that historic boundary.

Communities are intended to have clearly identified boundaries with separation between them provided by agricultural or other resource production land, open space, working lands, and other rural transitional land uses. This also provides area for wildlife habitat, recreation, natural resource production and protection, and a visual break between communities.11

7 State Board of Equalization Official Date.8 Calaveras LAFCo, Water and Wastewater Municipal Service Review, June 18, 2012, Page 259-276.9 Calaveras LAFCo, Water and Wastewater Municipal Service Review, June 18, 2012, Page 259-276 and GIS calculations 12, 2018.10 Calaveras County, Murphys & Douglas Flat community plan, June 1, 1988.11 Calaveras County, General Plan Community Planning Element, Planning Commission Recommended Draft – July 28, 2016.

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In the absence of a clear community plan for Murphys it is important for the Murphys Sanitary District to maintain close communication with the County Planning Department regarding future development in the area.

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3 MURPHYS SANITARY DISTRICT

3.1 Murphys Sanitary District Background

Murphys Sanitary District, (MSD) was formed on January 12, 1960 as an independent special district.12 The District was formed to provide wastewater services in the community of Murphys.

Murphys Sanitary District provides sewer collection and treatment services to residential and commercial businesses within the MSD boundaries. Murphys Sanitary District was organized in 1959 under Division VI of the California Health and Safety Code. The District covers an area of approximately 1.77 square miles and has a population of approximately 2,200 people. 13

The District maintains 63,000 linear feet, (11.9 miles) of sewer collection lines. These range from the largest diameter of 10 inches down to 4 inches, with the most common size being 6 inches.  An average dry weather flow of 135,000 gallons per day of raw wastewater is treated to an advanced secondary level with a combination pond and filtration Wastewater Treatment Plant. Treated effluent is utilized for irrigation at the neighboring Hay Station Ranch vineyards. MSD is considered a “Special District” with governing board consisting of five Directors. The District operates on an approximately $1,000,000 annual budget. 14

3.2 Murphys Sanitary District Board of Directors and Staff

3.2.1 Board of Directors

The Murphys Sanitary District Board of Directors is as follows: 15

Name, Office Contact Information Term ExpiresLydia Sheller – President       [email protected] 2022 PO Box 1589, Murphys CA 95247 773-428-3329

Joseph Fontana – Vice President          [email protected] 2020174 Fieldstone Drive, Murphys CA 95247 209-728-8589

Steve Gonzales – Secretary   [email protected] 2020577 S. Algiers, Murphys CA 95247 925-323-1979

Delma Harris – Treasurer  [email protected] 2022PO Box 1513, Murphys CA 95247 209-728-8326

Ashley More-Parliamentarian [email protected] 2022

298 Watkins, Murphys CA 95247 209-768-0844

12 State Board of Equalization Official Date.13 Murphys Sanitary District, http://www.murphyssd.org/, May 17, 2018.14 Murphys Sanitary District, http://www.murphyssd.org/, May 17, 2018.15 Murphys Sanitary District, Calaveras LAFCo Questionnaire, October 1, 2018.

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Murphys Sanitary District Regular board meetings are held on the second Thursday of the month 10:00 a.m. at the district office 15 Ernest St Suite A, Murphys, California. Special Meetings may be called to conduct district business.16

3.2.2 Staff17

DISTRICT MANAGERS:Administrative Manager: Cindy Secada [email protected] Operations Manager: Dan Murphy [email protected]

STAFF:Field Supervisor: Clay OnstadOIT (Operator in Training): Oscar OrozcoAdministrative Assistant II: Amy Lowe Administrative Assistant I: Carolyn Petersen

Office Phone: 209-728-3094 Office Fax: 209-728-9511

3.3 Murphys Sanitary District Facilities

3.3.1 MSD System Overview

The District maintains 63,000 linear feet, (11.9 miles) of sewer collection lines. These range from the largest diameter of 10 inches down to 4 inches, with the most common size being 6 inch.  An average dry weather flow of 135,000 gallons per day of raw wastewater (below the limit of 200,000 GPD) is treated to an advanced secondary level with a combination pond and filtration Wastewater Treatment Plant. Treated effluent is utilized for irrigation at the neighboring Hay Station Ranch vineyards.18 The State required Revised Monitoring and Reporting Program is shown in Appendix B at the end of this report.

3.3.2 Collection System

The District reported in 2016 that they had a complete video analysis of the sewer mains. The data showed a good working system with some root intrusion, no broken or disconnected piping or illegal or wrong hook-ups. There is no nuisance of odors or dilapidated buildings or out-of-date equipment.

3.3.3 MSD Waste Discharge Requirements

The Murphys Sanitary District’s wastewater treatment plant is located at 735 Six Mile Road about one mile south of the town of Murphys. The Murphys Sanitary District wastewater treatment plant is regulated by the Central Valley Regional Water Quality Control Board through Waste Discharge Requirements Order No. 5-00-264 as amended by R5-2013-0064, associated revised Monitoring and Reporting Program (MRP) 5-00-264 (REV3) and Resolution No. R5-2007-005-1. The Monitoring and Reporting Program requires quarterly and annual monitoring of groundwater for various constituents to

16 Murphys Sanitary District, http://www.murphyssd.org/, May 17, 2018.17 Murphys Sanitary District, Calaveras LAFCo Questionnaire, October 1, 2018.18 Murphys Sanitary District, http://www.murphyssd.org/, May 17, 2018.

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assess whether the facility’s wastewater treatment and disposal operations have degraded groundwater.19

3.3.4 MSD Wastewater Treatment Plant Site Description

The wastewater treatment plant is situated at the headwaters of Six Mile Creek which is at the head of a small valley that slopes to the southwest. Hillsides to the east are steep. The surrounding properties to the north, east and south are lightly developed rural residential and undeveloped/range parcels. Land uses to the west are agricultural.

The Site consists of three treatment ponds, an effluent storage pond, filters, and a chlorine contact basin. All of the ponds are unlined. Pond 1 is aerated while Ponds 2 and 3 are used as facultative non-aerated ponds. Pond 4 is the main storage pond, used for winter and peak flow storage.

Secondary disinfected treated wastewater from the Site is discharged to Hay Station Ranch Recycled Water Reuse Areas. The use of recycled water on the Hay Station Ranch is regulated under WDRs Order R5-2007-0050. The Site also plans to discharge to sprayfield land application areas authorized by Order 5-2013-0064. 20

3.3.5 Monitoring Requirements and Results

The following tables show the monitoring requirements and the results for the Murphys Wastewater Treatment Plant:

Murphys Sanitary District Wastewater Treatment PlantMonitoring Requirements and Results October 201621

Sample Location MW-1* MW-2 MW-3 MW-4Sample Date 10/20/16 10/20/16 10/20/16 10/21/16

Cons-tituent

Method Meth-odDetec-tionLimit

WaterQualityObjective

Units

Nitrate(as N)

**EPA-300.0

0.022 10 mg/L <0.022 <0.022 9.1 24

***TDS EPA-160.1

20 450 mg/L 220 200 210 500

****TKN EPA-351.2

0.088 *****NS

mg/L <0.088 0.13J*******

<0.088 0.50

TotalColi-form

SM-9221B

1MPN/100ml

2.2 ******MPN

<1.8 <1.8 <1.8 2.0

* MW Monitoring Well *****NS Not Specified** EPA Environmental Protection Agency ******MPN Most Probable Number***TDS Total Dissolved Solids *******J Value is above the Method Detection Limit **** TKN Total Kjeldahl Nitrogen (MDL) but below the Practical Quantifiable Limit (PQL)

19 Murphys Sanitary District, Fourth Quarter (annual) 2016 Groundwater Monitoring Report, Murphys Sanitary District Wastewater Treatment Plant, January 5, 2017, Page 1. 20 Murphys Sanitary District, Fourth Quarter (annual) 2016 Groundwater Monitoring Report, Murphys Sanitary District Wastewater Treatment Plant, January 5, 2017, Page 1. 21 Murphys Sanitary District, Fourth Quarter (annual) 2016 Groundwater Monitoring Report, Murphys Sanitary District Wastewater Treatment Plant, January 5, 2017, Page 4.

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Murphys Sanitary District Wastewater Treatment Plant

Monitoring Requirements and ResultsOctober 201622Annual Standard Minerals

Sample Location MW-1* MW-2 MW-3 MW-4Sample Date 10/20/16 10/20/16 10/20/16 10/21/16

Cons-tituent

Meth-od

MethodDetectionLimit

WaterQualityObjective

Units

Dis-solved Barium

EPA-200.7

0.0035 1 mg/L 0.011 0.034 0.40 0.11

Dis-solved Calcium

EPA-200.7

0.016 NS mg/L 63 35 24 74

Dis-solved Mag-nesium

EPA-200.7

0.019 NS mg/L 6.4 10 7.4 38

Dis-solved Potas-sium

EPA-200.7

0.10 NS mg/L 0.83J 2.1 14 6.4

Sulfate EPA-200.7

0.14 250 mg/L 12 7.6 13 97

Total Alkalinity

EPA-310.1

4.1 NS mg/L 150 130 49 150

Hydrox-ideAlkalinity

EPA-310.1

4.1 NS mg/L <4.1 <4.1 <4.1 <4.1

Car-bonateAlkalinity

EPA-310.1

4.1 NS mg/L <4.1 <4.1 <4.1 <4.1

Bicar-bonateAlkalinity

EPA-310.1

4.1 NS mg/L 150 130 49 150

Dis-solvedHard-ness

LabCalc.

0.10 NS mg/L 180 130 91 150

* MW Monitoring Well *****NS Not Specified** EPA Environmental Protection Agency ******MPN Most Probable Number***TDS Total Dissolved Solids *******J Value is above the Method **** TKN Total Kjeldahl Nitrogen Detection Limit (MDL) but below the Practical Quantifiable Limit (PQL)

22 Murphys Sanitary District, Fourth Quarter (annual) 2016 Groundwater Monitoring Report, Murphys Sanitary District Wastewater Treatment Plant, January 5, 2017, Page 4.

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Where the test results in the above table do not conform to the State Waste Discharge Requirements the District has explanations for the results and plans to achieve better results in the future. If the Regional Water Quality Control Board were not satisfied with the District’s Report they would require penalties and changes to the Wastewater Treatment Plant. The testing and the report are prepared for the District by an engineering consulting firm, Condor Earth, from Sonora, California. The District plans to upgrade the wastewater treatment plant in the future as shown in the Capital Improvement Plan below.

3.3.6 Planned Improvements

The District reports the following planning improvements to the Wastewater treatment system: 23

Murphys Sanitary future plans include major updates to the current WWTP. In 2013 Murphys Sanitary District received an SRF (Clean Water State Revolving Fund) Small Community Planning Grant in the amount of $335,000. This agreement was amended to receive an additional $25,000 and extend the expiration to 12/2016.

In 2017 MSD began the construction application and effective April 2018 through Prop 1, we have received a construction installment sale agreement and grant in the amount of $4,013,589! The grant portion is 75% and the loan is the balance of 25%.

The recommended project will correct WWTP deficiencies while keeping user rates and annual operation and maintenance costs as low as feasible. The recommended project for implementation includes the following elements:

Relocate the headworks facilities to the WWTP and install a shaftless spiral screen.

Improve influent pump station Pave access and working area leading up to the pump station building

from the access gate Install a buried valve box (equipped with a Quick Connect to the

discharge pipeline for temporary bypass pumping) to consolidate and house the pump station valves

Replace the existing influent pumps with new solids handling pumps. These improvements include the construction of a new pump station and appurtenant piping and valves.

Add a new wastewater storage pond on the Kautz property. Replace the aeration system with a portable fine bubble aeration system

in Ponds 1 and 2. Increase storage capacity in Pond 4 to meet permit requirements. Replace Pond 4 effluent pumps. Add solar mixers to Pond 4. Remove accumulated solids from Pond 1.

23 Murphys Sanitary District, Calaveras LAFCo Questionnaire, October 1, 2018.

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Replace the existing disinfection system with a new concrete disinfection basin.

Replace the existing FB liner with a full liner that includes lining the bottom of the basin to control and prevent seepage.

The recommended project was selected based on low capital and O&M costs in comparison with the alternatives presented in the 2014 Project Report, while still improving the overall treatment process of the facility. These improvements will add reliability to the existing system and improve O&M. Additionally, plant staff is familiar with the existing system and improvements will require very little training for new equipment.

3.3.7 Capital Improvement Plan24

The following tables show the proposed improvements planned for the Murphys Sanitary District in the 10-year Capital Improvement Program and the cost for each project. The collection system and wastewater treatment plant improvements are shown in separate tables.

Murphys Sanitary District10 Year Capital Improvement Project List ‐ Collection System Improvements

ProjectNumber

Description ConstructionYear

EstimatedCost $

1 Sewer Replacement LP-MH 68-MH 60-MH61-MH 62-MH64-MH78, Add new MHs between 60-61, 64-78, and 94-95*

2018 Completed

398,454

2 Sewer Replacement, MH 175-179, and MH 199-200

2019 170,033

3 Sewer Replacement, MH 96-101 2021 509,1194 Sewer Replacement, MH 9-11, Replace MH 204,

Add a new MH between MH 203-2042023 114,536

5 Sewer Replacement, MH 64-65, and 76A-77 2025 165,3416 Sewer Replacement, MH 53-57-LP 2027 234,641

TOTAL 1,651,635Identified Alternate or Future Projects

7 Sewer Replacement, MH 43-45 171,8448 Sewer Replacement, MH 19-20, and MH 40-41 129,229

TOTAL 301,073*LP Light Pole, MH Man Hole.

24 Murphys Sanitary District, 10 Year Capital Improvement Projects, prepared by Blackwater Consulting Engineers, Inc.605 Standiford Suite N, Modesto, CA 95350, Phone: 209-322-1820, May 2016.

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Murphys Sanitary District 10 Year Capital Improvement Project List ‐Wastewater Treatment Plant Improvements

ProjectNumber

Description ConstructionYear

EstimatedCost $

9 Spray Fields Project 2016 Completed

237,117

10 Influent Pump Station Improvements 2019 254,37511 Wastewater Treatment Plant Upgrade 2019 1,011,12012 Headworks Screening Facilities Improvement

and Relocation2019 433,125

Completed Projects Subtotal 237,1172018-2019 Subtotal* 1,698,620

TOTAL 1,935,737* This subtotal represents the proposed improvements of the State Revolving Fund (SRF) WWTP Upgrades Project.

3.4 Murphys Sanitary District Finances

3.4.1 Rate Schedule

The Murphys Sanitary District adopted the rate schedule in Resolution 06-2009 on October 8, 2009.

Murphys Sewer Rate Schedule

1. The basic sewer rate is sixty dollars ($60.00) per month per equivalent dwelling unit, EDU, (single-family residence or equivalent thereof).

2. Equivalent percentages of the basic service charge for different users will be calculated according to the following table:

Single family residence (1 EDU) 100%Mobile home or trailer (1 EDU) 100%Duplex, triplex (per EDU) 100%Commercial trailer park (per space) 100%Apartment (per unit) 100%Motel, Hotel Determined on basis of use*Office Establishment Determined on basis of use*Commercial establishment Determined on basis of use*Restaurant or bar Determined on basis of use*Community hall or church Determined on basis of use*Gas station Determined on basis of use*Schools Determined on basis of use*Laundromats Determined on basis of use*Industrial Determined on basis of use*Vacant Lots Determined on basis of use**To be determined by using an average usage throughout the months of November through March and eliminating the high and low month. Divide the

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calculated flow by the similar average of all the single-family residences (EDU) and multiply by the monthly rate for an EDU.

Uses not in current list may be estimated by Murphys Sanitary District for the year and permanent fee established thereafter.

Rate = (Nov.-Mar. less high and low) x Monthly Rate for an EDU

Equivalent percentages (basis of use) of the basic service charge remain the same.

3.4.2 Rate Comparison

The Murphys Sanitary District rate of $60.00 per month per EDU is comparable to the San Andreas Sanitary District rate of $66.75 per EDU per month. The Valley Springs rate of $49.50 per month per EDU may be lower than needed to support the District.

3.4.3 Budget

A budget is a plan for spending, an audit shows actual funds on hand and spent. The following tables show the budget for the Murphys Sanitary District for 2017-2018 and 2018-19, the first table is for income:

1 MURPHYS SANITARY DISTRICT APPROVED BUDGET2 INCOME 2017-18 2018-19 25

3 4100 Service Charges Residential 620,640.00 632,160.004 4102 Service Charges Apartments 40,860.00 38,160.005 4104 Service Charges Lodges/Churches 6,360.00 4,320.006 4106 Service Charges-School 6,394.00 5,671.007 4108 Service Charges-Commercial 170,229.17 173,444.008 Total Monthly Billing 844,483.17 853,755.009 4110 Plan Check and Inspection Fees 5,000.00 5,000.0010 4111 Late Fees 1,700.00 3,000.0011 4120 Taxes 100,000.00 110,000.0012 4130 Other Services 1,200.00 1,200.0013 4140 General Reserve Interest 6,000.00 8,000.0014 4150 Vacant Lot Billing 3,500.00 2,900.0015 4160 Refunds-Rebates 100.00 100.0016 4200 Connection Fees 10,000.00 10,000.0017 Total Miscellaneous Income 127,500.00 140,200.0018 TOTAL INCOME 971,983.17 993,955.0019 Grant Funds IRWM Integrated Regional Water Management 176,682.00 20,190.1720 Grant Funds-Plant Upgrade 41,330.00 126,000.0021 Reserve Transfers-Balance 94,151.02 202,543.8022 TOTAL INCOME 1,284,146.19 1,342,688.97The income for the Murphys Sanitary District is primarily from billing for service as shown above. The billing is expected to generate over $800,000 for the fiscal year.

25 Murphys Sanitary District, Calaveras LAFCo Questionnaire, October 1, 2018.

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Taxes only generate $110,000 for the fiscal year. Since the passage of Proposition 13 in 1978 property taxes are limited so special districts are forced to bill for the full cost of the service. The budget tables for expenses continue below:

1 MURPHYS SANITARY DISTRICT APPROVED BUDGET-PERSONNEL2017-18 2018-19

25

WAGES

26

5001.00 Wages-Operations 153,920.00 162,240.00

27

5001.50 Wages-Administration 98,531.00 107,010.00

29

5002.00 Overtime-Operations 6,000.00 6,000.00

30

5002.50 Overtime-Office 500.00 500.00

31

5005.00 On-Call Comp-Operations 5,200.00 5,200.00

32

TOTAL WAGES 264,151.00 280,950.00

33

EMPLOYEE BENEFITS

34

5010.00 Health Insurance-Operations 68,200.00 79,200.00

35

5010.50 Health Insurance-Administration 26,400.00 26,400.00

36

5015.00 Accrued Vacation –Operations 3,000.00 3,160.00

37

5015.50 Accrued Vacation-Administration 1,500.00 1,500.00

38

5020.10 CalPERS Retirement-Catch Up 3,500.00 6,500.00

39

5020.00 CalPERS Retirement-Operations 11,159.20 11,512.80

40

5020.50 CalPERS Retirement-Administration 5,425.80 5,990.40

41

TOTAL EMPLOYEE BENEFITS 119,188.00 134,263.20

42

415,213.20

43

PAY ROLL TAXES

44

5030.50 FICA-Medicare 27,444.45 29,555.78

45

5050.00 State EDD-Operations 25,000.00 -

46

5050.50 State EDD-Administration -

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47

TOTAL PAY ROLL TAXES 52,444.45 29,555.78

48

WORKERS’ COMPENSATION

49

5040.00 Workers’ Compensation-Operations 17,000.00 19,000.00

50

5040.50 Workers’ Compensation-Administration 1,000.00 800.00

51

TOTAL WORKMAN’S COMPENSATION 18,000.00 19,800.00

52

TOTAL EMPLOYEE 453,783.45 464,568.98

Although the cost of wages and benefits may see high to the lay person, the District needs competent employees. Lack of adequate staff or untrained staff may result in greater costs due to mistakes or damage to equipment or the environment or failure to meet State and Federal requirements. The District is associated with CalPERS for the retirement benefits which is an expensive program, but this may help the District to attract good employees. Also, it would be prohibitively expensive for the District to change to another retirement system.

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1 MURPHYS SANITARY DISTRICT APPROVED BUDGET2017-18 2018-19

53 OPERATIONS-Maintenance and Repairs-other54 6001.10 R&M Collection (Repairs and Maintenance) 3,000.00 3,000.0055 6001.20 R&M Treatment 5,000.00 5,000.0056 6002.40 R&M Truck 4,000.00 4,000.0057 6003.40 R&M Tractor 2,000.00 1,000.0058 6004.40 R&M Trailer pump 500.00 500.0059 6005.40 R&M Hydro Equipment 1,500.00 1,500.0060 6006.40 R&M Small tools and equipment 2,000.00 1,000.0061 TOTAL MAINTENANCE AND REPAIRS OTHER 18,000.00 16,000.0062 OPERATIONS- Supplies64 6010.00 Equipment Rental 1,500.00 500.0065 6011.00 Gas-Oil-Fuel 6,000.00 6,000.0067 6012.10 Supplies-Collection 2,000.00 2,000.0069 6012.20 Supplies-Treatment 35,000.00 35,000.0070 6013.00 Safety Supplies 1,500.00 500.0072 6014.00 Small tools-Equipment-Trash Pump 1,000.00 3,000.0073 6015.00 Uniforms 2,350.00 2,800.0074 TOTAL SUPPLIES 49,350.00 49,800.00

1 MURPHYS SANITARY DISTRICT APPROVED BUDGET2017-18 2018-19

75 OPERATIONS-Utilities76 6021.10 Electric-Water 15,500.00 14,500.0077 6021.20 Electric-Water 21,500.00 24,000.0078 6022.00 Telephone-Cell-Internet 5,500.00 5,500.0079 Total Utilities 42,500.00 44,000.0080 OPERATIONS-Other81 6031.20 Education Operations 2,000.00 3,000.0082 6032.20 Research-Monitoring 26,000.00 26,000.0083 6033.00 Answering Service 1,812.00 1,980.0084 6034.00 Alarm/Security 3,300.00 3,600.0085 6036.20 Bio-Solids Management86 Total Other 33,112.00 34,580.0087 ADMINISTRATION-Rents-Leases88 7050.10 Rents & Leases-Collection 720.00 720.0089 7050.50 Rents & Leases 7,200.00 7,920.0090 Total Rents-Leases 7,920.00 8,640.0091 ADMINISTRATIVE-Supplies92 7011.00 Office Supplies-Operations 1,500.00 1,500.0093 7011.50 Office Supplies-Administration 5,000.00 5,000.0094 7012.50 Postage 2,500.00 2,800.0095 7013.50 Printing-Customer Outreach 500.00 200.0096 7014.00 Publications-Operations 200.00 200.0097 7015.50 Office Equipment-Software 5,365.74 7,000.0098 Total Supplies 15,065.74 16,700.00

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1 MURPHYS SANITARY DISTRICT APPROVED BUDGET2017-18 2018-19

99 ADMINISTRATIVE-UTILITIES100 7021.50 Electric-Water 1,800.00 1,800.00101 7022.50 Telephone-Internet Access 3,000.00 3,000.00102 Total Utilities 4,800.00 4,800.00103 ADMINISTRATIVE-OTHER104 7030.50 Bank charges 50.00 100.00105 7031.50 County Lien Costs-Mileage 1,200.00 1,000.00107 7034.50 Education 3,000.00 3,000.00108 7035.50 Memberships 13,500.00 16,000.00109 Grant Expenses 5,000.00 -110 Total Other 22,750.00 20,100.00111 ADMINISTRATIVE –INSURANCE112 7040.50 Liability Insurance 17,000.00 19,100.00113 Total Insurance 17,000.00 19,100.00114 ADMINISTRATIE-PROFESSIONAL115 7051.50 Professional Legal Services Ordinance 16,000.00 16,000.00116 7052.50 Board Expenses 7,950.00 7,950.00117 Total Professional 23,950.00 23,950.00118 ADMINISTRATIVE-LICENSE-PERMITS119 7070.00 State Permits 25,000.00 28,000.00120 7071.20 Plan Check Permits 5,000.00 5,000.00121 Total License Permits 30,000.00 33,000.00

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1 MURPHYS SANITARY DISTRICT APPROVED BUDGET2017-18 2018-19

122

ADMINISTRATIVE-Marketing

123

7080.50 Advertising-Legal Postings 3,000.00 2,000.00

124

7081.50 Customer Outreach 250.00 250.00

125

Total Marketing 3,250.00 2,250.00

126

ADMINISTRATIVE-Engineering

127

8500.50 Engineering-General-NOV Response

15,000.00 16,000.00

128

Total Engineering 15,000.00 16,000.00

129

TOTAL OPERATING EXPENSES w\PR 723,481.19 753,488.98

130

CAPITAL EXPENSE LOANS

132

9006.10 Hydro Flusher 5 year lease 9,200.00 9,200.00

133

Total Capital Loans 9,200.00 9,200.00

134

Capital Expenses

135

Cash to reserves

136

9007.00 Capital Replacements 510,965.00 425,000.00

137

9009.10 Sewer System Management Plan 1,500.00 30,000.00

138

9021.20 CIP-KIS Pond Project Report - 15,000.00

139

9022.00 Plant Upgrade-Grant Reimbursable 26,000.00 110,000.00

140

Sub-Total Capital Expenses 538,465.00 580,000.00

141

Total Capital 547,665.00 589,200.00

142

TOTAL EXPENSES 1,284,146.19

1,342,688.98

It is good that the District has this budget available on the website.

3.4.4 Audit

1 Net Position

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The Murphys Sanitary District Audit for the year ended June 30, 2017 shows the Net Position, the Revenues and Expenses and the Cash Flows for the District. The District accounts for its operations in enterprise funds using the accrual basis of accounting. The Net Position is shown in the table below:

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MURPHYS SANITARY DISTRICT STATEMENT OF NET POSITION June 30, 201726

ASSETSCurrent AssetsCash and investments 1,423,379Accounts receivable 8,083Grant receivable 177,584Interest receivable 2,882Prepaids 1,092

Total current assets 1,613,020Non-current assetsCapital AssetsProperty, plant, and equipment-net of accumulated depreciation 3,928,742

Total non-current assets 3,928,742TOTAL ASSETS 5,541,762

DEFERRED OUTFLOWS OF RESOURCES 58,487LIABILITIESCurrent LiabilitiesAccounts payable and accrued expenses 16,669Unearned revenues 5,637Current portion of long-term debt 8,575

Total current liabilities 30,881Non-current liabilitiesCompensated absences 6,345Long-term debt 8,874Net pension liability 120,624

Total non-current liabilities 135,843TOTAL LIABILITIES 166,724

DEFERRED INFLOWS OF RESOURCES 26,232NET POSITIONNet investment in capital assets 3,911,293Unrestricted 1,496,000

Total net position 5,407,293

The following table shows the income and expenses for the year leading to the change in Net Position for the fiscal year ended June 30, 2017.

26 Murphys Sanitary District, Independent Auditor’s Report and Financial Statements, June 30, 2017, prepared by Bryant L. Jolley, Certified Public Accountants, 901 “N” Street, Suite 104, Firebaugh, CA 93622, Phone: 559.659.3045, August 17, 2017, Page 5.

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2 Revenue and Expenses

MURPHYS SANITARY DISTRICT STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION June 30, 201727

Operating Revenue from service charges 849,377Operating ExpenseSalaries and wages 273,906Employee benefits 103,596Professional services 37,794Operating supplies 39,094Permits 22,590Repairs and maintenance 9,350Monitoring 23,458Office 33,107Utilities 37,911Insurance 33,868Transportation 6,730Communications 9,912Memberships and publications 9,053Depreciation 125,709

Total operating expense 766,078Operating income (loss) 83,299Non-operating Revenue (Expense)Property taxes 104,409Interest income 7,646Other income 23,929 Total non-operating revenue (expense) 135,984 Net income before capital contributions 219,283Capital Contributions-Capital grants 323,990Change in Net Position 543,273Net PositionBeginning of year 4,864,020Ending of year 5,407,293

While the Net Position is only one measure of financial status, it is good to note that the Net Position for the Murphys Sanitary District was increased in the year ended June 30, 2017.

27 Murphys Sanitary District, Independent Auditor’s Report and Financial Statements, June 30, 2017, prepared by Bryant L. Jolley, Certified Public Accountants, 901 “N” Street, Suite 104, Firebaugh, CA 93622, Phone: 559.659.3045, August 17, 2017, Page 6.

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3 Cash and InvestmentsThe audit shows the cash and investments for the District as follows:

Cash and investments as of June 30, 201728

Cash on hand $200Deposits with financial institutions 128,129Local Agency Investment Fund (LAIF) 1,295,050Total Cash and Investments $1,423,379

The Local Agency Investment Fund is a local government investment pool administered by the State of California.

4 Property, Plant and EquipmentThe following table shows the property, plant and equipment value which make up the Capital Assets of the District.

MURPHYS SANITARY DISTRICT PROPERTY, PLANT AND EQUIPMENTJune 30, 201729

BalanceJuly 1, 2016

Additions Retirements

BalanceJune 30, 2017

Capital Assets, not being depreciatedLand 274,091 274,091Construction in progress 346,137 15,858 (346,137) 15,858Total Capital Assets, not being depreciated

620,228 15,858 (346,137) 289,949

Capital Assets, being depreciatedTreatment plant 2,470,139 681,330 3,151,469Utility system-infrastructure 1,863,678 - 1,863,678Donated property 1,440,389 - 1,440,389Buildings and equipment 523,875 2,598 526,473Total capital assets, being depreciated

6,298,081 683,928 6,982,009

Less accumulated depreciation forTreatment plant (1,694,502

)(48,573) (1,743,075)

Utility system-infrastructure (762,959) (36,334) (799,293)Donated property (306,472) (28,808) (335,280)Buildings and equipment (453,574) (11,994) (465,568)Total accumulated depreciation (3,217,507

)(125,709) (3,343,216)

Total capital assets, being depreciated, net

3,080,574 558,219 3,638,793

Total capital assets, net 3,700,802 574,077 (346,137) 3,928,742The capital assets increased in value from 2016 to June 30, 2017.28 Murphys Sanitary District, Independent Auditor’s Report and Financial Statements, June 30, 2017, prepared by Bryant L. Jolley, Certified Public Accountants, 901 “N” Street, Suite 104, Firebaugh, CA 93622, Phone: 559.659.3045, August 17, 2017, Page 11.29 Murphys Sanitary District, Independent Auditor’s Report and Financial Statements, June 30, 2017, prepared by Bryant L. Jolley, Certified Public Accountants, 901 “N” Street, Suite 104, Firebaugh, CA 93622, Phone: 559.659.3045, August 17, 2017, Page 14.

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5 Long-Term Debt

The Murphys Sanitary District has two sources on Long-Term Debt as follows:

Murphys Sanitary District Long-Term Debt June 30, 201730

BalanceJuly 1, 2016

Additions

Retirements

BalanceJune 30, 2017

CurrentPortion

Municipal Financenote payable

$25,734 ($8,285) $17,449 $8,575

Riedel note payable

$157,916 - ($157,916) - -

Total Business-TypeActivity Debt

$183,650 - ($166,201) $17,449 $8,575

Municipal Finance note payable: In August 2013, the District obtained financing from Municipal Finance Corporation for $41,472 to purchase a new hydro flusher. The note is paid in annual installments of $9,185.22 including interest at 3.5% per annum for a period of 5 years, maturing on August 1, 2018.

Riedel Note Payable: On May 20, 2009, the District obtained financing from William Riedel for $247,000 to purchase 23 acres of vacant land from him. The note is paid in monthly installments of $2,003.92 including interest at 5.5% per annum for a period of 15 years, maturing on July 20, 2024. In fiscal year 2016-17 the District paid the note off.

6 Pension Plan

The District’s defined benefit pension plan, the California Public Employees’ Retirement System (CalPERS), provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members and beneficiaries. The District selects optional benefit provisions from the benefit menu by contract with Cal PERS and adopts those benefits through local ordinance. CalPERS issues a separate comprehensive financial report. 31

Active plan members in the District’s defined pension plan are required to contribute 7% of their annual salary. The District is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rate for fiscal year 2017 was 7.159% for Miscellaneous Classic and 6.555% for Miscellaneous PEPRA. The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by CalPERS.

30 Murphys Sanitary District, Independent Auditor’s Report and Financial Statements, June 30, 2017, prepared by Bryant L. Jolley, Certified Public Accountants, 901 “N” Street, Suite 104, Firebaugh, CA 93622, Phone: 559.659.3045, August 17, 2017, Page 15.31 Murphys Sanitary District, Independent Auditor’s Report and Financial Statements, June 30, 2017, prepared by Bryant L. Jolley, Certified Public Accountants, 901 “N” Street, Suite 104, Firebaugh, CA 93622, Phone: 559.659.3045, August 17, 2017, Page 16.

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7 Insurance

The District joined together with other special districts for insurance coverage under Special District Risk Management Authority (SDRMA). The District pays and annual premium to SDRMA for it general insurance coverage. The District continues to carry commercial insurance for all other risks of loss, including workers’ compensation and employee health and accident insurance. 32

32 Murphys Sanitary District, Independent Auditor’s Report and Financial Statements, June 30, 2017, prepared by Bryant L. Jolley, Certified Public Accountants, 901 “N” Street, Suite 104, Firebaugh, CA 93622, Phone: 559.659.3045, August 17, 2017, Page 21.

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4 MURPHYS SANITARY DISTRICT MUNICIPAL SERVICE REVIEW

4.1 Growth and Population Projections for the Murphys Sanitary District Area

4.1.1 Murphys Sanitary District Area Population Projections

The Calaveras County Housing Element 2014-2019 shows that Calaveras County as a whole is expected to grow by 1.3% per year to 2020 and 1.0% per year to 2025.33 However, between 2015 and 2016 the population of Murphys, CA declined from 2,091 to 2,088, a 0.14% decrease according to Data USA.34 Future growth could be limited due to the elevation of the wastewater treatment plant. It would cost more to pump wastewater uphill to the treatment plant.

The Housing Element showed that Murphys Sanitary District had vacant sites for 70 units, but recognized that there could be additional improvements to the area required to develop these sites.35 The Housing Element further states that “These improvements would be evaluated as a part of the development review process.”

This shows that need for the Murphys Sanitary District to be in contact with the Calaveras County Planning Department and to participate in the approval process of development that will impact the wastewater collection and treatment service.

4.1.2 MSR Determinations on Growth and Population Projections for the Murphys Sanitary District Area

MSR 1-1) The population within the Murphys Sanitary District is expected to grow.

MSR 1-2) The Murphys Sanitary District should maintain close contact with the Calaveras County Planning Department to stay informed about possible development.

4.2 Location and Characteristics of any Disadvantaged Unincorporated Communities (DUC) within or Contiguous to Murphys Sanitary District

4.2.1 Determination of Murphys Sanitary District Area Disadvantaged

Unincorporated Community Status

Between 2015 and 2016 the Murphys CA Median Household Income declined from $45,330 to $43,686, a 3.63% decrease. 36 This is compared to the Median Household Income for California of $67,73937 and the Murphys Median Household Income is only 64% of the State Median Household Income. Thus, the Murphys area could be considered a Disadvantaged Unincorporated Community; however, there is no incorporated city nearby to provide better services.

33 Calaveras County Housing Element 2014-2018, Adopted by Resolution No. 1488, May 26, 2015, Page 19.34 https://datausa.io/profile/geo/murphys-ca/, October 23, 2018.35 Calaveras County Housing Element 2014-2018, Adopted by Resolution No. 1488, May 26, 2015, Page 76.36 https://datausa.io/profile/geo/murphys-ca/, October 23, 2018.37 http://www.city-data.com/city/San-Andreas-California.html#b, August 28, 2018.

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4.2.2 MSR Determinations on Disadvantaged Unincorporated Communities near Murphys Sanitary District

MSR 2-1) The estimated Median Household Income for Murphys and for the State of California was as follows:

Murphys Median Household Income $43,686 (64%)California Median Household Income $67,639 (100%)

Thus, the Murphys area is considered a disadvantaged unincorporated community and recently received a 75% grant for wastewater system upgrades.

4.3 Capacity and Infrastructure

4.3.1 Infrastructure

The District maintains 63,000 linear feet, (11.9 miles) of sewer collection lines. These range from the largest diameter of 10 inches down to 4 inches, with the most common size being 6 inch.  An average dry weather flow of 135,000 gallons per day of raw wastewater (below the limit of 200,000 GPD) is treated to an advanced secondary level with a combination pond and filtration Wastewater Treatment Plant. Treated effluent is utilized for irrigation at the neighboring Hay Station Ranch vineyards.38

4.3.2 MSR Determinations on Infrastructure for Murphys Sanitary District

MSR 3-1) The Murphys Sanitary District has a Capital Improvement Plan and a Capital Improvement Budget to make the necessary improvements to the wastewater collection system and the wastewater treatment plant.

38 Murphys Sanitary District, http://www.murphyssd.org/, May 17, 2018.

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4.4 Financial Ability to Provide Services

4.4.1 Financial Considerations for Murphys Sanitary District

The financial information for the Murphys Sanitary District is shown above in this report.

4.4.2 MSR Determinations on Financing for Murphys Sanitary District

MSR 4-1) The Murphys Sanitary District has fees adequate to finance the District operations and similar to other sanitary districts in the County.

MSR 4-2) The Murphys Sanitary District prepares a budget and posts the budget on the website for the public.

MSR 4-3) The Murphys Sanitary District contracts with a Certified Public Accountant to prepare an audit as required by the State Law. The Audit is posted on the District website.

MSR 4-4) The Murphys Sanitary District cooperates with the Calaveras County Auditor’s Department.

MSR 4-5) The Murphys Sanitary District works to get additional funds from State grants where possible.

MSR 4-6) The Murphys Sanitary District management keeps within its adopted budget and keeps current with industry standards.

4.5 Status of and Opportunities for Shared Facilities

4.5.1 Murphys Sanitary District Facilities The Murphys Sanitary District facilities are described above in this report.

4.5.2 MSR Determinations on Shared Facilities for Murphys Sanitary District

MSR 5-1) The Murphys Sanitary District is not located close to any other district to have shared facilities.

MSR 5-2) The Murphys Sanitary District is within the Union PUD which supplies water to the area.

MSR 5-3) The Murphys Sanitary District cooperates with the Calaveras County for financial matters.

MSR 5-4 The Murphys Sanitary District participates in the Quarterly Utility Meeting Program with other utility agencies and the County, the regional

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Integrated Water Management Plan (IRWM), and numerous organizations such as California Rural Water, the Highway 4 coordination group, the California Association of Special Districts, the Gold Country Association, the Mountain Counties Association and the Association of County Water Agencies.

4.6 Accountability for Community Service Needs, Government Structure and Operational Efficiencies

4.6.1 Government Structure

The government of the Murphys Sanitary District is described above in this report.

4.6.2 MSR Determinations on Local Accountability and Governance

MSR 6-1) The Murphys Sanitary District has a five member Board of Directors elected at large. The District is fortunate to have five citizens willing and able to do this work.

MSR 6-2) The District was cooperative and supplied Calaveras LAFCo with the information to prepare this report.

MSR 6-3) The District continuously maintains a website with useful information available to the public.

MSR 6-4) The District successfully uses a “Two Management System” having both a manager for administration and a manager for operations each reporting directly to the Board of Directors (BOD). Communications between the managers include weekly meetings and BOD guidance through the establishment of common goals including protocols for consistent checks and balances.

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5 MURPHYS SANITARY DISTRICT SPHERE OF INFLUENCE UPDATE

5.1 Recommendation for Murphys Sanitary District Sphere of Influence

The proposed Sphere of Influence is the same as the District Boundary except that it includes the parcels which are receiving wastewater collection and treatment service and the Vineyard where the wastewater is disposed.

5.2 Present and Planned Land Uses in the Murphys Sanitary District Area, Including Agricultural and Open Space Lands

5.2.1 Calaveras County General Plan and Zoning for Murphys Sanitary District SOI Area

The Calaveras County General Plan includes a community plan for the Murphys area. The Plan is designed to enhance the commercial areas with adequate parking and access and to allow growth and development.

5.2.2 SOI Determinations on Present and Planned Land Use for Murphys Sanitary District Area

SOI 1-1] The Murphys commercial businesses could not exist without the Murphys Sanitary District. The District is needed now and will be needed in the future.

SOI 1-2] The Murphys Sanitary District continuously works to ensure that both commercial and residential customers are being charged fairly through periodic fee schedule updates.

5.3 Present and Probable Need for Public Facilities and Services in the Murphys Sanitary District Area

5.3.1 Municipal Service Background

The Murphys Sanitary District serves a smaller area than the Union PUD (domestic and agricultural water service). The Murphys Sanitary District is essential to the success of the commercial enterprises in the community.

5.3.2 SOI Determinations on Facilities and Services Present and Probable Need for Murphys Sanitary District

SOI 2-1] The Murphys Sanitary District is needed now and will be needed in the future.

SOI 2-2] The Murphys Sanitary District serves a busy commercial district as well as residential customers.

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5.4 Present Capacity of Public Facilities Present and Adequacy of Public Services

5.4.1 Capacity Background

The capacity of the Murphys Sanitary District is described above in this report. The District is operating at capacity but may be able to expand in the future.

5.4.2 SOI Determinations on Public Facilities Present and Future Capacity for Murphys Sanitary District

SOI 3-1] The Murphys Sanitary District is operating at approximately 80% of the WWTP design capacity.; The planned improvements scheduled to be completed by mid-2020 will further improve the reliability and operation of the WWTP.

5.5 Social or Economic Communities of Interest for Murphys Sanitary District

5.5.1 Murphys Sanitary District Community Background

The Murphys community is described above in this report. The Murphys community is not a full-service community because there is no middle school or high school within the town. Murphys is the tourist hub for Calaveras County. The Murphys Sanitary District serves both residents and visitors to the Murphys area. The business owners need to support the District as well as the permanent residents of the area.

5.5.2 SOI Determinations on Social or Economic Communities of Interest for Murphys Sanitary District

SOI 4-1] The vibrant commercial area of Murphys could not exist without the Murphys Sanitary District.

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5.6 Disadvantaged Unincorporated Community Status

5.6.1 Disadvantaged Unincorporated Communities

Between 2015 and 2016 the Murphys CA Median Household Income declined from $45,330 to $43,686, a 3.63% decrease. 39 This is compared to the Median Household Income for California of $67,73940 and the Murphys Median Household Income is only 64% of the State Median Household Income. Thus, the Murphys area could be considered a Disadvantaged Unincorporated Community; however, there is no incorporated city nearby to provide better services.

5.6.2 Murphys Sanitary District Disadvantaged Unincorporated Community Status

SOI 5-1] The estimated Median Household Income for Murphys and for the State of California was as follows:

Murphys Median Household Income $43,686 (64%)California Median Household Income $67,639 (100%)

Thus, the Murphys area is considered a disadvantaged unincorporated community.

39 https://datausa.io/profile/geo/murphys-ca/, October 23, 2018.40 http://www.city-data.com/city/San-Andreas-California.html#b, August 28, 2018.

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APPENDIX A LOCAL GOVERNEMENT SPENDING ISSUES

1 Municipal Financial Constraints

Municipal service providers are constrained in their capacity to finance services by the inability to increase property taxes, requirements for voter approval for new or increased taxes, and requirements of voter approval for parcel taxes and assessments used to finance services. Municipalities must obtain majority voter approval to increase or impose new general taxes and two-thirds voter approval for special taxes.

Limitations on property tax rates and increases in taxable property values are financing constraints. Property tax revenues are subject to a formulaic allocation and are vulnerable to State budget needs. Agencies formed since the adoption of Proposition 13 in 1978 often lack adequate financing.

1.1 California Local Government Finance Background

The financial ability of the cities and special districts to provide services is affected by financial constraints. City service providers rely on a variety of revenue sources to fund city operating costs as follows:

Property Taxes Benefit Assessments Special Taxes Proposition 172 Funds Other contributions from city or district general funds.

As a funding source, property taxes are constrained by statewide initiatives that have been passed by voters over the years and special legislation. Seven of these measures are explained below:

A. Proposition 13Proposition 13 (which California voters approved in 1978) has the following three impacts:

Limits the ad valorem property tax rate Limits growth of the assessed value of property Requires voter approval of certain local taxes.

Generally, this measure fixes the ad valorem tax at one percent of value; except for taxes to repay certain voter approved bonded indebtedness. In response to the adoption of Proposition 13, the Legislature enacted Assembly Bill 8 (AB 8) in 1979 to establish property tax allocation formulas.

B. AB 8Generally, AB 8 allocates property tax revenue to the local agencies within each tax rate area based on the proportion each agency received during the three fiscal years preceding adoption of Proposition 13. This allocation formula benefits local agencies, which had relatively high tax rates at the time Proposition 13 was enacted.

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C. Proposition 98Proposition 98, which California voters approved in 1988, requires the State to maintain a minimum level of school funding. In 1992 and 1993, the Legislature began shifting billions of local property taxes to schools in response to State budget deficits. Local property taxes were diverted from local governments into the Educational Revenue Augmentation Fund (ERAF) and transferred to school districts and community college districts to reduce the amount paid by the State general fund.

Local agencies throughout the State lost significant property tax revenue due to this shift. Proposition 172 was enacted to help offset property tax revenue losses of cities and counties that were shifted to the ERAF for schools in 1992.

D. Proposition 172Proposition 172, enacted in 1993, provides the revenue of a half-cent sales tax to counties and cities for public safety purposes, including police, fire, district attorneys, corrections and lifeguards. Proposition 172 also requires cities and counties to continue providing public safety funding at or above the amount provided in FY 92-93.

E. Proposition 218Proposition 218, which California voters approved in 1996, requires voter- or property owner-approval of increased local taxes, assessments, and property-related fees. A two-thirds affirmative vote is required to impose a Special Tax, for example, a tax for a specific purpose such as a fire district special tax.

However, majority voter approval is required for imposing or increasing general taxes such as business license or utility taxes, which can be used for any governmental purpose. These requirements do not apply to user fees, development impact fees and Mello-Roos districts.

F. Mello-Roos Community Facilities ActThe Mello-Roos Community Facilities Act of 1982 allows any county, city, special district, school district or joint powers authority to establish a Mello-Roos Community Facilities District (a “CFD”) which allows for financing of public improvements and services. The services and improvements that Mello-Roos CFDs can finance include streets, sewer systems and other basic infrastructure, police protection, fire protection, ambulance services, schools, parks, libraries, museums and other cultural facilities. By law, the CFD is also entitled to recover expenses needed to form the CFD and administer the annual special taxes and bonded debt.

A CFD is created by a sponsoring local government agency. The proposed district will include all properties that will benefit from the improvements to be constructed or the services to be provided. A CFD cannot be formed without a two-thirds majority vote of residents living within the proposed boundaries. Or, if there are fewer than 12 residents, the vote is instead conducted of current landowners.

In many cases, that may be a single owner or developer. Once approved, a Special Tax Lien is placed against each property in the CFD. Property owners then pay a Special Tax each year.

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If the project cost is high, municipal bonds will be sold by the CFD to provide the large amount of money initially needed to build the improvements or fund the services. The Special Tax cannot be directly based on the value of the property. Special Taxes instead are based on mathematical formulas that take into account property characteristics such as use of the property, square footage of the structure and lot size. The formula is defined at the time of formation, and will include a maximum special tax amount and a percentage maximum annual increase.

If bonds were issued by the CFD, special taxes will be charged annually until the bonds are paid off in full. Often, after bonds are paid off, a CFD will continue to charge a reduced fee to maintain the improvements.

G. Development Impact FeesA county, cities, special districts, school districts, and private utilities may impose development impact fees on new construction for purposes of defraying the cost of putting in place public infrastructure and services to support new development.

To impose development impact fees, a jurisdiction must justify the fees as an offset to the impact of future development on facilities. This usually requires a special financial study. The fees must be committed within five years to the projects for which they were collected, and the district, city or county must keep separate funds for each development impact fee. 1.2 Financing Opportunities that Require Voter Approval

Financing opportunities that require voter approval include the following five taxes:1. Special taxes such as parcel taxes2. Increases in general taxes such as utility taxes3. Sales and use taxes 4. Business license taxes 5. Transient occupancy taxes

Communities may elect to form business improvement districts to finance supplemental services, or Mello-Roos districts to finance development-related infrastructure extension. Agencies may finance facilities with voter-approved (general obligation) bonded indebtedness.

1.3 Financing Opportunities that Do Not Require Voter Approval

Financing opportunities that do not require voter approval include imposition of or increases in fees to more fully recover the costs of providing services, including user fees and Development Impact Fees to recover the actual cost of services provided and infrastructure.

Development Impact Fees and user fees must be based on reasonable costs, and may be imposed and increased without voter approval. Development Impact Fees may not be used to subsidize operating costs. Agencies may also finance many types of facility improvements through bond instruments that do not require voter approval.

Water rates and rate structures are not subject to regulation by other agencies. Utility providers may increase rates annually, and often do so. Generally, there is no voter

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approval requirement for rate increases, although notification of utility users is required. Water providers must maintain an enterprise fund for the respective utility separate from other funds, and may not use revenues to finance unrelated governmental activities. 2 Public Management Standards

While public sector management standards do vary depending on the size and scope of an organization, there are minimum standards. Well-managed organizations do the following eight activities:

1. Evaluate employees annually.2. Prepare a budget before the beginning of the fiscal year. 3. Conduct periodic financial audits to safeguard the public trust.4. Maintain current financial records.5. Periodically evaluate rates and fees.6. Plan and budget for capital replacement needs. 7. Conduct advance planning for future growth.8. Make best efforts to meet regulatory requirements.

Most of the professionally managed and staffed agencies implement many of these best management practices. LAFCo encourages all local agencies to conduct timely financial record-keeping for each city function and make financial information available to the public.

3 Public Participation in Government

The Brown Act (California Government Code Section 54950 et seq.) is intended to insure that public boards shall take their actions openly and that deliberations shall be conducted openly.

The Brown Act establishes requirements for the following:

Open meetings Agendas that describe the business to be conducted at the meeting Notice for meetings Meaningful opportunity for the public to comment

Few exceptions for meeting in closed sessions and reports of items discussed in closed sessions.

According to California Government Section 54959:

Each member of a legislative body who attends a meeting of that legislative body where action is taken in violation of any provision of this chapter, and where the member intends to deprive the public of information to which the member knows or has reason to know the public is entitled under this chapter, is guilty of a misdemeanor.

Section 54960 states the following:

(a) The district attorney or any interested person may commence an action by mandamus, injunction or declaratory relief for the purpose of stopping or preventing violations or threatened violations of this chapter by members of the legislative body of a

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local agency or to determine the applicability of this chapter to actions or threatened future action of the legislative body

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APPENDIX B REVISED MOITORING AND REPORTING PROGRAM

CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD CENTRAL VALLEY REGION

REVISED MONITORING AND REPORTING PROGRAM NO. 5-00-264 (REV3) FOR

MURPHYS SANITARY DISTRICT MURPHYS WASTEWATER TREATMENT PLANT

CALAVERAS COUNTY

This monitoring and reporting program (MRP) describes requirements for monitoring of influent wastewater, treated effluent, treatment and storage ponds, onsite spray field land application areas (LAAs) groundwater, biosolids, and community water supply for the Murphys Sanitary District wastewater treatment plant (WWTP). This MRP is issued pursuant to Water Code Section 13267. The Discharger shall not implement any changes to this MRP unless and until a revised MRP is issued by the Executive Officer. Specific sampling locations shall be approved by Central Valley Water Board staff prior to implementation of sampling activities.

All samples shall be representative of the volume and nature of the discharge or matrix of material sampled. The time, date, and location of each grab sample shall be recorded on the chain of custody form. All samples shall be collected and preserved in accordance with EPA and analytical methodology.

Field testing instruments (such as those used to test pH and electrical conductivity) may be used provided that:

1. The operator is trained in proper use and maintenance of the instruments;2. The instruments are calibrated prior to each monitoring event;3. Instruments are serviced and/or calibrated by the manufacturer at the

recommended frequency; and4. Field calibration reports are provided with the appropriate monitoring report.

INFLUENT MONITORINGInfluent flow monitoring shall be performed at the WWTP headworks. Samples shall be collected at approximately the same time as effluent samples and should be representative of the influent flow to the WWTP. At a minimum, influent monitoring shall consist of the following:

INFLUENT MONITORINGConstituent/Parameter Units Type of

SampleSampling

FrequencyReportingFrequency

Influent Flow mgd ContinuousMeter

Daily Monthly

BOD* mg/l Grab Monthly Monthly*BOD, denotes five-day 20º Celsius Biochemical Oxygen Demand

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POND MONITORINGThe Discharger shall monitor all wastewater ponds as follows:

POND MONITORINGConstituent/Parameter Units Type of

SampleSamplingFrequency

ReportingFrequency

Freeboard* Feet Measurement Weekly MonthlyDissolved Oxygen** mg/l Grab Weekly MonthlypH pH units Grab Weekly Monthly*Freeboard monitoring shall be performed at Pond 4 only.**Samples shall be collected at a depth of one foot from each pond in use. Samples shall be collected between 0700 and 0900 hours.

EFFLUENT MONITORINGThe Discharger shall collect effluent samples just prior to discharge to Hay Station Ranch and the on-site spray field LAAs. The time, date, and location of each grab sample shall be recorded on the sample chain of custody form. Effluent samples shall be representative of the volume and nature of the discharge. At a minimum, effluent monitoring shall consist of the following:

EFFLUENT MONITORINGConstituent/Parameter Units Type of

SampleSampling

FrequencyReportingFrequency

Rainfall Inches Cumulative Daily MonthlyVolume Discharged to Ironstone Vineyards

Gallons Cumulative Daily Monthly

Total Coliform Organisms* MPN/100 ml

Grab Daily Monthly

BOD** mg/l Grab Weekly MonthlyTotal Dissolved Solids mg/l Grab Weekly MonthlyNitrate as Nitrogen mg/l Grab Quarterly QuarterlyTotal Kjeldahl Nitrogen mg/l Grab Quarterly Quarterly*Using a minimum of 10 tubes or two dilutions.**5-Day, 20º Celsius Biochemical Oxygen Demand.

POND 4 WINTER MONITORINGMSD shall collect effluent samples from Pond 4 (storage pond) during the non- discharge months (December to February) to Hay Station Ranch. The time, date, and location of each grab sample shall be recorded on the sample chain of custody form. Effluent samples should be representative of the wastewater contained in the pond. At a minimum, effluent monitoring shall consist of the following:

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POND 4 WINTER MONITORINGConstituent/Parameter

Units Types ofSample

SamplingFrequency

ReportingFrequency

BOD* mg/l Grab Quarterly QuarterlyTotal Dissolved Solids mg/l Grab Quarterly QuarterlyNitrates as Nitrogen mg/l Grab Quarterly QuarterlyTotal Kjeldahl Nitrogen mg/l Grab Quarterly Quarterly*5 Day, 20º Celsius Biochemical Oxygen Demand

SPRAY FIELD LAND APPLICATION AREA MONITORINGThe monitoring shall be conducted daily when the spray field LAAs are used. A daily log of each inspection shall be kept at the facility and be submitted with the monthly monitoring reports. Photocopies of entries into an operator's field log are acceptable. The monthly report shall clearly states whether or not the LAAs were used during that month. Evidence of erosion, field saturation, irrigation runoff, or the presence of nuisance conditions shall be evaluated. Effluent monitoring results shall be used in calculations to determine loading rates at the LAAs. Monitoring of the LAAs shall include the following:

SPRAY FIELD LAND APPLICATION AREA MONITORING

Constituent Units Sample TypeSampling Frequency

Reporting Frequency

Wind speed miles/hour Meter observation Daily MonthlyFlow to each LAA gpd Meter observation Daily MonthlyAcreage applied acres Calculated Daily MonthlyWater application rate 1 inches/day Calculated Daily MonthlyRainfall 2 inches Observation Daily MonthlyTotal nitrogen loadingrate 1

lbs./ac/month Calculated Monthly Monthly

Tailwater runoff 3 NA Observation Daily Monthly1 Average calculated for each LAA.2 Rainfall data collected from the weather station that is nearest to the LAAs or a properly maintained on-site rain gauge.3 When wastewater is being applied to the land application areas, the entire application area shall be inspected daily to identify any equipment malfunction or other circumstance that might allow irrigation runoff to leave the area and/or create ponding conditions that violate the Waste Discharge Requirements.

GROUNDWATER MONITORINGGroundwater samples shall be collected from each groundwater monitoring well in accordance with an approved groundwater monitoring workplan. Prior to sampling or purging, equilibrated groundwater elevations shall be measured to the nearest 0.01 feet. The wells shall then be purged of at least three wetted well volumes until pH electrical conductivity, and temperature have stabilized. Samples shall be collected using standard EPA methods. Groundwater monitoring shall include, at a minimum, the following:

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GROUNDWATER MONITORINGConstituent/Parameter Units Type of

SampleSampling and Reporting

FrequencyDepth to Groundwater 0.01 feet Measurement QuarterlyGroundwater Elevation* 0.01 feet Measurement QuarterlypH pH units Grab QuarterlyTotal Dissolved Solids mg/l Grab QuarterlyNitrates as Nitrogen mg/l Grab QuarterlyTotal Kjeldahl Nitrogen mg/l Grab QuarterlyTotal Coliform Organisms**

MPN/100ml Grab Quarterly

Standard Minerals*** mg/l Grab Annually*Groundwater elevations shall be determined based on depth to water measurements using a surveyed measuring point elevation on the well and a surveyed reference elevation.**Using a minimum of 15 tubes or three dilutions.***Standard Minerals shall include, at a minimum, the following elements/compounds: barium, calcium, magnesium, potassium, sulfate, total alkalinity (including alkalinity series, and hardness.

WATER SUPPLY MONITORINGA sampling station shall be established where a representative sample of the municipal water supply can be obtained. Water supply monitoring shall include at least the following for each water source used during the previous year. As an alternative to annual water supply monitoring, the City of lone may submit results of the most current Department of Public Health Consumer Confidence Report.

WATER SUPPLY MONITORINGConstituent Units Sampling and Reporting

FrequencyTotal dissolved solids mg/L AnnuallyElectrical conductivity µmhos/cm AnnuallypH Standard unitsStandard minerals* mg/L Annually*Standard Minerals shall include, at a minimum, the following elements/compounds: boron, calcium, chloride, iron, magnesium, manganese, nitrogen, potassium, sodium, sulfate, total alkalinity (including alkalinity series, and hardness.

SLUDGE AND/OR BIOSOLIDS MONITORINGSludge and/or biosolids samples shall be analyzed to determine the total concentration in mg/Kg for the following constituents each time sludge is removed from any pond:

Arsenic Lead NickelCadmium Mercury Selenium Copper Molybdenum ZincTotal Nitrogen Total Solids

Sludge and/or biosolids monitoring records shall be retained for a minimum of five years in accordance with 40 CFR, Part 503.17. A log shall be kept of sludge

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quantities generated and of handling, application, and disposal activities. The frequency of entries is discretionary; however, the log should be complete enough to serve as a basis to report sludge monitoring.

REPORTINGIn reporting monitoring data, the Discharger shall arrange the data in tabular form so that the date, sample type, and reported analytical result for each sample are readily discernible. The data shall be summarized in such a manner to clearly illustrate compliance with waste discharge requirements and spatial or temporal trends, as applicable. The results of any monitoring done more frequently than required at the locations specified in the Monitoring and Reporting Program shall be reported to the Regional Board.

As required by the California Business and Professions Code Sections 6735, 7835, and 7835.1, all Groundwater Monitoring Reports shall be prepared under the direct supervision of a Registered Engineer or Geologist and signed by the registered professional.

A. Monthly Monitoring Reports

Monthly reports shall be submitted to the Regional Board by the 1st day of the second month following sampling (i.e., the January Report is due by 1 March). At a minimum the reports shall include:

1. Results of influent, pond, effluent and LAA monitoring.

2. A comparison of monitoring data to the discharge specifications and an explanation of any violation of those requirements. Data shall be presented in tabular format.

3. If requested by staff, copies of laboratory analytical report(s).

4. A calibration log verifying weekly calibration of all monitoring instruments and devices used to fulfill the prescribed monitoring program.

B. Quarterly Monitoring Reports

The Discharger shall establish a quarterly sampling schedule for groundwater and effluent monitoring (for constituents that require quarterly sampling) such that samples are obtained approximately every three months. Quarterly monitoring reports shall be submitted to the Board by the 1st day of the second month after the quarter (i.e. the January-March quarter report is due by May 1st each year.The Quarterly Report shall include the following:

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1. Results of groundwater.

2. A narrative description of all preparatory, monitoring, sampling, and analytical testing activities for the groundwater monitoring. The narrative shall be sufficiently detailed to verify compliance with the WDR, this MRP, and the Standard Provisions and Reporting Requirements. The narrative shall be supported by field logs for each well documenting depth to groundwater; parameters measured before, during, and after purging; method of purging; calculation of casing volume; and total volume of water purged.

3. Calculation of groundwater elevations, an assessment of groundwater flow direction and gradient on the date of measurement, comparison of previous flow direction and gradient data, and discussion of seasonal trends if any.

4. Results of effluent samples collected from Pond 4 during the winter months.

5. A narrative discussion of the analytical results for all media and locations monitored including spatial and temporal trends, with reference to summary data tables, graphs, and appended analytical reports (as applicable).

6. A comparison of monitoring data to the discharge specifications, groundwater limitations and effluent limitations, and explanation of any violation of those requirements.

7. Summary of data tables of historical and current water table elevations and analytical results.

8. A scaled map showing relevant structures and features of the facility, the locations of monitoring wells and any other sampling stations, and groundwater elevation contours referenced to mean sea level datum.

9. Copies of laboratory analytical reports(s) for groundwater water monitoring.

C. Annual Monitoring Reports

An Annual Report shall be submitted to the Regional Board by 1 February of each year. The Annual Report shall include the following:

1. The results from annual monitoring of the effluent, groundwater, and water supply;

2. Average dry weather influent flow for the year; the monthly average discharge flow to the Hay Station Ranch ; and a comparison of these results to the influent flow limitations of the WDRs.

3. Effluent annual average total nitrogen concentration and annual total nitrogen loading rate for each LAA;

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4. A digital database (Microsoft Excel) containing historic groundwater and effluent data;

5. For each compliance groundwater monitoring well, a statistical evaluation of the groundwater quality beneath the wastewater treatment facility and a comparison of the results to the groundwater limitations.

6. An evaluation of the performance of the WWTF, including discussion of capacity issues, infiltration and inflow rates, nuisance conditions, and a forecast of the flows anticipated in the next year;

7. The results of sludge and/or biosolids monitoring for the calendar year, including:

a. The amount of sludge generated that year and the amount accumulated on site at the end of the calendar year (in dry tons).

b. For biosolids, documentation of pathogen reduction methods and vector attraction reduction methods employed, as required in 40 CFR Parts 503.17 and 503.27.

c. A description of disposal methods, including the following information. If more than one method was used, include the amount of sludge disposed of by each method in dry tons.

i. For landfill disposal, include: the name and location of the landfill, and the Order number of WDRs that regulate it.

ii. For off-site land application, include: the name and location of the site, and the Order number of any WDRs that regulate it.

iii. For incineration, include: the name and location of the incineration facility.

iv. For off-site composting, include: the name and location of the facility, and the Order number of any WDRs that regulate it.

8. A discussion of compliance and the corrective actions taken, as well as any planned or proposed actions needed to bring the discharge into full compliance with the waste discharge requirements;

9. A discussion of any data gaps and potential deficiencies/redundancies in the monitoring system or reporting program;

10. A copy of the certification for each certified wastewater treatment plant operator working at the facility and a statement about whether the Dischargers are in compliance with California Code of Regulations , title 23, division 3, chapter 26;

11. A forecast of influent flows, as described in Standard Provision No. E.4; and

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12. A statement of when the O&M Manual was last reviewed for adequacy, and a description of any changes made during the year.

A transmittal letter shall accompany each self-monitoring report. The letter shall include a discussion of all violations of the WDRs or this MRP during the reporting period and actions taken or planned for correcting each violation. If the Dischargers have previously submitted a report describing corrective actions taken and/or a time schedule for implementing the corrective actions, reference to the previous correspondence will be satisfactory. Pursuant to Section B.3 of the Standard Provisions and General Reporting Requirements, the transmittal letter shall contain a statement by the Dischargers or the Dischargers' authorized agent certifying under penalty of perjury that the report is true, accurate and complete to the best of the signer's knowledge.

The Discharger shall implement the above monitoring program as of the date of this Order.

Ordered by: PAMELA C. CREEDON, Executive Officer9/9/14

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ABBREVIATIONS

AB Assembly Bill

CA California

CalPERS California Public Employees’ Retirement System

CEQA California Environmental Quality Act

CFD Community Facilities District

CIP Capital Improvement Program

CKH Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000

DUC Disadvantaged Unincorporated Community

EDU equivalent dwelling unit

EPA Environmental Protection Agency (US)

IRWM Integrated Regional Water Management Grant Program

LAA Land Application Area (Wastewater Treatment)

LAFCo Local Agency Formation Commission

LP Light Pole

MDL Method Detection Limit

MFPD Murphys Fire Protection District

mg/L milligrams per liter, parts per million

MH Man Hole

MPN Most Probable Number

MRP Monitoring and Reporting Program (Wastewater Treatment)

MSD Murphys Sanitary District

MSR Municipal Service Review (LAFCo)

MW Monitoring Well

O&M Operations and Maintenance

PEPRA California Public Employees’ Pension Reform Act of 2013

PQL Practical Quantifiable Limit

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R&M Repairs and Maintenance

SB Senate Bill

SDRMA Special District Risk Management Authority

SOI Sphere of Influence (LAFCo)

SRF State Revolving Fund

TDS Total Dissolved Solids

TKN Total Kjeldahl Nitrogen

UPUD Union Public Utility District

US United States

WDR Waste Discharge Requirements

WQO Water Quality Objective

WWTF Wastewater Treatment Facility

WWTP Wastewater Treatment Plant

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DEFINITIONS

California Environmental Quality Act (CEQA): A State Law requiring State and local agencies to regulate activities with consideration for environmental protection. If a proposed activity has the potential for a significant adverse environmental impact, an environmental impact report (EIR) must be prepared and certified as to its adequacy before taking action on the proposed project.

Clean Water State Revolving Fund (CWSRF): This program is a federal-state partnership that provides communities a permanent, independent source of low-cost financing for a wide range of water quality infrastructure projects.

Community Facilities District: Under the Mello-Roos Community Facilities Act of 1982 (Section 53311, et seq.) a legislative body may create within its jurisdiction a special tax district that can finance tax-exempt bonds for the planning, design, acquisition, construction, and/or operation of public facilities, as well as public services for district residents. Special taxes levied solely within the district are used to repay the bonds.

Environmental Impact Report (EIR): A report required pursuant to the California Environmental Quality Act that assesses all the environmental characteristics of an area, determines what effects or impact will result if the area is altered or disturbed by a proposed action, and identifies alternatives or other measures to avoid or reduce those impacts. (See California Environmental Quality Act.)

Infrastructure: Public services and facilities such as sewage-disposal systems, water-supply systems, and other utility systems, schools and roads.

Inhabited territory: Inhabited territory means territory within which there reside 12 or more registered voters. The number of registered voters as determined by the elections officer, shall be established as of the date a certificate of filing is issued by the executive officer. All other territory shall be deemed "uninhabited."41

IRWM: The Integrated Regional Water Management (IRWM) Grant Program is a competitive grant program first created under the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 (Proposition 50) with continuing funding provided by the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coast Protection Bond Act of 2006 (Proposition 84). Complementary funding was also provided by the Disaster Preparedness and Flood Prevention Bond Act or 2006 (Proposition 1E) for Stormwater Flood Management Grant Program.The program is administered by the Department of Water Resources to award funds to local public agencies and non-profit organizations, for projects and programs to improve water supply reliability and improve and protect water quality. Such projects and programs must be consistent with an adopted IRWM Plan.42

Land Use Classification: A system for classifying and designating the appropriate use of properties.

Leapfrog Development: New development separated from existing development by substantial vacant land.

41 California Government Code Section 5604642 State of California, http://bondaccountability.resources.ca.gov/Program.aspx?ProgramPK=14&Program=Integrated%20Regional%20Water%20Management&PropositionPK=4, May 30, 2018.

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Local Agency Formation Commission (LAFCo): A five-or seven-member commission within each county that reviews and evaluates all proposals for formation of special districts, incorporation of cities, annexation to special districts or cities, consolidation of districts, and merger of districts with cities. Each county’s LAFCo is empowered to approve, disapprove, or conditionally approve such proposals. The LAFCo members generally include two county supervisors, two city council members, and one member representing the general public. Some LAFCOs include two representatives of special districts.

Proposition 13: (Article XIIIA of the California Constitution) Passed in 1978, this proposition enacted sweeping changes to the California property tax system. Under Prop. 13, property taxes cannot exceed 1% of the value of the property and assessed valuations cannot increase by more than 2% per year. Property is subject to reassessment when there is a transfer of ownership or improvements are made.43

Proposition 218: (Article XIIID of the California Constitution) This proposition, named "The Right to Vote on Taxes Act", filled some of the perceived loopholes of Proposition 13. Under Proposition 218, assessments may only increase with a two-thirds majority vote of the qualified voters within the District. In addition to the two-thirds voter approval requirement, Proposition 218 states that effective July 1, 1997, any assessments levied may not be more than the costs necessary to provide the service, proceeds may not be used for any other purpose other than providing the services intended, and assessments may only be levied for services that are immediately available to property owners.44

Sanitary Sewer: A system of subterranean conduits that carries refuse liquids or waste matter to a plant where the sewage is treated, as contrasted with storm drainage systems (that carry surface water) and septic tanks or leech fields (that hold refuse liquids and waste matter on-site).

Sphere of Influence (SOI): The probable physical boundaries and service area of a local agency, as determined by the Local Agency Formation Commission (LAFCo) of the county.

Urban: Of, relating to, characteristic of, or constituting a city. Urban areas are generally characterized by moderate and higher density residential development (i.e., three or more dwelling units per acre), commercial development, and industrial development, and the availability of public services required for that development, specifically central water and sewer service, an extensive road network, public transit, and other such services (e.g., safety and emergency response). Development not providing such services may be “non-urban” or “rural”. CEQA defines “urbanized area” as an area that has a population density of at least 1,000 persons per square mile (Public Resources Code Section 21080.14(b)).

Urban Services: Utilities (such as water, gas, electricity, and sewer) and public services (such as police, fire protection, schools, parks, and recreation) provided to an urbanized or urbanizing area.

Zoning: The division of a city by legislative regulations into areas, or zones, that specify allowable uses for real property and size restrictions for buildings within these areas; a program that implements policies of the general plan.

43 http://www.californiataxdata.com/A_Free_Resources/glossary_PS.asp#ps_0844 http://www.californiataxdata.com/A_Free_Resources/glossary_PS.asp#ps_08

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REFERENCES

Calaveras County, General Plan Community Planning Element, Planning Commission Recommended Draft – July 28, 2016.

Calaveras County Housing Element 2014-2018, Adopted by Resolution No. 1488, May 26, 2015.

Calaveras County, Murphys & Douglas Flat community plan, June 1, 1988.

Calaveras LAFCo, Calaveras Fire Municipal Service Review, Jun 17, 2013, Pages 165-180.

Calaveras LAFCo, Water and Wastewater Municipal Service Review, June 18, 2012, Page 259-276.

California, http://bondaccountability.resources.ca.gov/Program.aspx?ProgramPK=14&Program=Integrated%20Regional%20Water%20Management&PropositionPK=4, May 30, 2018.

California State Board of Equalization.

California State Parks, Office of Historic Preservation, Murphys, Retrieved 2012-10-06.

Durham, David L. (1998). California's Geographic Names: A Gazetteer of Historic and Modern Names of the State. Clovis, Calif.: Word Dancer Press. p. 808. ISBN 1-884995-14-4

https://datausa.io/profile/geo/murphys-ca/, October 23, 2018.

http://www.californiataxdata.com/A_Free_Resources/glossary_PS.asp#ps_08

http://www.city-data.com/city/San-Andreas-California.html#b, August 28, 2018.

Murphys Cemetery District, http://www.murphyscemetery.com/, May 28, 2018.

Murphys Sanitary District, 10 Year Capital Improvement Projects, prepared by Blackwater Consulting Engineers, Inc.605 Standiford Suite N, Modesto, CA 95350, Phone: 209-322-1820, May 2016.

Murphys Sanitary District, Calaveras LAFCo Questionnaire, October 1, 2018.

Murphys Sanitary District, Fourth Quarter (annual) 2016 Groundwater Monitoring Report, Murphys Sanitary District Wastewater Treatment Plant, January 5, 2017.

Murphys Sanitary District, http://www.murphyssd.org/, May 17, 2018.

Murphys Sanitary District, Independent Auditor’s Report and Financial Statements, June 30, 2017, prepared by Bryant L. Jolley, Certified Public Accountants, 901 “N” Street, Suite 104, Firebaugh, CA 93622, Phone: 559.659.3045, August 17, 2017

Murphys Sanitary District, Rate Schedule Resolution 06-2009, October 8, 2009.

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PREPARERS

Calaveras LAFCo, John Benoit, Executive OfficerPO Box 2694, Granite Bay CA 95746916-797-6003 [email protected]

Christy Leighton, Planning Consultant555 E. Willow Street, Willows CA [email protected]

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Murphy’s Sanitary District Sphere of Influence Update Map

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