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CONTRA COSTA LOCAL AGENCY FORMATION COMMISSION EXECUTIVE OFFICER'S REPORT LAFCO 10-01: Annexation 174 to Central Contra Costa Sanitary District (CCCSD) PROPONENT: CCCSD by Resolution No. 2009-027 adopted May 21, 2009 ACREAGE & LOCATION The applicant proposes to annex 92+ acres (80 properties) in 10 separate areas located in the unincorporated community of Alamo and the Town of Danville as generally described below: Area 174-1: two parcels located on Marks Rd in Alamo (2.4+ acres) Area 174-2: two parcels located on Ridge Rd in Alamo (2.0+ acres) Area 174-3: 12 parcels located on Marks Rd and Smith Rd in Alamo (0.5+ acre) Area 174-4: 10 parcels plus two partial parcels located on Smith Rd in Alamo (12.4+ acres) Area 174-5: six parcels located on El Pintado Rd in Danville (9.2+ acres) Area 174-6: six parcels located on El Pintado Rd in Danville (14.2+ acres) Area 174-7: two parcels located on Miranda Lane in Alamo (1.0+ acre) Area 174-8: one parcel located on Livorna Rd in Alamo (3.9+ acres) Area 174-9: one parcel located on Camino Monte Sol in Alamo (4.9+ acres) Area 174-10: 36 parcels located on Sunnybrook Rd, Paseo Nogales, Glade Lane, Livorna Rd, Bernie Lane, and Arbor Lane in Alamo (25.8+ acres) SYNOPSIS CCCSD, on behalf of a number of property owners, filed an application with LAFCO to annex the properties into the District. Approximately 28 property owners have either petitioned CCCSD for sewer service or have signed the Arbor Lane/Bernie Lane Contractual Assessment District Agreement. Also, CCCSD has included 52 in-fill parcels to avoid the creation of islands, provide for logical boundaries, and streamline CCCSD staff work. The purpose of the annexation is to extend sanitary sewer service to the various parcels. The properties are a combination of existing single-family dwelling units that have converted (or are converting) from septic systems to municipal sewer service, construction of new single family homes to be connected to the CCCSD municipal system, and parcels being included to eliminate islands and provide for logical service boundaries. Also, the density and proximity of the properties to the San Ramon Creek make municipal sewer service and annexation to CCCSD prudent to avoid despoiling the creek with septic system effluent. DISCUSSION The Government Code sets forth factors that the Commission is required to consider in evaluating any proposed boundary change as discussed below (Gov. Code 56668). In the Commission's review and evaluation, no single factor is determinative. In reaching a decision, each is to be evaluated within the context of the overall proposal. 1. Consistency with the Sphere of Influence (SOI) of Any Local Agency: The areas proposed for annexation are within CCCSD s SOI and within the County Urban Limit Line; 12 properties are located in the Town of Danville and the remaining parcels are located in Alamo. 2. Land Use, Planning and Zoning - Present and Future:

Executive Officer s Report LAFCO 10-01 Page 2 The Town of Danville (sub-areas 5 and 6) and Contra Costa County General Plan and zoning designations are as follows: Annexation Area General Plan Designation Zoning Designation 174-1 Single Family Residential - Low R-40 (Single Family Residential - lot size 40,000 sq. ft. minimum) 174-2 Single Family Residential Low R-40 174-3 Single Family Residential - Low R-40 174-4 Single Family Residential Low R-40 174-5 Country Estates (Town of Danville) R-65 (Single Family Residential - lot size 65,000 sq. ft. minimum) 174-6 Country Estates (Town of Danville) R-65 174-7 Single Family Residential Low R-20 (Single Family Residential - lot size 20,000 sq. ft. minimum) 174-8 Single Family Residential Low A-2 (General Agricultural 5 acre minimum parcel) 174-9 Single Family Residential Low A-2 174-10 Single Family Residential Low R-20 No changes are proposed to General Plan or zoning designations as part of this proposal. 3. The Effect on Maintaining the Physical and Economic Integrity of Agricultural Lands: The properties proposed for annexation contain no prime farmland or land covered under Williamson Act Land Conservation Agreements. 4. Topography, Natural Features and Drainage Basins: The topography of annexation and surrounding areas are as follows: 174-1, 174-2, 174-3, 174-4 and 174-8 is gently sloping with mature hills with surrounding areas gently sloping; 174-5 and 174-6 proposal and surrounding area is rolling hillside; 174-7 is relatively flat with a creek along the east side with surrounding area gently sloping; 174-9 is hillside with ridgeline with surrounding area gently sloped to the west and south; and 174-10 is relatively flat with surrounding area relatively flat to the north, west and south and I-680 to the east. 5. Population: There is a potential to add two single family dwelling units (SFDU) to area 174-3, and one SFDU to area 174-6. These additional three homes could result in a population increase of approximately eight persons based on 2009 California Department of Finance estimates. 6. Fair Share of Regional Housing: Pursuant to 56668 of the CKH Act, LAFCO must consider in the review of a proposal the extent to which the proposal will assist the receiving entity in achieving its fair share of the regional housing needs as determined by the regional council of governments. The proposed annexation will have minimal effect on regional housing needs. 7. Governmental Services and Controls - Need, Cost, Adequacy and Availability: In accordance with Government Code 56653, whenever a local agency submits a resolution of application for a change of organization or reorganization, the local agency shall also submit a plan for

Executive Officer s Report LAFCO 10-01 Page 3 providing services within the affected territory. The plan shall include all of the following information and any additional information required by the Commission or the Executive Officer: (1) An enumeration and description of the services to be extended to the affected territory. (2) The level and range of those services. (3) An indication of when those services can feasibly be extended to the affected territory. (4) An indication of any improvement or upgrading of structures, roads, sewer or water facilities, or other conditions the local agency would impose or require within the affected territory if the change of organization or reorganization is completed. (5) Information with respect to how those services will be financed. The "Plan for Providing Services within the Affected Territory," as required by Government Code 56653, is on file in the LAFCO office. The properties proposed for annexation are served by various municipalities and agencies including, but not limited to, the San Ramon Valley Fire Protection District and East Bay Municipal Utility District (EBMUD). The proposal before the Commission is to annex the properties to CCCSD for the provision of sanitary sewer service, including collection, treatment and disposal. CCCSD currently serves an estimated population of 314,000 residents in a 142-square-mile service area. CCCSD s wastewater collection system consists of 1,500 miles of sewer mains with 18 pump stations. The majority of CCCSD s system operates with gravity flow with some pumping stations and force mains. All sewer connections to the subject property will be either gravity flow or individual residential pump systems. CCCSD s wastewater treatment plant provides secondary level treatment for an average dry weather flow of approximately 32.6 million gallons per day (mgd) of wastewater. The wastewater treatment plant has a permitted capacity of 53.8 mgd. The areas proposed for annexation could potentially extend service to a total of 71 existing single family residential units, three potential new dwelling units, and seven government owned parcels (Flood Control). The maximum demand for service is approximately 15,000 gallons of wastewater per day. CCCSD indicates that a number of the properties proposed for annexation are served by existing CCCSD facilities; others can extend sanitary sewer main lines to receive sewer services. It is not the current practice of CCCSD to compel property owners to connect their properties to the public sewer system involuntarily. With regard to infrastructure and improvements, CCCSD indicates that all gravity mains required to serve the affected parcels will be 8-inch diameter for gravity mains or up to 2-inch diameter for pressure mains, which are CCCSD s minimums for mains. All laterals will be 4-inch diameter, which is CCCSD s minimum for gravity laterals, or 1-1/4- to 2-inch diameter pump laterals, which is CCCSD s minimum for pump laterals, depending on the specific pump type installed. With regard to funding, all capital costs including any required sewer main extensions, along with connections fees, will be borne by the property owners. CCCSD funds the maintenance of all sewers through its annual sewer service charge. 8. Timely Availability of Water and Related Issues: The areas proposed for annexation are within the EBMUD service area. EBMUD provides wholesale water, retail water, wastewater collection and wastewater treatment services for an area of approximately 331 square miles in Contra Costa and Alameda counties, serving over 1.4 million people. Water service includes production, distribution, retail, treatment, recycling and conservation services. Historically, over

Executive Officer s Report LAFCO 10-01 Page 4 90% of EBMUD s water comes from the Mokelumne River watershed. Other water sources include local watershed runoff and Central Valley Project (CVP) (Sacramento River). CCCSD indicates that the proposed annexation would have a minor effect on water usage, and would not lead to the construction of new or expansion of existing water facilities. 9. Assessed Value, Tax Rates and Indebtedness: The annexation areas are with tax rate areas 66002, 66066 and 16001. The assessed value for the areas proposed for annexation is $58,670,865 (2009-10 roll). The territory being annexed shall be liable for all authorized or existing taxes comparable to properties presently within the annexing agencies. 10. Environmental Impact of the Proposal: As Lead Agency, CCCSD found all of the annexation areas categorically exempt pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15319, Annexation of Existing Facilities and Lots for Exempt Facilities. The LAFCO Environmental Coordinator reviewed the document and finds it adequate for LAFCO purposes. 11. Landowner Consent and Consent by Annexing Agency: According to County Elections, there are more than 12 registered voters in the area proposed for annexation. Thus, the area proposed for annexation is considered inhabited. CCCSD indicates that less than 100% of the affected landowners/voters have provided written consent to the annexation. Thus, the Commission s action is subject to notice, hearing, as well as conducting authority (protest) proceedings. All landowners and registered voters within the proposal area(s) and within 300 feet of the exterior boundaries of the area(s) have received notice of the May 12 hearing. As of this writing, LAFCO has received no communication from any affected landowner or registered voter. If no written objection is received from an affected party prior to the conclusion of the hearing on May 12, the Commission may waive the protest proceedings. However, if any objection is received at any time prior to or during the hearing, then a protest hearing is required (Gov. Code Section 56663). 12. Boundaries and Lines of Assessment: The annexation areas are within CCCSD s SOI and are contiguous to existing CCCSD boundaries. The Central County Water/Wastewater Municipal Services Review (MSR), completed in April 2008, provided an assessment of CCCSD services. The MSR report noted that CCCSD was serving an estimated 180 parcels outside its service boundary; and that there were a number of small islands surrounded by the District and within its SOI. The MSR suggested annexing parcels receiving out of agency service, as well as islands and areas where there were concerns due to failing septic systems and related public health issues. Since 2008, CCCSD has made significant progress to validate sewer service connections and correct island and boundary irregularities. The proposed annexation would bring into CCCSD s boundaries additional parcels currently receiving out of agency service, and facilitate further clean up of pockets and islands. 13. Environmental Justice: LAFCO is required to consider the extent to which proposals for changes of organization or reorganization will promote environmental justice. As defined by statute, environmental justice means the fair treatment of people of all races, cultures, and incomes with respect to the location of public facilities and the provision of public services. The proposed annexation is not expected to promote or discourage the fair treatment of minority or economically disadvantaged groups.

ALTERNATIVES FOR COMMISSION ACTION Executive Officer s Report LAFCO 10-01 Page 5 After consideration of this report and any testimony or additional materials that are submitted the Commission should consider taking one of the following options: Option 1 Approve the annexation as submitted. A. Determine that CCCSD, as Lead Agency, found all of the annexation areas categorically exempt pursuant to CEQA Guidelines Section 15319, Annexation of Existing Facilities and Lots for Exempt Facilities. B. The Commission determines the project is exempt pursuant to CEQA Guidelines, Section 15319, consistent with the determination of CCCSD acting as Lead Agency. C. Adopt this report and approve the proposal, to be known as Annexation 174, to CCCSD subject to the following terms and conditions: 1. The territory being annexed shall be liable for the continuation of any authorized or existing special taxes, assessments and charges comparable to properties presently within the annexing agency. 2. That CCCSD has delivered an executed indemnification agreement providing for CCCSD to indemnify LAFCO against any expenses arising from any legal actions challenging the annexation. D. Find that the subject territory is inhabited and that the annexing agency has consented to waiving the conducting authority proceedings. However, less than 100% of the affected landowners/registered voters have consented to the annexation. Should LAFCO receive any objection to the annexation from an affected party prior to or during the public hearing, then a subsequent protest hearing is required. Should no protest be received, then the Commission may waive the protest hearing and direct LAFCO staff to complete the proceedings. Option 2 Option 3 Adopt this report and DENY the proposal. If the Commission needs more information, CONTINUE this matter to a future meeting. RECOMMENDED ACTION: Approve Option 1. LOU ANN TEXEIRA, EXECUTIVE OFFICER LOCAL AGENCY FORMATION COMMISSION

RESOLUTION NO. 10-01 RESOLUTION OF THE CONTRA COSTA LOCAL AGENCY FORMATION COMMISSION MAKING DETERMINATIONS AND APPROVING ANNEXATION 174 TO CENTRAL CONTRA COSTA SANITARY DISTRICT WHEREAS, the above-referenced proposal has been filed with the Executive Officer of the Contra Costa Local Agency Formation Commission pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act (Section 56000 et seq. of the Government Code); and WHEREAS, at the time and in the manner required by law the Executive Officer has given notice of the Commission s consideration of the proposal; and WHEREAS, the Commission heard, discussed and considered all oral and written testimony related to the proposal including, but not limited to, the Executive Officer's report and recommendation, the environmental document or determination, Spheres of Influence and applicable General and Specific Plans; and WHEREAS, information satisfactory to the Commission has been presented that no affected landowners/registered voters within the reorganization area object to the proposal; and WHEREAS, the Local Agency Formation Commission determines the proposal to be in the best interests of the affected area and the total organization of local governmental agencies within Contra Costa County; NOW, THEREFORE, the Contra Costa Local Agency Formation Commission DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: 1. Determine that CCCSD, as Lead Agency, found all of the annexation areas categorically exempt pursuant to CEQA Guidelines Section 15319, Annexation of Existing Facilities and Lots for Exempt Facilities. 2. The Commission determines the project is exempt pursuant to CEQA Guidelines, Section 15319, consistent with the determination of CCCSD acting as Lead Agency. 3. Said annexation is hereby approved. 4. The subject proposal is assigned the distinctive short-form designation: ANNEXATION 174 TO CENTRAL CONTRA COSTA SANITARY DISTRICT 5. The boundaries of the affected territory are found to be definite and certain as approved and set forth in Exhibit A, attached hereto and made a part hereof. 6. The subject territory shall be liable for any authorized or existing taxes, charges and assessments comparable to properties within the annexing agency. 7. That CCCSD delivered an executed indemnification agreement between the CCCSD and Contra Costa LAFCO providing for CCCSD to indemnify LAFCO against any expenses arising from any legal actions challenging the annexation.

Contra Costa LAFCO Resolution No. 10-01 8. The territory proposed for annexation is inhabited. 9. The proposal has less than 100% landowner/registered voter consent; however, no affected landowners/registered voters opposed the annexation, and the annexing agency has given written consent to the waiver of conducting authority proceedings. Said conducting authority proceedings are hereby waived. 10. All subsequent proceedings in connection with this annexation shall be conducted only in compliance with the approved boundaries set forth in the attachments and any terms and conditions specified in this resolution. * * * * * * * * * * * * * * * * * * * * * * * PASSED AND ADOPTED THIS 12 th day of May 2010, by the following vote: AYES: NOES: ABSTENTIONS: ABSENT: MARTIN McNAIR, CHAIR, CONTRA COSTA LAFCO I hereby certify that this is a correct copy of a resolution passed and adopted by this Commission on the date stated. Dated: May 12, 2010 Lou Ann Texeira, Executive Officer

LAFCO No. 10-01: Annexation 174 to Central Contra Costa Sanitary District Rudgear Rd W a l n u t C r e e k Dapplegray Ln Trotter Way 7 8 10 Livorna Rd Miranda Ave 9 A l a m o 680 6 5 1 Stone Valley Rd 2 4 3 D a n v i l l e City Boundaries Parcels to be Annexed Danville Blvd La Gonda Way El Cerro Blvd Diablo Rd Urban Limit Line Existing CCCSD Boundary Map created 3/1/2010 by Contra Costa County Conservation and Development Department-GIS Group 651 Pine Street, 4th Floor North Wing, Martinez, CA 94553-0095 37:59:48.455N 122:06:35.384W This map or dataset was created by the Contra Costa County Conservation and Development Department with data from the Contra Costa County GIS Program. Some Feet 0 500 1,000 2,000 accept the County of Contra Costa disclaimer of liability for geographic information. base data, primarily City Limits, is derived from the CA State Board of Equalization's tax rate areas. While obligated to use this data the County assumes no responsibility for its accuracy. This map contains copyrighted information and may not be altered. It may be reproduced in its current state if the source is cited. Users of this map agree to read and