FPUD seeks to expand latent powers

The Fallbrook Public Utility District board will be preparing an application resolution to San Diego County's Local Agency Formation Commission which, if submitted and subsequently approved by the LAFCO board, would expand FPUD's latent powers to allow the district to own or operate park and recreation facilities.

The decision to proceed with the process of expanding FPUD's latent powers was approved on a 4-0 board vote Oct. 22 with Milt Davies absent.

"They didn't commit a formal application to LAFCO," said FPUD general manager Jack Bebee. "The board just asked staff to begin to work on an application and work with LAFCO on determining what would be required to move forward."

FPUD's May 29 meeting included a presentation by the Fallbrook Chamber of Commerce and other community groups proposing the possibility that FPUD collect funds for a community benefit district to handle community beautification and maintenance items. Voter approval would be required to create a community benefit district which would also include an assessment, while LAFCO board action to expand FPUD's latent powers would only require a public vote if sufficient protest signatures were gathered and submitted to LAFCO.

The application to expand FPUD's powers to form a community benefit district thus will only happen if public support at the ballot box is expected.

"The board requested that the community groups that brought this forward continue to do more outreach," Bebee said.

FPUD currently has water provision, wastewater collection and treatment, and water reclamation latent powers. The California Public Utilities Code also gives a public utility district the potential powers of acquiring, constructing, owning, operating, controlling, or using works to supply its residents and businesses with light, water, power, heat, transportation, telephone service or other means of communication, and garbage or other refuse matter disposition.

A public utility district may also acquire, construct, own, complete, use, and operate a fire department, a street lighting system, public parks or playgrounds, golf courses, swimming pools, public recreation buildings, other buildings to be used for public purposes, and works to provide for the paving and drainage of roads, streets, curbs, gutters, sidewalks, and other public places. LAFCO must grant FPUD latent powers to own or operate park and recreation facilities.

FPUD's October 2015 meeting included a discussion on the process for activating park and recreation latent powers, and a request for additional information resulted in a December 2015 workshop with no board voting items. The desire to have the locally-elected district rather than the county maintain Fallbrook assets also includes a 1999 attempt to transfer Fallbrook Community Airpark from the county to FPUD, although after hearing presentations and scheduling a meeting for an action item FPUD's board voted 3-2 to reject further steps.

In the case of the proposed community benefit district, a funding mechanism rather than local control is the driving factor. In the recent past the Grand Tradition Estate and Gardens facility hosted a 4th of July fireworks celebration and the proceeds were given to the Fallbrook Beautification Alliance, which is among the community groups seeking the possibility of a benefit district.

The May 29 meeting included representation from the Fallbrook Land Conservancy, the Fallbrook Village Association, the Fallbrook Trails Council, Save Our Forests, and County Service Area No. 81 as well as the Fallbrook Beautification Alliance and the Fallbrook Chamber of Commerce. The groups identified approximately 15 maintenance, including trash and graffiti removal, projects which would be undertaken by the benefit district.

FPUD created an ad hoc committee chaired by FPUD board member Don McDougal and with FPUD director Jennifer DeMeo as the committee's vice-chair. The committee also includes Donna Gebhart from the Fallbrook Trails Council and Joe Comella from County Service Area No. 81, which covers parks in Fallbrook, Rainbow, and De Luz. The first ad hoc committee meeting June 13 was open to the public, and FPUD staff members were also present.

An FPUD application to LAFCO for such latent powers would need to address forecasted revenues and expenses, sources of revenue projections such as property taxes and user fees, and the future of County Service Area No. 81 which derives its funding from a share of property tax revenue. The application would include FPUD's cost to provide the local funding for community facilities, the expected cost to FPUD customers, the identification of existing providers of local funding for community facilities and the fiscal impact to the customers of the existing providers, a summary of whether the activation of latent powers would involve the activation or divestiture of other FPUD latent powers, a plan to finance the activation of the latent powers, and alternatives to activating the latent powers.

CSA No. 81 was created in 1976. The governing body of a county service area is the San Diego County Board of Supervisors, although a CSA has an advisory board comprised of local residents appointed by the Board of Supervisors. Because portions of CSA No. 81 are outside the FPUD boundaries, a LAFCO action to authorize park and recreation latent powers would also include the determination of whether the CSA No. 81 boundaries would be adjusted.

LAFCO may, depending on the scope of the proposed latent powers, also require a municipal service review to be prepared. A municipal service review evaluates services and anticipated needs. A sphere of influence study determines the boundaries best served by a particular agency. Municipal service review and sphere of influence updates are prerequisites to a jurisdictional change other than annexation of land within the sphere of influence, and LAFCO also periodically conducts sphere of influence updates for all cities and special districts.

LAFCO, on June 4, approved a five-year schedule for updated sphere of influence studies for each of the county's cities and special districts. FPUD is slated for a sphere of influence update study during 2019-20 and CSA No. 81 would be studied during 2021-22. The LAFCO board was also given future discretion to amend the study schedule to address reorganization applications or changes in priorities, so a study of potential latent power expansion could be coordinated with FPUD's sphere of influence update.

Twelve special districts in San Diego County have park and recreation latent powers, including five water districts and one community services district which includes potable water services. The Helix Water District, Padre Dam Municipal Water District, Olivenhain Municipal Water District, and Ramona Municipal Water District have storage faculties which are also used for public recreation. The Borrego Water District acquired park and recreation latent powers after it merged with the Borrego Springs Parks Community Services District which provided water and sewer service and also operated the Club Circle par-54 golf course. The Jacumba Community Services District provides potable water services and is also responsible for Jacumba Community Park.

The Lake Cuyamaca Recreation and Park District oversees Lake Cuyamaca but does not provide water service. Valley Center's four active recreation parks are owned and operated by the Valley Center Parks and Recreation District. CSA No. 81 is one of four county service areas in San Diego County which provide park and recreation services. CSA No. 26 covers parks in Rancho San Diego, CSA No. 83 serves Dan Dieguito, and CSA No. 128 maintains Spring Valley parks.

An agency resolution is required to approve a formal application to LAFCO. The resolution must be adopted after a public hearing noticed at least 21 days in advance.

The next FPUD board meeting on the subject, however, will likely not be the one at which the resolution is proposed.

"I think we will probably report back to the board as we go through the application process and give them an update on our discussions with LAFCO," Bebee said.

The determination of voter support will also precede any efforts to form the district.