Public Hearing to consider and adopt Resolution 2022-01 approving the Yolo County Flood Control and Water Conservation District Annexation (LAFCo No. 21-06) and Waiving Conducting Authority Proceedings, subject to findings and conditions contained in the staff report

1. Receive staff presentation and open the Public Hearing for public comments on the item.
    
2. Close the Public Hearing and consider the information presented in the staff report and during the public hearing, including the CEQA Notice of Exemption prepared by the Yolo County Flood Control and Water Conservation District as the Lead Agency.
    
3. Adopt Resolution 2022-01 approving the Yolo County Flood Control and Water Conservation District Annexation (LAFCo No. 21-06) and waiving conducting authority proceedings, subject to the findings and conditions contained in the staff report.

None. LAFCo will be reimbursed by the applicant for staff time and fees associated with processing this request in accordance with the adopted fee schedule.

Landowners who own 17 total parcels of agricultural land have requested access to Yolo County Flood Control and Water Conservation District (YCFCWCD) surface water supplies. The YCFCWCD approved service to these parcels contingent upon LAFCo approval of the annexation.

The Yolo County Flood Control & Water Conservation District (YCFCWCD) was created as an independent special district by the State Legislature in 1951. The District was formed to fill a major regional gap in securing and delivering water resources for Yolo County to support its rich agricultural base and protect its environmental, economic, and local water resources. YCFCWCD's water rights include Clear Lake (150,000 acre-feet allocation when full) and Indian Reservoir Dam (300,000 acre-feet allocation when full). Its distribution system includes more than 160 miles of irrigation and drainage facilities, most of which consist of earthen or unlined channels.  

The subject parcels are included in YCFCWCD's sphere of influence. The properties are adjacent to the existing YCFCWCD boundary and are currently designated and zoned for agricultural use by Yolo County. This request for annexation was initiated by the YCFCWCD on December 1, 2020 and submitted to LAFCo on September 27, 2021. All the property owners have requested and consented to this proposal. The Yolo County Auditor determined the affected district does not receive property taxes from these 17 parcels and is not seeking any property tax revenue for the subject territory. Per Revenue and Taxation Code Section 99(b)(3), Yolo County has consulted with YCFCWCD and determined that a property tax revenue negotiated exchange is, therefore, not applicable because the YCFCWCD will charge assessments and usage fees for the service. 
 
The Cortese-Knox-Hertzberg Act Government Code Section 56668.3 outlines the following factors to be considered by the Commission for a reorganization that includes the annexation of territory to any district:

1. Whether the proposed annexation will be for the interest of present and future landowners and inhabitants within the territory to be annexed;
2. Any resolution raising objections (financial or service concerns) that may be filed by an affected agency;
3. The adequacy of existing and planned future services to meet the probable future needs of the territory; and
4. Any other information which the commission deems appropriate for consideration.

Annexation would allow these agricultural lands to have access to surface water supplies from Cache Creek. It would reduce the use of groundwater and may help recharge the Yolo Subbasin during those years when surface water is available. The YCFCWCD has capacity to serve these additional parcels when water allocation is available, and whenever a drought year occurs, YCFCWCD has an allocation system in place for scarce surface water. Groundwater could still be used for irrigation as a backup if needed. Annexation to YCFCWCD is part of the larger Yolo Subbasin groundwater management strategy and would provide for conjunctive use and a more sustainable water supply. The project would help expand use of surface water availability and reduce reliance on groundwater during wet years. The project would also result in additional revenue for District infrastructure investment and maintenance. It also would provide long term funding stability for the District, which would be a benefit to all District landowners. Fifteen of the 17 parcels can receive water upon completion of the annexation process. The two remaining parcels will first need to construct a pipeline to convey water from the Hungry Hollow Canal, which will be financed by the landowners and is estimated to take approximately two years to complete. No objections or concerns have been raised by any affected agency, landowner or resident of the subject territory.  
 
Public/Agency Notification and Waiver of Protest Proceedings
A notice was published on January 5, 2022 in the Davis Enterprise including the intent to waive protest proceedings. Notices were also mailed to each landowner and registered voter within the subject area, plus a 300 foot radius. No objections from any affected or interested agency landowners or the general public have been received. Pursuant to Cortese-Knox-Hertzberg Act Section 56662 and 57002, the Commission may waive protest proceedings entirely because 100% of the landowners within the affected territory have consented to the proposal. 
 
CEQA
The potential environmental effects of the proposal have been reviewed by the YCFCWCD as Lead Agency and determined there is no substantial evidence supporting a fair argument that the project will have a significant effect on the environment and filed a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA). CEQA requires a Responsible Agency to accept a CEQA document as prepared by the Lead Agency and to treat the document as being legally adequate absent specified circumstances not present herein. The project would allow the subject parcels to access surface water for agricultural purposes when available from Cache Creek. It will reduce the use of groundwater and may help recharge the Yolo Subbasin during wet years. The project does not involve any land use changes and will result in only minor physical construction of pipeline by two landowners to supply irrigation water from the Hungry Hollow Canal to the proposed annexation area, as the remaining 15 parcels will utilize existing water conveyance facilities. The District is not constructing the canals or laterals. The landowners will continue to use the District's existing facilities or will have to tie into the existing facilities. The landowners will determine when additional infrastructure is needed on their own property. The landowners will be responsible for financing, constructing, and maintaining any facilities that they decide are needed. The subject territory will remain in agricultural production notwithstanding the source of irrigation water and may even improve environmental conditions by reducing reliance on groundwater.