Consider Resolution No. 2025-08 authorizing the Madison Community Services District ("District") to provide out of agency water and sewer services to APN 049-461-004 located on the northeast corner of Hurlbut and Railroad Streets in the unincorporated community of Madison, and find the project is categorically exempt from CEQA (LAFCo No. 25-04)
 

Adopt Resolution 2025-08 authorizing Madison Community Services District Out of Agency Services to the subject parcel, determining the Project is exempt per California Environmental Act (CEQA) Guidelines Section 15303(d) (New Construction or Conversion of Small Structures).

None. Yolo LAFCo collected a $1,500 fee for processing this request in accordance with the adopted fee schedule.

In accordance with the Cortese-Knox-Hertzberg Act Section 56133, the Commission may authorize a district to provide extended services outside its jurisdictional boundary to an area within its sphere of influence in anticipation of a later change of organization. The applicant has requested that Yolo LAFCo approve services for a parcel where a new residential duplex is under construction within the Madison Community Services District's Sphere of Influence and the community growth boundary for Madison as designated in Yolo County's 2030 Countywide General Plan. The Out of Agency Services approval is consistent with Yolo LAFCo's Project Policies, specifically the Standards of Evaluation as discussed in the background information below.

In 2023, the County approved a building permit (BR23-282) for a duplex at the south end of a parcel (APN 049-461-004) within the unincorporated community of Madison. With construction nearly completed on the permitted duplex, it was discovered that the District's boundary runs along Railroad Street but does not include the thin strip of residential-zoned land between Railroad Street and County Road 86 where the project is located. The parcel is within the District's Sphere of Influence and fronts Railroad Street, which has existing water and sewer lines. The District has provided a "will-serve" letter and accepted fees for service to the property. A condition has been added to the agreement that any additional development of the parcel and/or the submittal of a tentative map will require that the developer submit and pay for a LAFCo application to annex the parcel into the Madison Community Services District. Furthermore, an agreement that precludes direct or indirect opposition or protestation of the annexation of the served property is required per LAFCo Project Policy 3.4.

The proposal was evaluated against Yolo LAFCo's standards of evaluation (Section 3.3) which states, LAFCo will consider the following factors to determine the local and regional impacts of proposed out of agency services:

a) Whether annexation is a reasonable and preferable alternative to LAFCo allowing extended services outside the agency’s jurisdictional boundaries;
An agreement is preferable to annexation so that the applicant may complete a small residential project that has been permitted by the County and has had service fees accepted by the District. The delay needed to complete an annexation proposal at this point would jeopardize completion of the duplex. However, there is additional development potential on the subject property. The agreement is conditioned so that any additional development or a tentative map for the parcel will require the applicant to submit and pay for an application to annex the parcel into the District.

b) The growth-inducing impacts of any proposal;
The proposed agreement would not be growth-inducing as services have already been extended along Railroad Street and further development of the parcel would be limited by its size and shape. Although more residential units could be constructed on the subject parcel, it is an abandoned railroad right of way within the community boundaries, therefore development is appropriate. The parcel is surrounded by existing urban development on three sides. Land to the south and southeast of the property is outside the community growth boundary identified by the County and is limited to agricultural uses. 

c) Whether the proposed extension of services promotes logical and orderly development of areas within the SOI (i.e. islands, strips and corridors are disfavored);
The extension of services would promote logical and orderly development, since the parcel has been zoned for development and included within Madison's community growth boundary for decades. It is surrounded by developed parcels to the west, north, and east.

d) The agreed upon timetable and stated expectation for annexation to the agency providing the requested service;
The agreement is conditioned so that any additional development or a tentative map for the parcel will require the applicant to submit and pay for an application to annex the parcel into the District. Furthermore, the applicant is required to record an agreement that precludes direct or indirect opposition or protestation of the annexation of the served property per Yolo LAFCo Project Policy 3.4. The applicant has been informed of these conditions.

e) The proposal’s consistency with the policies and plans of all affected agencies;
The proposal is consistent with Yolo County's General Plan policies to direct residential growth to designated areas within the growth boundaries of existing unincorporated communities and County Environmental Health policies that encourage water and sewer services over individual well and septic systems to protect water quality.

f) The ability of the local agency to provide service to the proposed area without detracting from current service levels;
The District has provided a will-serve letter to show that it has the capacity to serve the new duplex without detracting from current service levels. 

g) Whether the proposal contributes to the premature conversion of agricultural land or other open space land;
The parcel is within the boundaries of the unincorporated community of Madison and does not include agricultural or open space lands.

h) Whether the proposal conflicts with or undermines adopted Municipal Service Review determinations and/or recommendations; and
The most recent Municipal Services Review for the Madison Community Services District was adopted in 2021. The proposal does not conflict with or undermine the determinations and/or recommendations which focused on unrelated financial and policy issues.

i) Other factors determined to be relevant by the Commission or staff.
Staff determined that there were no other factors relevant to the proposal.