Big Rock CSD MSR Commission Approved Nov 2025

Municipal Service Review and Sphere of Influence Update for Big Rock Community Services District Del Norte Local Agency Formation Commission Commission Approved - November 24, 2025 Big Rock Community Services District MSR/SOI Update Del Norte Local Agency Formation Commission Commissioners Lyle Armstrong Chair, Public Member Dean Wilson Vice Chair, County Member Darrin Short County Member Isaiah Wright City Member Jason Greenough City Member Valerie Starkey Alternate County Member Candace Tinkler Alternate City Member Donna DeWolf Alternate Public Member Staff George Williamson, AICP, Executive Officer Amber Chung, Administrator Louis Choy, GIS Analyst Jacqueline Roberts, Legal Counsel Acknowledgements LAFCo staff would like to thank the contributors to this Municipal Service Review. Input instrumental in completing this report was provided by the Big Rock CSD General Manager and Board President Joe “Hank” Akin. This report would not have been possible without the District’s assistance. Big Rock Community Services District MSR/SOI Update Table of Contents Service Review Determinations 1 Uses of This Report 1 Review Methods 2 Overview 3 Land Use and Zoning 7 Population 9 Disadvantaged Unincorporated Communities 9 Organizational Structure 11 Governance 11 Staffing 11 Accountability and Transparency 11 Municipal Services 12 Water Services 12 Other Services 16 Financial Overview 18 Budget 18 Capital Improvement Plan 18 Audit 18 Municipal Service Review Determinations 19 Sphere Of Influence Determinations 21 List of Tables Table 1: Big Rock CSD Agency Profile ................................................................................................... 3 Table 2: Big Rock CSD Annexation History ........................................................................................... 4 Table 3: Land Use Designation Summary ............................................................................................ 7 Table 4: Zoning Summary ..................................................................................................................... 7 Table 5: Big Rock CSD Board of Directors/Trustees .......................................................................... 11 Table 6: SB 929 Website Requirements ............................................................................................. 11 Table 7: Big Rock CSD Water Rates .................................................................................................... 14 Table 8: Big Rock CSD Budget Summary ............................................................................................ 18 List of Figures Figure 1: Big Rock CSD Boundary and SOI............................................................................................ 6 Figure 2: Big Rock CSD Land Use Map.................................................................................................. 8 Figure 3: DUCs Within Big Rock CSD's Vicinity ................................................................................... 10 Del Norte LAFCo Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update INTRODUCTION This report is prepared pursuant to legislation enacted in 2000 that requires Local Agency Formation Commissions (LAFCos) to conduct a comprehensive review of municipal services and update the spheres of influence (SOI) of all agencies under LAFCo’s jurisdiction. This service review focuses on Big Rock Community Services District (CSD). Service Review Determinations The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (California Government Code Section 56000 et seq.) requires LAFCo to review and update spheres of influence not less than once every five years and to review municipal services prior to or in conjunction with sphere updates. The requirement for service reviews arises from the identified need for a more coordinated and efficient public service structure to support California’s anticipated growth. Effective January 1, 2008, Government Code Section 56430 requires LAFCo 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 topics: Growth and population projections for the affected area; o The location and characteristics of any disadvantaged unincorporated communities within o or contiguous to the sphere of influence (effective July 1, 2012); Present and planned capacity of public facilities, adequacy of public services, and o infrastructure needs or deficiencies (including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence); Financial ability of the agency to provide services; o Status of, and opportunities for, shared facilities; o Accountability for community service needs, including governmental structure and o operational efficiencies; and Any other matter affecting or related to effective or efficient service delivery, as required o by Commission policy. Uses of This Report The service review process provides LAFCo with a tool to study current and future public service conditions and to evaluate organizational options for fostering orderly growth and development, promoting the efficient delivery of services, and encouraging the preservation of open space and agricultural lands. The potential uses of this report are described below. Del Norte LAFCo 1 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update Update Spheres of Influence LAFCo will use this report as a basis to update the sphere of influence of the District. Markedly, spheres of influence designate the territory that LAFCo believes represents the affected agencies' appropriate future jurisdictions and service areas. All boundary changes, such as annexations, must be consistent with the affected agencies' spheres of influence with limited exceptions. Consider Jurisdictional Boundary Changes LAFCo is not required to initiate any boundary changes based on service reviews. However, LAFCo, local agencies, or the public may subsequently use this report together with additional research and analysis, where necessary, to pursue changes in jurisdictional boundaries. Resource for Further Studies Other entities and the public may use this report for further studies and analysis of issues relating to water services in Del Norte County. The District may use this report to support grant applications. Review Methods The agency reviewed as part of this service review process demonstrated full accountability in disclosure of information and cooperation with LAFCo. The following information was considered in the service review: Agency-specific data: responses to LAFCo Requests for Information, budgets, fee o schedules, maps, State of California Public Drinking Water Watch, and district plans. Demographic data: U.S. Census Bureau; Department of Finance. o Drought data: US Drought Monitor o Del Norte County Hazard Mitigation Plan o Information gathered was analyzed and applied to make the required determinations for each agency. All information gathered for this report is filed by LAFCo for future reference. Del Norte LAFCo 2 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update BIG ROCK COMMUNITY SERVICES DISTRICT Overview Big Rock Community Services District (herein referred to as “Big Rock CSD” or “District”) was formed in 1966 to provide residential and commercial water service to the unincorporated community of Hiouchi. Hiouchi is approximately ten miles northeast of Crescent City along Highway 199 and is located within the Six Rivers National Forest and the Smith River National Recreation Area. The Hiouchi community is situated upriver from the Hiouchi Flat area of the Jedediah Smith Redwoods State Park and approximately ten minutes away from the nearby community of Gasquet to the northeast. Table 1: Big Rock CSD Agency Profile Formation Agency Name Big Rock Community Services District Date of Formation September 22, 1966 Enabling Legislation Community Service District Law, CA Government Code § 61000 Contact Contact Andrew Allen, General Manager Alternate Contacts Hank Akin, Board President Renna Nelson, District Board Secretary E-mail Manager.brcsd@gmail.com joeakin@charter.net /Rkn.brcsd@gmail.com Website www.bigrockcsd.org/ District Office 235 Jedediah Way, Crescent City, CA 95531 Mailing Address P.O. Box 453 Crescent City, CA 95531 Phone/ Fax Phone: (707) 954-5509 Phone: (707) 457-3880 Services Services Provided Water Areas Served Hiouchi Formation and Principal Act Big Rock CSD was formed as a California special district by LAFCo Resolution on September 22, 1966, and is authorized to “supply water for domestic use, irrigation, sanitation, fire protection, and recreation” under the Community Services District Law (Government Code §61000, et seq.). Other services, facilities, functions, or powers enumerated in the District’s principal act but not identified in the formation resolution are “latent,” meaning that they are authorized by the principal act under which the District is formed but are not being exercised. Latent powers and services activation require LAFCO authorization as indicated in Government Code §25213.5. Examples of latent powers for Big Rock CSD could include the following services: 1) Sewage, waste and storm water collection, treatment; Del Norte LAFCo 3 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update 2) Garbage or refuse matter collection or disposal of; 3) Fire Protection; 4) Public recreation: parks, playgrounds, swimming pools or recreational buildings; 5) Street lighting; 6) Mosquito abatement; and 7) The equipment and maintenance of a police department or other police protection to protect and safeguard life and property. Boundary and Sphere of Influence Big Rock CSD currently encompasses approximately 577 acres in the Hiouchi area of the County (Figure 1). This area is largely forested, and is surrounded by the Smith River on three sides. Residences are primarily concentrated within the southeast portion of the District’s boundary. Being an unincorporated and rural community, the Hiouchi area has a smaller, recreation oriented commercial center that includes a motel, Hiouchi Hamlet store and fuel station, other recreation- related businesses, a church, and one restaurant. In recent years, the District has undergone a few boundary changes. In 2011, the District expanded its boundaries to include approximately 300 acres of Jedediah Smith Redwoods State Park (LAFCo Resolution 11-4). This annexation was prompted by the possibility of the Park developing approximately forty additional campsites and a new visitor’s center. These developments would require water service from the District, which at the time of the annexation, was almost at capacity due to nearing its allocation limit for water diversion. Other annexations that have occurred since the District’s formation are below (Table 2). There are not any current plans to pursue the annexation of additional territory. Table 2: Big Rock CSD Annexation History Annexation Applicant LAFCo Reason for Annexation Acreage Land Uses Name Name Resolution Annexation County To increase tax base to support 81 R-1A, R-1 Resolution No. 1 Counsel application for Davis-Grunsky 69-4-13 Loan to construct a water supply and distribution system Annexation Parcel To provide water services to 150.34 U Resolution No. 2 landowners residents, to expand for future 72-1 usage purposes Peeples Parcel To provide water services to 166.44 Resolution Annexation landowners residents of the parcels 95-2 Annexation Parcel To more accurately reflect where 1 Residential Resolution Area A landowner, the District provided services; 11-4 Bill Bowman Parcel 124-190-31 already receiving water service but not in place-of-use boundary Annexation Redwood To provide water services for 300 Parkland/ Resolution Area B National future development of Jedediah Recreation 11-4 and State Smith Redwoods State Park Parks Del Norte LAFCo 4 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update The District’s SOI is currently coterminous with its boundary, however, an update to its SOI was approved as part of this MSR/SOI Update. The SOI includes approximately 78 acres of land to the east of its current boundary that would be served by the existing water supply and gravity fed water pressure system. This would make the District’s total SOI approximately 655 acres. Seasonal visitors to the area may increase in upcoming years and parklands within the District boundaries will continue to require drinking water. In addition, there may be additional residential development within the SOI, requiring domestic water and emergency response supplies. These areas are generally below the 200-foot contour where the District has sufficient water pressure from its gravity fed system. Figure 1 shows the parcel lines and contour line detail of the land included in the SOI. The District’s service area is relatively small but does include a 300-acre portion of the Hiouchi Flat and Jedediah Smith Redwoods State Park in the west. This area attracts visitors year-round but is particularly popular in the summer months due to an influx of Redwood National/State Parks and Smith River National Recreation Area (USFS Six Rivers National Forest) visitors interested in the region’s scenic and recreational opportunities. The Redwood National/State Parks include a World Heritage Site and International Biosphere Reserve, designated by UNESCO in 1980. As part of this MSR, Big Rock CSD conservation easements and dedicated lands in the northerly portion of the CSD were mapped. The locations of District infrastructure such as water tanks were also mapped. Del Norte LAFCo 5 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update Figure 1: Big Rock CSD Boundary and SOI Del Norte LAFCo 6 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update Land Use and Zoning Del Norte County is responsible for the existing and planned land uses for the areas within Big Rock CSD’s service areas. These were last updated through the Land Use Element of the County’s 2003 General Plan. Land uses within the District’s boundary largely consist of state and federal lands, rural residential, and resource conservation area (Figure 2). Zoning within the District is guided by the Zoning Code, which is split into Non-Coastal Zoning and Coastal Zoning. Zoning designations within the District’s boundary largely consist of planned community, public ownership, and rural residential. The acreage of the District’s land use and primary zoning designations within its boundary is shown below (Table 3, Table 4). Table 3: Land Use Designation Summary Land Use Designation Acreage Percentage Rural Residential (RR (1 du/1 ac), RR (1 249.20 43.30% du/5 ac), RR (1 du/2 ac)) State and Federal Lands (SFL) 203.04 35.28% Visitor-Serving Commercial (VSC) 32.18 5.59% Resource Conservation Area (RCA) 40.43 7.03% General Commercial (GC) 10.96 1.90% Rural Neighborhood (RN) 39.66 6.89% Table 4: Zoning Summary Zoning Acreage Percentage PC (Planned Community) 220.56 38.22% RR-1 (Rural Residential 1) 129.53 22.45% C-2 (Central Business) 16.84 2.92% PO (Public Ownership 210.13 36.41% There are Rural Residential lands adjacent to the CSD, but across the Smith River. They are being considered as part of the Sphere of Influence Update. Del Norte LAFCo 7 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update Figure 2: Big Rock CSD Land Use Map Del Norte LAFCo 8 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update Population The Hiouchi Census Designated Place (CDP) has a population of 314 according to the 2020 Decennial Census. The boundaries of Hiouchi CDP are smaller than those of the District by 206.18 acres and the population data is five years old. Much of the land in the discrepancy between the size of District boundaries versus the population data available for the area is Jedediah Smith Redwoods State Park land and as such, is sparsely populated. So, despite the District containing more land, and likely more people, than that of Hiouchi CDP, the CDP population estimates should be fairly reliable and accurate to use for the District’s full-time population estimate. The population is variable due to seasonal tourism. The District estimates a population of approximately 550 to 600 year-round residents and anywhere from 350 to 400 additional seasonal visitors, for an approximate seasonal population of 900 to 1,000. This estimate is separate from the US Census Data. The US Census Bureau data shows a declining population in Hiouchi CDP (approximately a (27) percent growth rate) from 2020 to 2023. The County’s projected annual growth rate from 2020 through 2060 is estimated to be (0.37) percent per year. The District does anticipate growth in its service area over the next ten years as the Hiouchi Resort RV park is being converted to a year- round occupancy of a “Tiny Home Village”. This development is estimated to increase the year- round population to between 750 and 800. For purposes of this report, the District population estimate of 800, accounting for potential future growth, is used. Disadvantaged Unincorporated Communities Pursuant to Government Code §56033.5, a disadvantaged unincorporated community (DUC) is defined as an area with 12 or more registered voters where the median household income (MHI) is less than 80 percent of the statewide MHI. Within a DUC, three basic services are evaluated: water, sewage, and fire protection. Big Rock CSD provides one of these services, water, and is therefore responsible for assuring that this service is adequately provided to the community. As of 2023, Del Norte County has a MHI of $66,7801 and the State has a MHI of $95,5211. The MHI of Hiouchi CDP is unavailable through the US Census Bureau, but District staff estimate the MHI to be between $40,000 - $50,000. Nearby areas such as Gasquet CDP to the northeast, Fort Dick CDP to the northwest, and Bertsch-Oceanview CDP to the southwest are all classified as disadvantaged. These areas have MHIs of $46,620 (48 percent of the State’s MHI), $76,204 (79 percent of the State’s MHI), and $73,229 (76 percent of the State’s MHI), respectively. Based on data in previous MSR/SOI Updates, communications with District staff, and characteristics of nearby communities, it is a reasonable assumption that the Hiouchi community is also designated as disadvantaged. Should the District pursue annexation, DUC communities within the District’s vicinity (Figure 4) shall be considered further. 1 US Census Bureau, S1901 Income in the Past 12 Months (in 2023 Inflation-Adjusted Dollars), 2023. Del Norte LAFCo 9 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update Figure 3: DUCs Within Big Rock CSD's Vicinity Del Norte LAFCo 10 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update Organizational Structure Governance Big Rock CSD is governed by a five-member Board of Directors/Trustees that is elected by District residents to serve four-year terms (Table 5). The Board meets on the third Thursday of each month at 5:00 pm at the Hiouchi Volunteer Fire Department located at 155 Dunklee Lane, Hiouchi, CA or as noticed otherwise. Meetings are open to the public. Table 5: Big Rock CSD Board of Directors/Trustees Board Member Title Term Expiration Joe “Hank” Akin President Ending December 2026 Craig Strong Vice President Ending December 2028 Michelle Anderson Treasurer, Director/Trustee Ending December 2026 Art Aten Director/Trustee Ending December 2028 Mike Finley Director/Trustee Ending December 2028 Staffing The District employs three part-time staff members. Employed positions include one General Manager who holds a Grade 1 (D1) Water Distribution Operator Certificate, one Secretary to the Board responsible for general bookkeeping, and one Operations/General Manager Assistant that assists with District tasks as needed. The District is accepting ongoing applications for Water manager, Office Manager, and seasonal labor positions. Accountability and Transparency The District maintains a website (www.bigrockcsd.org) and has an active presence in a community Facebook page titled Hiouchi Neighbors Helping Neighbors (www.facebook.com/people/Hiouchi- Neighbors-Helping-Neighbors). The District’s digital archive of meeting agendas and minutes allows the community to readily access meeting information dating back to 2023. Recent agendas published in accordance with the Brown Act and financial documents are also accessible on the website. SB929 was signed into law on September 14, 2018, requiring all independent special districts to have and maintain a website that meets all the special district transparency requirements of State law including the availability of agendas, policies, and financial information by January 1, 2020. The following table provides an overview of the District’s compliance with SB929. Table 6: SB 929 Website Requirements Type of Is the District in Description of Requirement Requirement compliance? District Contact The bill does not state the specific contact information required. We Yes. Information recommend posting, at a minimum: Physical and Mailing address Phone number and E-mail address Del Norte LAFCo 11 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update Type of Is the District in Description of Requirement Requirement compliance? Most Recent The most recent agenda must be: Yes. Agenda Posted at least 72 hours in advance of the meeting Linked on the homepage of the website, navigating directly to the current agenda Searchable, indexable, and platform-independent (simply put, post the agenda as a PDF) Financial The State Controller’s report for the District’s Financial Transaction Yes. Transaction report must be posted or linked to the corresponding State Controller Report website. Staff The State Controller’s report for the District’s Staff Compensation report Yes. Compensation must be posted or linked to the corresponding State Controller website. Report Enterprise As required by SB272, the Enterprise System Catalog must be posted. Yes. System Catalog This includes: Current system vendor / product / purpose A description of categories or types of data Department that is the prime data custodian Frequency in which system data is collected and updated Municipal Services Water Services Big Rock CSD provides municipal water service to its customers through a permanent license (#013849) with the State Water Resources Control Board (SWRCB). The District applied to the SWRCB in 2007 to change its “domestic” (official water use) categorization to “municipal.” Currently, the District has 288 customer hookups; 113 of these are for individual customers. One of the District’s hookups is Hiouchi RV Resort with approximately 75 hookups, which is being converted to a tiny home village, and another is Madrone Mobile Home Park with approximately 100 hookups. There are 109 active service connections and four inactive service connections as of February 2025. Water Demand Hiouchi is a resort community where water demand varies dramatically with the seasons. The District records water demand from October through September. From October 2023 through September 2024, Big Rock CSD diverted approximately 81.54 acre-feet (af) of water and used approximately 55.55 af of the diverted water. District staff estimate that its current draw varies between 24-30 million gallons per year. Previous usage has been 89.33 af, 48.40 af, 52.58 af, and 57.61 af. As expected in an area with seasonal tourism, more water is diverted and used in the summer months (June through August). The District provides drinking water to visitors of State and federal parklands located within its boundaries. With a diversion limit of 124 acre-feet, or 40.4 million gallons, Big Rock CSD typically stays well below its diversion limit. Should population growth occur in the area, the District will have enough capacity to provide water services with its current diversion limit. Del Norte LAFCo 12 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update The District is diligent on repairing water leaks once they have been identified, which also allows for water to be saved and its lowered diversion amount. Other effective management practices also assist with keeping the District’s usage well below its maximum allowed diversion amount. When needed, the District provides water for fire suppression needs. This greatly increases the water demand and typically occurs in fire season, causing unexpected and significant water loss beyond Big Rock CSD’s control. When Big Rock CSD must provide water from its hydrants to federal, state, or county fire suppression agencies fighting wildfires throughout the region, the excess demand can rise to 180,000 gallons or more over a three-month period Water Supply The District utilizes a groundwater system and collects water from a single well located along the Smith River. There are not currently any major drought concerns regarding the Smith River and its ability to recharge the groundwater in the area. From 2020 through 2022, there were periods of time where the Smith River was rated at the second highest level of drought (D3) per the U.S. Drought Monitor; since 2022, the drought rating has been classified as either Abnormally Dry (D0), the lowest level of drought (D1), or had no drought concerns at all. The District is authorized to divert 124 acre-feet, or approximately 40.4 million gallons, of water from this source per year and does not currently require an additional water source or increased water supply from its current source. Distribution System & Infrastructure Overview The District has not received any violations from the State in recent years; its most recent violation was in 20212 and concerned monitoring requirements for lead and copper. Prior to that violation, Big Rock CSD had not received another since 2004, which is a remarkable achievement. The 2023 Consumer Confidence Report (CCR) did not find any violations regarding contaminates or monitoring and reporting requirements. Big Rock CSD’s distribution system consists of the following: Backup booster pump o 130 water meters and associated concrete service boxes o Three master meters and one concrete vault o One 4-wheel-drive vehicle o SCADA water management system and data-linked, secured website o Two stationary emergency generators at different locations with propane fields o Water treatment facility secured within a separate room of the main pump house o One small water storage tank with a capacity of 50,000 gallons o One steel, bolted water storage tank with a capacity of 200,000 gallons o 4.2 miles of main water pipelines (8, 6, and 4-inch) o Transmission and distribution pipelines (6.9 miles of 2-inch lines) o 2 State of California, Safe Drinking Water Information System, Public Drinking Water Watch. https://sdwis.waterboards.ca.gov/PDWW/JSP/Violations.jsp?tinwsys_is_number=216&tinwsys_st_code=CA Del Norte LAFCo 13 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update River well hosting dual 10hp submersed river pumps, two independent electricity o management systems, three raw-water collection galleries embedded in the bottom of the Smith River, and one heavy overhead pump lift Office equipment and parts inventory o Heavily secured main and hillside pump houses o 15 wet and dry-cell fire hydrants o Enhanced security fencing (200 feet) o Long-distance emergency radio communications system and two FCC-licensed operators o The District’s total storage capacity is 250,000 gallons, including one 50,000-gallon Redwood tank and one 200,000-gallon steel tank that replaced a 100,000-gallon Redwood tank with significant concerns. The replacement of this tank is a significant accomplishment of the District, and the new steel tank will not need to be replaced for many years. The new tank is anchored on an ultramafic granite ledge to weather earthquakes. Water Rates Water service policy, rules, and regulations are established in accordance with Big Rock CSD Ordinance 2009-1. The most recent amendment to increase water rates was approved by the Board of Directors/Trustees on July 31, 2018. The monthly water rates were approved to automatically increase 2.5 percent annually to accommodate index growth through August 1, 2022, but the District did not end up exercising this approved increase. Residential and Commercial Standard Customers Big Rock CSD customers, both commercial and residential, are subject to the monthly minimum base water rates shown below (Table 7) and a water usage rate of $2.38 per one hundred (100) cubic feet (ft3) of water, or 7.48 gallons. New customer fees are $75.00 and the fee to re-establish service after a disconnection is $50.00. New construction is $5,000 and includes the water meter; actual tap and lines via a contractor are the property owner’s expense. Table 7: Big Rock CSD Water Rates Meter Size Monthly Minimum Base Rate ¾ -inch meters $63.51 1 -inch meters $105.86 2 -inch meters $338.75 4 -inch meters $1,058.58 Mobile Water Buyers The Big Rock CSD provides potable water to commercial and government agency mobile parties that enter into binding written agreements to draw water from the District’s only non-metered source, meaning a fire hydrant. A mobile party requiring more than a single water draw will pay a lower rate than a mobile party that needs only one draw. A deposit may be required based on individual circumstances. A District official must be present at each draw, or taking water from a community fire hydrant is considered to constitute water theft. More information on water theft can be found in the “Water Theft Policy” section of this MSR/SOI Update. Mobile water consumers Del Norte LAFCo 14 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update generally will be charged at the 4-inch meter rate but can be charged per a different rate schedule depending on the frequency of water drawing. Big Rock CSD reserves the right to refuse hydrant water to any mobile water consumer without disclosing the reason(s) for rejection. Water Theft Policy Historically, the Hiouchi area has experienced abuse from “mobile parties” that took large volumes of water from the District without permission. This taking of water poses serious risks including water hammer damage to the valves and pipelines, the exceedance of the District’s water diversion limit set forth by the State, and the depletion of water storage tanks which can result in costly damage and cross-contamination from negative pressure in the District’s water distribution pipelines. In response to these issues, the District has implemented policies regarding water theft to regulate these mobile parties. Mobile parties now must undertake contractual arrangements with the District, obtain permission to use metered and non-metered water, and use official District hydrant operators for water draws. Taking water from a District hydrant without proper authorization is considered a punishable crime. Each fire hydrant has posted warnings informing people of this policy. Approved contractors may purchase water from certain designated hydrants on a one-time basis or with a long-term agreement in place, but only District personnel may operate hydrant valves in each and every case. Other than accommodating authorized firefighters under the conditions explained in the “Other Services” section of this MSR/SOI Update, any person(s) who drafts water from a District fire hydrant in the absence of the appropriate District official would violate Big Rock CSD Ordinance 2008-1 or Ordinance 2009-1 and become subject to immediate arrest. District hydrant operators are available around the clock to assist legitimate water consumers with their respective needs. Infrastructure Needs and Deficiencies The District has multiple infrastructure needs that are nearing the end of their useful life and will require replacement or maintenance. These include their main distribution, service lines, major valves, fire hydrants, and its 50,000-gallon storage tank. The storage tank needs a new roof and has issues with its bracing. Since the District does not make enough money from service revenues to completely finance its infrastructure improvements, it will need to source grant funding and other funding sources to cover these projects. Notable Accomplishments, Goals, and Future Needs In recent years, the District has made many improvements to its distribution system including the purchase and installation of new residential water meters. These meters have a 20 year warranty and will allow for the District to provide more accurate billing. Big Rock CSD has been able to stay on top of many of its needed repairs, including fixing leaks, check valve replacement, and other general maintenance. As part of the Hillside Stabilization Project in recent years, the District replaced one storage tank, updated its SCADA system, installed enhanced security fencing, and stabilized the hillside. More information on this project can be found in the “Disaster/Emergency Response” section of this report. Additionally, the District has updated some of its policies in recent years including its Water Shutoff Policy and Cross Connection Policy. Del Norte LAFCo 15 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update Future goals of the District are primarily focused on upgrading infrastructure and continuing to provide regular maintenance and upgrades as needed to ensure reliable water service delivery. Foot valve installation will release some unnecessary workload on pumps. Other goals include addressing infrastructure needs and deficiencies identified above. Other Services Fire Services Fire protection is provided in the area by Smith River Fire Protection District (FPD). The FPD has a station located in Hiouchi that Big Rock CSD uses as a place for public meetings and as an emergency operations center for the community. According to the District, the space provided is inadequate for both purposes. The FPD responds to any structural, vehicle, or wildfire within the District’s boundaries. More information on the Smith River FPD can be found in its latest MSR/SOI Update, approved by LAFCo in 2022. The District lies within the State Responsibility Area (SRA) protected by the California Department of Forestry and Fire Protection (CalFire). CalFire is responsible for fire services in these areas. Big Rock CSD will provide potable water from any of its 15 non-metered fire hydrants, free of charge, to legitimate fire protection agencies that intend to engage with fire emergencies located within a one-mile radius of the Hiouchi Hamlet (Big Rock CSD Ordinance 2008-1). Permission from a District official is not required in such cases. The District requires each agency to report the amount of water used on each occasion in order to track its water appropriations accurately for compliance with state reporting requirements. If that condition is not met, certain water purchase arrangements between the fire service provider in question and the District must be established prior to drawing water from a hydrant. CalTrans, other non-emergency public service agencies, and contractors must coordinate water draws from the District prior to arrival. The District’s fire hydrants may not be used as a central water-replenishment source by unauthorized consumers. No one may take District water from any source other than a fire hydrant, unless permitted to do so on or near private property by a metered resident or metered business. Roads Del Norte County provides limited County park and road maintenance services for the District; only one street in the Hiouchi community qualifies as a County road - Hiouchi Drive. All other roads, and their associated street signage, are the responsibility of private parties to maintain. The California Department of Transportation (CalTrans) is responsible for the condition of U.S. Highway 199 that bisects Hiouchi from east to west. Highway 199 serves as one of three official Emergency Evacuation Routes for the County. Sewer No agency provides sewer service within District boundaries. Residences and facilities rely on private septic tanks for sewer service. Del Norte LAFCo 16 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update Solid Waste & Recycling Solid waste & recycling services are managed by Del Norte Solid Waste Management Authority. Recreation and Parks Maintenance National Park Service Rangers assigned to the Redwoods National Park within the Big Rock CSD’s place of use and surrounding national recreation areas act as stewards of the resources in their care through resource protection and proactive law enforcement. Likewise, California State Park Rangers are fully sworn California State Police Officers who perform a wide variety of general law enforcement activities, search and rescue operations, and emergency medical response. Law Enforcement Provided by the Del Norte County Sheriff’s Office and California Highway Patrol (CHP). Disaster/Emergency Response Big Rock CSD maintains strong partnerships with the Del Norte County Office of Emergency Services and the Hiouchi Neighbors Helping Neighbors community group to provide disaster response in the area. The District also collaborates with local law enforcement and fire service providers as needed when providing pre and post disaster response. The District is planning on pursuing inclusion in the next Del Norte County Multi-Jurisdictional Hazard Mitigation Plan update. The Hiouchi Local Hazard Mitigation Plan (LHMP) was prepared by GHD in 2017 for the District and aims to provide long-term hazard planning to reduce devastation when disasters occur and to increase Hiouchi’s preparedness. Additionally, many state and federal agencies require a jurisdiction to have a recent hazard mitigation plan as a condition to receive grant funding; the completion of Hiouchi’s LHMP allowed the District to receive funding for the Hillside Stabilization Project which has been completed. The Project stabilized a portion of Hiouchi Mountain to ensure that one of the District’s storage tanks would not fall down the steep mountainside as failure of the hillside was imminent at the time. The District annually assesses the LHMP’s effectiveness based on how well it is achieving the five goals set forth in the LHMP: 1. Lower the risk and vulnerability of the District and surrounding area to the impacts of natural hazards, protect lives, and reduce damages/losses to property, the economy, public health and safety, and the environment; 2. Protect critical facilities, infrastructure, utilities, and services from hazard impacts; 3. Improve public awareness, education, and preparedness for any potential hazards; 4. Improve the Planning Areas ability to mitigate losses and be prepared for responses to, and recovery from, disaster events; 5. Maintain FEMA eligibility and help the District receive grant funding. The Hiouchi area is primarily susceptible to the hazards of earthquakes, floods, and wildfires. Secondary hazards were identified to be landslide and extreme weather impacts. Since 1964, most of the disasters experienced in Del Norte County have been flooding (11 out of 17 identified hazards) but the most common disasters within Hiouchi have been violent cyclonic winds, diesel Del Norte LAFCo 17 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update and gasoline spills, and wildfire. The LHMP identifies mitigation actions the District would like to pursue to increase its disaster preparedness, some completed and others that are ongoing. Financial Overview Budget The primary sources of revenue for the District are water sales and interest income. The largest expenditure categories typically include payroll, repair and maintenance, and depreciation. An overview of the District’s budgets for recent fiscal years is below (Table 8). Table 8: Big Rock CSD Budget Summary FY21-22 FY22-23 FY23-24 Total Operating Revenue $161,885.00 $154,250.00 $159,050.00 Total Operating Expenses $108,336.00 $121,616.00 $149,348.00 Total Operating Balance $ 53,549.00 $32,634.00 $9,702.00 Total Non-Operating Revenue $720.00 $960.00 $11,400.00 Total Non-Operating Expenses $33,155.00 $140,890.00 $140,890.00 Total Non-Operating Balance ($32,435.00) ($139,930.00) ($129,490.00) NET INCOME $21,114.00 ($107,296.00) ($119,788.00) Capital Improvement Plan In the past three years, the District has not had capital expenditures towards capital improvement projects but does engage in capital improvement planning. There are future, multiple capital improvement projects the District would like to complete outlined in the “Water Services” section of this document. The capital improvement plan is updated periodically. Audit In previous years, Big Rock CSD discovered that it had been five years delinquent on annual auditing processes. The District has remedied this and has been continuing with regular annual auditing processes since this matter had been identified. A FY2023-2024 audit summary will be provided below once the District provides audit information. Del Norte LAFCo 18 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update MUNICIPAL SERVICE REVIEW DETERMINATIONS As set forth in §56430(a) of the CKH Act, in order to prepare and to update the SOI in accordance with §56425, the commission shall conduct a service review of the municipal services provided in the county or other appropriate area designated by the commission. The commission shall include in the area designated for a service review the county, the region, the sub-region, or any other geographic area as is appropriate for an analysis of the service or services to be reviewed, and shall prepare a written statement of its determinations with respect to each of the following: 1) Growth and population projections a. The Hiouchi Census Designated Place (CDP), with similar boundaries to the District, has a population of 314 according to the 2020 Decennial Census. The District estimates a current year-round population of approximately 600 and a seasonal population of 1,000. b. There is growth anticipated within District boundaries due to the recent conversion of an RV park to year-round occupancy; this development is anticipated to increase the year- round population to 800. 2) The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence a. The MHI of Hiouchi CDP is unavailable through the US Census Bureau, but District staff estimate the MHI to be between $40,000 - $50,000. b. Nearby areas such as Gasquet CDP to the northeast, Fort Dick CDP to the northwest, and Bertsch-Oceanview CDP to the southwest are all classified as disadvantaged. 3) Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies a. District staff estimate that its current draw varies between 24-30 million gallons per year. With a diversion limit of 124 acre-feet, or 40.4 million gallons, Big Rock CSD typically stays well below its diversion limit. b. Big Rock CSD recently replaced one of its storage tanks from a redwood tank to a steel tank, which is a significant accomplishment. This was financed through grant funding. c. The District needs to update or replace its main distribution, service lines, major valves, fire hydrants, and its 50,000-gallon storage tank. 4) Financial ability of agencies to provide services a. The District’s current water rates finance the continued regular maintenance of the infrastructure and distribution system. Any large-scale projects require outside funding sources, such as grant funding. b. For previous infrastructure replacement projects, the District has been successful in obtaining grant funds and retains the capability to pursue grant funds in the future. Del Norte LAFCo 19 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update 5) Status of, and opportunities for, shared facilities a. Big Rock CSD uses the Smith River FPD Fire Station located in Hiouchi as a meeting space. It is considered to be inadequate for this purpose but another, better option is not viable at this time. b. The District provides water for fire suppression needs for any fire service provider operating in the area. 6) Accountability for community service needs, including governmental structure and operational efficiencies a. The District maintains a website (www.bigrockcsd.org) and has an active presence in a community Facebook page titled Hiouchi Neighbors Helping Neighbors (www.facebook.com/people/Hiouchi-Neighbors-Helping-Neighbors). b. The District publishes agendas and minutes on its website; the archive goes back to 2023. c. Big Rock CSD is in compliance with SB929. 7) Any other matter related to effective or efficient service delivery, as required by commission policy a. None noted. Del Norte LAFCo 20 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update SPHERE OF INFLUENCE DETERMINATIONS In order to carry out its purposes and responsibilities for planning and shaping the logical and orderly development of local governmental agencies to advantageously provide for the present and future needs of the county and its communities, the commission shall develop and determine the sphere of influence of each district, as defined by Government Code §56036, and enact policies designed to promote the logical and orderly development of areas within the sphere. In determining the sphere of influence of each local agency, the commission shall consider and prepare a written statement of its determinations with respect to the following: 1) The present and planned land uses in the area, including agricultural and open-space lands. a. Land uses within the District’s boundary largely consist of state and federal lands, rural residential, and resource conservation area. Zoning designations within the District’s boundary largely consist of planned community, public ownership, and rural residential. There are also rural residential designated lands to the south and east of the CSD. 2) The present and probable need for public facilities and services in the area. a. The Hiouchi community is small and retains a residential population continuing to require water service. Additionally, the conversion of the RV park to year-round occupancy is anticipated to increase the District’s population by 200, highlighting the future need for services in the area. b. Seasonal visitors to the area may increase in upcoming years and parklands within the District boundaries will continue to require drinking water. In addition, there maybe additional residential development within the SOI, requiring domestic water and emergency response supplies. These areas are generally below the 200 foot contour where the District has sufficient water pressure from its gravity fed system. 3) The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. a. District staff estimate that its current draw varies between 24-30 million gallons per year. With a diversion limit of 124 acre-feet, or 40.4 million gallons, Big Rock CSD typically stays well below its diversion limit. b. Big Rock CSD replaced one of its storage tanks from a redwood tank to a steel tank, which is a significant accomplishment. This was financed through grant funding. c. The District needs to update or replace its main distribution, service lines, major valves, fire hydrants, and its 50,000-gallon storage tank. 4) The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. a. The Gasquet community is the closest neighboring community to Hiouchi and is another small, residential community with a large seasonal presence. Gasquet is approximately 8.5 miles east of Hiouchi. Del Norte LAFCo 21 Commission Approved - November 2025 Big Rock Community Services District MSR/SOI Update 5) For an update of a sphere of influence 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. a. A SOI Amendment is being considered in this MSR/SOI Update; see figures in “Boundary and Sphere of Influence” section beginning on page 4 of this document. Big Rock CSD provides water service to the area; no sewer service is available; Smith River FPD provides fire services. b. Should the District be interested in pursuing annexation in the future, any disadvantaged communities in the area will be considered further. Del Norte LAFCo 22 Commission Approved - November 2025