Harbor District MSR Adopted September 19 2012

Humboldt Bay Harbor, Recreation and Conservation District Municipal Service Review Adopted September 19, 2012 Prepared For Updating the Sphere of Influence Report TABLE OF CONTENTS Introduction ......................................................................................................................................1 Municipal Service Reviews .................................................................................................1 Spheres of Influence .............................................................................................................2 Data Sources and Methodology ...........................................................................................2 Agency Profile .................................................................................................................................3 District Formation ................................................................................................................5 District Boundary .................................................................................................................6 Growth and Population ........................................................................................................6 Services Provided .............................................................................................................................7 New or Expanded Services ................................................................................................11 Needs or Deficiencies ........................................................................................................11 Financing ........................................................................................................................................12 Local Accountability and Governance ...........................................................................................13 Municipal Service Review Determinations ...................................................................................14 Sphere of Influence Determinations...............................................................................................16 References ......................................................................................................................................18 LIST OF FIGURES Figure 1: District Facilities ............................................................................................................10 LIST OF TABLES Table 1: Historic and Projected Population Growth in Humboldt County ......................................6 Table 2: 2010-11 Fiscal Year Budget vs. Actual ..........................................................................12 Table 3: Contact Information ........................................................................................................13 INTRODUCTION The purpose of this report is to provide a comprehensive review of services provided by the Humboldt Bay Harbor, Recreation and Conservation District and to update the District’s sphere of influence. The Humboldt Local Agency Formation Commission (LAFCo) conducts municipal service reviews to assess existing and future public service conditions and to evaluate organizational options for accommodating growth and ensuring critical services are provided efficiently. This service review will be available for use by LAFCo, local agencies, and the public to better understand how public services are provided by the Harbor District. Municipal Service Review LAFCo operates under the provisions of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 commencing with California Government Code Section 56000. The Cortese-Knox-Hertzberg Act authorizes LAFCo to conduct comprehensive studies of municipal services every five years in conjunction with the sphere of influence reviews of cities and special districts. Spheres of influence are boundaries, determined by LAFCo, which define the probable service area for cities and special districts in a manner that meets the present and future needs of the community while protecting against the premature loss of agricultural or open-space lands. The term “municipal services” refers to the full range of services that a public agency provides or is authorized to provide. Municipal service reviews are studies that evaluate existing and future service conditions from a local and regional perspective. This includes making determinations on the adequacy, efficiency, and effectiveness of these services in relationship to local conditions and circumstances. The statutory intent of the municipal service review process is for LAFCo to evaluate how agencies currently provide services and to consider the impacts on those services relative to future growth and other changes that may occur in the foreseeable future. This includes identifying opportunities to address deficiencies, inefficiencies, or inequities involving service levels and governmental structures that may exist currently or are anticipated in the future. As part of the municipal service review process, LAFCo is required to prepare written determinations that address each of the following service factors: 1. Growth and population projections for the affected area; 2. The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence; 3. Present and planned capacity of public facilities, adequacy of public services, and 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; 4. Financial ability of agencies to provide services; 5. Status of, and opportunities for, shared facilities; 1 6. Accountability for community service needs, including governmental structure and operational efficiencies; and 7. Any other matter related to effective or efficient service delivery, as required by commission policy. Spheres of Influence As discussed above, a sphere of influence is a planning boundary that shows the probable future service area for each city and special district under LAFCo’s jurisdiction. The Cortese-Knox- Hertzberg Act requires LAFCo to establish and periodically review each agency’s sphere every five years and update as necessary. All subsequent boundary change decisions must be consistent with the adopted sphere (i.e., territory cannot be annexed by an agency unless it is within that agency's sphere). When adopting or amending a sphere of influence, LAFCo must make determinations with regard to the following five topics: 1. Present and planned land uses in the area, including agricultural and open-space lands; 2. Present and probable need for public facilities and services in the area; 3. Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide; 4. Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency; and 5. For a sphere of influence update for 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 of influence. The municipal service review process provides LAFCo with a tool for studying existing and future municipal service conditions, evaluating organizational options, and examining whether critical services are provided in an efficient and cost-effective manner. In this way, the municipal service review helps to inform the sphere of influence development process with regard to identifying an appropriate and probable service area for each agency under its jurisdiction. Data Sources and Methodology To reduce the amount of surveys and information required from the Humboldt Bay Harbor, Recreation and Conservation District, this municipal service review relied on already published documents as well as a limited agency survey and follow-up interviews. Sources of information include, but are not limited to: o Humboldt Bay Management Plan, 2007 o Strategic Plan, 2007-2011 o Harbor Revitalization Plan, 2003 o Audit for 2010-11 The draft Municipal Service Review was provided to the Harbor District Commission, for review at their September 13, 2012 meeting. 2 AGENCY PROFILE The Humboldt Bay Harbor, Recreation and Conservation District is a county-wide, independent special district that was formed on April 17, 1973 pursuant to the provisions of California Harbors and Navigation Code (Chapter 1283 of the Statutes of 1970, as amended) Appendix 2. The Harbor District’s statutory purpose is to manage Humboldt Bay for the promotion of commerce, navigation, fisheries, recreation, and the protection of natural resources, and to acquire, construct, maintain, operate, develop, and regulate harbor works and improvements. Promoting marine commerce was one of the main purposes behind the State legislation that created the Harbor District. Accordingly, the District serves as the Humboldt Bay Port Authority, which is the only deep-water shipping port between San Francisco, approximately 225 nautical miles to the south, and Coos Bay, Oregon, approximately 156 nautical miles to the north. The District has regulatory jurisdiction in Humboldt Bay shoreward to mean higher high water (MHHW) elevation. This region includes: (1) all of Humboldt Bay bayward of existing levees, (2) most of Mad River Slough, (3) the region of Eureka Slough (including Freshwater Slough and Ryan Slough) approximately to the limit of tidal action (which is generally identified as the location of Myrtle Avenue), (4) Elk River to the limit of tidal action, and (5) the tidally influenced parts of Hookton Slough and Salmon Creek in South Bay. The District’s authority also includes a number of District-owned parcels at Woodley Island, the Park Street mitigation area, the Fields Landing Boat Yard, the Redwood Dock parcel on the Samoa Peninsula, a small parcel within the mouth of the Elk River, and a restoration area at Buhne Point in King Salmon. The Harbor District is governed by a five-member Board of Commissioners with staggered four- year terms. Each seat on the commission is associated with one of five specific geographical divisions, which follow the same boundaries as the Humboldt County Supervisorial Districts. The District staff of 13 people is comprised of management, maintenance, and clerical personnel. The District has three main functional divisions, namely the Port of Humboldt Bay Division, the Woodley Island Marina Division, and the Resource Conservation Division. Within these three divisions a variety of projects and activities occur that are aimed at fulfilling the District’s mission regarding harbor, recreation, and conservation duties. The mission of the Harbor District is to serve all of the people of Humboldt County by promoting harbor use, enhancing recreational opportunities and protecting bay and tidal environments. Local leadership – Regional stewardship – Global significance Harbor The District oversees, coordinates or participates in a variety of harbor-related activities including, channel maintenance, channel improvement, dredging projects, port marketing and shipping facility improvements, oil spill response, navigation safety education, and 3 oceanographic research. In April 2000, the Harbor Deepening Project was completed, which deepened the Harbor entrance to improve navigation safety and to accommodate the needs of the current international shipping fleet. Building on the deepening project, the Harbor Revitalization Plan was completed in February 2003 and concluded that, although there were challenges, the Port of Humboldt Bay is viable for a variety of maritime uses. The District has identified the following harbor-related goals in their Strategic Plan Process: o Redwood Marine Terminal and Business Park Creation of a marine-based, planned-use development incorporating modernized public dock facilities. Uses could include aquaculture, marine industrial, light industrial, commercial, and import/export. o Aquaculture Expansion Increased opportunities for in-bay and terrestrial aquaculture business on Humboldt Bay, in an environmentally sound manner. o North Coast Fisheries Co-management District is the recognized leader of the North Coast Fisheries Co-management Initiative; sufficient data is available to support effective adaptive management of marine resources. o Marine Highway Increased materials export, with particular emphasis on value-added products (e.g., lumber, pre-fabricated construction, fuels); Humboldt Bay established as coordination center for the development of the Marine Highway. o Woodley Island Marina Woodley Island Marina shows a consistent annual profit; improved customer service and marketing for the Marina. o Inner Reach Dredge Spoils Management Sustainable plan in place for economically maintaining navigability of the Inner Reach. o Sea Level Rise Comprehensive plan in place to protect critical infrastructure around Humboldt Bay at the same time expanding tidal wetlands. Recreation The Harbor District, as the public agency with primary responsibility for uses and resources on and immediately around Humboldt Bay, has assumed a prominent leadership role in directly or indirectly developing, enhancing, and managing Bay-related recreational opportunities. This includes the Humboldt Bay Water Trails Project, which when completed will have designated routes and associated water trail access points for recreational watercraft. Other recreational projects that the District is involved in include promoting and funding the Bay-wide interpretive signing program, participating in recreational events, and supporting a variety of other recreational activities in and around Humboldt Bay. 4 Conservation The Harbor District has ongoing involvements in a multitude of conservation activities around Humboldt Bay. These include managing three wildlife areas (Gerald O. Hansen Wildlife Area on Woodley Island, the King Salmon restoration area, and the Park Street wetland at Eureka Slough); educational outreach, including an “Adopt-the-Bay” program; and assisting in the planning and funding of biological research and monitoring projects around the Bay. The Harbor District was the first local agency on the west coast of North America to develop and implement a ballast water exchange program, in an attempt to limit the introduction of invasive species from other ports (now overseen by the State of California). The District also oversees, coordinates or participates in the ongoing removal of non-indigenous species in wildlife areas as well as supporting and participating in other agencies’ conservation programs. The District sponsors and coordinates the biennial Humboldt Bay Symposium held every even year. District Formation In 1970, the California State Legislature passed the Humboldt Bay Harbor, Recreation and Conservation Act in response to intensive study by the Humboldt Bay Development Commission recommending that a special district be formed to facilitate development and conservation of the bay and its immediate vicinity. A proposal to organize a district under that law was, however, disapproved by LAFCo in 1970. Legislation modifying the original statute was passed in 1972 which remedied the features which raised concerns during the earlier public hearings. A second proposal was approved by LAFCo in December of 1972 and was subsequently approved by the Humboldt County Board of Supervisors and ratified by the county electorate in 1973. 5 District Boundary The Harbor District is a county-wide public local agency, with regulatory jurisdiction in Humboldt Bay shoreward to mean higher high water elevation. The legislation that created the Harbor District specified the functions and powers of the District as well as a minimum area to be included in the District. Because of the multiplicity of agencies attempting to exercise jurisdiction over Humboldt Bay, the legislature stipulated that any District formed would include, at a minimum, all of the territory within the Cities of Eureka and Arcata. No upper limit was placed on District size, however, the District's regulatory jurisdiction was limited to Humboldt Bay. While deliberating the formation of the District, it was determined the economic activities and improvements on the bay and along the coast would be of benefit county-wide. For this reason, the District's boundaries were established coterminous with those of Humboldt County. Growth and Population According to the 2010 Census, the total population of Humboldt County was 134,623 in 2010, which represents a population increase of 8,105 persons, or 6%, since the 2000 Census. Approximately 33% of the county population lives in the Humboldt Bay (i.e., Arcata and Eureka) area (2010 Census). Based on long-term averages developed by the California Department of Finance (DOF), approximately 12,577 more people will live in Humboldt County in 2030 than in 2010 (see Table 1). Local government land use plans accommodate housing needs based on projections prepared by the California Department of Housing and Community Development (HCD), which are used in the Regional Housing Needs Assessment (RHNA) and Housing Element preparation. A local process administered by the Humboldt County Association of Governments (HCAOG) allocates the appropriate portions of housing needs to each of the various jurisdictions. Table 1: Historic and Projected Population Growth in Humboldt County Average Total Percent Total County Year Annual Change over Population Increase Period 1980 108,525 - - 1990 119,118 0.98% 9.77% 2000 126,518 0.62% 6.21% 2010 134,623 0.65% 6.55% 2020 142,200 0.55% 5.48% 2030 147,200 0.36% 3.55% Source: California Department of Finance; Humboldt County CDS, 2007 6 SERVICES PROVIDED The Harbor District owns and manages several properties and facilities that are used for a variety of purposes, consistent with the District’s multiple functions in managing Bay resources and activities. The following is a summary of the main properties and facilities owned and operated by the District in and around Humboldt Bay. Woodley Island Woodley Island is divided into three functional components that are managed by the District. These three components are the Woodley Island Marina, the on-shore marina support facilities, and the Gerald O. Hansen Wildlife Area. The Woodley Island Marina is an important node of recreational use and Bay access on Humboldt Bay. The Marina, constructed in 1981, provides 237 slips for recreational and commercial vessels and related on-shore support facilities. On-shore facilities include U.S. Coast Guard, U.S. Army Corps of Engineers, and U.S. Weather Service offices; the Marina office and District headquarters; restroom facilities; laundromat; ship’s chandlery; work yard; work dock with one and two-ton hoists; marine storage yard; a canoe/kayak launch area; parking; restaurant/bar and scenic views of wildlife areas, boats, open water, and waterfront buildings. Services provided at Woodley Island Marina include vessel sewage pumpout facility, oily bilge water pumpout stations throughout the marina; waste oil disposal facilities; water; electricity; and forklift rental. Concessionaires provide other recreation-related functions, including kayak and canoe rentals and charter sport fishing. 1. Marina Offices 9. Sewage Pump-out 2. Dock Master/Security 10. Restrooms 3. Cafe & Bar 11. Ships Chandlery 4. Laundry 12. Transient Vessel Berths 5. Restrooms/Showers 13. Storage Yard 6. 1 & 2-ton Hoists 14. National Weather Service 7. Work Dock 15. Boat sales, rentals, lessons, canoe 8. Work Area and kayak launching 7 The marina consists of nine docks (identified by letters A-I) a work dock, and a floating breakwater. Slips increase in size from east to west and range from 30’ to 70’. End-ties are located at the Eureka channel side of the docks and range from 70’ to 150’. The marina has two depth zones; Docks A-E are maintained at a depth of –14’ (MLLW) and Docks F-I are maintained at a depth of –10’ (MLLW). As Woodley Island Marina is located on the Eureka Channel, which is for all intents and purposes an extension of Eureka Slough draining the Freshwater Creek/Ryan Slough watersheds, periodic maintenance dredging is required in order to maintain the original depths and functions at the marina. Typically, approximately 120,000 cubic yards of accumulated sediment is maintenance-dredged every 7-10 years. A cutter-head suction dredge has been determined to be the most effective, efficient, and cost-effective method of maintenance-dredging the marina. Dredge material is then pumped from the dredge through a flexible, temporary pipeline for discharge onto Samoa beach during the late fall, winter, and early spring months only. The southern half of Woodley Island, including and south of Startare Drive, is managed for visitor-serving purposes. This area also includes all of the services, offices, parking, access, and interpretive displays. Interpretive displays located on Woodley Island include the original 1892 Table Bluff lighthouse, a whistle buoy, Fishermen’s memorial, Fishermen’s statue, Indian Island Massacre historic site plaque, and a variety of displays depicting the various techniques used in commercial fishing and mariculture. The northwestern half and eastern end of Woodley Island comprise the Gerald O. Hansen Wildlife Area. This wildlife area, named in the memory of the District’s former Treasurer of 27 years, was set aside during the construction of Woodley Island Marina. The District manages this area for native plant species, through revegetation and actively removing and controlling invasive non-indigenous species. The District restricts use to this area for seasonal vegetation maintenance and scientific study. The wildlife area is used extensively by waterfowl, egrets, herons, and small mammals. The wildlife area is also home to a small resident deer herd. Park Street Mitigation Site The District acquired, in 1979, an approximately 20-acre property at the foot of Park Street in Eureka as a mitigation site to compensate for loss of wetlands and other habitats associated with development of Woodley Island Marina and related dredging, east of Samoa Bridge. The property is located adjacent to, and includes a portion of, Freshwater Slough, an estuarine element of Humboldt Bay. The approximately 14-acre mitigation site is located in the area of an abandoned log pond, formerly a tidal salt marsh, and also includes a freshwater marsh area created by the construction of an interior dike. The salt marsh portion of the site was re-created by breaching the dike adjacent to Freshwater Slough in 1981. Primary use of the property is for wildlife habitat. Public use of the site is low; schools occasionally use the site for science education purposes. Fields Landing Boat Building and Repair Facility The Fields Landing Boat Building and Repair Facility was constructed by the District in the early 1980s. This facility is located at the southern end of the Fields Landing Channel and was a 8 former mill site and lumber export facility. The approximately 18-acre site including the five- acre boat yard is designated by the local coastal plan for coastal-dependent industrial uses. Although the primary use of the site is for the only boat yard on Humboldt Bay and marine terminal use, the site’s proximity to the Bay has historically provided a low level of public access to South Bay for hunting, fishing, and kayaking. Additionally, the District provides a small building on this property for use by the local Sea Scout program. The boat yard operation was contracted to a private operator until 1999. Since then, the District has staffed, operated, and maintained the boat yard facility. The boat yard’s current facilities include approximately five acres of paved and fenced area. Within the paved area includes several power and water stations, yard lighting, an 8,000 square-foot building to house the 150- ton marine travelift or straddle-carrier, and office and restroom facilities. Under the District’s current operation, District staff will haul and launch vessels and provide facility maintenance and security during business hours. Contracted security is utilized during night and weekend hours. Boat repairs are carried out by owners/crews or by contracted labor. King Salmon Beach and Dunes Recreation Area This District-owned site is located northwest of Buhne Drive in the unincorporated community of King Salmon on the South Bay. Due to excessive shoreline erosion in the late 1970s and early 1980s, the District partnered with the U.S. Army Corps of Engineers to install two rock groins and rebuild the beach area. After construction, the majority of the new beach and dunes area was fenced and vegetated with native dune plants. In 1997, the fences were removed and the beach/dune area was opened to the public. The District presently works to attempt to control the spread of non-indigenous dune plants; it also maintains a portable bus stop for local schoolchildren. The original plans also included some of the infrastructure to add a ballpark on the southern end of the property in the future. Motor vehicles are prohibited on this property and the district enforces other use restrictions. The general area of King Salmon Beach is an open sandy beach used for walking, birdwatching, launching small boats, and general outdoor enjoyment. Roadway improvements by the County allow parking along Buhne Drive. Shelter Cove Breakwater and Boat Launch The Harbor District maintains the Shelter Cove harbor, breakwater jetty, boat launch and fish cleaning station. Shelter Cove, located in Southern Humboldt County, provides the only harbor of refuge from the common northwesterly winds and seas between Fort Bragg and Humboldt Bay. The Harbor District completed a Breakwater Rehabilitation Project in 2011 after the original breakwater had deteriorated to the point that it no longer provided the protection necessary for the State’s only open ocean boat launching ramp. 9 Humboldt Bay Harbor Recreation ·|}þ 255 and Conservation District MSR and SOI Update: Harbor Facilities ° 0 1 2Miles Source: Imagery - USDA NAIP20102 Roads - ESRI & US Census TIGER Data 2010 £¤ 101 ·|}þ 255 Woodley Redwood Dock Island Berth 1 Marina Redwood Dock Berth 2 Park Street £¤ Mitigation Area 101 King Salmon Beach Location Map Fields Landing Dock Detail Area Shelter Cove Boat Launch £¤ Inset Map 101 Inset Map New or Expanded Services The District submitted the following four projects, which are included in the Board of Commissioners’ Strategic Plan goals, to the County of Humboldt EDS for Prosperity 2012 “Infrastructure Projects for Economic Development”: 1. Creation of marine-based planned development (including permitting) incorporating modernized public dock facility (in the Redwood Marine Terminal area). Uses include aquaculture, marine industrial, light commercial and import/export. 2. Creation of a marine-based rail planned development (including permitting) to barge facility that connects water dependent industrial lands at Fields Landing. 3. Purchase necessary modern marine infrastructure/equipment in order to place export containers on a barge line as an alternative mode to highway transportation. 4. Construct improvements to paddle boat access at three facilities around Humboldt Bay. Needs or Deficiencies The Harbor District has an ongoing program for maintaining facilities to address operating needs and infrastructure maintenance. The District maintenance crew covers much of the work, with contractors brought in when necessary. One example of work by contract to address District needs is the demolition and removal of the large dilapidated Terminal Building 14 at Redwood Dock Berth 1, which is an impediment to development plans. The following is a discussion of other infrastructure and facilities the Harbor District is improving to address operating needs. Infrastructure The District obtained an ISTEA grant to fund the Samoa Industrial Waterfront Transportation Access Plan. This project proposes to develop a highway and rail connection plan to port facilities with focus on Humboldt Bay Harbor, Recreation and Conservation District parcels in the Samoa waterfront area. The Plan will identify and evaluate the most accessible options available, including the consideration of alternate rail road alignments and the consideration of different roadway access alignments. In identifying and evaluating the most accessible options, preliminary engineered plans will be developed. The plan will also evaluate the possibility of reclassifying some of the local roads connecting the port, rail and state highway to make them part of the federal aid system. If budget allows, acquisition of entitlements, including lot line adjustments and easements will be made per the completed connection plan. Facility Revitalization of a marine terminal asset (Redwood Marine Terminal Berths 1 and 2) that will improve modern maritime infrastructure, equipment and navigation safety improvements to generate and support marine highway (short sea shipping) and other cargo and cruise shipping opportunities for Humboldt Bay. Another is consideration of additional revenue generating uses on Woodley Island, to help fund dock replacements and upkeep. 11 FINANCING The Harbor District's principal sources of income include property taxes; tideland leases from dock operators and mariculture operations; rents and leases from sources such as Woodley Island Marina, Woodley Island commercial spaces, and the Fields Landing Boat Yard; and the Harbor Improvement Surcharge, a general charge levied on cargo and deep draft vessels using Humboldt Bay's improved navigation channels. In addition, the Harbor District utilizes grant funding from various sources to assist in accomplishing its mission. Table 2 presents the variance between the District's final or adopted budget and the actual results for the fiscal year 2010-11. The District distinguishes operating revenues and expenses from non- operating items. The principal operating revenues of the District are charges to customers for rents and tidelands leases and harbor improvement surcharges. Operating expenses include the cost of maintaining the marina and tidelands, general and administrative expenses, and depreciation of capital assets. All other revenues and expenses are reported as non-operating items. For the fiscal year 2010-11, the District had total expenditures of $3,493,829 and total revenue of $3,187,091. General revenues from taxes, interest, and investments accounted for $833,738 or 26 percent of all revenues. Revenues in the form of grants accounted for $1,256,506 or 39 percent of all revenues. The District's total net assets decreased from the prior fiscal year by $306,738, or 2.7 percent, from $11,289,900 to $10,983,162. This decrease was due to low revenues from tidelands leases, and harbor improvement surcharges, as well as an increase in depreciation expense. The District has long-term debt in the form of loan agreements with the California Department of Boating and Waterways to finance the construction of the Woodley Island Marina, and bonds to prepay the loan agreement with the California Maritime to finance the District's portion of the 2000 harbor deep dredging project. The balance of long-term debt decreased $80,000, or 2.0 percent, from the prior fiscal year, from $3,830,951 to $3,910,951, due to regularly scheduled principal payments. Table 2. 2010-11 Fiscal Year Budget vs. Actual Revenues & Expenses Final Budget Actual Variance Operating Revenues: Rents and leases 425,316 398,222 (27,094) Slip rentals 525,668 540,058 14,390 Harbor improvement surcharge 45,000 67,946 22,946 Pilotage services 25,000 38,331 13,331 Other operating revenue 58,749 29,403 (29,346) Total Operating Revenue 1,079,733 1,073,960 (5,773) Operating Expenses Salaries, wages and benefits 1,021,617 1,039,470 (17,853) Depreciation - 767,254 (767,254) 12 Revenues & Expenses Final Budget Actual Variance Boat building and repair facility 65,000 84,639 (19,639) Professional services 191,050 161,065 29,985 Outside services 110,000 117,730 (7,730) Utilities 165,000 174,008 (9,008) Other operating expenses 414,800 408,407 6,393 Total Operating Expenses 1,967,467 2,752,573 (785,106) Operating Income (Loss) (887,734) (1,678,613) (790,879) Non-Operating Revenue (Expense): Property taxes 824,000 812,573 (11,427) Interest income 100,000 21,165 (78,835) Grants and other non-operating income - 1,279,393 1,279,393 Grant expense - (528,895) (528,895) Interest expense (315,169) (205,506) 109,663 Capital expenses (57,500) - 57,500 Other non-operating expense (10,000) (6,855) 3,145 Total Non-Operating Revenue (Expense) 541,331 1,371,875 830,544 Increase (Decrease) in Net Assets (346,403) (306,738) 39,665 LOCAL ACCOUNTABILITY & GOVERNANCE The Harbor Commissioners meet on the 2nd and 4th Thursdays beginning January through October, as well as the 2nd Thursday in November and the 1st and 3rd Thursdays in December. Meetings begin at 7:00 p.m. at the Woodley Island Conference Room. Board agendas are e- mailed to all local media outlets and members of the public requesting notice 72 hours prior to the meeting. Agendas are posted on the District’s website and posted on the outside District office wall 72 hours in advance of the meeting. The President is paid $500 per month and the remaining Board members are paid $400 per month. No other benefits other than travel expense for conferences and organization meetings are provided to Board members. The Harbor District’s administration office is open Monday-Friday, 8am-5pm; the Dockmaster’s office is open seven days per week 8am-5pm. Table 3: Contact Information Primary Contact: Jack Crider, CEO jcrider@portofhumboldtbay.org Alternate Contact: Patricia Tyson, Director of Administration Services ptyson@portofhumboldtbay.org Physical Address 601 Startare Drive, Eureka, CA 95501 Mailing Address: PO Box 1030, Eureka, CA 95502 Phone Number: (707) 443-0801 Fax Number: (707) 443-0800 Website: www.humboldtbay.org 13 MUNICIPAL SERVICES REVIEW DETERMINATIONS GC §56430. (a) In order to prepare and to update spheres of influence in accordance with Section 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 service review the county, the region, the subregion, 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 for the affected area. New residential development in Humboldt County is projected at existing county-wide rates, which range from 0.25 to 1.0% annually. The California Department of Finance (DOF) projects that the population of Humboldt County will grow by approximately 12,577 residents between 2010 and 2030, which is an average growth rate of approximately 0.46% per year. Commercial and industrial growth in the County, including concentrations around the bay, is also projected. The Harbor District is an active participant in efforts to develop jobs and commerce to accommodate employment needs of both the existing and projected County population. 2) The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere. The Harbor District’s sphere of influence will remain coterminous with the District’s service area and County boundary. The unincorporated parts of the County meet the definition of disadvantaged unincorporated communities based on the state definition (5 of State median income). New state legislation to consider needs of disadvantaged unincorporated communities is primarily to ensure that the needs of those communities are met when considering services extensions and/or annexations, neither of which are applicable to the Harbor District in the context of this MSR. 3) Present and planned capacity of public facilities, adequacy of public services, and 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. The Harbor District’s sphere of influence is proposed to remain coterminous with the District’s service area and County boundary. The determination to address sewers, municipal and industrial water, and structural fire protection is not applicable to the District, as they do not provide those services. However, as noted in this MSR, the Harbor District is implementing the Humboldt Bay Management Plan and Strategic Plan to help build capacity of public facilities, and improve adequacy of public services for areas and uses within the District’s jurisdiction. 14 4) Financial ability of agencies to provide services. Without the annual long-term debt payments, the Harbor District’s annual revenue would be adequate to deliver services. According to the District, the FY 2012-13 budget contained many rate increases and many expenses were cut considerably or were eliminated in order to ensure the continuation of services. District staff continues to look for ways to increase revenues through enhanced or additional services (i.e. boat/trailer storage at Fields Landing Boat Yard, researching the development of an RV park on Woodley Island, installing dock electric meters so that the marina tenants pay their portion of electricity used on the docks). 5) Status of, and opportunities for, shared facilities. The Harbor District serves as a coordinating entity for harbor, recreation, and conservation activities among the various governments with jurisdiction around Humboldt Bay. This is consistent with the requirement of the District’s authorizing statute “to work closely with the planning agencies of the adjacent corporate bodies” in the exercise of its powers and duties. Woodley Island Marina is a prime example of the District’s commitment to cooperative recreational development, where a number of public and private entities share and contribute to the overall collection of facilities and services that benefit the public. The District also supports the efforts of other local agencies to develop water-oriented recreational facilities, such as the improvements to the Fields Landing Boat Ramp by Humboldt County and the improvement of facilities along Humboldt Bay’s Eureka Channel as part of the City of Eureka’s Waterfront Revitalization Plan. District support to other agencies takes a variety of forms, including joint grant and funding applications, in-kind support, and procedural and technical assistance. An example of shared facility management is the breakwater and boat launch at Shelter Cove. While the Harbor District maintenance staff provides semi-annual maintenance and upkeep, the District has Resort Improvement District #1, based in Shelter Cove, to provide the regular maintenance of the fish cleaning station. The District contracts with RID#1 for this service. 6) Accountability for community service needs, including governmental structure and operational efficiencies. The Harbor District is governed by a Board of Commissioners, elected by voters in Humboldt County. The District employs 13 full-time employees comprised of management, maintenance, and clerical personnel. As with other local agencies, the District is subject to the Brown Act as well as other state and federal laws regulating the conduct of government business. The Humboldt Bay Management Plan remains the foundational policy document for the Harbor District. It sets out policies that will be the basis for reconciling the not-always compatible demands posed by uses related to the bay. The Humboldt Bay Management Plan clearly defines the District roles and responsibilities, including regulatory responsibilities and authorities; trust and stewardship responsibilities; and District multi-use areas. This document demonstrates the District’s accountability for community service for areas and uses within its authority. 15 More specifically, the District recognized the need for better access to its and other dock facilities on the Samoa Peninsula and secured a transportation grant to prepare the Samoa Industrial Waterfront Transportation Access Plan. The District has engaged stakeholders (other dock operators and landowners) and agencies in the preparation of this plan. The intended outcome is improved industrial access for Samoa and Fairhaven area dock facilities. This addresses a community service need. 7) Any other matter related to effective or efficient service delivery, as required by commission policy. There are no further matters related to effective or efficient service delivery to report at this time. SPHERE OF INFLUENCE DETERMINATIONS 56425. (e) 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 each of the following: 1) The present and planned land uses in the area, including agricultural and open-space lands. With 3,570 square miles of land, Humboldt County is the 14th largest county in California. Nearly 34 percent of the County is either in public ownership or tribal lands. Incorporated cities occupy 23,011 acres, or just about one percent of the total land area. The National Forests, National Parks, and public land controlled by the Bureau of Land Management total 571,200 acres, and the State Parks System includes 72,200 acres. The Yurok and Hoopa tribal lands total 127,512 acres, or 5.6 percent of the total land area in the County. Unincorporated lands subject to the County’s land use jurisdiction (areas outside cities and federal, state, and tribal trust lands) total approximately 1,565,000 acres. In the unincorporated territory of Humboldt County, timberland and agriculture account for the majority (60.2 percent) of the County’s rural land uses. Open space and parks occupy nearly 582,900 acres (25.7 percent), and all other uses share 14.1 percent of Humboldt County’s total land area, including rural residential as a primary use on 112,459 acres in the unincorporated County. The District recognizes the value of agricultural and open space lands, primarily through its efforts to protect and aquaculture and open waters on and around the bay. 2) The present and probable need for public facilities and services in the area. One of the main reasons the State of California created the Harbor District was for the promotion of national and international commerce, fisheries and navigation. To that end, the Harbor District 16 oversees and promotes many port development projects and programs. In addition, the District’s mandate puts it in the best position to support organizations focused on Humboldt Bay recreation and conservation. The District understands the need for public facilities and port development projects, and is actively engaged in moving those projects forward. 3) The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. The statutory purpose of the Harbor District is to manage Humboldt Bay for the promotion of commerce, navigation, fisheries, recreation, and the protection of natural resources, and to acquire, construct, maintain, operate, develop, and regulate harbor works. The District serves to balance port-related commercial and industrial uses, expanding recreational uses and environmental protection in an effort to expand economic development opportunities in Humboldt County. 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. The Harbor District serves the entire county population. It provides a variety of facilities, for commercial, recreational and visitor serving use, available to the county population and for visitors as well. Some recreational facilities such as the King Salmon Beach and areas of Woodley Island are accessible at no cost for economically disadvantaged community members. The District has improved access at King Salmon Beach by removing fences. In Shelter Cove the Harbor District offers the only publicly accessible boat launch between Fort Bragg and Humboldt Bay. These facilities offer benefits for both social and economic communities. 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. The Harbor District’s sphere of influence is proposed to remain coterminous with the District’s service area boundary. Therefore, no disadvantaged communities can be identified within or contiguous to the Harbor District’s sphere of influence that would need public facilities and services. 17 REFERENCES Humboldt Bay Harbor, Recreation and Conservation District Humboldt Bay Management Plan, 2007. Humboldt Bay Harbor, Recreation and Conservation District Harbor Revitalization Plan, 2003 Humboldt Bay Harbor, Recreation and Conservation District Draft Five Year Strategic Plan Goals 2007-2011 (August 11, 2011). Humboldt Bay Harbor, Recreation and Conservation District Enabling Legislation, County of Humboldt. Humboldt Bay Harbor District Proposed Fee and Rate Schedule for FY 2012/13. Humboldt Bay Harbor, Recreation and Conservation District Financial Statements and Supplementary Information Years Ended June 30, 2011 and 2010 Demello, McAuley, McReynolds & Holland, LLP Certified Public Accountants. Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 - California Government Code Section 56000. 18