Caspar South Water District , 2024

Caspar South Water District 2024 Municipal Service Review and Sphere of Influence Study Prepared By/For: Workshop: September 9, 2024 Mendocino LAFCo Public Hearing: October 7, 2024 200 South School Street Adopted: October 7, 2024 Ukiah, California 95482 LAFCo Resolution No: 2024-25-03 http://www.mendolafco.org/ [This page intentionally left blank] Resolution No. 2024-25-03 of the Mendocino Local Agency Formation Commission Approving the Caspar South Water District Municipal Service Review and Sphere of Influence Update 2024 WHEREAS, the Mendocino Local Agency Formation Commission, hereinafter referred to as the “Commission”, is authorized to conduct municipal service reviews and establish, amend, and update spheres of influence for local governmental agencies whose jurisdictions are within Mendocino County; and WHEREAS, the Commission conducted a municipal service review to evaluate the Caspar South Water District, hereinafter referred to as the “CSWD or District”, pursuant to California Government Code Section 56430; and WHEREAS, the Commission conducted a sphere of influence update for the District pursuant to California Government Code Section 56425; and WHEREAS, the Commission held a public workshop on September 9, 2024 to receive public and agency comments and provide direction on revisions to the District’s Draft MSR/SOI update; and WHEREAS, the Executive Officer gave sufficient notice of a public hearing to be conducted by the Commission in the form and manner prescribed by law; and WHEREAS, the Executive Officer’s report and recommendations on the municipal service review and sphere of influence update were presented to the Commission in the manner provided by law; and WHEREAS, the Commission heard and fully considered all the evidence presented at a public hearing held on the Municipal Service Review and Sphere of Influence update on October 7, 2024; and WHEREAS, the Commission considered all the factors required under California Government Code Sections 56430 and 56425. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Mendocino Local Agency Formation Commission, as follows: 1. The Commission, as Lead Agency, finds the municipal service review categorically exempt from further review under the California Environmental Quality Act pursuant to Title 14 of the California Code of Regulations §15306 (Class 6 Exemption). This finding is based on the use of the municipal service review as a data collection and service evaluation study. There are no land use changes or environmental impacts created or recommended by the MSR. The information contained within the municipal service review may be used to consider future actions that will be subject to additional environmental review. 2. The Commission, as Lead Agency, finds the sphere of influence update exempt from further review under the California Environmental Quality Act pursuant to Title 14 of the California Code of Regulations §15061(b)(3) (General Rule). This finding is based on the Commission determining with certainty that the sphere of influence update will have no possibility of LAFCo Resolution No. 2024-25-03 10-07-2024 TABLE OF CONTENTS LIST OF TABLES ........................................................................................................................................... 1-1 LIST OF FIGURES ......................................................................................................................................... 1-2 ACRONYMS ................................................................................................................................................ 1-0 1 INTRODUCTION .................................................................................................................................. 1-1 1.1 Local Agency Formation Commission ....................................................................................... 1-1 1.2 Mendocino LAFCo ..................................................................................................................... 1-1 1.3 Municipal Service Review ......................................................................................................... 1-2 1.4 Sphere of Influence .................................................................................................................. 1-3 1.5 Senate Bill 215 .......................................................................................................................... 1-3 2 AGENCY OVERVIEW ........................................................................................................................... 2-1 2.1 History ...................................................................................................................................... 2-1 2.1.1 Formation ............................................................................................................................. 2-1 2.1.2 Boundary .............................................................................................................................. 2-1 2.1.3 Services ................................................................................................................................. 2-1 2.1.4 Facilities ................................................................................................................................ 2-2 2.2 Government Structure .............................................................................................................. 2-6 2.2.1 Governing Body .................................................................................................................... 2-6 2.2.2 Public Meetings .................................................................................................................... 2-7 2.2.3 Standing Committees ........................................................................................................... 2-7 2.2.4 Public Outreach .................................................................................................................... 2-8 2.2.5 Complaints ........................................................................................................................... 2-8 2.2.6 Transparency and Accountability ......................................................................................... 2-8 2.3 Operational Structure ............................................................................................................... 2-9 2.3.1 Management and Staffing .................................................................................................... 2-9 2.3.2 Agency Performance .......................................................................................................... 2-10 2.3.3 Regional and Service-Specific Collaboration ...................................................................... 2-10 2.3.4 Shared Service Delivery ...................................................................................................... 2-11 2.3.5 Government Structure and Community Needs ................................................................. 2-12 2.4 Finances .................................................................................................................................. 2-13 2.4.1 Current Fiscal Health .......................................................................................................... 2-13 2.4.2 Long Term Financial Considerations .................................................................................. 2-15 2.5 Growth .................................................................................................................................... 2-16 2.5.1 Present and Planned Land Use and Development ............................................................. 2-16 2.5.2 Existing Population ............................................................................................................. 2-17 2.5.3 Projected Growth ............................................................................................................... 2-18 2.6 Disadvantaged Unincorporated Communities ....................................................................... 2-19 3 MUNICIPAL SERVICES ......................................................................................................................... 3-1 3.1 Service Overview ...................................................................................................................... 3-1 3.1.1 Services ................................................................................................................................. 3-1 3.1.2 Service Area .......................................................................................................................... 3-1 3.1.3 Outside Agency Services ...................................................................................................... 3-1 3.2 Wastewater Services ................................................................................................................ 3-1 3.2.1 System History ..................................................................................................................... 3-1 3.2.2 Service Overview .................................................................................................................. 3-2 3.2.3 Facilities and Infrastructure ................................................................................................. 3-3 3.2.4 Service Adequacy ................................................................................................................. 3-7 3.3 Determinations ......................................................................................................................... 3-7 3.3.1 MSR Review Factors ............................................................................................................. 3-7 4 SPHERE OF INFLUENCE ....................................................................................................................... 4-1 4.1 Mendocino LAFCo Policies ........................................................................................................ 4-1 4.2 Existing Sphere of Influence ..................................................................................................... 4-4 4.2.1 Study Areas .......................................................................................................................... 4-4 4.2.2 Area of Interest Designation ................................................................................................ 4-4 4.3 Proposed Sphere of Influence .................................................................................................. 4-5 4.4 Consistency with LAFCo Policies ............................................................................................... 4-5 4.5 Determinations ......................................................................................................................... 4-5 4.5.1 The Present and Planned Land Uses in the Area, including Agricultural and Open Space Lands .............................................................................................................................................. 4-5 4.5.2 Need for Facilities and Services ............................................................................................ 4-6 4.5.3 Capacity of Facilities and Adequacy of Services ................................................................... 4-6 4.5.4 Communities of Interest ...................................................................................................... 4-7 4.5.5 Disadvantaged Unincorporated Communities ..................................................................... 4-7 4.6 Recommendation ..................................................................................................................... 4-7 5 REFERENCES ....................................................................................................................................... 5-1 6 ACKNOWLEDGEMENTS ...................................................................................................................... 6-1 6.1 Report Preparation ................................................................................................................... 6-1 6.2 Assistance and Support ............................................................................................................ 6-1 7 APPENDICES ....................................................................................................................................... 7-2 7.1 Appendix A – Open Government Resources ............................................................................ 7-2 7.2 Appendix B – Website Compliance Handout ............................................................................ 7-3 7.3 Appendix C – Housing Legislation Trends and Results ............................................................. 7-4 7.4 Appendix D – District Financial Audits ...................................................................................... 7-1 LIST OF TABLES Table 1-1: Current Mendocino LAFCO Commissioners, 2024 .................................................................... 1-1 Table 2-1: CSWD Profile ............................................................................................................................. 2-1 Table 2-2: Caspar South Water District Board of Directors ....................................................................... 2-6 Table 2-3: Water service providers in the vicinity of CSWD .................................................................... 2-11 Table 2-4: CSWD Financial Summary ....................................................................................................... 2-13 Table 2-5: CSWD Assets ........................................................................................................................... 2-14 Table 2-6: CSWD Rate Structure and Estimated Revenue ....................................................................... 2-15 Table 2-7: Median Household Income Data ............................................................................................ 2-20 Table 3-1: CSWD Recent Wastewater Flow Data ....................................................................................... 3-2 Table 3-2: District Regulatory Measures .................................................................................................... 3-5 Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study Table 3-3: SWRCB District Violations ......................................................................................................... 3-6 Table 7-1: Mendocino County RHNA Allocations ...................................................................................... 7-5 LIST OF FIGURES Figure 2-1: Caspar South Water District Service Boundary and Sphere of Influence ............................... 2-3 Figure 2-2: Caspar South Subdivision Map ................................................................................................ 2-4 Figure 2-3: Mendocino County Water and Sanitation District and Companies ......................................... 2-5 Figure 2-4: Caspar Area Zoning Map ........................................................................................................ 2-18 Figure 3-1: CSWD Facilities Map ................................................................................................................ 3-4 Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study ACRONYMS AB Assembly Bill ACS American Community Survey ADU Accessory Dwelling Unit AMI Area Median Income AOI Area of Interest APR Annual Progress Report CALAFCO California Association of Local Agency Formation Commissions CDP Census Designated Place CEQA California Environmental Quality Act CIP Capital Improvement Plan CKH Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 CSDA California Special Districts Association CSSC Caspar South Service Company CSWD Caspar South Water District DOF Department of Finance DUC Disadvantaged Unincorporated Community DWR California Department of Water Resources FY Fiscal Year FTE Full Time Equivalent GC Government Code GHG Greenhouse Gas GPD Gallons per day HCD California Department of Housing and Community Development I&I Inflow and Infiltration IRWM Integrated Regional Water Management JADU Junior Accessory Dwelling Unit JPA Joint Powers Authority LAFCo Local Agency Formation Commission MCCSD Mendocino City Community Services District MCOG Mendocino Council of Governments MHI Median Household Income MPO Metropolitan Planning Organization MSR Municipal Service Review NCRWQCB North Coast Regional Water Quality Control Board NPDES National Pollutant Discharge Elimination System OPR Governor’s Office of Planning and Research PLSS Public Land Survey Section RFI Request for Information RHNA Regional Housing Needs Allocation RTP Regional Transportation Plan RWQCB California Regional Water Quality Control Board SB Senate Bill SDRMA Special District Risk Management Association SDUC Severely Disadvantaged Unincorporated Community SOI Sphere of Influence SSMP Sewer System Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board WAT California Water Code WDR Waste Discharge Requirements Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study INTRODUCTION 1-1 1 INTRODUCTION 1.1 Local Agency Formation Commission The Local Agency Formation Commission (LAFCo) is a quasi-legislative, independent local agency established by State legislation in 1963 to oversee the logical and orderly formation and development of local government agencies including cities and special districts. There is one LAFCo for each county in California. LAFCo is responsible for implementing the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH) under California Government Code (GC) Section (§) 56000 et. seq. with goals to promote orderly growth, prevent urban sprawl, preserve agricultural and open space lands, and oversee efficient provision of municipal services. LAFCo has the authority to establish and reorganize cities and special districts, change their boundaries and authorized services, allow the extension of public services, perform municipal service reviews, and establish spheres of influence. Some of LAFCo’s duties include regulating boundary changes through annexations or detachments and forming, consolidating, or dissolving local agencies. 1.2 Mendocino LAFCo The CKH Act provides for flexibility in addressing State regulations to allow for adaptation to local needs. Each LAFCo works to implement the CKH Act to meet local needs through the flexibility allowed in how state regulations are implemented. As part of this process, Mendocino LAFCo has adopted policies, procedures and principles that guide its operations. These policies and procedures can be found on Mendocino LAFCo’s website1. Mendocino LAFCo has a public Commission with seven regular Commissioners and four alternate Commissioners. The Commission is composed of two members of the Mendocino County Board of Supervisors, two City Council members, two Special District Board of Directors members, and one Public Member-At-Large. The Commission also includes one alternate member for each represented category. Table 1-1 below lists the current members, the organization they represent, if they are an alternate, and the date their term expires. Table 1-1: Current Mendocino LAFCO Commissioners, 2024 Commissioner Name Position Representative Agency Term Expires Gerardo Gonzalez Commissioner City 2026 Candace Horsley Commissioner Special Districts 2026 Glenn McGourty Commissioner County 2024 Maureen Mulheren Chair County 2026 Mari Rodin Commissioner City 2025 Gerald Ward Vice-Chair/Treasurer Public 2026 Vacant Commissioner Special Districts 2024 Francois Christen Alternate Special District 2026 Douglas Crane Alternate City 2025 John Haschak Alternate County 2027 1 Mendocino LAFCo Policies and Procedures Manual: http://www.mendolafco.org/policies.html. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study INTRODUCTION 1-2 Commissioner Name Position Representative Agency Term Expires Vacant Alternate Public 2027 Source: Mendocino LAFCo 2024. 1.3 Municipal Service Review The CKH Act requires each LAFCo to prepare a Municipal Service Review (MSR) for its cities and special districts (GC §56430)2. MSRs are required prior to and in conjunction with the update of a Sphere of Influence (SOI)3. This review is intended to provide Mendocino LAFCo with the necessary and relevant information related to the services provided by Caspar South Water District (CSWD/District). An MSR is a comprehensive analysis of the services provided by a local government agency to evaluate the capabilities of that agency to meet the public service needs of their current and future service area. An MSR must address the following seven 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. 6. Accountability for community service needs, including governmental structure and operational efficiencies. 7. Any other matter related to effective or efficient service delivery, as required by commission policy. Municipal Service Reviews include written statements or determinations with respect to each of the seven mandated areas of evaluation outlined above. These determinations provide the basis for LAFCo to consider the appropriateness of a service provider’s existing and future service area boundary. This MSR Update studies the wastewater services provided by CSWD. This review also provides technical and administrative information to support Mendocino LAFCo’s evaluation of the existing boundary for the District. With this MSR, Mendocino LAFCo can make informed decisions based on the best available data for the service provider and area. Written determinations (similar to ‘findings’), as required by law, are presented in Chapter 3.3. LAFCo is the sole authority regarding approval or modification of any determinations, policies, boundaries, spheres of influence, reorganizations, and provision of services. This MSR/SOI study makes determinations in each of the seven mandated areas of evaluation for MSRs. 2 California GC §56430 (2023) can be found here: California Government Code § 56430 (2023) :: 2023 California Code :: US Codes and Statutes :: US Law :: Justia. 3 Assembly Committee on Local Government, “Guide to the Cortese-Knox-Hertzburg Local Government Reorganization Act of 2020.” December 2023. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study INTRODUCTION 1-3 Ideally, an MSR will support LAFCo and will also provide the following benefits to the subject agencies: • Provide a broad overview of agency operations including type and extent of services provided; • Serve as a prerequisite for a SOI Update; • Evaluate governance options and financial information; • Demonstrate accountability and transparency to LAFCo and to the public; and • Allow agencies to compare their operations and services with other similar agencies. 1.4 Sphere of Influence The CKH Act requires LAFCo to adopt a Sphere of Influence (SOI) for all local agencies within its jurisdiction. An SOI is “a plan for the probable physical boundary and service area of a local agency or municipality as determined by the Commission” (GC §56076)4. When reviewing an SOI for a municipal service provider, under GC §56425(e)5, LAFCo will consider the following five factors: 1. The present and planned land uses in the area, including agricultural and open space lands. 2. The present and probable need for public facilities and services in the area. 3. The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. 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. 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, that occurs pursuant to GC §56425(g) on or after July 1, 2012, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere of influence. Sphere of Influence studies include written statements or determinations with respect to each of the five mandated areas of evaluation outlined above. These determinations provide the basis for LAFCo to consider the appropriateness of establishing or modifying a service provider’s SOI or probable future boundary. 1.5 Senate Bill 215 Senate Bill (SB) 215 (Wiggins) requires LAFCo to consider regional transportation plans and sustainable community strategies developed pursuant to SB 375 before making boundary decisions. Senate Bill 375 (Sustainable Communities and Climate Protection Act) requires each Metropolitan Planning Organization (MPO) to address regional greenhouse gas (GHG) emission reduction targets for passenger vehicles in their Regional Transportation Plan (RTP) by integrating planning for transportation, land use, and housing in a sustainable communities strategy. 4 California GC §56076 (2022) can be found here: California Government Code § 56076 (2023) :: 2023 California Code :: US Codes and Statutes :: US Law :: Justia. 5 California GC §56425 (2023) can be found here: California Government Code § 56425 (2023) :: 2023 California Code :: US Codes and Statutes :: US Law :: Justia. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study INTRODUCTION 1-4 Mendocino County is not located within an MPO boundary and therefore is not subject to the provisions of SB 375. However, the Mendocino Council of Governments (MCOG) supports and coordinates the local planning efforts of Mendocino County and the cities of Fort Bragg, Point Arena, Ukiah, and Willits to address regional housing and transportation needs and helps provide a framework for sustainable regional growth patterns through the 2018 Mendocino County Regional Housing Needs Allocation (RNHA) Plan and Vision Mendocino 2030 Blueprint Plan. The MCOG is also responsible for allocating regional transportation funding to transportation improvement projects consistent with the 2017 RTP for Mendocino County. Mendocino County and the cities of Fort Bragg, Point Arena, Ukiah, and Willits are the local agencies primarily responsible for planning regional growth patterns through adoption and implementation of general plan and zoning regulations. While Mendocino County is not subject to the provisions of SB 375, LAFCo will review applicable regional transportation and growth plans when considering a change of organization or reorganization application. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-1 2 AGENCY OVERVIEW Table 2-1: CSWD Profile Agency Name: Caspar South Water District General Manager Stephen McCormack, President Office Location: None Mailing Address: PO Box 744, Mendocino, CA 95460 Phone Number: (408)887-4708 Website: http://cswd.specialdistrict.org Email: srmccormack@yahoo.com Date of Formation: December 19, 1978 Agency Type: Independent Special District, Single-Service Provider Enabling Legislation California Water District Law: Water Code §34000-38501 Board Meeting Schedule: As needed, typically twice per year. Meetings are held via Zoom or at one of the Board members’ residences 2.1 History 2.1.1 Formation Mendocino LAFCo adopted Resolution No. 78-1 on April 17, 1978, approving the formation of the Caspar South Water District (CSWD/District). Subsequently, the Mendocino County Board of Supervisors adopted Resolution No. 78-501 under California Water Code (WAT) Section (§) 34002-385016, ordering the formation of the District on December 19, 1978 to provide wastewater treatment and disposal to the Caspar South Residential Subdivision (Subdivision). 2.1.2 Boundary The District is in the southern portion of the unincorporated coastal community of Caspar in Mendocino County, approximately four miles north of the Village of Mendocino, and is situated along the coastline between Caspar Headlands State Beach to the north and Point Cabrillo Light Station State Historic Park to the south. The community of Caspar is a Census Designated Place (CDP). The District boundary is approximately 105-acres in size and serves the limits of the Caspar South Residential Subdivision within the community of Caspar. There are 107 lots within the Caspar South Subdivision. Of those lots, one serves as a community leach field, five are open space parcels, and the remaining are designated as residential lots. 2.1.2.1 BOUNDARY CHANGE HISTORY There have been no documented changes to the District boundary since its original formation in 1978. 2.1.3 Services Of the 101 residential designated lots in the Caspar South Subdivision, the District provides service to 75 lots. Approximately 67 of the 75 lots have dwelling units while the remaining seven lots are currently vacant. There are 27 lots within the Subdivision that are not connected to the District’s wastewater 6 California WAT §34002 – 38501 can be found here: Codes: Code Search (ca.gov). Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-2 service, and 26 lots are positioned below-grade along the eastern edge of the service boundary of the District and cannot access the District’s system. One recently developed lot opted to utilize its own septic system. No other services are provided by the District, and no connections exist outside the agency’s boundaries. For more information regarding this service, refer to Chapter 3. 2.1.4 Facilities The District owns and operates a wastewater collection system. Within the Caspar South Subdivision, the District is permitted to discharge into a community leach field located on an approximately one-acre, District-owned lot within the Subdivision. The CSWD wastewater system consists of gravity-fed connection laterals, collection tanks, screen separators, a pumping station, a force main-fed large community leach field, and a sewage collection tank. The District has an average dry weather design treatment capacity of 16,000 gallons per day (gpd). Effluent is pumped from two lift stations via a high- pressure line for processing. The pumped effluent is collected in a 10,000-gallon dosing chamber located on the leach field lot. From there, effluent is disbursed into eight 8-inch disposal lines within the community leach field for final disposal. For more information regarding District facilities and infrastructure, refer to Section 3.2.3. 2.1.4.1 LATENT POWERS Latent powers are those services, functions, or powers authorized by the principal act under which the District is formed, but that are not being exercised or authorized by the Local Agency Formation Commission (LAFCo). Under Division 16 of WAT §55330, latent powers available to the District include water services, reclamation of saline water, and operation of recreational facilities in connection with water bodies owned or controlled by the District7. The CSWD is a single-service provider delivering wastewater services only. There are no other wastewater providers serving in the vicinity of the District. Properties adjacent to the District boundary rely on septic systems. Any expansion of services would necessitate prior approval from LAFCo through an application for activation of latent powers, which generally follows the normal Commission proceedings for a change of organization or reorganization (GC §56650 et seq.)8. Water service within the Caspar South Subdivision is currently provided by the Caspar South Service Company (CSSC/Company), a private entity with the same service boundaries as the District. There are no recreational opportunities for the District in connection with existing facilities. For a regional map of Mendocino County’s water and sanitation districts and companies see Figure 2-3. 7 California WAT §5530 can be found here: California Code, WAT 55330. 8 California GC §56650 et. seq. can be found here: Codes: Code Search (ca.gov). Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-3 Figure 2-1: Caspar South Water District Service Boundary and Sphere of Influence Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-4 Figure 2-2: Caspar South Subdivision Map Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-5 Figure 2-3: Mendocino County Water and Sanitation District and Companies Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-6 2.2 Government Structure 2.2.1 Governing Body The Board of Directors is the legislative body for the District and is responsible for establishing policies, adopting and amending the annual budget, enacting ordinances, adopting resolutions, and appointing committees. The District’s governance structure is comprised of a five-member Board of Directors elected at-large to serve staggered four-year terms (see Table 2-2). To be elected to the Board, candidates must be landowners within the District boundaries. If there are insufficient candidates for election of Board vacancies, or if the number of filed candidates is equal to the number of Board vacancies, then District Board members may be appointed in lieu of election by the County Board of Supervisors per California Elections Code §105159. New Board members take office at noon on the first Friday in December following their election. Government Code §1780-1782 governs the process for appointment of Board of Director seats vacated prior to the scheduled term expiration date10. The District Board of Directors has 60 days to appoint an interested and qualified individual to a vacant seat if proper notice requirements have been met. If the District cannot fill the seat within the 60-day period, the Mendocino County Board of Supervisors can appoint a Director to the District Board during a 30-day period following the initial 60-day period. If the vacant seat is not filled during the total 90-day period, the vacant seat remains empty until the next election. The District Board of Directors elects Officers as needed during a scheduled meeting. Officers include a President, Vice-President, Treasurer, and Secretary. The Board may create additional offices and elect Board members to fill those offices, provided that no Board member holds more than one office. District Board members do not receive compensation for their public service or any stipend for attending meetings. The Board President serves as the General Manager for the District. According to Board policy, no Board member may participate in any major decision located within 300 feet of the Board Member’s residence. Table 2-2: Caspar South Water District Board of Directors Name Office/Position Term Expiration Steve McCormack President 2025 Simon Bruce Vice-President 2025 Daniel Keen Secretary/Treasurer 2027 Vacant - - Vacant - - Source: Request for Information (RFI) 2024. The Board currently has two vacancies and, as a small district, generally has difficulty filling vacancies. As discussed in Section 2.5, much of the District is comprised of vacation homes or short-term rentals with a small number of full-time residents. A limited pool of residents meeting board eligibility requirements is 9 California Elections Code §10515 can be found here: California Code, ELEC 10515. 10 California GC §1780 – 1782 can be found here: California Code, GOV 1780. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-7 a common problem for many small service providers within the County and throughout rural areas of California. As a result, the District encounters difficulties in establishing a quorum for its meetings and was unable to reach a quorum for several years due to Board vacancies. Without a full Board, the conduct of regular District business is difficult and important planning and implementation of services may suffer. The last time the Board was fully seated with five members was in 2006. 2.2.2 Public Meetings In accordance with the Brown Act, all District Board meetings are open to the public and are publicly posted a minimum of 72 hours prior to regular meetings, or a minimum of 24 hours prior to special meetings. Meetings for the District Board of Directors are held on an as-needed basis, through the teleconference platform Zoom or at one of the Board members’ residences in the Caspar South Subdivision. With the State’s recension of the declaration of health emergency following the COVID pandemic, the ability of board members to remotely participate in meetings has been greatly curtailed under current legislation. Generally, the Brown Act rules for in-person meetings again applies; however, Assembly Bill (AB) 2449 was signed into law in 2022 to allow local government officials limited circumstances for participating in meetings remotely (GC §54953)11. The District is encouraged to review the current Brown Act and teleconferencing requirements regarding the conduct of remote meetings to ensure compliance with the Brown Act. Public notices and meeting agendas are posted at the meeting location and at the community bulletin boards at the Subdivision kiosk and at the north and south entrances to the Subdivision. Agendas are distributed by email upon request. Minutes are kept for all District Board of Directors meetings and are adopted at a subsequent meeting. Public meeting information, including past agendas, reports, resolutions, and approved meeting minutes are available on the agency’s website. Because there is no District office, there is no single repository for official records, nor are they accessible to the public. The previous Municipal Service Review (MSR) and Sphere of Influence (SOI) studies determined that a central repository for District records was necessary and suggested the District’s accountant’s office in Mendocino. As of June 2024, the District’s records are stored in a centralized location that is a shed on District property, however they are not organized and not accessible to the public (Request for Information (RFI) 2024). 2.2.3 Standing Committees Committees assist in carrying out various functions of local government. The District currently does not have any standing committees. 11 California GC §54953 can be found here: Today's Law As Amended - AB-2449 Open meetings: local agencies: teleconferences. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-8 2.2.4 Public Outreach With the passage of Senate Bill (SB) 929 in 2018, all special districts are required to establish and maintain a website with specific information and accessibility requirements by January 2020 (a compliance handout is included in Appendix B – Website Compliance Handout). The District has a website that is maintained by the District Board Secretary and maintains a portion of the District’s documents including past meeting minutes and notices (https://cswd.specialdistrict.org/ ). The District aims to publish an annual newsletter and keeps residents informed of District requirements and activities through word-of-mouth and during public meetings. It is recommended that the District improve its website and financial transparency by uploading the District’s financial statements and audits as they become available. 2.2.5 Complaints The CSWD policy to receive and address complaints is as follows: • All formal correspondence must be in writing, addressed to the Board, and signed, not made by email or phone call to individual Board members or to the District attorney. • Informal contact or questions are encouraged by phone, email, or via attendance and participation during the regular Board meeting public comment period. • The District utilizes an adopted document disclosure form to better track the complaint process. As noted in the previous MSR for the District, the District Board had previously received complaints as part of an on-going disagreement regarding erosion along a bluff and access to District public records. These issues have since been resolved and the District has received no complaints within the last five years related to this or any other issue (RFI 2024). 2.2.6 Transparency and Accountability The CSWD Bylaws were approved in 1978 and last amended in 1995. The Bylaws serve as the legal guidelines of the District by providing written rules that control internal affairs. They define the District’s official name, purpose, requirements for membership, officer’s titles and responsibilities, how offices are to be assigned, how meetings should be conducted, and how often meetings will be held. The Political Reform Act requires all state and local government agencies to adopt and promulgate a Conflict-of-Interest Code pursuant to GC §87300 et seq12. The District does not maintain any formal policies related to governing, personnel, conflicts of interest, or financial matters, other than the District’s original bylaws. However, the District does maintain an operations and maintenance manual. It is recommended that the District adopt a formal conflict of interest code. The Political Reform Act also requires persons who hold office to disclose their investments, interests in real property, and incomes by filing a Statement of Economic Interests (Fair Political Practices Commission 12 California GC §87300 et seq can be found here: Codes Display Text (ca.gov). Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-9 Form 700) each year according to GC §8720013. Under GC §87200, members of special districts are listed as “other public officials who manage public investments”. Form 700 has not been filed by District members with the Mendocino County Clerk’s Office. It’s recommended that the District Board members each file this form annually with the County. According to AB 1234, if a local agency provides compensation or reimbursement of expenses to local government officials, then all local officials are required to receive two hours of training on public service ethics laws and principles at least once every two years and establish a written policy on reimbursements pursuant to GC §5323514. The District’s board members are not compensated. Refer to Appendix A – Open Government Resources for a brief list of educational resources regarding open government laws and Appendix B – Website Compliance Handout for a website compliance handout. 2.3 Operational Structure 2.3.1 Management and Staffing The Board President volunteers as the General Manager with the following responsibilities and duties: overseeing the District including managing and communicating directly with the Plant Operator, handling customer service including customer billings, customer complaints, and connection enforcement duties. Usually, the Boards of Directors for special districts appoint a General Manager to support their efforts and oversee the daily operations of the District to ensure that the Board’s policies, programs, and priorities are implemented. District personnel include one part-time employee (0.5 Full Time Equivalent (FTE)), a Plant Operator, which was previously a position held by a consultant but the District now contracts with a temporary employment agency that provides payroll services and worker’s compensation insurance the Plant Operator (RFI 2024). The Plant Operator has the following responsibilities and duties: Providing oversight of plant operations and maintenance, with authority to make repairs or secure o replacement parts for costs not exceeding $500; Inspecting the system several times per week; o Pumping sludge and cleaning the screens and “D” boxes; and o Sending monthly California Regional Water Quality Control Board (RWQCB) reports. o The Board of Directors assumes responsibility for annual budget preparation, expenditure monitoring, Discharge Permits compliance, and RWQCB reporting. 2.3.1.1 CONTRACT STAFFING AND SERVICES The District contracts with ComputAccount, a firm located in Mendocino, for all accounting services as well as the temporary employment agency for the Plant Operator mentioned above. 13 California GC §87200 can be found here: Codes Display Text (ca.gov). 14 California GC §53235 can be found here: California Code, GOV 53235. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-10 The District also contracts with a septic service company to dispose of the wastewater solids produced by customers. This service is monitored by the Plant Operator and occurs approximately once a year when the solids in the dosing chamber reach a depth of 12-inches and grease on the surface reaches six inches. 2.3.2 Agency Performance A component of monitoring agency performance is routinely evaluating staff productivity. The District tracks its one employee’s workload and productivity through a timekeeping mechanism and conducts annual written performance evaluations. In the regular performance of duty, the District’s part-time employee identifies areas of improvement and takes corrective action when feasible and appropriate or informs the Board when further direction is needed. The District also monitors and evaluates agency operations through regulatory reporting and review of District databases and records. 2.3.2.1 CHALLENGES The CSWD service area is located along the California coast near sensitive forest, riparian, and coastal habitats. Given the surrounding geography with sensitive environmental issues, obtaining permits to develop and maintain public facilities from the various local, state, and federal agencies can be challenging. The District’s significant barriers include geographic isolation, small size, aging infrastructure, keeping up with changing laws and regulations, limited revenue base, and the reliance on volunteers to primarily run the enterprise. 2.3.2.2 DISTINGUISHED SERVICE The District did not provide any information on distinguished services. 2.3.2.3 STRATEGIC OR SUCCESSION PLANNING The District does not currently have an established strategic plan, mission statement, or official goals. While the District is not legally obligated to maintain these types of documents and/or plans, doing so helps to provide an identity and some sense of security when it comes to the future of the District. In lieu of these planning documents, the Board reviews progress and setbacks over the prior year during the annual budget development process. LAFCo staff recommends that the District prepare a strategic plan when the resources to do so are readily available. 2.3.3 Regional and Service-Specific Collaboration The District does not participate in any interagency collaborative arrangements or mutual aid agreements. LAFCo staff recommends that the District consider future group participation efforts by attending regional and service-specific meetings and communicating with colleagues regarding industry standards, best management practices, changing regulations, and service delivery models implemented by other local agencies and organizations. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-11 2.3.4 Shared Service Delivery 2.3.4.1 ADJACENT PROVIDERS Due to its geographical isolation, there are no public or private wastewater service providers located adjacent to the District. The nearest sanitation providers include the Mendocino City Community Services District (MCCSD), located approximately three miles south of the District, and the City of Fort Bragg located approximately six miles to the north. The Mendocino Fire Protection District provides fire protection services within the District boundary. There are several small private water service providers in the Caspar area. The Caspar South Service Company (CSSC/Company) shares the same service boundary as the District and delivers water services to the Caspar South Subdivision (see Figure 2-3). The District does not currently participate in any shared collaborations with adjacent private water service providers; however, given the overlapping boundary to CSSC and shared customers, a consolidation between the two service providers could be beneficial in creating efficiencies in services and public accountability. The CSSC provides residential drinking water to 95 service connections within the Caspar South Subdivision, mostly part-time residents. The Company owns and maintains eight active groundwater wells, 2.2-miles of distribution lines, and a filtration system at the headworks. The CSSC does not collaborate with any other local water districts or private water companies for shared facilities or services. As of 2018, the Company’s governing board was non-functional, and stakeholders do not meet. Currently, the CSSC is operated by a private management company, under the direction of a court appointed receiver. Contract services for the Company include administration, bookkeeping, water operations, and plumbing repair services (RFI 2024). Private water companies are not under the jurisdiction of LAFCo; however, given the overlap in service boundaries, there may be opportunity for coordinated services with CSSC in the future as discussed further in Section 2.3.5. Other water service providers in the vicinity are summarized in Table 2-3: Table 2-3: Water service providers in the vicinity of CSWD Service Provider Population Service Connections SAFER Status Caspar South Service Company 188 95 Not at risk Point Cabrillo Highlands 42 21 Not at risk Seafair Road and Water Company 50 31 Not at risk Shorelands Road and Water Company 78 47 Not at risk Source: https://www.waterboards.ca.gov/drinking_water/certlic/drinkingwater/saferdashboard.html. 2.3.4.2 SHARED SERVICES AND FACILITIES The CSWD does not share services or facilities with other districts. Fire protection for properties within District is provided by Mendocino Fire Protection District. Water is provided by the CSSC. The District does not participate in any Joint Powers Authorities (JPAs), or joint decision-making efforts, and does not jointly own or share facilities or services with other agencies or organizations. Due to the geographic isolation of the District, the District does not have any emergency interties. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-12 2.3.4.3 DUPLICATION OF SERVICES The District provides wastewater services to the Caspar South Subdivision and is the only wastewater provider for the area; all other properties rely on private on-site septic systems. As previously stated, the CSSC currently provides residential drinking water services to the Caspar South Subdivision and thus overlaps with customers of the District. While there is no duplication of services between the District and the CSSC, there is redundancy in the organizational structure of these service providers, although the nature of service provision is different and involves a public agency and a private company. One or both providers have previously struggled, or continue to struggle, to meet their organizational needs, such as maintaining a full and functional governing body to represent constituents. Both providers serve the same area and omit opportunities to share resources, staffing, or jointly address common organizational needs. There is the potential for cost savings from pooled resources and insurance as well as shared governance. However, as of 2024, the District stated that there were no recent communications between the two providers on the subject and expressed that, given the District’s struggles of maintaining a full Board, taking on the additional responsibilities of the water service would be daunting task for the District at this current time (RFI 2024). LAFCo staff recommends that a consolidation between CSWD and CSSC only be explored in the next MSR if the District is in a more stable governing position. 2.3.4.4 INTERAGENCY COLLABORATION The District does not participate in any interagency collaborative arrangements or mutual aid agreements, nor do they participate in any coordination related to drought management in the region (RFI 2024). 2.3.4.5 REGIONAL AND SERVICE-SPECIFIC PARTICIPATION The District is a member of the California Special Districts Association (CSDA) (RFI 2024). Although the District does not currently participate in the Integrated Regional Water Management (IRWM) program for the region (North Coast Resource Partnership)15, participation in these types of regional planning programs often provides opportunity to pursue joint grant applications and to leverage other community resources. It may be beneficial to the District to consider participation in future IRWM opportunities. 2.3.5 Government Structure and Community Needs Government restructure options should be pursued if there are potential benefits in terms of reduced costs, greater efficiency, better accountability or representation, or other advantages to the public. There are no existing public agencies that would better provide wastewater services to the Caspar South Subdivision at this time. Due to the geographic isolation of this small residential community, the residents are ideally suited to serve their own needs through an independent special district model. 15 The North Coast Resource Partnership implements the region’s Integrated Regional Water Management program; more information can be found here: https://northcoastresourcepartnership.org/. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-13 Another service delivery model would be through a County-dependent special district, although this is not currently an available or practical avenue. An additional option would be forming a joint powers arrangement with other coastal service providers to pool resources and benefit from economies of scale. 2.4 Finances 2.4.1 Current Fiscal Health The District operates under a wastewater enterprise fund, meaning that charges for services are intended to pay for the costs of providing such services. The District typically holds the first public hearing on its annual budget in February, with adoption scheduled at a public meeting in April or May. The budget is typically listed as an agenda item as part of the District’s regular meeting. The Board has authorized ComputAccounts, the District’s accountant, to disburse funds for expenditures as approved in the District budget. Monthly financial reports are filed with the Board. In addition to preparation of an annual budget, the District also carefully manages its finances by having independent audits of its financial statements. The audits are conducted in accordance with auditing standards generally accepted in the United States. The last financial audit prepared for the District was completed in 2020 for Fiscal Year (FY) 2019. The District is currently behind on its required financial audits and LAFCo staff recommends that the District prioritize catching up to the current fiscal year. While some information from FY 2019 audit has remained still true, the following table provides year-end (not budget) financial information in the form of balance sheets prepared by the District. Table 2-4 summarizes the expenses and revenues from the balance sheets from last four years. Table 2-4: CSWD Financial Summary FY 19-20 ($) FY 20-21 ($) FY 21-22 ($) FY 22-23 ($) Operating Revenues Annual Assessment 68,528.20 66,570.00 64,770.00 63,442.08 Interest Income 781.69 2,113.13 381.84 1,851.00 Total Operating Revenues 69,310.19 68,863.13 65,151.84 65,293.08 Operating Expenses Sewer Master 10,961.67 12,012.19 10,102.00 15,077.19 Pumping 2,524.00 - 12,450.00 - Maintenance and Repairs 44,582.71 47,664.43 26,619.22 4,602.44 Utilities 937.60 1,188.10 2,036.58 Bookkeeping and Accounting 1,238.51 5,608.00 5,796.00 6,499.00 Insurance 4,715.50 6,163.50 8,432.38 6,012.03 Dues and Fees 8,033.65 8,687.10 10,424.72 9,938.23 Office Supplies & Postage 174.00 109.00 135.00 174.53 Meeting Costs 500.00 - - - Total Operating Expenses 73,445.04 81,181.82 75,147.42 44,340.00 Net Income/(Loss) (4,134.85) (12,318.69) (9,995.58) 20,953.08 Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-14 Table 2-5 summarizes the District’s assets including its cash accounts and infrastructure. Table 2-5: CSWD Assets FY 19-20 ($) FY 20-21 ($) FY 21-22 ($) FY 22-23 ($) Current Assets SBMC Checking 97,791.48 78,994.72 64,865.93 84,017.77 Bank Savings Account 69,622.85 69,622.85 69,692.46 69,727.30 Bank Savings CD 9972 154,096.60 154,096.60 156,423.27 158,189.67 Assessments Receivable 1,200.00 1,200.00 - - Property and Equipment (Other Assets) Land 60,175.00 60,175.00 60,175.00 60,175.00 Sewage Disposal Plant 381,050.00 381,050.00 381,050.00 381,050.00 Operating Equipment 897.00 897.00 9,712.32 9,712.32 Office Equipment Vehicles 500.00 500.00 897.00 897.00 Depreciation (369,617.00) (369,617.00) 500.00 500.00 Total Assets 405,428.25 386,631.49 373,698.98 394,652.06 2.4.1.1 REVENUES AND EXPENDITURES Expenditures totaled $44,340.00 in FY 2022-2023, $75,147.42 in FY 2021-2022, and $81,181.82 in FY 2020- 21.The top expenditures included maintenance/repairs, dues and fees, and the sewer master. In FYs 2020-21 and 2021-22, the District invested significant resources into the maintenance of the system’s facilities. Minor maintenance work continued into FY 2022-23. Table 2-5 show a general upwards trend that indicates financial stability for typical annual operations and maintenance, assuming these accounts are regularly maintained. 2.4.1.2 ASSETS AND LIABILITIES The largest asset for the District is infrastructure for which depreciation costs have been accounted for in the asset. The District does not have any debts, and its liabilities are limited to accounts payable. The District does not have a needs assessment or a Capital Improvement Plan (CIP), therefore it is not clear what improvements need to be made to the District and the costs associated with such improvements. 2.4.1.3 NET POSITION While expenses have exceeded revenues in many of the last few years, the District remains net positive through relying on savings accounts the District maintains (see Table 2-5). Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-15 2.4.2 Long Term Financial Considerations 2.4.2.1 RESERVES The District does not maintain any formal policies related to reserves and does not hold reserves in a separate account. As of September 2024, a combined total of $331,000 is held between one checking account and two savings accounts. 2.4.2.2 OUTSTANDING DEBT/COST AVOIDANCE The District does not currently have any debt. The District also works to maintain and control budget expenditures through discussion at its monthly Board meetings. Insurance for its business activities is provided to the District via participation in the Special District Risk Management Authority (SDRMA) which is a 501c(6), not-for-profit association that offers cost-efficient programs to independent special districts. 2.4.2.3 RATE RESTRUCTURING The Board publishes its rate structure in its annual newsletter ensuring the rate schedule is transparent; the current rate structure was adopted in October 2011. A payment schedule on a quarterly basis is also offered to homeowners, which includes a $15 service charge with each payment. Table 2-6 below summarizes the current fee structure and estimated revenue. Additionally, all new construction is charged an $875 connection fee. Table 2-6: CSWD Rate Structure and Estimated Revenue Annual Fee Number of Lots Total Estimated Revenue $900 per developed lot 68* $61,200 $600 per vacant lot 7 $4,200 Total Served 75 $65,400 *Includes two homes under construction. Proposition (Prop) 218 was approved by California voters in November 1996 to ensure that the setting of all taxes and most charges to property owners be transparent and subject to voter approval. In addition, Prop 218 seeks to curb some perceived abuses in the use of assessments and property-related fees, specifically the use of these revenue-raising tools to pay for general governmental services rather than property-related services (O’Malley 1996). The existing rate structure does not specify wastewater rates for District customers, but instead gives the Board the authority to annually calculate sewer service charges to equal the total cost of operating, maintaining, and expanding the District sewer system for that year. Prop 218 requires local governments to ensure that property-related fees comply with the measure's calculation requirements. Specifically, local governments must make sure that no property owner's fee is greater than the proportionate cost to provide the subject service to his or her parcel. Like assessments, this requirement may result in local governments setting property-related fee rates on a block-by-block, or parcel-by-parcel basis (O’Malley 1996). The District’s current rates were adopted in 2011, but It is unknown when the last rate study was prepared for the District. The District shares that there is interest in conducting a rate study to evaluate and address CIP needs for its wastewater system. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-16 LAFCo staff recommends that the District prepare a rate study to identify and plan for infrastructure needs and anticipated operating costs and establish appropriate rates in compliance with the Prop 218 process. 2.4.2.4 CAPITAL IMPROVEMENT PLAN The District currently does not maintain a CIP. The District has indicated that repairs to the existing wastewater system may need to be conducted in the future, but because the District does not have a needs assessment or a CIP, it is not clear what the costs associated with these replacements would be. Further, development of a CIP would identify and prioritize infrastructure maintenance and replacement needs, allowing for better overall planning, financing, and implementation. LAFCo staff recommends that the District prioritize identifying and documenting its infrastructure needs. 2.5 Growth 2.5.1 Present and Planned Land Use and Development 2.5.1.1 CASPAR HISTORY Caspar was settled in 1857 by Siegfried Caspar, a German trapper who lived and worked near what would become known as Caspar Creek. Siegfried later sold the land to Jacob Green Jackson, one of the founders of the Caspar Lumber Company, which turned Caspar into a significant logging town in Northern California from 1864 to 1955 (Caspar Commons 2024). The scale of the Caspar Lumber Company operation was large and entailed a thriving mill that extracted and shipped millions of board feet of virgin redwood, and reduced the largest logs ever milled to lumber, often 12 feet in diameter. In addition, many timber industry innovations were pioneered in Caspar, including redwood water main and sewer pipe, the double-sided band saw, and the wire chute that delivered finished lumber to the decks of schooners (California State Parks 2024). In 1989, heirs to the Caspar Lumber Company sold their holdings to Georgia-Pacific and private investors. In 1997, the Caspar Cattle Company acquired 300-acres, comprising much of the central parcels in Caspar. In 1999, a 30-acre headlands parcel and adjoining beach were acquired for public benefit (Wikipedia 2024). The Caspar South Subdivision encompasses 105 acres and was established in 1965. It consists of 107 lots, 101 of which are designated for residential development. See Chapter 3 for more information. 2.5.1.2 LAND USE The CSWD boundaries are entirely located within the unincorporated area of Mendocino County. Mendocino County has land use authority over privately-owned lands within the District boundary and makes land-use decisions based on the County’s General Plan and Zoning Regulations. The CSWD is also located in the Coastal Zone and is subject to the regulations of the Coastal Element, a part of Mendocino County’s Local Coastal Plan as approved by the Coastal Commission. Any proposed changes to the land use or development patterns of the District area must be approved by the Coastal Commission (County of Mendocino General Plan 2009). The 105-acres of land within the District boundary is primarily zoned Rural Residential 5-Acre Minimum [Variable Density of 1 Acre Minimum] (RR5 [RR1]), with a few small areas zoned Open Space (OS). The Rural Residential land use indicates areas not intended to be high growth and residences should create minimal impact on agricultural viability. Many of the homes within the District’s service area are Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-17 vacation/secondary homes. There is no commercial or industrial zoning located within or near the District boundary. Variable Density Zoning, which applies to the residential parcels within the District, are allowed to be developed to the smaller parcel size (one acre as opposed to five acres), provided the parcels are served by a public water system which utilizes surface waters and does not impact upon the groundwater resource, or by completion of a hydrological study which supports those greater densities. Since the CSSC takes its water from groundwater wells, a hydrological study would need to be prepared in order to ensure compliance with these requirements. The surrounding parcels adjacent to the District boundary consist of a mix of rural residential and open space uses including Rural Residential 5, 10, 20 Acre Minimum: Planned Development (RR5), Open Space (OS), Rural Village (RV), Public Facility (PF), Forestland (FL), and Rangeland (RL). The areas adjacent to the District include the Caspar Headlands State Beach to the north, Point Cabrillo Drive to the east, Point Cabrillo Light Station State Historic Park to the south, and a rugged coastline and bluff overlooking the ocean to the west. There are single-family homes, including vacation home rentals, throughout the area. 2.5.1.3 DEVELOPMENT Future growth and development of the District is subject to Mendocino County land use regulations. The County has adopted plans and policies to regulate growth, including a General Plan and a Zoning Ordinance. The County’s Zoning Ordinance contains three major geographical zones (Inland, Coastal, and Mendocino Town) and the Caspar area is included in the Coastal Zone (County of Mendocino Coastal Element 2021). As shown in Figure 2-4, the County’s Zoning Map designates most of the Caspar South Subdivision and surrounding parcels as single-family residential and open space uses. The District is bounded on three sides by state parks and, therefore, future expansion and development around the community is constrained by geography and land ownership patterns. 2.5.2 Existing Population The District serves an area limited to a Subdivision located in the unincorporated community of Caspar, which is a CDP with a population of approximately 500 residents and approximately 320 households (US Census 2024). The Caspar CDP encompasses three-square miles and includes primarily rural residential properties and commercial development along State Highway 1. Caspar is located within Census Tract 110.03 in Mendocino County, which includes the area between Noyo to the north, Pine Grove to the south, and Whiskey Springs to the west and has an estimated population of 3,240. Many developed lots in the District are seasonally occupied homes. The District estimates that approximately one-third of the parcels have full-time residents. During the low season, assuming that approximately 25 customer parcels are occupied and assuming the County’s average of 2.46 people per household, then the District serves approximately 62 people. Assuming the County’s average of 2.46 persons per household and assuming all homes are occupied, the District serves approximately 185 people during the peak season. However, vacation home rentals generally allow for two persons per room and an additional two persons per home. Vacation homes could have maximum occupancy during peak season of eight to ten persons for three to four-bedroom homes. Assuming the other two-thirds of the parcels are utilized as vacation homes for at least a portion of the year, the peak population could potentially reach up to 500 people. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-18 2.5.3 Projected Growth The District’s population at buildout can be projected based on development of the remaining seven vacant parcels in the District. If all parcels are developed, the population of the District would likely increase by approximately 23 persons, assuming the County’s average of 2.46 people per household, which could result in a total population of 248 people. This also assumes full-time residents as opposed to seasonal occupants. The California Department of Finance (DOF) projects that the population of Mendocino County will decline by a little more than 2.7 percent in the next 10 years, from 91,601 in 2023 to 89,091 in 2033 and 89,139 in 2043 (DOF 2023). The District anticipates little growth in resident population within the near-term (five years) and long- term (20 years) planning horizons. The projected decline of 2.7 percent throughout the County suggests that buildout of the residential parcels will likely not occur until well beyond the planning horizon of this document (DOF 2023). Given that the CSWD system is only designed to accommodate the full buildout of the Subdivision (i.e., the seven currently vacant lots), the District will likely not need to accommodate much future development and is near buildout. Figure 2-4: Caspar Area Zoning Map Source: Mendocino County Zoning Web Map. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-19 2.6 Disadvantaged Unincorporated Communities Senate Bill 244, which became effective in January 2012, requires LAFCo to evaluate any Disadvantaged Unincorporated Communities (DUCs), including the location and characteristics of any such communities, when preparing an MSR that addresses agencies that provide water, wastewater, or structural fire protection services16. A DUC is an unincorporated geographic area with 12 or more registered voters with a median household income (MHI) that is less than 80 percent of the State MHI. According to the US American Census Survey (ACS) 2022 1-Year estimates, the statewide MHI was $91,551 (US Census 2022A). Thus, the MHI DUC threshold is $73,240 and the threshold for Severely Disadvantaged Unincorporated Communities (SDUC) (less than 60 percent of the State MHI) is $54,930. Disadvantaged Unincorporated Communities are identified to address a myriad of issues from environmental justice to land use planning. Linking these disparate issues together, the sole statutory criterion for determination of a DUC is the MHI. The smallest geographic units for which MHI data is publicly available are census block groups. Outside of heavily urbanized areas, however, census block groups are geographically expansive. They often include both incorporated and unincorporated territory and do not necessarily coincide with typically understood community boundaries. Although a block group might be identified as having a MHI of less than 80 percent, various portions of that block group could be significantly wealthier in rural areas, or the block group could split into an otherwise contiguous community. As a result, within rural areas, such as Mendocino County, assembling income data for specific unincorporated communities is not always straightforward. In Mendocino County, identifying and mapping DUC locations is a complex process because the delineation of DUC boundaries often differ from those common to the local agency and the public. Some entities, such as Sonoma County LAFCo and Stanislaus County, utilize CDP communities to help provide usable geographies for DUC boundaries, but even then, mapping and data challenges persist. In particular, MHI ratios are subject to adjustment over- time and can result in a change to a community's disadvantaged status. Similarly, the number of registered voters can fluctuate during election years causing further variability. Senate Bill 244 describes the general characteristics of DUCs, but it does not provide specific guidance or methodology for how to identify them, other than providing the following criteria: • Contains 10 or more dwelling units in close proximity to one another; • Is either within a city SOI, is an island within a city boundary, or is geographically isolated and has existed for more than 50 years; and • Has a median household income that is 80 percent or less than the statewide MHI • For this analysis, per California Association of Local Agency Formation Commissions (CALAFCO) recommendation, calculated the “MHI Threshold” i.e. 80 percent of the statewide MHI as $73,240, per the ACS MHI data (The MHI for the State of California is $91,551) (US Census, 2022A) • Income data was sourced from the US Census American Community Survey (ACS) 5-year Estimates dataset for 2018-2022 and the 2022 ACS 1-Year Estimates. 16 Technical advisory on SB 244 can be found here: https://opr.ca.gov/docs/SB244_Technical_Advisory.pdf. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-20 This State legislation is intended to ensure that the needs of these communities are met when considering service extensions and/or annexations in unincorporated areas. Mendocino County has an MHI of $65,520 with a majority of the County considered DUCs, including both the census tract and block group that the District is located within (US Census 2022B). The community of Caspar is a CDP covering approximately three square miles that has a population of 500 (159 households and 320 total housing units) and an MHI of $235,805 (US Census 2024). Because the District is located within the Caspar CDP, which has an MHI which is significantly higher than the Statewide MHI threshold of $73,240, the District is not considered to be located within a DUC. As shown in Table 2-7 below, which includes MHI data on all the adjacent areas to the District, the District is located wholly within one census tract which has widely varying MHIs depending on the specific block group. The economic data shows that the District does not meet the income threshold to qualify as a DUC; however, MHI data is not available at a geographic unit smaller than census tract block group that would support conducting a more refined level of economic analysis specific to the Caspar South Subdivision. As previously stated, the District and surrounding areas are proliferated with seasonal homes that are only occupied a portion of the year; as such, these high earning households tend to skew the data, making it even more difficult to get an accurate representation of the District’s representative MHI. Table 2-7: Median Household Income Data Median Census Block Number of Census Tract Population Household Group Households Income (MHI) 103 BG4 1,066 453 $42,809 104 BG1 456 208 $48,511 105 BG3 1,308 298 $68,750 110.03 BG1 1,147 533 $46,705 110.03* BG2** 228 190 $78,846 110.03 BG3 1,865 698 $62,378 110.04 BG1 516 258 $81,515 110.04 BG3 1,142 536 $49,428 * Census Tract CSWD is located within ** Census Block Group CSWD is located within Data sourced from Census Reporter which utilized the ACS 2022 Estimates. The residents within the Caspar South Subdivision receive adequate services with respect to fire, which is provided by Mendocino Fire Protection District17. Water services are provided by CSSC. According to data 17 Source is the 2018 Mendocino LAFCo Multi-District Fire Protection Services SOI found here: https://www.mendolafco.org/files/01d2409c9/Multi-District+Fire+SOI+Update+Adopted+FINAL.pdf. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study AGENCY OVERVIEW 2-21 sourced from the California Department of Water Resources (DWR), the District is located within Public Land Survey Section (PLSS) M17N18W12, which is documented as having 17 domestic wells18. With respect to wastewater services, there are approximately 26 properties within the District that utilize private on-site septic systems for their wastewater needs because of topographic necessity (properties are below grade). The residents of Caspar South Subdivision receive the essential municipal services of fire, water, and wastewater, and all services have proven to be adequate in the area. However, wastewater services provided by the District could be improved in the areas that are utilizing septic and as well as addressing aging infrastructure needs. 18Well Completion Report Map Application data can be found here: https://dwr.maps.arcgis.com/apps/webappviewer/index.html?id=181078580a214c0986e2da28f8623b37. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study MUNICIPAL SERVICES 3-1 3 MUNICIPAL SERVICES A Municipal Service Review (MSR) is a comprehensive analysis of the services provided by a local government agency to evaluate the capabilities of that agency to meet the public service needs of their current and future service area. The MSR determinations inform the Sphere of Influence (SOI) Update process and assist the Local Agency Formation Commission (LAFCo) in considering the appropriateness of a public service provider’s existing and future service area boundary. The information and analysis presented in Chapters 2 and 3 of this document form the basis for the MSR determinations provided under Section 3.3. 3.1 Service Overview This is the second MSR prepared for the Caspar South Water District (CSWD/District). The first District MSR was completed as part of the Countywide Water and Wastewater MSR adopted on December 1, 2014. 3.1.1 Services The CSWD is a small independent special district that administers a community sewage disposal system for a residential subdivision and provides wastewater services including collection, processing through a dosing chamber, disposal via leach field system, and the regular maintenance of related facilities and equipment. 3.1.2 Service Area CSWD serves the Caspar South Subdivision (Subdivision) located along the coast in Mendocino County, south of the unincorporated community of Caspar. There are 107 lots within the Subdivision. Of those lots, one serves as a community leach field (Subdivision Lot No. 24), five are open space parcels, and the remaining are designated for residential development. Of the 101 residential lots in the Subdivision, the District services 75 lots (67 of the 75 lots have residential dwellings while the remaining seven lots are currently vacant). There are 27 lots within the Subdivision that are not provided with wastewater service from the District; 26 are located below-grade and cannot access the system and one recently developed lot chose to utilize its own septic system. 3.1.3 Outside Agency Services The District does not provide any services outside its jurisdictional boundary. During the preparation of this MSR, no developed properties adjacent to the District boundary with failing septic systems requiring connection to the District wastewater system to address public health and safety issues were identified. Further, no requests for outside agency services have been made. 3.2 Wastewater Services 3.2.1 System History The original centralized sewage system for the Caspar South Subdivision was constructed in 1965 when the Subdivision was developed and initially discharged effluent into a cave that led directly to the Pacific Ocean. The District acquired the centralized sewage system upon formation in 1978 and was tasked with addressing new water quality regulations. On December 5, 1979, the North Coast Regional Water Quality Control Board (NCRWQCB) adopted Cease and Desist Order No. 79-210 due to non-conforming discharge of waste to the Pacific Ocean from the Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study MUNICIPAL SERVICES 3-2 Caspar South Subdivision. In 1982, the District obtained a permit from the California Coastal Commission, Mendocino County Department of Environmental Health, and the NCRWQCB to construct a pumping station and install one large community leach field to serve the Subdivision. The District-owned community leach field was subsequently installed in 1982 on Lot 24, a 0.75-acre Subdivision lot, and eliminated the effluent discharge into the ocean. At that time, the treatment plant located at the end of Otter Point Circle was decommissioned and repurposed to serve as a sewage collection tank and pump station. 3.2.2 Service Overview The District owns and operates a wastewater collection system with permitted discharge into community leach fields located on a lot within the subdivision. The District has an average dry weather design treatment capacity of 16,000 gallons per day (gpd). Effluent is pumped from two lift stations via a high-pressure line for processing. The pumped effluent is collected in a 10,000-gallon dosing chamber located on the leach field lot. From there, effluent is disbursed into eight 8-inch disposal lines within the community leach field for final disposal. These leach lines are utilized on a rotating basis. Over the last two years, the average daily flow for the District is 5,844 gallons. The District is currently operating at 36.5 percent of its capacity. See Table 3-1 for the District’s most recent wastewater flows. Table 3-1: CSWD Recent Wastewater Flow Data Average 24-hour Flow Month/Year (Gallons) June 24 4,748 May 24 4,982 April 24 5,388 March 24 17,978 February 24 2,122 January 24 6,068 December 23 3,840 November 23 4,096 October 23 4,046 September 23 4,407 August 23 4,848 July 23 5,400 June 23 5,618 May 23 6,185 April 23 8,029 March 23 11,357 February 23 5,840 January 23 7,014 December 22 4,386 November 22 4,220 October 22 4,253 September 22 4,736 Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study MUNICIPAL SERVICES 3-3 August 22 5,049 July 22 5,650 Source: RFI 2024. 3.2.3 Facilities and Infrastructure The CSWD wastewater system consists of gravity-fed connection laterals, collection tanks, screen separators, a pumping station, a dosing chamber, and a force main-fed large community leach field (see Figure 3-1). The contracted Plant Operator is responsible for monitoring and reporting effluent conditions and inspects and monitors the system weekly. Additionally, the Plant Operator prepares a Monthly Monitoring Report and a Weekly Log Report which are made available to the Board of Directors and the public. The reports address average daily flow, any occurrences within the system, and any maintenance activity. It was also reported that the Chief Plant Operator was tasked to prepare a Sewer System Management Plan (SSMP), though its preparation is still pending. As previously stated, the District contracts with a septic service company to dispose of the wastewater solids from the dosing chamber. This service occurs approximately once a year when the solids in the dosing chamber reach a depth of 12-inches and grease on the surface reaches six-inches. 3.2.3.1 SYSTEM IMPROVEMENTS Within the last five years, the District has installed new filters at the pump stations and added fans and stainless-steel cat walks to ensure that the pump stations operate properly. The District has also installed backflow prevention devices in each residential lateral and has added two generators at each pump station in case of a power outage; the exact date of these improvements is unknown but is estimated to have been within the last six years (RFI 2024). In 2014, the District replaced a 300-foot section of pipe in the southerly portion of the District. In May 2015, the District conducted a hydro-flush and camera inspection of the entire system and identified and prioritized the necessary repairs and/or replacements based on the results. Additionally, in September 2015, the District replaced 900 linear feet of six-inch pipe in the system. The District works to ensure the integrity of its system via testing and other measures including continual maintenance and monitoring, video camera inspection of lines, and locating and eliminating ‘wet areas’ where leaks are indicated. Additional pipe replacement work is anticipated to continue as the aging system needs repair in multiple areas. The District does not currently have plans to increase the wastewater system capacity. In the past, the District had considered purchasing easements on property adjacent to the existing community leach field parcel. However, this option has been reviewed by a qualified engineer that concluded there was no need for any additional land at this time (RFI 2024). Should additional capacity become necessary, the District would then consider adding an additional 8,000 to 10,000-gallon dosing chamber and additional leach lines to the system. 3.2.3.2 ENGINEERING REPORTS No engineering reports were provided to LAFCo staff. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study MUNICIPAL SERVICES 3-4 Figure 3-1: CSWD Facilities Map Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study MUNICIPAL SERVICES 3-5 3.2.3.3 REGULATORY PERMITS AND COMPLIANCE HISTORY The District is enrolled under the Statewide General Waste Discharge Requirements (WDR) for Sanitary Sewer Systems (State Water Board Order No. 2006-0003-DWQ). This Order regulates the District’s sewage collection system (pipelines, pumps, intermediate septic tanks, etc.) up to the point where sewage enters the main septic tanks. Currently, the District is not in compliance with Order No.2006-0003-DWQ due to its lack of a SSMP and associated plans and programs. The District is currently regulated by WDR Order No. 82-76 and National Pollutant Discharge Elimination System (NPDES) Permit No. CA0023931, adopted on October 28, 1976. A summary of the District’s regulatory measures as identified by the State Water Resources Control Board (SWRCB) is shown below in Table 3-2. The District has had an active permit with the SWRCB since 198219. Table 3-2: District Regulatory Measures Source: SWRCB. Between 2000 and 2008, the District’s average daily flow exceeded 13,200 gallons eleven times in the months of January, February, and March. The most recent instance of the District exceeding its capacity was in 2017. These incidents all took place prior to significant upgrades to the pipe system when Inflow and Infiltration (I&I) was a more common issue (RFI 2024). In addition, the SWRCB had previously documented that the District received five violations since November 2022, all related to late or missing monthly monitoring report submittals (SWRCB 2024). However, the District stated that all the noted reports have been submitted and accepted by the SWRCB (RFI 2024). A summary of these violations can be found in Table 3-3. 3.2.3.4 SANITARY SEWER SPILLS A sanitary sewer spill is a discharge of sewage from any portion of a sanitary sewer system due to a sanitary sewer system overflow, operational failure, and/or infrastructure failure. The SWRCB’s Sanitary Sewer Spill Incident Map shows spill reports for individual locations where sewage was discharged from a sanitary sewer system enrolled under the Statewide General Waste Discharge Requirements for Sanitary Sewer Systems Order, WQO No. 2022-0103-DWQ (the Statewide Sanitary Sewer Systems Order). When searching the SWRCB’s sanitary sewer overflow (SSO) incident data for CSWD, zero spill incidents were identified20. 19 State WRCB Facility at a Glace’ report on CSWD found here: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?inCommand=drilldown&reportName=facilityAtAGlan ce&placeID=213470&reportID=2023620. 20 20Data for Spill Events can be found here: https://www.waterboards.ca.gov/water_issues/programs/sso/. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study MUNICIPAL SERVICES 3-6 Table 3-3: SWRCB District Violations Source: SWRCB. 3.2.3.5 CAPACITY Waste Discharge Requirements Order No. 82-076 authorizes the CSWD collection system to serve 78 lots and includes a discharge capacity limit for average daily wastewater flow not to exceed 13,200 gpd. The design capacity of the District’s system totals 16,000 gpd and applies to the full build out of the Subdivision’s 75 dwelling units (assuming 2.5 persons per residence and 85-gallons per person per day) (RFI 2024). Currently, 67 of the lots are utilizing the District’s services resulting in the processing of an average daily flow of 5,844 gpd thus the system is operating at 36.5 percent capacity (RFI 2024). 3.2.3.6 NEEDS AND DEFICIENCIES Periodic reviews of the condition of the District’s facilities have been conducted in recent years, resulting in targeted capital improvements to address water intrusion and leaks. While a comprehensive assessment of the overall health of the District’s system has not been conducted in recent years, identified repairs are completed on an as-needed basis. Maintaining the small system is problematic, and with such a limited customer base, adequate funds for capital improvements are a constant challenge. The District Board and contract staff continue to focus on identifying and remedying system needs and deficiencies. Areas of concerns that have been noted by the District include the following: Water intrusion/I&l into the system (an on-going issue) o Deferred maintenance items on an aging system o The District continues to identify and eliminate water intrusion or leaks into the system known as I&I. The District reports that I&I levels have decreased and now meet permit allowance requirements with the replacement of its aging asbestos/concrete pipe with PVC pipe. Further, the District indicates its intention to evaluate and identify properties with stormwater drains connected to the wastewater collection system through smoke tests. The system is designed for wastewater only and stormwater runoff has the potential to contribute to exceedance of system capacity. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study MUNICIPAL SERVICES 3-7 3.2.4 Service Adequacy Based on information within the MSR, the provision of wastewater treatment and disposal services to the customers located in the District’s boundaries appears to be adequate in some areas and inadequate in others. With current and past difficulties in securing enough Board members to fill vacancies, due to a very small eligible population, the District could have trouble managing the system in the future. In addition, the District does not have any future planning documents and did not provide LAFCo with any information regarding the age of infrastructure or when replacement would be necessary. It is unknown when the last rate study was prepared for the District, therefore, it is unknown if the District is compliant with Proposition 218. Additionally, the District does not currently have a Capital Improvement Plan (CIP) in place to identify the infrastructure priorities. The District did note that, based on the recent performance of the system, particularly during the past two years when rain totals were high, the system continued to operate efficiently and well below the permitted capacity. Recent upgrades to the system, including the replacement of old asbestos/concrete pipe, generators, and pumps, have largely been responsible for these efficiencies (RFI 2024). Very little growth will occur within the District and its facilities, while aging, are currently sufficient to serve the buildout of the subdivision (the remaining seven vacant residential lots). However, with respect to the lots located below-grade, the District should assess the feasibility of providing services to those lots and evaluate its eligibility for state funding to support this effort (RFI 2024). 3.3 Determinations This section presents the required MSR determinations pursuant to California Government Code (GC) Section (§) 56430(a) for the CSWD. 3.3.1 MSR Review Factors 3.3.1.1 GROWTH Growth and population projections for the affected area 1. The estimated number of residents served by CSWD varies, depending on the season; from 62 people during the low occupancy season, up to 185 people during the high occupancy season. 2. It is not likely that the population within the District’s boundaries/SOI will grow significantly, or that the District will see an increased demand for wastewater services beyond the current design capacity of the system. 3. A significant increase in the capacity to collect, process, and dispose of wastewater for the system would be required to expand service provision. Such an expansion would require additional land for additional leaching capacity. 3.3.1.2 DISADVANTAGED UNINCORPORATED COMMUNITIES The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence 4. The District is located within one Census tract, which has widely varying different median household incomes (MHIs), depending on the specific block group. Further, the District and surrounding areas are proliferated with seasonal homes that are only occupied a portion of the year; as such these high Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study MUNICIPAL SERVICES 3-8 earning households tend to skew the data, thus making it even more difficult to get an accurate representation of the District’s representative MHI. However, based on the value of the homes in the Subdivision and that the majority of them are second homes, it can be concluded that the District does not meet the income threshold to qualify as a Disadvantaged Unincorporated Community (DUC). 5. There are 26 developed lots within the District that utilize septic tanks for their wastewater needs as a result of topographic necessity (properties are below grade). No failing systems were reported during the preparation of this MSR. 6. The residents of Caspar South Subdivision receive the essential municipal services of fire, water, and wastewater; all services are considered to be adequate in the area. However, wastewater services provided by the District could be improved in the areas that are utilizing private on-site septic systems, and aging infrastructure needs should be addressed. 3.3.1.3 CAPACITY OF FACILITIES AND ADEQUACY OF SERVICES 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 7. The CSWD was established in 1978 as a single-service provider of wastewater/sewage collection, treatment, and disposal services. 8. Of the 101 residential lots in the Subdivision, the District provides service to 75 lots (67 of the 75 have residential dwellings and actively receive wastewater services while the remaining seven lots are currently vacant). There are 27 lots within the Subdivision that are not provided with wastewater service from the District, 26 are located below-grade and cannot access the system and one recently developed lot chose to utilize its own septic system rather than connect to the District’s system. 9. The CSWD sewage processing facilities are located within its boundaries. 10. The CSWD system has sufficient capacity to serve existing connections as well as future connections for the seven additional, currently vacant, residential lots. With respect to the lots located below- grade, the District assesses the feasibility of providing services to those lots on a case-by-case basis as needed. 11. The average flows for the District during the past two years are 5,844 gpd. The District is currently operating at 36.5 percent of its capacity. 12. The District reported that the sewage processing system is in good condition and is operating properly now that effluent is being discharged on a rotating basis to the leach field from the eight discharge pipes. 13. Expansion of wastewater collection, processing, and disposal service would require significant infrastructure upgrades in the system capacity. 14. The District does not currently have plans to increase the wastewater system capacity. In the past, the District had considered purchasing easements on property adjacent to the existing community leach field parcel. However, this option has been reviewed by a qualified engineer that concluded there was no need for any additional land at this time. 15. No boundary changes are pending or proposed at this time. 3.3.1.4 FINANCIAL ABILITY OF AGENCY Financial ability of agencies to provide services Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study MUNICIPAL SERVICES 3-9 16. The CSWD is funded through new connection service charges and annual assessments. 17. The District is currently behind on its required financial audits, and it is recommended that the District prioritize catching up to the current fiscal year. 18. The District’s current rates were adopted in 2011, but it is unknown when the last rate study was prepared for the District therefore the District is not compliant with Prop 218. 19. The District should prepare a rate study to identify and plan for infrastructure needs and anticipated operating costs and establish appropriate rates in compliance with the Prop 218 process. 20. While expenses have exceeded revenues in many of the last few years, the District remains net positive because of the savings accounts the District maintains. 21. The District’s savings accounts show a general upwards trend that indicates financial stability for typical annual operations and maintenance, assuming these accounts are regularly maintained. 22. The District currently does not have a Capital Improvement Plan (CIP) to assess, identify, and plan for infrastructure maintenance and replacement needs. The District has indicated that repairs to the existing wastewater system need to be conducted, but because the District does not have a needs assessment or a CIP, it is not clear what the costs associated with these replacements would be. 23. It is recommended that the District participate in future Integrated Regional Water Management (IRWM) efforts through the North Coast Resource Partnership. The North Coast Resource Partnership supports regional efforts focused on water resources and disadvantaged communities and is a source of funding and technical assistance opportunities. 3.3.1.5 SHARED SERVICES AND FACILITIES Status of, and opportunities for, shared facilities 24. CSWD does not presently practice facility sharing due to its geographic isolation and limited availability of suitable partners. 25. The District and Caspar South Service Company (CSSC/Company) share the Caspar South Subdivision boundaries. Further, they share mutual customers specific to the Subdivision indicating there could be opportunities for shared facilities and resources between the two entities. 26. The California Water District Law, which governs the CSWD, includes water services as one of its powers. Should the CSWD and CSSC seek consolidation of services in the future, the District would be required to seek activation of water service powers through LAFCo. However, as of 2024, the District stated that there were no recent communications between the District and CSSC on the subject. 27. A consolidation between CSWD and CSSC should only be explored in the next MSR if the District is in a more stable governance position. 3.3.1.6 ACCOUNTABILITY, STRUCTURE AND OPERATIONAL EFFICIENCIES Accountability for community service needs, including governmental structure and operational efficiencies 28. The District has difficulty filling Board vacancies, primarily due to the limited number of eligible and interested residents available to serve on the Board. This has made it difficult to establish a quorum for its Board meetings at times. However, the District reports they currently have a dedicated trio of Board members that have accomplished much in the past few years, and they are hopeful new candidates will join to form a full Board. 29. With the passage of Senate Bill 929 in 2018, all special districts are required to maintain a website that includes contact information and all other requirements by January 2020. The District has a Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study MUNICIPAL SERVICES 3-10 website with current board member and staff contact information, and meeting agendas and materials since 2018. It recommended that the District continue to build their website and financial transparency by uploading the District’s financial statements and audits as they become available. 30. The District does not maintain any formal policies related to governance, personnel, conflicts of interest, or financial matters, other than the District’s original bylaws. However, the District does maintain an operations and maintenance manual. 31. The District aims to publish an annual newsletter and keeps residents informed of District requirements and activities through word-of-mouth and during public meetings. 32. The District has been continuing to meet via teleconference, post-pandemic. However, the Brown Act rules for in-person meetings again applies. Assembly Bill (AB) 2449, which was signed into law in 2022, allow local government officials limited circumstances for participating in meetings remotely (GC §54953). The District is encouraged to review current Brown Act and teleconferencing requirements regarding the conduct of remote meetings to ensure compliance with the Brown Act. 33. Every elected official and public employee who makes or influences governmental decisions is required to submit a Statement of Economic Interest (Form 700) to provide transparency and accountability. The District’s board members have not filed Form 700 with the Mendocino County Clerk’s Office. It is recommended that the District board members each file this form annually with the County. 34. Because there is no District office, as of June 2024, the District’s official records are stored in a centralized location on District property; however, they are not organized and not readily accessible to the public. 35. The District does not have a written mission statement, established goals and objectives, or a strategic plan. While not requirements, they are considered best practices for governance, organizational direction and planning, and accountability and transparency to the public. 36. The District is not in compliance with Statewide General Requirements under Order No.2006-0003- DWQ, including the preparation of a Sewer System Management Plan (SSMP) and associated plans and programs. 3.3.1.7 OTHER SERVICE DELIVERY MATTERS Any other matter related to effective or efficient service delivery, as required by commission policy 37. There are no other matters related to service delivery required by Mendocino LAFCo Policy. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study SPHERE OF INFLUENCE 4-1 4 SPHERE OF INFLUENCE The Local Agency Formation Commission (LAFCo) prepares a Municipal Service Review (MSR) prior to or in conjunction with the Sphere of Influence (SOI) Update process. An SOI Update considers whether a change to the SOI, or probable future boundary, of a local government agency is warranted to plan the logical and orderly development of that agency in a manner that supports the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH) Law and the Policies of the Commission. The MSR and required determinations are presented in Chapters 2 and 3 of this document and form the basis of information and analysis for this SOI Update. This chapter presents the SOI Update and required determinations pursuant to California Government Code (GC) Section (§) 56425(e). 4.1 Mendocino LAFCo Policies In addition to making the necessary determinations for establishing or modifying a SOI consistent with the CKH Act, the appropriateness of an agency’s SOI is also based on an evaluation of consistency with local LAFCo policies. The following Sphere of Influence policies are from the Mendocino LAFCo Policies and Procedures Manual, adopted November 5, 2018. 10.1.1 Legislative Authority and Intent A sphere of influence is the probable 20-year growth boundary for a jurisdiction’s physical development. The Commission shall use spheres of influence to: a) promote orderly growth and development within and adjacent to communities; b) promote cooperative planning efforts among cities, the County, and special districts to address concerns regarding land use and development standards, premature conversion of agriculture and open space lands, and efficient provision of public services; c) guide future local government reorganization that encourages efficiency, economy, and orderly changes in local government; and d) assist property owners in anticipating the availability of public services in planning for the use of their property. 10.1.2 Definitions The Commission incorporates the following definitions: a) an “establishment” refers to the initial development and determination of a sphere of influence by the Commission; b) an “amendment” refers to a limited change to an established sphere of influence typically initiated by a landowner, resident, or agency; and c) an “update” refers to a comprehensive change to an established sphere of influence typically initiated by the Commission. 10.1.3 Sphere Updates Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study SPHERE OF INFLUENCE 4-2 In updating spheres of influence, the Commission’s general policies are as follows: a) The Commission will review all spheres of influences every five years for each governmental agency providing municipal services. Municipal services include water, wastewater, police, and fire protection services. b) Sphere of influence changes initiated by any agency providing a municipal service shall generally require either an updated or new service review unless LAFCo determines that a prior service review is adequate. c) Spheres of influence of districts not providing municipal services including, but not limited to, ambulance, recreation, hospital, resource conservation, cemetery, and pest control shall be updated as necessary. 10.1.4 Reduced Spheres The Commission shall endeavor to maintain and expand, as needed, spheres of influence to accommodate planned and orderly urban development. The Commission shall, however, consider removal of land from an agency’s sphere of influence if either of the following two conditions apply: a) the land is outside the affected agency’s jurisdictional boundary but has been within the sphere of influence for 10 or more years; or b) the land is inside the affected agency’s jurisdictional boundary but is not expected to be developed for urban uses or require urban-type services within the next 10 years. 10.1.5 Zero Spheres LAFCo may adopt a “zero” sphere of influence encompassing no territory for an agency. This occurs if LAFCo determines that the public service functions of the agency are either nonexistent, no longer needed, or should be reallocated to some other agency (e.g., mergers, consolidations). The local agency which has been assigned a zero sphere should ultimately be dissolved. 10.1.6 Service Specific Spheres If territory within the proposed sphere boundary of a local agency does not need all the services of the agency, a “service specific” sphere of influence may be designated. 10.1.7 Agriculture and Open Space Lands Territory not in need of urban services, including open space, agriculture, recreational, rural lands, or residential rural areas shall not be assigned to an agency’s sphere of influence unless the area’s exclusion would impede the planned, orderly and efficient development of the area. In addition, LAFCo may adopt a sphere of influence that excludes territory currently within that agency’s boundaries. This may occur when LAFCo determines that the territory consists of agricultural lands, open space lands, or agricultural preserves whose preservation would be jeopardized by inclusion within an agency’s sphere. Exclusion of these areas from an agency’s sphere of influence indicates that detachment is appropriate. 10.1.8 Annexations Are Not Mandatory Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study SPHERE OF INFLUENCE 4-3 Before territory can be annexed to a city or district, it must be within the agency’s sphere of influence (G.G. §56375.5). However, territory within an agency’s sphere will not necessarily be annexed. A sphere is only one of several factors that are considered by LAFCo when evaluating changes of organization or reorganization. 10.1.9 Islands or Corridors Sphere of influence boundaries shall not create islands or corridors unless it can be demonstrated that the irregular boundaries represent the most logical and orderly service area of an agency. 10.1.10 Overlapping Spheres LAFCo encourages the reduction of overlapping spheres of influence to avoid unnecessary and inefficient duplication of services or facilities. In deciding which of two or more equally capable agencies shall include an area within its sphere of influence, LAFCo shall consider the agencies’ service and financial capabilities, social and economic interdependencies, topographic factors, and the effect that eventual service extension will have on adjacent agencies. Where an area could be assigned to the sphere of influence of more than one agency, the following hierarchy typically applies: a) Inclusion within a city’s sphere b) Inclusion within a multi-purpose district’s sphere c) Inclusion within a single-purpose district’s sphere Territory placed within a city’s sphere indicates that the city is the most logical provider of urban services. LAFCo encourages annexation of developing territory (i.e., area not currently receiving services) that is currently within a city’s sphere to that city rather than to one or more single-purpose special districts. LAFCo discourages the formation of special districts within a city’s sphere. To promote efficient and coordinated planning among the county’s various agencies, districts that provide the same type of service shall not have overlapping spheres. 10.1.11 Memorandum of Agreements (For City Sphere Amendments and Updates) Prior to submitting an application to LAFCo for a new city sphere of influence or a city sphere of influence update, the city shall meet with the County to discuss the proposed new boundaries of the sphere and explore methods to reach agreement on development standards and planning and zoning requirements as contained in GC §56425. If an agreement is reached between the city and County the agreement shall be forwarded to LAFCo. The Commission shall consider and adopt a sphere of influence for the city consistent with the policies adopted by LAFCo and the County, and LAFCo shall give great weight to the agreement to the extent that it is consistent with LAFCo policies in its final determination of the city sphere. 10.1.12 Areas of Interest LAFCo may, at its discretion, designate a geographic area beyond the sphere of influence as an Area of Interest (AOI) to any local agency. a) An AOI is a geographic area beyond the sphere of influence in which land use decisions or other governmental actions of one local agency (the "Acting Agency") impact directly or indirectly upon another local agency (the "Interested Agency"). For example, approval of a housing project developed Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study SPHERE OF INFLUENCE 4-4 to urban densities on septic tanks outside the city limits of a city and its sphere of influence may result in the city being forced subsequently to extend sewer services to the area to deal with septic failures and improve city roads that provide access to the development. The city in such a situation would be the Interested Agency with appropriate reason to request special consideration from the Acting Agency in considering projects adjacent to the city. b) When LAFCo receives notice of a proposal from another agency relating to the Area of Concern, LAFCo will notify the Interested Agency and will consider its comments. c) LAFCo will encourage Acting and Interested Agencies to establish Joint Powers Agreements or other commitments as appropriate. 4.2 Existing Sphere of Influence The Caspar South Water District (CSWD/District) SOI was first established by LAFCo via Resolution No. 94- 4 dated August 1, 1994. LAFCo’s approval of the SOI included Master Service Element approval and a Negative Declaration per the California Environmental Quality Act (CEQA). The last review of the CSWD SOI was in November 2015, at which time the Commission affirmed a coterminous SOI with adoption of LAFCo Resolution No. 15-16-05. 4.2.1 Study Areas Study areas are unique to a specific agency and are used to define the extent of one or more locations for SOI analysis purposes. Study areas may be created at different levels of scope and/or specificity based on the circumstances involved. The following descriptions demonstrate the array of scenarios that may be captured by a SOI study area. An area with clear geographic boundaries and scope of service needs based on years of interagency o collaboration or public engagement and a project ready for grant funding or implementation. An area involving broader community regions or existing residential subdivisions with a large or long- o term vision in need of fostering and/or establishing interagency partnerships. An area in early stages of conception that is not currently geographically well-defined and generally o involves one or more ideas identified by agency or community leaders needing further definition. An area geographically defined by a gap between the boundaries of existing public service providers. o An area adjacent to an existing agency’s boundary slated for development needing urban services. o Study areas can result in a proposed SOI or sphere expansion area or the designation of an AOI to earmark areas for enhanced interagency coordination or for future SOI consideration. No study areas have been identified in or immediately surrounding the CSWD (RFI 2024). 4.2.2 Area of Interest Designation LAFCo’s AOI Policy, per Section 10.1.12, provides for the designation or identification of unincorporated areas located near to, but outside the jurisdictional boundary and established SOI of a city or district, in which land use decisions or other governmental actions of another local agency directly or indirectly impact the subject local agency. An AOI designation serves as a compromise approach that recognizes situations involving challenging boundary or municipal service delivery considerations, or for which urbanization may be anticipated in Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study SPHERE OF INFLUENCE 4-5 the intermediate or long-range planning horizons. It is a tool intended to enhance communication and coordination between local agencies. An AOI designation is most helpful when the county and city or district can reach agreement that development plans related to LAFCo designated AOI will be treated the same as if these areas were within the city or district SOI boundary, particularly regarding notification to and consideration of input from the city or district. No AOIs have been identified for the CSWD (RFI 2024). 4.3 Proposed Sphere of Influence There are no proposed changes to the SOI at the time. The District and LAFCo staff recommend the Commission affirm the existing coterminous sphere. 4.4 Consistency with LAFCo Policies Mendocino LAFCo has established policies to help meet its CKH Act mandates. This section identifies potential inconsistencies between the proposed SOI and local LAFCo policies. The proposed District SOI is consistent with Mendocino LAFCo Policies (refer to Section 4.1 for the specific SOI policies). 4.5 Determinations In determining the Sphere of Influence (SOI) for an agency, LAFCo must consider and prepare written determinations with respect to five factors as outlined in GC §56425(e). These factors are as follows: 1. The present and planned land uses in the area, including agricultural and open space lands; 2. The present and probable need for public facilities and services in the area; 3. The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide; 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; and 5. The present and probable need for public facilities and services (including sewers, municipal and industrial water, or structural fire protection) of any disadvantaged unincorporated communities within the existing Sphere of Influence. LAFCo staff propose no change to the existing SOI for the District, based on the SOI determinations presented below, and recommend affirming a coterminous SOI for the CSWD. 4.5.1 The Present and Planned Land Uses in the Area, including Agricultural and Open Space Lands The primary land uses within the District service area are described in Section 2.5.1.2. The entirety of the District is located within the Caspar Census Designated Place (CDP) in coastal unincorporated Mendocino County. The primary uses of the coastal zone are rural residential uses and small commercial zones, agricultural uses also exist within the area. Future development in the District is limited in growth to buildout of the seven undeveloped residential lots. It is likely buildout of the residential parcels will not occur until well beyond the planning horizon of this document. Based on the District’s location in the Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study SPHERE OF INFLUENCE 4-6 coastal zone, the area is subject to additional development regulations, and land use changes in the area must be approved by both the County and Coastal Commission. 4.5.2 Need for Facilities and Services Of the 101 residential lots in the Caspar South Subdivision (Subdivision), the District services 75 lots (67 of the 75 lots have residential dwellings while the remaining seven lots are currently vacant). There are 27 lots within the Subdivision that do not receive wastewater service from the District; 26 are located below-grade and cannot access the system and one recently developed lot chose to utilize a private on- site septic system. Many developed lots in the District have seasonally occupied (i.e., second) homes. The District estimates that approximately one-third of the parcels have full-time residents. During the low season, if approximately 25 customer parcels are occupied and assuming the County’s average of 2.46 people per household, then the District serves approximately 62 people. Assuming the County’s average of 2.46 the persons per household and assuming all homes are occupied, the District serves approximately 185 people during the peak season. However, vacation home rentals generally allow for two persons per room and an additional two persons. Vacation homes could have maximum occupancy during peak season of eight to ten persons for three-to-four-bedroom homes. Assuming the remaining two-thirds of the parcels are utilized as vacation homes for a portion of the year, the peak population could potentially reach up to 248 people. The District anticipates little growth in resident population within the near term (five years) and long-term planning horizon (20 years). Given that CSWD is limited to the development of the remaining seven vacant residential lots, the District will likely not need to accommodate much future development and is near buildout. The projected decline of 2.7 percent throughout the County suggests that buildout of the residential parcels will likely not occur until well beyond the planning horizon of this document. 4.5.3 Capacity of Facilities and Adequacy of Services The District provides wastewater conveyance services to 75 wastewater connections. The CSWD wastewater system consists of gravity-fed connection laterals, collection tanks, screen separators, a pumping station, a dosing tank, and a force main-fed large community leach field. The District’s system is operated by one part time contracted employee and because of financial constraints, the District Board President volunteers as General Manager. The District contracts with a septic service company to dispose of the wastewater solids collected in the dosing chamber. The design capacity of District’s system is 16,000 gallons per day (gpd). Average flows for the District are 5,844 gpd and the District is operating at 36.5 percent capacity. As such, the CSWD system has sufficient capacity to serve existing connections as well as future connections for the seven additional, currently vacant, residential units. With respect to the lots located below-grade, the District assesses the feasibility of providing services to those lots on a case-by- case basis as needed. Additional pipe replacement work is anticipated to continue as the aging system needs repair in multiple areas, however a comprehensive assessment of the overall health of the District’s system has not been done in recent years. Periodic reviews of the condition of the District’s facilities have been conducted in recent years, resulting in targeted capital improvements to address water intrusion and leaks. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study SPHERE OF INFLUENCE 4-7 The District’s system continued to operate efficiently and well below the permitted capacity during the past two years when rain totals were high; however, the District’s infrastructure is still in need of repairs to continue providing adequate service to its existing customers. 4.5.4 Communities of Interest The District is located within the unincorporated coastal zone of Mendocino County and is wholly located within the Caspar CDP. Given its isolated location, no additional communities of interest have been identified for the District. 4.5.5 Disadvantaged Unincorporated Communities The statewide median income household income (MHI) for the US Census American Community Survey (ACS) 2016-2020 is $78,672, thus 80 percent of that value, $62,938 represents the DUC threshold and 60 percent of that value, $47,203 represents the Severely Disadvantaged Unincorporated Communities (SDUC). The District is located within one census tract which has drastically different MHIs depending on the specific block group. The District does not meet the income threshold to qualify as a DUC, however MHI data is not available at a geographic unit smaller than census tract block group to conduct a more refined level of economic analysis for the small area in question that is the Caspar South Subdivision. The District and surrounding areas are proliferated with seasonal homes that are only occupied a portion of the year and as such, these high earning households tend to the skew the data thus making it even more difficult to get an accurate representation of the District’s representative MHI. With respect to wastewater services, there are 26 properties within the District that utilize individual septic tanks for their wastewater needs because of topographic necessity (properties are below grade). While the residents of Caspar South Subdivision are receiving the essential municipal services of fire, water, and wastewater, and all water services have proven to be adequate in the area. However, wastewater services provided by the District could be improved in the areas that are utilizing private on- site septic systems and as well as addressing aging infrastructure needs. 4.6 Recommendation Pursuant to California Water Code §55100, the Commission does hereby establish the functions and classes of services provided by the CSWD as limited to wastewater collection and treatment. Based upon the information contained in this report, it is recommended that the District Service Area Boundary and SOI for all services remain unchanged and coterminous. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study REFERENCES 5-1 5 REFERENCES Assembly Committee on Local Government. (2023, December). Guide to the Cortese–Knox–Hertzberg Local Government Reorganization Act of 2000. Retrieved from https://calafco.org/sites/default/files/resources/CKH-Guides/CKH%20GUIDE%20-%202023%20- %20linked.pdf. California Department of Finance (DOF). (2023, December). Department of Finance. Retrieved from County Population Projections: https://dof.ca.gov/forecasting/demographics/projections/. California Department of Housing and Community Development (HCD). (2023). Housing Element Annual Progress Report (APR) Data. Retrieved from California Open Data Portal: https://data.ca.gov/dataset/housing-element-annual-progress-report-apr-data-by-jurisdiction- and-year. California State Parks. (2024). Parks. Retrieved from https://www.parks.ca.gov/?page_id=29495. Caspar Commons. (2024). Retrieved from Caspar Headlands Pictorail History : https://www.casparcommons.org/HHistory.php. Caspar South Water District. 2024. Caspar South Water District Website. Retrieved from https://cswd.specialdistrict.org/. Census Reporter. (2022A). Block Group 3 Statistics Based on ACS 2022. Retrieved from https://censusreporter.org/profiles/15000US060450111023-bg-3-tract-11102-mendocino-ca/. Census Reporter. (2022B). Census Tract 111.02 Statistics Based on 2022 ACS. Retrieved from https://censusreporter.org/profiles/14000US06045011102-census-tract-11102-mendocino-ca/. Census Reporter. (2024). Retrieved from Block Group 3: https://censusreporter.org/profiles/15000US060450110032-bg-2-tract-11003-mendocino-ca/. Census Reporter. (2024). Census Tract 110.03. Retrieved from https://censusreporter.org/profiles/14000US06045011003-census-tract-11003-mendocino-ca/. County of Mendocino. (2023). Zoning Web Map. Retrieved from https://www.mendocinocounty.org/government/planning-building-services/zoning-web-map. County of Mendocino Coastal Element. (2021, November). County of Mendocino Coastal Element. Retrieved from https://www.mendocinocounty.org/home/showpublisheddocument/56978/638181067153900 000. County of Mendocino General Plan. (2009, August). County of Mendocino General Plan. Retrieved from https://www.mendocinocounty.org/government/planning-building-services/plans/mendocino- county-general-plan. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study REFERENCES 5-2 O'Malley, Marianne. "Understanding Proposition 218." Legislative Analyst's Office. Legislative Analyst's Office, December 1, 1996. https://www.lao.ca.gov/1996/120196_prop_218/understanding_prop218_1296.html#:~:text=P roposition%C2%A0218%20restricts%20local%20governments%27%20ability%20to%20impose% 20assessments,revenues%20from%20assessments%2C%20property- related%20fees%2C%20and%20some%20taxes. Request for Information (RFI), L.-M. K. (2023, December). President. (RFI, Interviewer). State Water Resources Control Board (SWRCB). (2024, April). State Water Resources Control Board. Retrieved from Facility at a Glance Report: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?inCommand=drilldown &reportName=facilityAtAGlance&placeID=213470&reportID=8016917. US Census . (2022C). 2022 ACS MHI Anchor Bay. Retrieved from https://data.census.gov/profile/Anchor_Bay_CDP,_California?g=160XX00US0602028. US Census. (2022A). 2022 ACS Survey MHI California. Retrieved from https://data.census.gov/profile/California?g=040XX00US06. US Census. (2022B). 2022 ACS MHI Mendocino County. Retrieved from https://data.census.gov/profile/Mendocino_County,_California?g=050XX00US06045. US Census. (2024). Caspar CDP . Retrieved from https://data.census.gov/profile/Caspar_CDP,_California?g=160XX00US0611768. Wikipedia. (2024). Caspar, CA. Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Caspar,_California#:~:text=Caspar%20was%20settled%20in%2018 57,California%20from%201864%20to%201955. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study ACKNOWLEDGEMENTS 6-1 6 ACKNOWLEDGEMENTS 6.1 Report Preparation This Municipal Service Review and Sphere of Influence Update was prepared by Hinman & Associates Consulting, Inc., contracted staff for Mendocino LAFCo. Uma Hinman, Executive Officer Larkyn Feiler, Analyst Spencer Richard, Analyst Jen Crump, Analyst 6.2 Assistance and Support This Municipal Service Review and Sphere of Influence Update could not have been completed without the assistance and support from the following organizations and individuals. Steve McCormack, President Caspar South Water District Marc Wasserman, Vice President Daniel Keen, Secretary/Treasurer Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study APPENDICES 7-2 7 APPENDICES 7.1 Appendix A – Open Government Resources The purpose of this appendix is to provide a brief list of some educational resources for local agencies interested in learning more about the broad scope of public interest laws geared towards government transparency and accountability. This appendix is not intended to be a comprehensive reference list or to substitute legal advice from a qualified attorney. Feel free to contact the Mendocino LAFCo office at (707) 463-4470 to make suggestions of additional resources that could be added to this appendix. The websites listed below provide information regarding the following open government laws: (1) Public Records Act (Government Code §6250 et seq.), (2) Political Reform Act – Conflict-of-Interest regulations (Government Code §81000 et seq.), (3) Ethics Principles and Training (AB 1234 and Government Code §53235), (4) Brown Act – Open Meeting regulations (Government Code §54950 et seq.), and (5) Online Compliance regulations (Section 508 of the US Rehabilitation Act and Government Code §11135). Refer to the State of California Attorney General website for information regarding public access o to governmental information and processes at the following link: https://oag.ca.gov/government. Refer to the State of California Attorney General website for information regarding Ethics Training o Courses required pursuant to AB 1234 at the following link: https://oag.ca.gov/ethics. The Fair Political Practices Commission (FPPC) is primarily responsible for administering and o enforcing the Political Reform Act. The website for the Fair Political Practices Commission is available at the following link: http://www.fppc.ca.gov/. Refer to the California Department of Rehabilitation website for information regarding Section o 508 of the US Rehabilitation Act and other laws that address digital accessibility at the following link: http://www.dor.ca.gov/DisabilityAccessInfo/What-are-the-Laws-that-Cover-Digital- Accessibility.html. Refer to the Institute for Local Government (ILG) website to download the Good Governance o Checklist form at the following link: www.ca-ilg.org/post/good-governance-checklist-good-and- better-practices. Refer to the Institute for Local Government (ILG) website to download the Ethics Law Principles o for Public Servants pamphlet at the following link: www.ca-ilg.org/node/3369. Refer to the Institute for Local Government (ILG) website for information regarding Ethics Training o Courses required pursuant to AB 1234 at the following link: http://www.ca-ilg.org/ethics- education-ab-1234-training. Refer to the California Special Districts Association (CSDA) website for information regarding o online and website compliance webinars at the following link: http://www.csda.net/tag/webinars/. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study APPENDICES 7-3 7.2 Appendix B – Website Compliance Handout Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study California Website Compliance Checklist Use this checklist to keep your district's website compliant with State and Federal requirements. Public Records Act SB 929 SB 272 AB 2853 (optional): Our district has created and Our Enterprise System Catalog is We post public records to our maintains a website posted on our website website Passed in 2018, all independent special All local agencies must publish a catalog This bill allows you to refer PRA requests districts must have a website that listing all software that meets specific to your site, if the content is displayed includes contact information (and all requirements—free tool at getstream- there, potentially saving time, money, other requirements) by Jan. 2020 line.com/sb272 and trees The Brown Act State Controller Reports AB 392: AB 2257: Financial Transaction Report: Compensation Report: Agendas are posted to A link to the most recent A link to the Controller’s A link to the Controller’s our website at least 72 agenda is on our home “By the Numbers” PublicPay website is hours in advance of page, and agendas are website is posted on posted in a conspicuous regular meetings, 24 searchable, machine- location on our website our website hours in advance of readable and platform Report must be submitted by special meetings independent Report must be submitted April 30 of each year—you within seven months after the This 2011 update to the Act, Required by Jan. 2019— close of the fiscal year—you can also add the report to originally created in 1953, text-based PDFs meet this can add the report to your your site annually, but added the online posting requirement, Microsoft Word site annually, but posting a posting a link is easier requirement docs do not link is easier Healthcare District Section 508 ADA Websites Open Data Compliance AB 2019: AB 169: CA gov code 7405: If we’re a healthcare district, we Anything posted on our website State governmental entities maintain a website that includes that we call “open data” meets the shall comply with the accessibility all items above, plus additional requirements for open data requirements of Section 508 requirements of the federal Rehabilitation Act Defined as “retrievable, downloadable, of 1973 Including budget, board members, indexable, and electronically searchable; Municipal Service Review, grant policy platform independent and machine Requirements were updated in 2018—if and recipients, and audits readable” among other things you aren't sure, you can test your site for accessibility at achecker.ca Website compliance made easy csda.net getstreamline.com The Brown Act: new agenda requirements Tips for complying with AB 2257 by January, 2019 Placement: What it says: An online posting of an agenda shall be posted on the primary Internet Web site ​​ homepage of a city, county, city and county, special district, school district, or political subdivision established by the state that is accessible through a prominent, direct link to the current agenda. What that means: Add a link to the current agenda directly to your homepage. It cannot be in a ​​ ​ ​​ menu item or otherwise require more than a single click to open the agenda. Exception: What it says: A link to the agenda management platform may be added to the home page instead of a ​​ link directly to the current agenda, if the agency uses an integrated agenda management platform that meets specified requirements, including, among others, that the current agenda is the first agenda available at the top of the integrated agenda management platform. What that means: If you use an agenda management system, you may add a link to that system ​​ directly to your homepage (again, not in a menu item), if the format of the agenda meets the requirements below, and if the current agenda is the first at the top of the list. Format: What it says: [agenda must be] Retrievable, downloadable, indexable, and electronically searchable by ​​ commonly used Internet search applications. Platform independent and machine readable. Available to the public free of charge and without any restriction that would impede the reuse or redistribution of the agenda. What that means: You cannot add Word Docs or scanned (image-based) PDFs of your agenda to your ​​ website–Word Docs are not platform independent (the visitor must have Word to read the file), and scanned PDFs are not searchable. Instead, keep your agenda separate from the packet and follow ​ ​​ these steps: 1. From Word or other document system: Export agenda to PDF 2. Add that agenda to your website (or to your agenda management system), and include a link to that agenda on your homepage 3. Then, you can print the agenda, add it to your pile of documents for the packet, and scan that to PDF - just keep the packet separate from the agenda (only the agenda must meet AB 2257) 4. Keep the link on the homepage until the next agenda is available, then update the link Questions? Contact sloane@getstreamline.com or dillong@csda.net ​ ​ ​ California 2024 Web Accessibility Checklist UpdatedMay1,2024.Downloadthelatestatgetstreamline.com/ada Congratulationsonyourcommitmenttoensuringthatyourdistrict’swebsiteisaccessibletoyourentirecommunity, includingthosewithdisabilities.ThischecklistwillhelpyouensurecompliancewithTheUnruhActandAB434. Before you begin Performaninitialscantocheckforknownissuesusingcheckmydistrict.orgoranothertool Haveyourwebsiteprovider'scontactinformationtoreportanyissues One-time actions -examplesavailableathttps://getstreamline.com/accessibility-policy 1. Designateanaccessibilityofficer-Wehavedesignatedonestaffmemberastheaccessibilityofficerwho willbethego-tocontactforaccessibilityissues. 2. Approveanaccessibilitypolicy-Ourboardhasapprovedanaccessibilitypolicythatincludesthelevelof accessibilityyouareadheringto,likeWCAG2.1AA. 3. Createandpostanaccessibilitypage-Wehavecreatedadedicatedaccessibilitywebsitepagetohouse allaccessibility-relatedcontent,includingthepolicyandplan.Ifwehavecomponentsthatarenotyet compliant,wehaveaddedinformationaboutourremediationplanandtimelinetogetcompliant. 4. Createaprocessforcommunityconcerns-Wehaveaprocessinplacewhereacommunitymembercan submitaconcernviaform,phonenumber,and/oremailaddress. 5. Enableclosedcaptionsonyourvideos-Ourvideosallhaveclosedcaptions,andwehaveaprocessfor includingclosedcaptionsinfuturevideos.(YouTubeincludesthisforfreewhenenabled.Learnhow.Itis importantthatahumanverifiesthegeneralaccuracyofthecaptions.) Ongoing actions -recommendedoncepermonth 6. Scanyourwebsitepageseachmonth-Wehavescannedeverypageofourwebsite,everypagehasa scoreandlistofissuestoremediate. Freetoolsincludecheckmydistrict.org,GoogleChromeLighthouse (F12willactivate),andwave.webaim.org.Demandyourwebdeveloperaddressanyissuesthatarise. 7. Checkyourattachments.Wehavecheckedallofourattachmentsandwehaveremovedoraddeda writtenadisclaimerforanythird-partyattachmentsthatweareunabletoremediate. 8. Performremediations-Wehavetakenactiontofixissuesdetectedbyascan/reportedbyourcommunity Other actions to consider ● Third-partyADAaudit-largerdistrictsshouldconsiderhiringanoutsidefirmtoconductanaudit.Manual testingbyuserswithdisabilitiesisthegoldstandardtoensureaccess. ● Indemnification-Choosingaplatformorinsurancethatindemnifiesorinsuresyouagainsttheriskoffines *Remember,Streamlineisonlyasoftwarecompany,andStreamline'stemplatesandguidesarenotasubstituteforgettingyourown competentlegaladvice. APPENDICES 7-4 7.3 Appendix C – Housing Legislation Trends and Results Mendocino County and ADUs In response, the County of Mendocino has taken a number of steps to facilitate ADU construction and operation in an attempt to address the local housing crisis. This includes adopting an ADU ordinance which outlines specific development standards. Another General Plan update was adopted on 11/9/2021 which amended the Coastal Zoning Code component of the Local Coastal Plan to establish and revise standards for Accessory Dwelling Units (ADUs) in the Coastal Zone. Because Caspar is located in the Coastal Zone of the County it is subject to coastal specific ADU regulations. The number of permitted ADUs within the Coastal Zone of Mendocino County (excluding the Gualala Town Plan area) is limited to 500 units. Junior Accessory Dwelling Units (JADUs), which are accessory structures typically limited to 500 square feet in an existing space, are exempted from this cap. Any change to the cap on the number of ADUs shall require a Local Coastal Program amendment. Per Section 20.458.040 - Public Health and Safety Requirements, of the County’s Municipal Code, both an adequate water supply and sewage capacity must be available to serve the proposed new residence as well as existing residences on the property. Most notably, if the property is located in a service district (such as Caspar South), the property owner must provide written approval from the service district specifically authorizing the connection of the ADU. With respect to coastal resource protections, ADUs and JADUs are subject to additional requirements that impact the viability of their development. Some of the most pertinent requirements can be found in Section 20.458.045 of the County’s Municipal Code. The Larger Picture As for how ADUs fit into the larger picture of the Mendocino County population trends, the housing data provided in the County’s General Plan Annual Progress Report (APR) provides a reliable snapshot. Required by the Governor’s Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD), every jurisdiction is required to provide an annual report detailing the progress made towards implementing their housing element and meeting their RHNA allocations. The data provided in the most recent APR for Unincorporated Mendocino County (adopted June 6TH, 2023 by the Board of Supervisors) suggests that despite strict development regulations in some places, ADUs are certainly a factor in local housing development trends. Out of the 143 housing development applications received in the 2022 reporting year, 38 were for ADUs; in 2021 a total of 102 housing development applications were received, of which 35 were for ADUs. This small number of ADUs compared to single-family home applications suggests that there could continue to be some limited development of ADUs throughout the unincorporated areas of the County. This kind of development could very slightly increase demand for wastewater services provided by CSWD in Caspar. However, any new development requires written approval from the service provider to authorize services. Regional Housing Needs Allocation (RHNA) It is worth noting that in response to statutory requirements, policy direction from the HCD, and mandated deadlines for delivery of housing need allocation numbers to local jurisdictions within Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study APPENDICES 7-5 Mendocino County, the Mendocino Council of Governments (MCOG) adopted a Regional Housing Needs Plan in 2018. Although MCOG does not typically deal with housing issues, they have been designated by HCD as the appropriate regional agency to coordinate the housing need allocation process. The political jurisdictions that comprise the region consist of the Mendocino County unincorporated area and the Cities of Ukiah, Fort Bragg, Willits, and Point Arena. The Regional Housing Needs Plan went through numerous iterations prior to being adopted which took into account different allocation factors for the methodology. Throughout the process, each member jurisdiction provided statements of constraints to HCD which detailed the land-constraints that challenge residential development in unincorporated Mendocino County. Water resources and availability was cited by multiple MCOG member jurisdictions as a constraint and contributed to the adjustments made by the state on the region’s required housing allocations. The RHNA allocations for Unincorporated Mendocino County are projected for a planning period between 8/15/2019 and 8/17/2027. Since adopting the Regional Housing Needs Plan in 2018 the County has made progress across all income levels; the number of housing units developed and how many remain with respect towards its RHNA allocation are detailed below broken down by income level and deed restricted versus non-deed restricted. Table 7-1: Mendocino County RHNA Allocations Projection Total RHNA Period - Units to Total Remaining Income Level 2019 2020 2021 2022 Allocation 01/01/2019- Date (All RHNA 08/14/2019 Years) Deed -- -- 39 -- 21 Restricted Very Low 291 125 166 Non-Deed -- -- -- 65 -- Restricted Deed -- -- -- -- -- Restricted Low 179 21 158 Non-Deed -- - -- 21 Restricted Deed -- -- -- -- -- Restricted Moderate 177 156 21 Non-Deed 4 -- -- -- -- Restricted Above 702 46 40 67 51 58 262 440 Moderate Total RHNA 1,349 Total Units 50 60 149 186 119 564 785 *Progress toward extremely low-income housing need, as determined pursuant to Government Code 65583(a)(1). Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study APPENDICES 7-6 Extremely Low- 145 15 26 21 62 83 Income Units* (HCD, 2023) With respect to how RHNA requirements may affect Caspar, the State continues to push for more housing across the state including in communities located on the coast such as Caspar. While these coastal communities are subject to additional regulation and governing bodies (i.e. the Coastal Commission), housing mandates can affect these areas just the same as more inland communities. While there is not currently much left to develop under current regulations in Caspar, evolving legislation could allow for increased development potential that supports the State’s housing goals. Additional Recent State Housing Legislation While the state legislator has made a concerted effort to progress ADU development throughout the state, there have been numerous other housing bills passed in recent years aimed at addressing the housing affordability crisis. • SB9 - Authorizes a property owner to split a single-family lot into two lots and place up to two units on each new lot. Therefore, the bill permits up to four units on properties currently limited to single-family houses. SB 9 also mandates that local agencies approve development projects that meet specified size and design standards. • SB10 - Establishes a process for local governments to increase the density of parcels in transit- rich areas or on urban infill sites to up to 10 residential units per parcel. Such an ordinance must be adopted between Jan. 1, 2021, and Jan. 1, 2029, and is exempt from the California Environmental Quality Act (CEQA). • SB35 - Applies in cities that are not meeting their Regional Housing Needs Allocation (RHNA) goal for construction of above-moderate income housing and/or housing for households below 80% area median income (AMI). SB-35 amends Government Code Section 65913.4 to require local entities to streamline the approval of certain housing projects by providing a ministerial approval process. Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study APPENDICES 7-1 7.4 Appendix D – District Financial Audits Caspar South Water District | 2024 Municipal Service Review and Sphere of Influence Study R. J. RICCIARDI, INC. CERTIFIED PUBLIC ACCOUNTANTS 1101FIFTH AVENUE,SUITE 360 SANRAFAEL,CA94901 TEL (415)457-1215 FAX (415)457-6735 www.rjrcpa.com