Westport County Water District, 2025

Westport County Water District Photo Credit: WCWD 2025 Municipal Service Review and Sphere of Influence Update Prepared By/For: Workshop: April 7, 2025 Mendocino LAFCo Public Hearing: May 5, 2025 200 South School Street Adopted: May 5, 2025 Ukiah, California 95482 LAFCo Resolutio n No: 2024-25-14 http://www.mendolafco.org/ [This page intentionally left blank] Resolution No. 2024-25-14 of the Mendocino Local Agency Formation Commission Approving the Westport County Water District Municipal Service Review and Sphere of Influence Update 2025 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 Westport County Water District, hereinafter referred to as the “WCWD 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 April 7, 2025 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 May 5, 2025; 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 significantly effecting the environment given that this update does not grant new municipal LAFCo Resolution No. 2024-25-14 05-05-2025 Exhibit "A" |ÿ 1 W AGES CREEK RD P a c i f i c O c e a n R D A G E Westport O M ABALONE ST R E T T S E R C HILL PACIFIC AV |ÿ 1 CAHTO RD Westport County Water District Proposed Sphere of Influence (cid:51)(cid:85)(cid:82)(cid:83)(cid:82)(cid:86)(cid:72)(cid:71)(cid:3)(cid:58)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:54)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:54)(cid:83)(cid:72)(cid:70)(cid:76)(cid:73)(cid:76)(cid:70)(cid:3) (cid:54)(cid:83)(cid:75)(cid:72)(cid:85)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:44)(cid:81)(cid:73)(cid:79)(cid:88)(cid:72)(cid:81)(cid:70)(cid:72) Westport County Water Distirct Proposed Sp(cid:75)ere of Influence Parcels Source: This map was prepared by the Mendocino County Highways o Information Services, GIS Program. April 25, 2025. 250 125 0 250 Note: This map is not a survey product. Roads Feet TABLE OF CONTENTS 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 ............................................................................................................................ 2-2 2.2 Government Structure .............................................................................................................. 2-5 2.2.1 Governing Body ................................................................................................................ 2-5 2.2.2 Public Meetings ................................................................................................................ 2-6 2.2.3 Public Outreach ................................................................................................................ 2-6 2.2.4 Complaints ....................................................................................................................... 2-7 2.2.5 Transparency and Accountability ..................................................................................... 2-7 2.3 Operational Structure ............................................................................................................... 2-8 2.3.1 Management and Staffing ................................................................................................ 2-8 2.3.2 Agency Performance ........................................................................................................ 2-9 2.3.3 Regional and Service-Specific Participation ..................................................................... 2-9 2.3.4 Shared Service Delivery .................................................................................................. 2-10 2.3.5 Government Structure and Community Needs ............................................................. 2-10 2.4 Finances .................................................................................................................................. 2-11 2.4.1 Current Fiscal Health ...................................................................................................... 2-11 2.4.2 Long Term Financial Considerations .............................................................................. 2-14 2.5 Growth .................................................................................................................................... 2-16 2.5.1 Area History ................................................................................................................... 2-16 2.5.2 Present and Planned Land Use and Development ......................................................... 2-17 2.5.3 Existing Population and Projected Growth .................................................................... 2-19 2.5.4 California Housing Goals ................................................................................................ 2-20 2.6 Disadvantaged Unincorporated Communities ....................................................................... 2-20 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 Water ........................................................................................................................................ 3-2 3.2.1 Service Overview ............................................................................................................. 3-2 3.2.2 Facilities and Infrastructure ............................................................................................. 3-2 3.2.3 Water Supply/Demand .................................................................................................... 3-5 3.2.4 Service Adequacy ............................................................................................................. 3-5 3.3 Wastewater ............................................................................................................................... 3-8 3.3.1 Service Overview ............................................................................................................. 3-8 3.3.2 Facilities and Infrastructure ............................................................................................. 3-8 3.3.3 Service Adequacy ............................................................................................................. 3-9 3.4 Determinations ....................................................................................................................... 3-12 3.4.1 MSR Review Factors ....................................................................................................... 3-12 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 ............................................................................................ 4-5 4.3 Proposed Sphere of Influence .................................................................................................. 4-5 4.4 Consistency with LAFCo Policies ............................................................................................... 4-5 4.5 Determinations ......................................................................................................................... 4-5 4.5.1 Present and Planned Land Uses ....................................................................................... 4-6 4.5.2 Present and Probable Need for Facilities and Services in the Area ................................. 4-6 4.5.3 The Present Capacity of Public Facilities and Adequacy of Public Services that the Agency Provides or is Authorized to Provide ................................................................................................. 4-7 4.5.4 The Existence of any Social or Economic Communities of Interest in the Area if the Commission Determines That They are Relevant to the Agency ...................................................... 4-8 4.5.5 The Present and Probable Need for Public Facilities and Services of any Disadvantaged Unincorporated Communities (DUCs) ............................................................................................... 4-8 4.6 Recommendation ..................................................................................................................... 4-8 5 REFERENCES ...................................................................................................................................... 5-1 6 ACKNOWLEDGEMENTS ..................................................................................................................... 6-1 6.1 Report Preparation ................................................................................................................... 6-1 6.2 Assistance and Support ............................................................................................................ 6-1 7 APPENDICES ...................................................................................................................................... 7-1 7.1 Appendix A – Open Government Resources ............................................................................ 7-1 7.2 Appendix B – Website Compliance Handout ............................................................................ 7-2 7.3 Appendix D – Housing Legislation Trends and Results ............................................................. 7-3 7.4 Appendix E – District Financial Audits ...................................................................................... 7-6 LIST OF FIGURES Figure 2-1: Westport County Water District Jurisdictional Boundaries ..................................................... 2-3 Figure 2-2: Mendocino County Water and Sanitation Districts and Companies ....................................... 2-4 Figure 2-3: WCWD Organization Chart ...................................................................................................... 2-8 Figure 2-4: Mendocino County General Plan Land Use and Zoning Maps .............................................. 2-18 Figure 3-1: WCWD Water Storage Tanks ................................................................................................... 3-3 Figure 3-2: View of the Aerated Ponds, Wastewater Treatment Plant, Shared Building, and the Water Polishing/Storage Pond .............................................................................................................................. 3-9 Figure 3-3: WCWD Regulatory Measures ................................................................................................ 3-10 Figure 3-4: WCWD Violations ................................................................................................................... 3-10 Figure 4-1: Proposed Westport County Water District Boundary Map ..................................................... 4-9 LIST OF TABLES Table 1-1: Current Mendocino LAFCo Commissioners, 2025 .................................................................... 1-1 Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update Table 2-1: WCWD Profile ........................................................................................................................... 2-1 Table 2-2: WCWD Board of Directors ........................................................................................................ 2-5 Table 2-3: WCWD Financial Summary ..................................................................................................... 2-12 Table 2-4: WCWD Cash Accounts ............................................................................................................ 2-12 Table 2-5: WCWD Reserve Accounts ....................................................................................................... 2-14 Table 2-6: WCWD Five-Year Rate Schedule ............................................................................................. 2-15 Table 2-7: MHI Data ................................................................................................................................. 2-22 Table 3-1: WCWD Water Diversion Data, 2019-2024 ................................................................................ 3-2 Table 3-2: Recommended Storage Volumes for WCWD ........................................................................... 3-4 Table 3-3: Wages Creek Water Rights Permit Bypass Flow Requirements ............................................... 3-5 Table 3-4: WCWD Wastewater Flow Data, 2021-2024 .............................................................................. 3-8 Table 3-5: WDR Order No. 96-28 Effluent Limitations ............................................................................. 3-11 Table 3-6: WDR Order No. 96-28 Monitoring Program ........................................................................... 3-11 Table 7-1: Mendocino County RHNA Allocations ...................................................................................... 7-4 Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update ACRONYMS AB Assembly Bill ACS American Community Survey ADU Accessory Dwelling Unit AF Acre-feet AFY Acre-feet per year AMI Area Median Income AOI Area of Interest APN Assessor Parcel Number APR Annual Progress Report BOS Mendocino County Board of Supervisors CALAFCO California Association of Local Agency Formation Commissions CAL FIRE California Department of Forestry and Fire Protection CCR Consumer Confidence Report CEQA California Environmental Quality Act cfs cubic feet per second CIP Capital Improvement Plan CIWQS California Integrated Water Quality System CKH Cortese-Knox-Hertzburg Local Government Reorganization Act of 2000 CSDA California Special Districts Association DOF California Department of Finance DUC Disadvantaged Unincorporated Community DWR California Department of Water Resources ELEC California Elections Code EPA United States Environmental Protection Agency FPPC California Fair Political Practices Commission FY Fiscal Year GC California Government Code GFOA Government Finance Officers Association GHG Greenhouse Gas gpd Gallons per day gpm Gallons per minute HCD California Department of Housing and Community Development HE Housing Element IRWMP Integrated Regional Water Management Plan I&I Inflow and Infiltration JADU Junior Accessory Dwelling Unit L Liters LAFCo Local Agency Formation Commission MCL Maximum Contaminant Level MCOG Mendocino Council of Governments mg Milligrams MHI Medium Household Income mL Milliliters MPO Metropolitan Planning Organization MPN Most Probable Number MSR Municipal Service Review OPR California Governor’s Office of Planning and Research RHNA Regional Housing Needs Assessment RTP Regional Transportation Plan RWQCB California Regional Water Quality Control Board SAFER Safe and Affordable for Equity and Resilience SB Senate Bill SDUC Severely Disadvantaged Unincorporated Community SDWIS Safe Drinking Water Information System SOI Sphere of Influence SWRCB State Water Resources Control Board TSS Total Suspended Solids WAT California Water Code WCWD Westport County Water District WDR Waste Discharge Requirements WVFD Westport Volunteer Fire Department WWTP Wastewater Treatment Plant Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update INTRODUCTION 1-1 1 INTRODUCTION 1.1 Local Agency Formation Commission Local Agency Formation Commissions (LAFCos/Commissions) are quasi-legislative, independent local agencies established by State legislation in 1963 to oversee the logical and orderly formation and development of local government entities 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., 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 through establishment of local policies to address the unique conditions of the county. 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 website.1 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, 2025 Commissioner Name Position Representative Agency Term Expires Madeline Cline Commissioner County 2028 Gerardo Gonzalez Commissioner City 2026 Candace Horsley Commissioner Special Districts 2026 Susan Mahoney Commissioner Special Districts 2028 Maureen Mulheren Chair County 2026 Mari Rodin Commissioner City 2025 Gerald Ward Vice-Chair/Treasurer Public 2026 Douglas Crane Alternate City 2025 John Haschak Alternate County 2027 Raghda Zacharia Alternate Public 2027 Vacant Alternate Special Districts 2026 1 The Mendocino LAFCo Policies and Procedures Manual can be found here: Policies & Procedures - Mendocino LAFCo. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update INTRODUCTION 1-2 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) (Assembly Committee on Local Government 2023). This review is intended to provide Mendocino LAFCo with the necessary and relevant information related to the services provided by Westport County Water District (WCWD/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. MSRs 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 water and wastewater services provided by WCWD. 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. 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; 2 GC §56430 (2024) can be found here: California Government Code § 56430 (2024) :: 2024 California Code :: US Codes and Statutes :: US Law :: Justia. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update INTRODUCTION 1-3 • 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 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).3 When reviewing an SOI for a municipal service provider, under GC §56425(e),4 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)4 on or after July 1, 2012, the present and probable need for those public facilities and services of any Disadvantaged Unincorporated Communities (DUCs) within the existing SOI. SOI 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. SB 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. 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 Plan and Vision 3 GC §56076 (2023) can be found here: California Government Code § 56076 (2023) :: 2023 California Code :: US Codes and Statutes :: US Law :: Justia. 4 GC §56425 (2023) can be found here: California Government Code § 56425 (2023) :: 2023 California Code :: US Codes and Statutes :: US Law :: Justia. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update INTRODUCTION 1-4 Mendocino 2030 Blueprint Plan. 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. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-1 2 AGENCY OVERVIEW Table 2-1: WCWD Profile Agency Name: Westport County Water District General Manager John Morrill (Operations Manager and Chief Plant Operator) Office Location: 37551 Shoreline Highway, Westport, CA 95488 Mailing Address: PO Box 55, Westport, CA 95488 Phone Number: 707-962-1612 Website: https://westportcountywaterdistrict.com/ Email: wcwd55@gmail.com Date of Formation: January 4, 1971 Agency Type: Independent Special District, Two-Service Provider Enabling Legislation County Water District Law: Water Code §30000 – 33901 Board Meeting Schedule: Regular meetings are held via teleconference on the second Thursday of every month at 7:00 PM. 2.1 History 2.1.1 Formation Westport County Water District (WCWD/District) is an independent special district originally formed in 1971 by Mendocino County (County) Board of Supervisors (BOS) Resolution No. 71-369 and Mendocino Local Agency Formation Commission (LAFCo) Resolution No. 71-15 under the County Water District Law (Water Code (WAT) Section (§) 30000-33901)6 to provide water, wastewater, and fire protection services to the community of Westport on the northern coast of Mendocino County. In 2007, the Westport Volunteer Fire Department (WVFD) separated from the District and became a 501(c)(3) non-profit organization, which was further formalized in 2009 as a Fire Company. The District now provides water supply and treatment services, and wastewater collection, treatment, and disposal services (LAFCo 2014, pg. 114). 2.1.2 Boundary The current boundary encompasses 235 acres and includes the unincorporated coastal community of Westport, which is located approximately 13 miles north of Fort Bragg. Westport is Mendocino County’s northernmost coastal community and consists of 87 residences, a community store, a small hotel/restaurant (six rooms), a small inn (six rooms), a community recreation center, and a church (PlaceWorks 2019, pg. 6). The Mendocino County Coastal Element indicates that the community is within the Westport Beach Subdivision, which lies east of Highway 1 with the exception of one parcel, and that 33 of its 80 20-acre residential parcels are located wholly within the Coastal Zone (LAFCO 2014, pg. 114). The boundary extends from Wages Creek to the north, to just south of Westport on the west side of Highway 1. To the west is the Pacific Ocean and in the eastern portion of the District are several large, undeveloped rangeland parcels, as well as the District’s water tanks and wastewater treatment facilities (LAFCo 2015, pg. 6). 5 LAFCo Resolution No. 71-1 can be found here: 71-1+Formation+of+Westport+County+Water+District.pdf. 6 WAT §3000-33901 can be found here: DIVISION 12. COUNTY WATER DISTRICTS. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-2 2.1.2.1 BOUNDARY CHANGE HISTORY In May 1971, 18 acres of land were detached from the northern portion of the District. No detachments or annexations have occurred since (LAFCo 2014, pg. 114). 2.1.3 Services The District provides water supply and treatment services and wastewater collection and treatment services, including land disposal of treated effluent. For more information regarding other services provided by contract or agreement refer to Section 2.3.5. 2.1.3.1 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 LAFCo. The County Water District Law (WAT §30000 – 33901) identifies the following potential powers: water storage and distribution, wastewater collection and disposal, garbage, waste, trash, stormwater, hydroelectric power, and fire protection services. The District is a two-service provider delivering water services and providing wastewater collection, treatment, and disposal services. Any expansion of services beyond existing water services and wastewater collection and disposal services identified above would necessitate prior approval from LAFCo through an application for activation of latent powers, which generally follows the normal LAFCo proceedings for a change of organization or reorganization (California Government Code (GC) §56650 et seq.). 7 For a regional map of Mendocino County’s water and sanitation districts and companies, refer to Figure 2-2. 7 GC §56650 et seq. can be found here: Codes: Code Search (ca.gov). Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update Figure 2-1: Westport County Water District Jurisdictional Boundaries AGENCY OVERVIEW 2-3 |ÿ 1 1 Wages Creek WAGESCREEKRD WagesCreek RiderG ulch n a e c O c i f i c a P R D A G E M O Westport ABALONE ST SEAVIEW DR PELICAN RDR E T T S E R C L L HI CAHTO RD PACIFIC AV C A H T |ÿ O 1 R D Westport County Water District Westport County Water District Highways Sphere of Influence Roads o Source: This map was prepared by the Mendocino County Division of Information Services GIS Program, June 2023. Parcels Streams 200100 0 200 400 Note: This map is not a survey product. Feet Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-4 Figure 2-2: Mendocino County Water and Sanitation Districts and Companies Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-5 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 policy, adopting and amending the annual budget, enacting ordinances, adopting resolutions, and appointing committees. The District is governed by a five-member Board of Directors, to be elected by registered voters within the District boundaries. Directors are elected at-large on staggered four-year terms (see Table 2-2). To be elected to the Board, candidates must be registered voters 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 BOS per California Elections Code (ELEC) §10515.8 New Board members take office at noon on the first Friday in December following their election. GC §1780-1782 governs the process for appointment of Board of Director seats vacated prior to the scheduled term expiration date.9 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 BOS 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. Historically, the Board has experienced difficulty filling vacancies. As discussed in Chapter 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 a common problem for many small service providers within the County and throughout rural areas of California. Without a full Board, the conduct of regular District business is difficult and important planning and implementation of services may suffer. However, District staff share that two additional Board members were appointed at the December 2024 regular meeting, and that the Board is now fully seated with five members and no vacancies. Table 2-2: WCWD Board of Directors Serving First Year of Name Office/Position Term Expiration Consecutive Service Terms Lee Tepper President 1978 2028 Yes Gary Weiss Secretary 2021 2028 Yes Carla Thomas Director 2023 2026 Yes Steve Cardullo Director 1986 2026 No Robert Finnell Director 2024 2028 No Source: LAFCo 2024. 8 ELEC §10515 (1994) can be found here: California Code, ELEC 10515. 9 GC §1780 – 1782 (2008) can be found here: California Code, GOV 1780. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-6 The District officers consist of a president, vice president/treasurer and secretary, which are elected annually at a regular meeting held in December. The 2021 WCWD Bylaws establish distinct duties and responsibilities for the roles of secretary and vice president/treasurer, but in practice, the responsibilities of both have merged into the secretary role. Additionally, the Bylaws delineate the responsibilities and duties of the vice president/co-chair, but the District does not currently have a co-chair. Officers must be directors and directors shall not serve more than one officer position. Board directors are volunteer positions and do not receive any benefits or financial compensation. The president of the Board presides over all Board meetings and exercises and performs powers and duties assigned by the Board of Directors or written in the Bylaws. The president serves as the primary contact of record and may act as necessary on behalf of WCWD (WCWD 2021a, pg. 4). The secretary prepares minutes for each Board meeting and maintains a record of all Board meeting minutes and a Board member register. Recently, the administrator-financial controller performed the duties of the secretary; this appointment was temporary, and a permanent secretary was selected during the annual Board election in December 2024. The secretary keeps the WCWD seal and performs other duties and powers as assigned by the Board or written in the Bylaws (WCWD 2021a, pg. 5). 2.2.2 Public Meetings 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. Regularly scheduled meetings for the Board of Directors are generally held via teleconference on the second Thursday of every month at 7:00 PM. Members of the public may attend the meeting over Zoom by calling or emailing the administrator-financial controller by 12:00 PM the same day as the public meeting. With the State’s recension of the declaration of health emergency following the COVID-19 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 September 2022 and allows local government officials to participate via teleconference under limited circumstances (GC §54953).10 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. 2.2.3 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. Further, increased accessibility and transparency requirements were signed into federal and state law in early 2024 (a compliance handout is included in Appendix B – Website Compliance Handout). The District maintains a website11 which contains contact information, Bylaws, and Board meeting agendas and minutes from 2020 to present. It is recommended that the District review their website to ensure compliance with the latest federal and state laws and standards. Public outreach is primarily conducted through the District’s website, Westport 10 GC §54953 (2022) can be found here: Today's Law As Amended - AB-2449 Open meetings: local agencies: teleconferences. 11 The WCWD website can be found here: Westport County Water District - Westport, California. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-7 Village Society’s community newsletter “The Wave,” and through distribution of notices to individual customers. Required notifications such as notices, agendas, and minutes for public meetings are posted at the Westport Community Store and on the District’s website. Additionally, the District notifies customers of scheduled water main and pipe flushing by mail and through the District’s website (LAFCo 2024b). 2.2.4 Complaints The District does not currently have a formal process to address customer complaints. Landowners within the District may contact the District operations manager by phone or by writing to submit water quality complaints. Complaints concerning water billing or administrative issues are addressed by the administrator-financial controller. The complaints are typically discussed at a future Board meeting and directions are given to the operations manager to address, as appropriate. Customers are also invited to discuss complaints at future Board meetings as public comment. The District reports that complaints primarily concern service rate pricing (LAFCo 2024b). 2.2.5 Transparency and Accountability The WCWD Bylaws were updated and approved on April 10th, 2021.12 The Bylaws serve as the legal guidelines of the organization and provide written rules that control internal affairs. They define the adopted policies and procedures related to the District’s establishment, operations, personnel, Board of Directors, officers, Board meetings, and financial matters. The Political Reform Act requires all state and local government agencies to adopt and promulgate a Conflict-of-Interest Code pursuant to GC §81000 et seq.13 The District does not currently maintain a 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 (FPPC) Form 700) each year pursuant to GC §87203.14 The District Board of Directors are current on their required Form 700 filing obligations (WCWD 2025g, pg. 1). These annual disclosures are available to the public through the FPPC. 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 §53235.15 Although the District does not compensate its Board members, the District Board members attend the Brown Act and ethics training courses regularly. New Board members attend the Brown Act and ethics training courses within six months of being appointed. 12 The WCWD Bylaws (2021) can be found here: Bylaws | Westport County Water District. 13 GC §87300 et seq. (2011) can be found here: ARTICLE 3. CONFLICT OF INTEREST CODES. 14 GC §87203 (2022) can be found here: California Code, GOV 87203. 15 GC §53235 (2023) can be found here: California Code, GOV 53235. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-8 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 District employs four staff members, comprised of one full-time operations manager and three part- time employees, including an administrator-financial controller, a drinking water plant shift operator and distribution operator, and a drinking water and wastewater plant shift operator. Day-to-day water and sewer operations are overseen by the operations manager. The District does not employ a general manager, rather the operations manager provides reporting directly to the Board of Directors and executes and enforces resolutions and the direction of the Board. The operations manager holds the following certifications from the State Water Resources Control Board (SWRCB): T3 Water Treatment Operator, W1 Wastewater Treatment Operator, and D2 Distribution Operator. The drinking water plant shift operator and distribution operator holds a D2 Distribution Operator and T2 Water Treatment Operator license that is adequate to fulfill the operator’s tasks and responsibilities. The drinking water and wastewater plant shift operator holds W1 Wastewater Treatment Operator and T2 Water Treatment Operator licenses. Figure 2-3 shows the District’s organizational chart. Figure 2-3: WCWD Organization Chart Source: LAFCo 2024b. 2.3.1.1 CONTRACT STAFFING AND SERVICES WCWD has received operational support from the City of Fort Bragg (City). The City’s public works supervisor has provided support with addressing the District’s underground maintenance. The arrangement is not formalized under a work agreement and the support is unpaid; instead, the collaboration emphasizes the camaraderie among water professionals. The District utilizes contracted professional services for the preparation of its financial audits. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-9 2.3.2 Agency Performance A component of monitoring agency performance is routinely evaluating staff productivity. The District does not currently track employee workload and productivity through a timekeeping mechanism, but the Board does conduct annual written performance evaluations of WCWD employees, contracted staff, and other licensed professionals (WCWD 2021a, pg. 4). The District also monitors and evaluates agency operations through regulatory reporting and review of District databases and records. 2.3.2.1 CHALLENGES The District reports that the limited number of customers is a challenge when considering increasing rates or assessments sufficient to fund significant infrastructure upgrades, increasing staff wages, and promoting future development. Further, limited funding creates challenges in maintaining staff members and upgrading aging infrastructure. In addition to the budget limitations, the rural and remote location of the District presents a challenge to recruiting additional qualified staff members. The District reports that there is an interest in providing part-time employees with benefits, but it is currently unable to do so. The District has engaged GHD Consulting to develop and submit grant applications for a planning study and engineering report that addresses the water and wastewater systems’ aging infrastructure. The District’s redwood water tank is in need of replacement and will be included in the project scope of work for a grant application. In addition, inflow and infiltration (I&I) is impacting the District’s sewer lines and requires correction. District staff share that two SWRCB grant programs, the Clean Water State Revolving Fund program and the Drinking Water State Revolving Fund program, are being pursued but staff were notified that grant funding is on hold until July 2025. 2.3.2.2 STRATEGIC OR SUCCESSION PLAN While the District does not have an established strategic plan, mission statement, or official goals, the Board considers progress and setbacks over the prior year during the annual budget development process. 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. The District may benefit from the development of a strategic plan when the resources to do so are readily available. 2.3.3 Regional and Service-Specific Participation WCWD does not participate in any interagency collaborative arrangements or mutual aid agreements. As previously stated, the District has received operational support from the City of Fort Bragg’s public works supervisor with underground maintenance. The District does not participate in an Integrated Regional Water Management Plan (IRWMP). Participation in these types of large-scale planning organizations often offers opportunities to pursue joint grant applications and to leverage other community resources, and it may benefit the District to consider participation in future IRWMP efforts. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-10 2.3.4 Shared Service Delivery 2.3.4.1 ADJACENT PROVIDERS The District is located approximately 13 miles north of the City of Fort Bragg and the Fort Bragg Municipal Improvement District No. 1. The City of Fort Bragg provides a wide range of municipal services, including water and wastewater. Fire service in the area is provided by WVFD. Other regional fire service providers include the Fort Bragg Rural Fire Protection District and the California Department of Forestry and Fire Protection (CAL FIRE). There are no other water or wastewater service providers in the immediate area (10 miles). Out of the 17 mutual water companies currently operating in Mendocino County that provide domestic water service, the Branscomb Mutual Water Company (Company) (located approximately 15 miles east of WCWD) provides residential drinking water to approximately 100 customers through 18 water connections (LAFCo 2018b, pg. 10). The 2018 Mutual Water Company Study reports that the Branscomb Mutual Water Company’s (Company) governing board consists of three elected members with unknown term lengths. There are no restrictions on the number of terms a member may serve. Stakeholders meet annually at the law offices of Neary & O’Brien, 110 South Main Street, Willits, California. The Company has no employees but contracts for bill collection with Neary & O’Brien Attorneys at Law. In the past, the Company contracted its water plant operator through WCWD; however, the contract is no longer in effect (LAFCo 2018b, pg. 10). The District owns approximately five acres on which the wastewater treatment plant (WWTP) and ponds are located and are shared with WVFD. Although no formal agreement is in place, the shared building serves as the District’s offices and houses the Westport Fire Station. Further, the District and WVFD share hydrants and two stand-by generators. In further demonstration of the collaboration between the District and WVFD, the District ensures minimum fire protection levels are maintained in the water tanks and regularly communicates water tank levels to the fire department (LAFCo 2014, pg. 125 and LAFCo 2024b). The District has identified an additional opportunity to share fuel storage with WVFD for the two stand- by generators. No other opportunities for shared facilities were identified by District staff or LAFCo in the preparation of this MSR. 2.3.4.2 DUPLICATION OF SERVICES There are no other like-service providers in the area and District staff did not identify a duplication of service or any opportunities to share services or facilities that are not currently being utilized. 2.3.5 Government Structure and Community Needs 2.3.5.1 ENHANCED SERVICE DELIVERY OPTIONS The District is actively exploring opportunities to enhance service delivery by expanding its water portfolio to include a suitable groundwater source. Currently, the District’s primary water source is a surface water diversion on Wages Creek; however, the District is exploring other resources to augment or replace its reliance on surface water. Although the District owns a standby well that provides limited capacity, the source has high levels of manganese and iron. Recent test wells have so far been unsuccessful in finding a suitable groundwater source to supplement its supply (LAFCo 2015, pg. 9 and LAFCo 2024b). Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-11 2.3.5.2 GOVERNMENT RESTRUCTURE OPTIONS Government restructuring 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. No opportunities for government restructuring options were identified during the preparation of this study. 2.4 Finances 2.4.1 Current Fiscal Health LAFCo is required to make determinations regarding the financial ability of WCWD to provide its services. This section includes District financial information for the year-end June 30, 2019, through year-end June 30, 2023, and long-term financial considerations. The District evaluates its financial position during regular Board meetings and the development of its five- year budget. The District reports that if, during the analysis of operational needs, additional revenue is necessary, the five-year assessments are reviewed and adjusted through a public hearing process. In January of 2024, the Board of Directors approved and adopted a five-year budget and rate schedule that took effect on March 1, 2024. The Board and WCWD staff studied the historic expenses and revenues over the years 2013–2023 and determined that District expenses had increased during that period, in part to increasing U.S. inflation rates, and expenses were barely covered by revenue. The Board had elected to not increase service rates between 2021 and 2022 although it had authorization under the prior five- year budget that took effect in 2017. The budget and rate schedule also considers the need for emergency funding to cover unforeseen expenses, emergency maintenance repair costs, and catastrophic events (WCWD 2024a, pg. 1). Both the water service and wastewater service operate as separate enterprise funds, meaning that charges for services are intended to pay for the costs of providing such services (LAFCo 2014, pg. 123). The primary source of funding for the provision of water and wastewater services is from fees collected for water and wastewater usage. Rates for water and wastewater services are set by ordinance and collected by the District (LAFCo 2014, pg. 123). The District is current on its required financial audits. The latest financial audit prepared for the District was completed in June of 2024. The reporting period covers five fiscal years (FYs) (2019 – 2023). The District plans to conduct annual audits in the coming years. The following table provides year-end financial information for the District. Table 2-3 summarizes the statement of revenues, expenses, income, and changes in fund net position prepared by Pehling’s PnPCPA. The financial information in the table represents the short-term financial standing of the District based on annual income, expenses, and profits/losses using an accrual basis accounting method. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-12 Table 2-3: WCWD Financial Summary FY 19 ($) FY 20 ($) FY 21 ($) FY 22 ($) FY 23 ($) Operating Revenue Charges for Service 201,656 214,965 225,169 201,999 222,319 Connection Fee - - - - - Misc Revenue 400 1,666 1,645 155 449 Grants & Contributions 1,935 1,935 1,935 1,935 1,935 Total Operating Revenue 203,991 218,566 228,749 204,089 224,703 Operating Expenses Depreciation 9,720 456 456 456 456 Insurance 5,115 9,455 17,763 11,028 13,083 Repairs & Maintenance 9,299 15,736 12,837 22,564 5,643 Salaries & Employee Benefits 122,943 122,881 126,774 132,570 128,151 Services, Supplies & Refunds 20,860 23,756 34,094 24,241 37,304 Professional Fees 1,467 348 961 - - Administration 8,894 9,343 10,553 10,253 7,717 Utilities 13,454 13,714 15,823 15,159 14,863 Total Operating Expenses 191,752 195,689 219,261 216,271 207,217 Operating Income (Loss) 12,239 22,877 9,488 (12,182) 17,486 Non-Operating Revenues/Expenses Interest Income 4 5 7 9 12 Property Taxes - - - - - Interest Expenses (1,935) (1,935) (1,935) (1,935) (1,935) Total Non-Operating (1,931) (1,930) (1,928) (1,926) (1,923) Revenues/Expenses Net Position, Beginning of 71,487 81,795 102,742 110,302 96,194 Period Net Position, End of Period 81,795 102,742 110,302 96,194 111,757 Change in Net Position 10,308 20,947 7,560 (14,108) 15,563 Pehling’s PnPCPA 2024, pg. 8. The District’s cash accounts are summarized in Table 2-4. Table 2-4: WCWD Cash Accounts Type FY 19 ($) FY 20 ($) FY 21 ($) FY 22 ($) FY 23 ($) Net Increase (Decrease) in Cash 15,055 18,279 11,481 (4,374) 5,965 Cash, Beginning of Year 21,649 36,704 54,983 66,464 62,090 Cash, End of Year 36,704 54,983 66,464 62,090 68,055 Pehling’s PnPCPA 2024, pg. 12. According to the five-year audit prepared by Pehling’s PnPCPA, the District maintains its cash in a pool managed by the County Treasurer-Tax Collector. The County Treasurer-Tax Collector invests its cash with the State of California in the local agency investment fund and other banking institutions. The District does not own any specific identifiable investments in the pool (Pehling’s PnPCPA 2024, pg. 12). Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-13 2.4.1.1 REVENUES AND EXPENDITURES The District’s operating revenue includes charges for service, connection fees, miscellaneous revenue, and grants and contributions. As previously stated, the District’s primary source of funding is through service fees for water and wastewater services. District service charge revenues have varying trends, with a general upwards trend in FYs 2020, 2021, and 2023, and a general downwards trend in FYs 2019 and 2022. The noted increase in service charge revenues in FY 2021 and the decline in charges for service in following FY 2022 is due to variances in customer payment amounts. Customers are charged a monthly flat rate for services, but some customers pay extra money for additional water over the allotted amounts, creating a variance in service charge revenues. Miscellaneous revenue includes tenant rent paid by a trash company that rents space on one of the District’s properties. The trash company pays a percentage of its income to rent the space. The District receives a fixed contribution of $1,935 from a previous Board member to cover an interest rate expense from an outstanding loan. The five-year audit shows that the District does not collect revenue from property taxes. District expenditures did not exceed revenues except for FY 2022. In FY 2022, the District invested more funding into repairs and maintenance of system facilities and investment into salaries and employee benefits. Top expenditure includes repairs and maintenance, services, supplies and refunds, and salaries and employee benefits. From FY 2020-2023, depreciation costs have remained below $500, suggesting that long-term assets like equipment have surpassed their useful life span and have declined in value. 2.4.1.2 ASSETS AND LIABILITIES The District’s greatest assets are in cash and accounts receivable. WCWD also maintains capital assets such as land, buildings, improvements, and equipment for which accumulated depreciation costs have been accounted for. Categories under current liabilities include accounts payable, accrued liabilities, and current portion. The line item ‘Note payable’ appears as the only category under long-term liabilities in the audit report, with a reoccurring charge of $38,709 per year over the five-year reporting period. This amount corresponds to an outstanding loan of $38,709 owed by the District to one of its Board members, dating from 2011-2014 (Pehling’s PnPCPA 2024, pg. 13). For more details on the loan, refer to Section 2.4.2.2. The District does not have a needs assessment or a capital improvement plan (CIP); therefore, it is not clear what improvements are needed and at what cost. 2.4.1.3 NET POSITION District expenditures have increased over the last five years, with expenses exceeding revenues in FY 2022. However, revenues have generally outpaced expenses, and the District is currently operating at a net positive. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-14 2.4.2 Long Term Financial Considerations 2.4.2.1 RESERVES Reserves are funds set aside from the annual spending plan for the purpose of responding to unforeseen expenses that can disrupt cash flow, such as emergency maintenance repair, natural disasters, and economic instability. Reserves serve as a financial buffer to manage risks and allow an agency to continue operating and meeting obligations. Reserve funds are also beneficial for preparing for large, nonrecurring expenditures, such as the purchase of capital assets (Government Finance Officers Association (GFOA) 2023, pg. 3). However, for many local governments, building reserves is a challenge in the face of rising costs and resource constraints that can match or exceed revenue growth. And the optimal level of reserves to maintain varies by agency. This depends on an agency’s specific obligations and local conditions, as well as standards established by bond rating agencies (California Special Districts Association (CSDA) 2013, pg. 15). GFOA’s “Best Practices: Fund Balance Guidelines for the General Fund” recommends that general-purpose governments, regardless of size, maintain unrestricted budgetary fund balance in their general fund of a minimum of two months (17 percent) of regular general fund operating revenues or expenditures (GFOA 2015). The District’s reserve account totals are summarized in Table 2-5: Table 2-5: WCWD Reserve Accounts Type FY 19 ($) FY 20 ($) FY 21 ($) FY 22 ($) FY 23 ($) Water Capital Reserve 3,145.62 5,547.81 7,951.20 10,355.79 12,761.59 Sewer Capital Reserve 3,228.41 5,630.64 8,034.07 10,438.70 12,844.54 Reserves Total 6,374.03 11,178.45 15,985.27 20,794.49 25,606.13 Source: LAFCo 2025d. As of January 2025, reserve funds totaled $30,820.19 (LAFCo 2025a). WCWD notes that the Water Enterprise Fund had a reserve of $16,368.60, while the Wastewater Enterprise Fund had a reserve of $16,451.59 as of January 2025 (LAFCo 2025a). Both funds serve as the District’s capital reserves (LAFCo 2025c). The District does not currently maintain any formal policies related to reserves. It is recommended that the District develop and adopts a formal reserve policy to support its financial planning efforts. At WCWD’s expense, a third-party fidelity bond for faithful performance of duties for the District vice president/treasurer, administrator-financial controller, and other employees handling District monies shall be required and shall be fixed at a minimum amount of triple the annual WCWD revenues (WCWD 2021, pg. 5). 2.4.2.2 OUTSTANDING DEBT/COST AVOIDANCE On July 18, 2023, the District Board of Directors enacted to resume adherence to Resolution 97-8 Billing and Collection Policy (issued 1997) to implement procedures for handling delinquent accounts. In recent years, the District has not consistently imposed late charges and other penalties for delinquent accounts and reports a high volume of past-due water and sewer bills. The District has made the following amendments to the policy: discontinuance or restriction of service; resolution of billing disputes through petitions for Board of Directors hearing; financial assistance through government program(s); installment payment plans with approval by Board of Directors for specific types of qualifying hardships; renter/tenant Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-15 acceptance of direct payment responsibility from delinquent owner/landlord; and collection by suit, lien, or remittance to collection agency (WCWD 2023, pg. 1). The 2024 Pehling’s PnPCPA audit report indicates that the District has an outstanding loan of $38,709 from a previous Board member, which dates to 2011-2014. This loan was used to match funds to secure a grant for the construction of a water storage tank in 2009. The loan does not have a due date, and no payment is currently due. The District’s cost of capital is five percent and as such, receives an interest expense charge of $1,935 and an associated donation of $1,935 from the Board member to account for the zero payments (Pehling’s PnPCPA 2024, pg. 13). 2.4.2.3 RATE RESTRUCTURING The current rate structure was adopted in January of 2024 and reflects the following: Table 2-6: WCWD Five-Year Rate Schedule Year Residential Commercial % Increase 2024 $225 $353 5% 2025 $236 $371 5% 2026 $245 $386 4% 2027 $255 $401 4% 2028 $265 $417 4% Source: WCWD 2024a, pg. 1. The District charges water and sewer fees for both developed and undeveloped (standby) parcels within the District. The basic 2025 rate for combined water and sewer service is $236 per month for residential customers and $371 for commercial customers. Basic residential rates are based on 6,000 gallons per month and commercial rates are based on 12,000 gallons per month. Water use exceeding the monthly allotment will increase from $.006 per gallon to $.01 per gallon (WCWD 2024a, pg. 1). The District also provides water service under contract to Westport Beach RV Park and Campground, just to the north and outside of the District’s boundary (LAFCo 2014, pg. 125). The District also provides water service to a single-family residence on a parcel previously owned by Westport Beach RV Park and Campground, located west of and adjacent to the campground, and outside of the District boundary. Additionally, water is supplied by request and fee to contractors with water trucks (LAFCo 2014, pg. 125). 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. 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. Similar to 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 last rate study was prepared for the District in 2016. The District shares that the current rate structure was adopted in accordance with Prop 218 process. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-16 2.4.2.4 CAPITAL IMPROVEMENT PLAN The District does not currently have a needs assessment or a CIP, but has acknowledged the need for repairs to the existing water and wastewater systems. WCWD has engaged GHD Consulting to pursue two SWRCB grant applications for a planning study and engineering report that identifies capital improvement needs for its drinking water and wastewater systems. If awarded, GHD Consulting will prepare the planning study and engineering report. The District maintains professional insurance through the California Rural Water Risk Management Agency and MemberGuard. The District reports that Westport qualifies as a disadvantaged unincorporated community (DUC) and eligible for grant funding opportunities to replace system infrastructure and pursue capital improvement projects without cost to the District or its customers. In addition, the District establishes eligibility to apply for a state-sponsored program that assists qualified customers pay delinquent water and sewer bills (WCWD 2024a, pg. 2). 2.5 Growth 2.5.1 Area History The Coast Yuki people, who called themselves Ukoht-ontilka, meaning ocean people or people living beside the big water, lived in the area now known as Westport and along the 50-mile stretch of the Mendocino coast before settlers arrived in the mid-19th century (Social Studies Fact Cards 2006) (Coastview 2025). The settlement of Westport can be traced back to the California gold rush in 1848, which brought hundreds of thousands of people to northern California, contributing to the development of lumber towns along the Mendocino coast through the discovery of redwood forests and the beginning of the timber trade (Coastview 2025). Brothers Samuel and Lloyd Beall are attributed as the first white settlers in the area around 1860, naming the area Beall’s Landing and constructing a loading chute in 1864 (Lorentzen 2021). In 1877, James T. Rodgers moved to the area and built the town’s first wharf (south) with a loading chute, sparking booming development of the local economy. That same year, Rodgers renamed Beall’s Landing to Westport in reference to his hometown of Eastport, Maine (Lorentzen 2021). Rodgers built a second wharf (north) capable of handling 150,000 board feet of lumber from the Mendocino forests each day. By the 1880s, Westport had a population of 400 residents and 65 ships loading at the chutes each year (Lorentzen 2021). The community had a railroad, mills, hotels, saloons, a post office, and other stores by the year 1881 (Lorentzen 2021). At one point, Westport was the largest town between San Francisco and Eureka (Coastview 2025). Exports included tanoak bark, shingles, wool, oats, and railroad ties (Lorentzen 2021). The wharves and chutes required constant repair due to damage from coastal storms, and eventually the south wharf was abandoned around 1900 (Lorentzen 2021). Struggles through the Great Depression led to several people leaving the community, and the development of trucks and roads led to the closure of mills as cut timber could be hauled to the Union Lumber Company mill in Fort Bragg (Lorentzen 2021). Today, the community of Westport consists of 87 residences, a community store, a small hotel/restaurant (six rooms), a small inn (six rooms), a community recreation center, and a church (PlaceWorks 2019, pg. 6). Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-17 2.5.2 Present and Planned Land Use and Development The District Service Area Boundary and SOI 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 SOI and makes land use decisions based on the County’s adopted general plan and zoning ordinance. The District boundary and SOI area are in the Coastal Zone and as such are subject to the regulations of the Coastal Element as 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. 2.5.2.1 LAND USE There are 105 parcels within the District, the majority of which are developed with residences or commercial uses. Approximately 13 large parcels immediately surrounding the town center and within the District are zoned Rangeland (RL) or Agriculture (AG 60) as designated by the County of Mendocino General Plan and are either undeveloped or developed with a single-family residence. Parcels within the town center are zoned Rural Village (RV). The following land use classifications established in the County of Mendocino General Plan apply to lands in the District boundaries: • Rural Village (RV) • Range Lands (RL 160) • Agricultural Lands (AG 60) • Public Facilities (PF) As with many service providers in the County, there are resource lands currently in the District boundaries, but no lands under Williamson Act contract are within the District or outside agency service area. Outside Agency Service Area The outside agency service area includes Westport Beach RV Park and Campground (APNs 013-240-51 and 013-240-49), which receives outside agency water service under contract from WCWD. The campground is adjacent to the District’s northern boundary, west of State Highway 1. In 2015, Westport Beach RV Park and Campground was adopted into the SOI for water service only (LAFCo 2015, pg. 14). The campground utilizes an on-site septic system and does not receive wastewater service from the District. The campground spans across two parcels. One parcel has two zoning classifications: Rangeland (RL 160) spans the northeast portion of the parcel, with the remainder zoned as Remote Residential (RMR 20). The other parcel is designated as Remote Residential (RMR 20) (Mendocino County 2025). Together the two parcels are approximately 50.8 acres. The current land use is the Westport Beach RV Park and Campground, which provides full hookup RV sites, tent sites, cabins, and group sites (LAFCo 2015, pg. 11). The District also provides water service to a parcel developed with a single-family residence that was previously owned by Westport Beach RV Park and Campground (APN 013-240-50) (LAFCo 2025c). The parcel is located outside the District boundary, directly west of and adjacent to Westport Beach RV Park and Campground. It has two zoning classifications; the northeastern portion is designated as Remote Residential (RMR 20), and the southwestern portion is designated as Open Space (OS). The single residence is located along the eastern boundary of the parcel, with the remaining land vacant. The Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-18 assessed acreage is approximately 5.40 acres (Mendocino County 2025). The parcel does not receive wastewater service from the District (LAFCo 2025b). The principal permitted use of the Remote Residential is one dwelling unit per parcel with associated utilities, light agriculture uses, and home occupations (Mendocino County 2021, pg. 27). With the current land use designations and the RV park, campground, and single-family residence, no further development or additional need for services is expected within the outside agency service area. The area’s use is consistent with services provided. Figure 2-4: Mendocino County General Plan Land Use and Zoning Maps Zoning Map General Plan Land Use RMR 20 RMR 20 RL 160 RL 160 PF PF 0 RV 40K RV RL 160 RL 160 AG 60 AG 60 Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-19 Source: Mendocino County 2024. 2.5.2.2 DEVELOPMENT Existing residential land uses in Westport consist of approximately 87 housing units within an area of 19.4 acres, leading to an average density of 4.5 dwelling units per acre (PlaceWorks 2019, pg. 6). The 2003 Water Supply Feasibility Study identified approximately 40 acres within the District that could be developed, although no details of what type of development or density were discussed. The study also identified approximately 1,000 acres within the general vicinity of the District that were for sale and could potentially be developed. However, communication with District staff indicated that it was highly unlikely that the area would be further developed in the near- or long-term planning horizon (LAFCo 2014, pg. 6). Given Westport’s isolated location and limited development potential, it’s unlikely to experience significant population increases in the next few decades. There are no outstanding will-serve letters and no known developments pending. The District’s water and wastewater systems were designed to accommodate 95 services each and are approximately 85 percent built out; however, the area has experienced little to no growth in recent years. Additionally, the occupancy rate has been reduced quite a bit since the 1960s, which further reduces the projected buildout population. The current population of the District is approximately 89 year-round residents, which can double during summer vacation months (LAFCo 2014, pg. 17) (LAFCo 2025b). The Mendocino County Housing Element (HE) (adopted 2020) establishes an overview of housing needs in the unincorporated area of the County over an eight-year planning period from 2019 to 2027 (GC §65588).16 Pursuant to the California Legislature, all counties and cities must prepare an HE and demonstrate the availability of land suitable for residential development to meet this cycle’s Regional Housing Needs Assessment (RHNA) allocation. The HE identifies Westport as having major housing development constraints due to steep slopes and lack of water and sewer access. However, the HE also identifies 23 parcels (11.3 acres total) in Westport that are suitable for residential development to meet the RHNA goal (Mendocino County 2020, pg. 245). 2.5.3 Existing Population and Projected Growth The District’s boundary is within Mendocino County, which has a population estimated at 87,422 in the 2020 Census. It is important to note that there is no designated census block for Westport, nor is Westport a census-designated place (CDP), therefore population growth projections specific to Westport are unavailable and so general growth projections for the unincorporated areas of Mendocino County are used for this study. However, service provision data such as number of service connections and average household size can be examined to estimate population size and growth indicators. The closest communities are Fort Bragg and Cleone, located approximately 13 and 17 miles to the south of the District, respectively. It is estimated that there are 89 permanent residents in Westport, with seasonal fluctuations increasing the number of residents during the summer months (LAFCo 2025b). The District reports it provides water service to 64 residential and 8 commercial customers within the District; this estimate includes one customer located within the SOI area (Westport Beach RV Park and Campground) and one customer 16 GC §65588 (2022) can be found here: California Code, GOV 65588. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-20 located outside the SOI area (single-family residence). Wastewater service is provided to 62 residential and 8 commercial customers within the District. It should also be noted that the community is comprised of primary homes, short-term rentals, and vacation homes, the latter of which are vacant part of the year. The projected population 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 (California Department of Finance (DOF) 2024). 2.5.4 California Housing Goals In 2017, the State of California passed SB 299 and SB 1069 to address the increasingly desperate need for affordable housing in the State. The legislation allowed local ordinances for Accessory Dwelling Unit (ADU) construction in districts zoned for single and multifamily residential uses. An ADU is a secondary dwelling unit for one or more persons on the same parcel as a larger, primary dwelling. An ADU can either be attached or detached to the primary residential structure on the property but must include complete independent living facilities (including permanent provisions for entry, living, sleeping, eating, cooking and sanitation, and adequate water service and sewage disposal systems). As codified by GC §65852.150,17 the California Legislature found and declared that, among other things, allowing ADUs in zones that allow single-family and multifamily uses provides additional rental housing and is an essential component in addressing California’s housing needs. In the years since, state ADU law has been revised to improve its effectiveness in creating more housing units. New laws have since been passed which address barriers to their implementation at scale; for example, setting development criteria for ADUs, streamlined permit processing, and limiting impact fees. Implementation of state law requires updating local ordinances, estimating ADU capacity when used to address regional housing need assessment (RHNA) allocations in housing element updates, and a housing element program to incentivize and promote ADUs that can be offered at affordable rents. As the state of California continues to pass legislation to help tackle the ongoing housing crisis, the inevitable impacts to service providers because of development will continue to mount. It is imperative that small districts such as WCWD stay up to date on legislative changes. For additional information and data on housing legislation see Appendix D – Housing Legislation Trends and Results. 2.6 Disadvantaged Unincorporated Communities Senate Bill (SB) 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 services.18 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. 17 GC §65852.150 (2023) can be found here: California Government Code § 65852.150 (2023) :: 2023 California Code :: US Codes and Statutes :: US Law :: Justia. 18 Technical advisory on SB 244 can be found here: https://opr.ca.gov/docs/SB244_Technical_Advisory.pdf. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-21 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. According to the United States American Community Survey (ACS) 2023 1-Year estimates, the statewide MHI for California was $95,521 (U.S. Census Bureau 2023b). The qualifying threshold for a DUC is 80 percent of that value, $76,417. The qualifying threshold for a severely disadvantaged unincorporated community (SDUC) is 60 percent of that value, $57,313 (U.S. Census Bureau 2023b). The ACS 2023 1-Year MHI data for Mendocino County is $67,454 with many of the County census tracts considered DUCs. DUCs 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 the 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, 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 an 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 differs 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. 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. SB 244 describes the general characteristics of DUCs and provides 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 an MHI that is 80 percent or less than the statewide MHI • For this analysis, per the California Association of Local Agency Formation Commissions (CALAFCO) recommendation, calculated the “MHI Threshold” i.e. 80 percent of the statewide MHI as $76,417, per the ACS MHI data (the MHI for the State of California is $95,521) (U.S. Census Bureau 2023b). • Income data was sourced from the ACS 5-Year estimates dataset for 2019-2023 and the 2023 ACS 1-Year estimates. The smallest geographical entity that Westport is located within and that has publicly available data is Census Tract 102. According to the ACS 2023 5-Year estimates, Census Tract 102 has a population of 3,057 (1,411 households; 739.9 square miles) and a MHI of $35,515, which is lower than the MHI SDUC threshold (U.S. Census Bureau 2023a and 2023c). Although census tracts are considered a smaller geographical area than counties, it is important to consider that census tracts are geographically expansive, and that Census Tract 102 encompasses multiple communities within unincorporated Mendocino County, including Branscomb and Laytonville. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update AGENCY OVERVIEW 2-22 Because Westport falls within Census Tract 102 and is not a CDP, the MHI of its residents is assumed to approximate the Census Tract MHI of $35,515. The MHI is considered 37 percent of the statewide MHI of $95,521 and generally would be considered to be a SDUC. However, it is difficult to characterize the District as a SDUC given that the Westport community is a mixture of primary homes, short-term rentals, and vacation homes located immediately on the coastline. The District and surrounding areas have a notable number of seasonal homes that are only occupied a portion of the year. As such, it is difficult to get an accurate representation of the District’s representative MHI. However, the District reports that Westport qualifies as a DUC and is eligible for grant funding opportunities to replace system infrastructure and pursue capital improvement projects without cost to the District or its customers. In addition, the District establishes eligibility to apply for a state-sponsored program that assists qualified customers pay delinquent water and sewer bills (WCWD 2024a, pg. 2). Table 2-7: MHI Data California MHI* $95,521 80% of California MHI* $76,417 Mendocino County MHI* $67,454 Census Tract 102 MHI** $35,515 Source: U.S. Census Bureau 2023b and 2023c. *ACS 2022 1-Year Estimates. **ACS 2022 5-Year Estimates. For WCWD, two of the three basic services – water supply and sewer service – are provided by the District. The District does not provide structural fire protection and is therefore not responsible for assuring that that service is adequately provided to the community (LAFCo 2014, pg. 17). Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update 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/Commission) 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 Chapter 3.4. 3.1 Service Overview This is the second MSR prepared for the District. The first was completed and adopted by the Commission on October 4, 2014. 3.1.1 Services Westport County Water District (WCWD/District) provides water supply and treatment and wastewater collection, treatment, and disposal services to residents and businesses within the community of Westport. Additional municipal services are provided to District residents by other public agencies or non-profit organizations through agreements and private businesses through service contracts. This MSR only reviews services provided by the District. 3.1.2 Service Area The District’s jurisdictional boundaries cover approximately 235 acres or 0.37 square miles within and north of Westport and are fully within unincorporated Mendocino County (see Figure 2-1). The District service area trends north to south along Highway 1 and includes connections on both sides of the Highway. 3.1.3 Outside Agency Services The District provides outside agency water service to the Westport Beach RV Park and Campground under contract (assessor parcel numbers (APNs) 013-240-49 and 013-240-051) (LAFCO 2015, pg. 7). The area is located just 0.7 miles north of the community of Westport at the mouth of Wages Creek on the west side of Highway 1. The 50.8-acre campground provides 75 full hookup Recreational Vehicle (RV) sites, 50 tent sites, 20 beach tent sites, 13 cabins, and seven group sites. Amenities include a convenience store, two restroom/shower buildings, a fish cleaning station, a laundromat, and play area (LAFCo 2015, pg. 4; Westport Beach RV Park and Campground 2024). Westport Beach RV Park and Campground was included in the District’s SOI in 2015 for water service only (LAFCo 2015, pg. 14). In addition, WCWD provides outside agency water service to one parcel developed with a single-family residence (APN 013-240-50). The parcel is located outside the District boundary and is west of and adjacent to the Westport Beach RV Park and Campground. The parcel was previously owned by Westport Beach RV Park and Campground and has received water service since the campground’s ownership. The parcel does not receive District wastewater service (LAFCo 2025c). Additionally, water has been supplied by request and fee for exporting water trucks (LAFCo 2015, pg. 9). Surplus water sales took place in 2015-2017 and 2021 and were supplied to areas in Mendocino and Fort Bragg with dry wells and water supply scarcity during the 2020-2022 California drought event (LAFCo Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-2 2025b). If treated water is being hauled and it started post-2001, LAFCo must review and approve outside agency services according to GC §56133(c)19 and Mendocino LAFCo Policy 12.2. 3.2 Water 3.2.1 Service Overview The District appears to have sufficient water supply and storage to accommodate an additional capacity of approximately 23 connections, however it has been noted that the community has seen very little growth in recent years (PlaceWorks 2019, pg. 9). The District has two developed sources of water: an appropriative water right on Wages Creek (State Water Resources Control Board (SWRCB) Permit No. 16729) and a deep groundwater well near the water tank site. The water distribution system consists of two storage tanks, waterlines, meters, and fire hydrants (LAFCo 2015, pg. 13). See Table 3-1 for the District’s 2019-2024 water diversions. The District indicates that the average dry weather flow from 2019 to 2024 is 8,250 gallons per day (gpd). Table 3-1: WCWD Water Diversion Data, 2019-2024 Parameter Unit 2019 2020 2021 2022 2023 2024 Average Average Daily gpd 13,752 15,055 13,910 10,308 9,836 10,940 12,300 Demand Average Daily Demand – gpd 3,200 3,652 4,131 2,204 2,465 2,982 3,106 Campground Only Average Dry gpd 8,250 Weather Flow Maximum gal 732,818 843,477 643,516 464,099 504,123 554,778 623,801 Monthly Flow Data Reporting Periods: 2019 (January 1, 2019 – December 31, 2019), 2020 (January 1, 2020 – December 31, 2020), 2021 (January 1, 2021 – September 30, 2021; 272 days), 2022 (October 1, 2021 – September 30, 2022), 2023 (October 1, 2022 – September 30, 2023), and 2024 (October 1, 2023 – September 30, 2024). Source: WCWD 2025a through 2025f. 3.2.2 Facilities and Infrastructure A treatment, storage, and distribution system were installed in 1976 using Wages Creek as the water supply. Water is siphoned from Wages Creek via an infiltration gallery under the creek bottom. In 2000, to reduce turbidity problems during exceedingly high and low flows, the infiltration gallery was moved upstream and buried further underground (LAFCo 2014, pg. 12). A wet well and pump transports the water through the direct filtration system to the two storage tanks above the Westport Volunteer Fire Department (WVFD) building. From storage, water is gravity fed to the community distribution system. Most of the system has not been updated since installation (LAFCo 2024b, pg. 2). 19 GC §56133(c) (2017) can be found here: CHAPTER 3. Introductory and General Provisions [56100 - 56134]. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-3 Shortly after the water supply system was installed, on February 9, 2000, the District drilled a deep groundwater well near the existing water tanks. However, it is unusable due to high concentrations of manganese and iron. To use the well water, the District would need to install a filtration system that has been estimated at more than $100,000. The District has occasionally been granted permission by the State Department of Health and Safety to use the well water for supply in periods of drought (LAFCo 2015, pg. 12). WCWD’s distribution system consists of two water storage tanks, waterlines, meters, and fire hydrants. The hydrant system is up to date. Transmission lines consist of a four-inch PVC pipe that conveys water from the District’s treatment plant along Wages Creek to the road leading up to the storage tanks. From there, a six-inch PVC pipe connects the storage tanks with the distribution system. The remainder of the distribution system is composed primarily of six-inch pipe constructed of asbestos- cement, PVC, and ductile iron. The lines remain in serviceable condition; however, the mains are more than 45 years old. The distribution lines are fed from the storage tanks, which are co-located thereby essentially feeding the distribution lines from one source (LAFCo 2014, pg. 13). The District has existing water storage for a total of 200,000 gallons. In 2009, the District Figure 3-1: WCWD Water Storage Tanks constructed a 100,000-gallon steel water tank Source: LAFCo 2025b. with the assistance of Proposition 50 Integrated Regional Water Management Plan (IRWMP) Implementation Grant, to increase water supply reliability, fire protection, emergency water supply, and maintenance of bypass flows in Wages Creek as required by the water right. The tank is located above the community and provides water supply via gravity to the District’s customers. Although it provides improved water supply reliability within the District, the tank provides limited term storage (10 days, up to 30 days with conservation measures implemented) and water rationing has been implemented during times of high turbidity (LAFCo 2014, pg. 126). Additionally, the District has a 100,000-gallon redwood water tank located above the community and provides water supply via gravity. The redwood water tank was constructed in 1975 (LAFCo 2025c). The 2014 MSR noted that the redwood water tank was leaking and in a state of degradation. The 2015 SOI Update indicates that the tank received a new liner and sample tap in August of 2014 (LAFCo 2015, pg. 12). District staff have since reported that the liner has exceeded its expected lifespan of 15 years, and that the tank is leaking again (LAFCo 2025c). Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-4 WCWD has retained GHD Consulting to pursue grant opportunities from SWRCB for a planning study and engineering report addressing the aging infrastructure in the District’s water and wastewater systems. SWRCB has notified the District that funding is on hold until July 2025 for the grant programs. Once funding is available, the District will request $620,900 from the Clean Water State Revolving Fund program and $699,383 from the Drinking Water State Revolving Fund program. If awarded, GHD Consulting will prepare the planning study and engineering report. Plans to address the leaking redwood water tank will be included in the grant application scope of work. Water storage needs are reported to include working, fire, and emergency storage. According to the MSR, the District’s recommended working storage is 30,000 gallons. Fire storage was required to meet a standard volume of 180,000 gallons, nearly all the District's current storage capacity. However, the District shares that the recommended fire storage volume was revised to 140,000 gallons. Emergency storage is typically one to three days of existing water demand, which was estimated at nearly 80,000 gallons. The total recommended storage volume is 250,000 gallons. Based on this, the District has a storage deficit of 50,000 gallons (LAFCo 2015, pg. 12). The table from the 2015 SOI Update presenting this information is excerpted below: Table 3-2: Recommended Storage Volumes for WCWD Storage Element Storage Volume (gallons) Recommended Storage Working Storage* 30,000 Fire Storage 140,000 Emergency Storage** 160,000 Total Recommended Storage 250,000 Existing Storage 200,000 Storage Deficit 50,000 *The working storage provides water to accommodate the daily variations in water use given constant water plant output. It is estimated to be 35 percent of the maximum day average demand. **Emergency storage should be one to three days of additional water supply. Based on a demand of 78,600 gpd, one day’s supply would be approximately 80,000 gallons. Source: (Winzler & Kelly, 2003, pg. 8-3) It should be noted that District staff have reported sufficient water capacity at current levels of 200,000 gallons, which is double the original design capacity of the water system (LAFCo 2015, pg. 13). Operations, maintenance, and inspections are performed daily by the full-time operations manager or the part-time drinking water plant shift operator and distribution operator employed by the District. 3.2.2.1 SYSTEM IMPROVEMENTS No recent system improvements were reported to LAFCo staff. 3.2.2.2 ENGINEERING REPORTS No engineering reports were provided to LAFCo. As previously mentioned, the District has contracted with GHD Consulting to prepare grant applications for the Clean Water State Revolving Fund program and the Drinking Water State Revolving Fund program. However, the SWRCB funding opportunities are currently on hold until July 2025. Once funding is made available, the District will request $620,900 from the Clean Water program and $699,383 from the Drinking Water program (LAFCo 2025c). If awarded funding, GHG Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-5 Consulting will prepare a planning study and engineering report addressing the aging infrastructure in the water and wastewater systems. The planning study and report will be completed one year after the funding is received. Plans to address the leaking redwood water tank will be included in the grant application scope of work. 3.2.3 Water Supply/Demand The District has two developed sources of water: an appropriative water right on Wages Creek (SWRCB Permit No. 16729) and the previously discussed deep groundwater well. The water supply for the District is dependent on adequate annual rainfall and water quality of Wages Creek. The system pumps water primarily from Wages Creek, with emergency water coming from the largely unusable well. The Wages Creek permit was obtained in 1972 and allows the District to divert flows year-round at a rate of 0.125 cubic feet per second (cfs) for a maximum 47 acre-feet/year (AFY) (LAFCo 2015, pg. 10). Conditions of the permit require bypass flows at: Table 3-3: Wages Creek Water Rights Permit Bypass Flow Requirements Timeframe Bypass Flow Requirement November 15 – February 29 20 cfs March 1 – May 31 10 cfs June 1 – November 14 3 cfs Source: LAFCo 2015, pg. 10. At the end of the dry season, October and into December, the flow In Wages Creek can become extremely low. The bypass flow requirement increases from 3 cfs to 20 cfs on November 15, making it very difficult to impossible for the District to meet if the winter rains have not yet started. Conversely, during exceedingly high flows, turbidity of the water poses a difficulty in meeting current standards. Annual water diversion data pulled from 2019-2024 shows that the average daily demand is approximately 12,300 gpd. WCWD is currently using approximately 23.6 percent of its permitted annual diversion, based on an annual average District water demand of 3.6 million gallons from 2019-2024, which is 11.07 AFY (WCWD 2025a through 2025f). The limitations in using its surface water right include limited storage capacity and seasonal bypass flow requirements (LAFCo 2014, pg. 11). 3.2.4 Service Adequacy Based on information provided by the District regarding facilities, management practices, accountability, and financing, WCWD’s service is sufficient at meeting current water demand. The District appears to have sufficient water supply and storage to accommodate an additional capacity of approximately 23 connections. Many of the current facilities have not been replaced since installation in 1976. Infrastructure such as the 100,000-gallon redwood water tank would need to be replaced to continue providing adequate service to its existing customers. In the past, the District has been successful with grants to study water supply reliability (Proposition 84 Grant funds) and to construct a second 100,000-gallon water storage tank (Proposition 50 Grant funds). Currently, the District has retained GHD Consulting to apply for grant funding to develop a planning study and engineering report identifying capital improvement projects for aging infrastructure. The District was notified that funding is on hold until July 2025 for two SWRCB grant Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-6 applications that are being pursued. The District shares that its distribution and transmission lines have had no breakage or other issues and are sufficient for water service. 3.2.4.1 REGULATORY PERMITS AND COMPLIANCE HISTORY The Safe Drinking Water Act requires states to report drinking water information periodically to the United States Environmental Protection Agency (EPA). This information is maintained in a federal database, the Safe Drinking Water Information System (SDWIS) Federal Data Warehouse. According to the most recent data uploaded to SDWIS, WCWD appears to be following state monitoring requirements. There are five individual sampling sites available to be tested as part of the SDWIS monitoring for WCWD. • Wages Creek: Last sampled 9/17/2024. • Treatment Plant – Wages Creek – Treated: Last sampled 12/11/2024. • Well 01 Standby: Last sampled 8/14/2019. • DBP Site: Last sampled 8/1/2024. • Lead and Copper Sample Sites: Last sampled 9/20/2023; next sampling due by 9/30/2026. Source: SWRCB 2024b and 2024f. There have been no recent group violations, and 13 individual violations noted. The most recent violation was in 2017 and has been resolved (SWRCB 2024c). The most recent site visit that was noted took place on October 16, 2019 (SWRCB 2024e). The last six years of District Consumer Confidence Reports (CCRs) can be found on SDWIS. In addition, CCRs are available on the District website; reports from 2019 through 2023 can be found on the District’s website.20 SWRCB has developed the Safe and Affordable for Equity and Resilience (SAFER) Dashboard to assess the risk drivers of California public water systems by using data from the SWRCB, the California Department of Water Resources (DWR), and the Office of Environmental Health Hazard Assessment. For WCWD, the SAFER status and risk assessment results are “Potentially At-Risk” for system failure. The SAFER Dashboard identified several thresholds in the water accessibility and affordability. The absence of an intertie was cited under the accessibility risk level. The Household Socioeconomic Burden score (0.625 – 1.0; high risk) and percent of Median Household Income (MHI) relative to the annual system-wide average residential water bill for six hundred cubic feet score (2.5 percent or higher) was indicated under the affordability risk level. The SAFER dashboard also identified “Medium Risk” for three thresholds that fall under the categories of water quality risk level and affordability risk level. Under water quality risk level, the District’s water system was assigned risk points (score range: o <n<+0.5; medium risk) under the increasing presence of water quality trends toward maximum contaminant levels (MCLs) with 25 percent or more sources meeting upward trends in contaminant concentrations. Under the affordability risk level, the threshold for extreme water bill was flagged as equal or greater than 150 percent of the statewide average drinking 20 WCWD CCRs from 2019 to 2023 can be found here: CCR. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-7 water customer charges at 600 cubic feet of consumption and less than 200 percent of the statewide average (SWRCB 2024c). In September of 2024, the District completed the initial lead service line inventory required by the EPA’s Lead and Copper Rule Revisions. The District determined that there are no lead or galvanized requiring replacement service lines in its distribution system, including privately-owned or customer-owned service lines. WCWD indicates that it will update service line material information obtained from normal operations, such as service line maintenance, installation, or water meter readings, after October 2024 and will update the initial inventory accordingly (WCWD 2024b). 3.2.4.2 CAPACITY The District has capacity to serve 95 connections and currently serves 72 water connections (WCWD 2024). Average day demand is approximately 12,300 gpd based on 2019-2024 District water diversion data (WCWD 2025a through 2025f). The District’s water storage capacity is 200,000 gallons. The District’s water system is operating at approximately 76 percent capacity. 3.2.4.3 DROUGHT CONTINGENCY PLANNING The District has a drought emergency plan in place, which details four stages of water conservation measures that were adopted in August 2021. Stage One is implemented at less than 25.8 inches of rainfall as of May first, measured at the water plant, and specifies voluntary conservation advocated by WCWD, limited outdoor gardening, and faulty plumbing maintenance. Stage Two goes into effect when Wages Creek flows less than five cfs over minimum and in addition to Stage One encourages baseline water usage and restricts outdoor watering. When Wages Creek flows less than one cfs over minimum, Stage Three is executed and in addition to Stage Two prohibits overhead watering (with an exception for reasonable drip irrigation systems), customer water usage shall be 75 percent of the standard baseline, prohibits water sales from fire hydrants, implements more frequent meter readings, encourages customers to adjust usage to meet the District’s 50 percent monthly usage total, and subject to install water flow restriction valves or shut off water flow for customers that are not compliant with Stage Three guidelines. When Wages Creek cannot be accessed as a water source, Stage Four in addition to the three prior stages is implemented and restricts all outdoor irrigation, conducts minimum weekly meter readings, pauses non-essential commercial water service, installs flow restrictors for residential customers exceeding the 50 percent usage baseline or 3,000 gallons, and permits use of the emergency deep well with estimated capacity of 50,000 gallons per week for District area (WCWD 2021b). During the 2021-2022 extreme drought event, the District provided water service to affected community members with dry wells that reside outside of the District service boundary. District staff also share that Laytonville offered water assistance to WCWD during this time, but the District did not need it. The District reports that its water supply fared well in part to the water conservation efforts of its customers. 3.2.4.4 NEEDS AND DEFICIENCIES The water supply for the District is dependent on adequate annual rainfall and the water quality of Wages Creek, its primary water supply. Although the District drilled a deep well, it is unusable due to high concentrations of manganese and iron. To use the well water, the District would need to install a filtration system that would cost more than $100,000. The District has upon occasion been granted permission by Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-8 the State Department of Health and Safety to use the well water for supply in periods of drought (early 2000s); however, it is not a reliable water source due to the issues identified above (LAFCo 2014, pg. 127). The District has indicated that the existing 100,000-gallon redwood tank is in need of replacement. The District does not currently have any existing planning documents that address future water supplies, infrastructure, or facility needs, such as a CIP. However, the District has entered into a service agreement with GHD Consulting to pursue SWRCB grant funding for a planning study and engineering report identifying capital improvement needs for the District’s water and wastewater systems. It is recommended that the District prioritize developing plans for future water supplies to the community and thoroughly analyze the needs and deficiencies of the existing system. 3.3 Wastewater 3.3.1 Service Overview The District owns and operates a wastewater collection, treatment, and disposal system with permitted land disposal of treated effluent. WCWD provides approximately 70 wastewater service connections, consisting of 62 residential lots and 8 commercial lots (LAFCo 2025a). The wastewater system has a treatment capacity of a maximum of 20,000 gpd averaging over a period of 30 consecutive days of average dry weather flow (LAFCo 2015, pg. 131). The District indicates that its sewer system currently does not have capacity for additional wastewater connections as all the sewer assessments have been paid. See Table 3-4 for the District’s most recent wastewater flows. Table 3-4: WCWD Wastewater Flow Data, 2021-2024 Parameter Unit 2021 2022 2023 2024 Average Average Daily Flow Gpd 5,314 5,004 6,216 6,924 5,865 Maximum Daily Flow Gpd 16,432 21,855 26,673 29,109 23,517 Maximum Monthly Flow Gallons 223,139 225,318 364,063 334,156 286,669 Source: WCWD 2025h through 2025k. 3.3.2 Facilities and Infrastructure The District owns approximately five acres on which the wastewater treatment plant (WWTP), aerated ponds, and polishing/storage pond are located and are shared with the WVFD. Wastewater treatment consists of two aerated ponds, followed by an approximately 11.3-million-gallon polishing/storage pond. Wastewater from the polishing/storage pond is then disinfected prior to being irrigated over a 16.8-acre open field north of the community. The WWTP handles approximately 6.4 million gallons of rainfall and storm water annually. Other facilities include a spray return pumping station located west of the aerated ponds and another pumping station located on Omega Drive. Effluent is pumped from pump stations via collection line to the aerated ponds. The District has space to add an additional 25 feet to the existing lagoon should development occur that required additional wastewater capacity (LAFCo 2015, pg. 11). Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-9 Figure 3-2: View of the Aerated Ponds, Wastewater Treatment Plant, Shared Building, and the Water Polishing/Storage Pond Source: LAFCo 2025b. 3.3.2.1 SYSTEM IMPROVEMENTS No recent system improvements were reported to LAFCo staff. 3.3.2.2 ENGINEERING REPORTS No engineering reports were provided to LAFCo. The District has contracted the services of GHD Consulting to prepare and submit SWRCB grant applications to fund a planning study and engineering report that addresses the water and wastewater systems’ aging infrastructure needs and estimated costs for repair. At the time of this study, the SWRCB grant opportunities are currently on hold until July 2025. Once funding is available, the District will request $620,900 from the Clean Water State Revolving Fund and $699,383 from the Drinking Water State Revolving fund. If awarded, GHD Consulting will develop the planning study and engineering report. 3.3.2.3 SERVICE ADEQUACY The District indicates that its sewer system currently does not have capacity for additional wastewater connections as all the sewer assessments have been paid. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-10 3.3.2.4 REGULATORY PERMITS AND COMPLIANCE HISTORY The District is currently regulated by the California Regional Water Quality Control Board (RWQCB), North Coast Region Waste Discharge Requirements (WDR) Order No. 96-028. As required by the permit, the operations manager prepares monthly and annual reports for the RWQCB. A regulatory history of the District can be found below in Figure 3-1. Figure 3-3: WCWD Regulatory Measures Source: SWRCB 2024a. A summary of the District’s violations as identified by the SWRCB is shown below in Figure 3-2. SWRCB documents that the District has received three violations over the past six years, with the most recent violation occurring in 2022. Figure 3-4: WCWD Violations Source: SWRCB 2024a. In July 2021 and August 2022, the District’s 30-day average limit for total suspended solids (TSS) exceeded the 50 milligrams per liter (mg/l) threshold. In addition, the total coliform monthly median limit exceeded the 23 most probable number/100 milliliters (MPN/100 mL) limit (SWRCB 2024a). SWRCB specifies that the last compliance inspection occurred on October 19, 2018 (SWRCB 2024a). 3.3.2.5 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. 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 WDR for Sanitary Systems Order, WQO No. 2022-103-DWQ (the Statewide Sanitary Sewer Systems Order). No sanitary sewer system spill incidents were identified on the California Integrated Water Quality System (CIWQS).21 21 Data for spill events can be found here: Sanitary Sewer Systems General Order | California State Water Resources Control Board. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-11 3.3.2.6 CAPACITY As previously stated, the WCWD wastewater system has a designed treatment capacity of a maximum of 20,000 gallons per day averaged over a period of 30 consecutive days of average dry weather flow. The plant is designed to provide primary and secondary treatment of wastewater (LAFCo 2015, pg. 14). The current daily average is 5,865 gpd based on actual flows from 2021-2024, which represents 29.3 percent of the design capacity (WCWD 2025h through 2025k). The average maximum daily flow is 23,517 gpd based on flow data from 2021-2024, which exceeds the designed peak treatment capacity. The WWTP annually treats an average of approximately 2,140,556 mg, based on actual flows from 2021- 2024 (WCWD 2025h through 2025k). The polishing/storage pond capacity of 11.3-million-gallons is adequate during periods of above-average precipitation. WDR Order No. 96-28 specifies that waste discharges to the irrigation field shall not contain constituents in excess of the following limits: Table 3-5: WDR Order No. 96-28 Effluent Limitations Constituent Units 30-Day Average Daily Maximum BOD (20 degrees C, 5- mg/l 50 80 day) Nonfilterable Residue mg/l 50 80 Settleable Matter, mL/l 0.1 0.2 Total Coliform Organisms MPN/ 100 mL 23 230 Hydrogen Ion pH Not less than 6.0 or greater than 9.0 Source: RWQCB 1996, pg. 3. The following shall constitute the District’s monitoring program for treated wastewater sampling prior to its entrance into the irrigation system: Table 3-6: WDR Order No. 96-28 Monitoring Program Constituent Units Type of Sample Sample Frequency BOD (20 degrees C, 5- mg/l Grab Weekly day) Nonfilterable Residue mg/l Grab Weekly Settleable Matter, ml/l Grab Weekly Total Coliform Organisms MPN/ 100 mL Grab Weekly Hydrogen Ion pH Grab Chlorine Residual mg/l Grab Daily Mean Daily Flow gpd Continuous Daily Source: RWQCB 1996, pg. 7. 3.3.2.7 NEEDS AND DEFICIENCIES A Grand Jury Report in 2001-2002 identified the sewage settlement ponds as suffering from sediment accumulation and sewage seepage. The 2014 MSR reported that the District has insufficient funds for required draining, sediment removal, and lining, but the District reports that sediment accumulation Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-12 builds up in the aeration lagoons and is removed when needed and tilled into the hillside where they irrigate for evaporation (LAFCo 2015, pg. 14). The District shares that inflow and infiltration (I&I) into the sewer lines is an ongoing issue, and that SWRCB grant funding is being pursued to address this. During rainfall events, I&I issues contribute to the exceedance of the wastewater system’s peak treatment design capacity. District staff share that while peak exceedance of the design treatment capacity is short-term, it reduces the strength of the wastewater and the capacity to store it becomes a challenge. Sewer system improvements are needed to replace aging wastewater infrastructure. The District indicates that its sewer system currently does not have capacity for additional wastewater connections as all the sewer assessments have been paid. 3.4 Determinations This section presents the required MSR determinations pursuant to GC §56430(a) for the District.22 3.4.1 MSR Review Factors 3.4.1.1 GROWTH Growth and population projections for the affected area 1. The estimated number of permanent residents served by WCWD is approximately 89. 2. It is not likely that the population within the District Service Area Boundary and SOI will grow significantly, or that the District will see an increased demand for water or wastewater services beyond the current design capacity of the system. 3. An increase in the capacity of the water and wastewater systems would be required to expand service provision. 3.4.1.2 DISADVANTAGED UNINCORPORATED COMMUNITIES The location and characteristics of any disadvantaged unincorporated communities (DUCs) within or contiguous to the SOI 4. The District serves the unincorporated community of Westport. Because Westport is not a census -designated place (CDP), the next smallest geographical entity that Westport is located within and has publicly available data is the census tract (Census Tract 102). As such, the median household income (MHI) of its residents is assumed to approximate the Census Tract 102 MHI of $35,515. The MHI for Westport is less than 60 percent (37 percent) of the statewide MHI of $95,521. Under this assumption, it would generally be considered a severely disadvantaged unincorporated community (SDUC). However, the District and surrounding areas are developed with a number of short-term rentals and vacation homes that are only occupied part of the year. As such, it is difficult to get an accurate representation of the District’s representative MHI and characterize the area within the District as an SDUC. However, the District reports that Westport qualifies as a DUC and is eligible for grant funding opportunities to replace system infrastructure and pursue capital improvement projects without cost to the District or its customers. In addition, the District 22 GC §56430(a) (2024) can be found here: California Government Code § 56430 (2024) :: 2023 California Code :: US Codes and Statutes :: US Law :: Justia. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-13 establishes eligibility to apply for a state-sponsored program that assists qualified customers pay delinquent water and sewer bills. 5. The residents of Westport receive adequate essential municipal services of fire, water, and wastewater for the area. The area would benefit from an upgraded wastewater system. 3.4.1.3 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 SOI 6. The District was established in 1971 to provide water, wastewater, and fire protection services to the community of Westport. In 2007, the Westport Volunteer Fire Department (WVFD) separated from the District and became a 501(c)(3) non-profit organization, which was further formalized as a Fire Company in 2009. The District now provides water supply and treatment services, and wastewater collection, treatment, and disposal services within its boundaries. 7. Out of the 105 parcels within the community of Westport, the District provides water service to 64 residential connections and 8 commercial connections within the District boundary. The District’s water system has the capacity to serve 95 connections and currently serves 72 water connections. The District’s water system is operating at 76 percent capacity. The District appears to have sufficient water supply and storage to accommodate an additional capacity of approximately 23 connections. 8. The average day demand for the District water service is approximately 12,300 gpd and maximum monthly demand on average is 623,801 gallons (gal) based on 2019-2024 WCWD water diversion data. 9. The average dry weather water flows for the District are 8,250 gpd. 10. The District has a water storage capacity of 200,000 gallons. 11. Under contract, the District provides outside agency water service to Westport Beach RV Park and Campground; assessor parcel numbers (APNs) 013-240-051 and 013-240-049. 12. The District also provides outside agency water service to one parcel developed with a single- family residence located outside the District boundary, west of and adjacent to Westport Beach RV Park and Campground (APN 013-240-50). 13. From 2015-2017 and in 2021, WCWD supplied surplus water by request and fee via an export water truck to areas in Mendocino and Fort Bragg to assist areas with dry wells and water supply scarcity during the 2020-2022 California drought. If treated water is being hauled and it started post-2001, LAFCo must review and approve outside agency services according to GC §56133(c)23 and Mendocino LAFCo Policy 12.2. 14. Wastewater service is provided to 62 residential connections and 8 commercial connections. The District’s wastewater system currently does not have capacity for any additional wastewater connections because all sewer assessments have been paid. 15. Sewer system improvements are needed to replace aging wastewater infrastructure. The District shares that inflow and infiltration (I&I) into the sewer lines is an ongoing issue. 16. The average daily wastewater flows for the District are 5,865 gpd. 23 GC §56133(c) (2017) can be found here: CHAPTER 3. Introductory and General Provisions [56100 - 56134]. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-14 17. It is recommended that the District prioritize developing plans for future water supplies to the community and thoroughly analyze the needs and deficiencies of the existing system. 18. The District is actively researching opportunities to enhance service delivery by expanding its water portfolio to include a suitable groundwater source. The District’s primary water source is a surface water diversion on Wages Creek. However, the District is exploring other resources to augment or replace its reliance on surface water. 19. No boundary changes are pending or proposed at this time. 3.4.1.4 FINANCIAL ABILITY OF AGENCY Financial ability of agencies to provide services 20. The District’s primary source of funding is through fees collected from water and wastewater usage. 21. The District is current on its required financial audits. The latest audit was prepared in June 2024 and includes the District’s financial statements for the reporting period of June 30, 2019, through year-ended June 30, 2023. 22. The District’s current service rates were adopted in 2024, and the last rate study was prepared for the District in 2016. The current service rates were adopted through Proposition (Prop) 218 process. 23. The District shares that the limited number of customers is a challenge when considering increasing rates or assessments sufficient to fund significant infrastructure upgrades and promoting future development. 24. The District does not currently have a capital improvement plan (CIP) to assess, identify, and plan for infrastructure maintenance and replacement needs. The District has indicated that replacement to the existing 100,000-gallon redwood tank needs to be conducted as well as improvements to the District’s wastewater system. 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. 25. The District maintains an enterprise fund for both the water service and wastewater service. As of January 2025, the Water Enterprise Fund had a reserve of $16,368.60, while the Wastewater Enterprise Fund had a reserve of $16,451.59. Both funds serve as the District’s capital reserves. 26. As of January 2025, the District’s reserve funds totaled $30,820.19. 27. It is recommended that the District develop and adopts a formal reserve policy to support its financial planning efforts. 28. It is recommended that the District participate in future Integrated Regional Water Management Plan (IRWMP) efforts. Participation in these types of large-scale planning organizations support regional efforts focused on water resources and disadvantaged communities and is a source of funding and technical assistance opportunities. 3.4.1.5 SHARED SERVICES AND FACILITIES Status of, and opportunities for, shared facilities 29. The District and WVFD share the five-acre lot which includes the wastewater treatment facilities, aeration ponds, and the building that houses the District’s offices and the Westport Fire Station. In addition, the District and WVFD share hydrants and two stand-by generators. WVWD ensures minimum fire protection levels are maintained in the tanks and regularly communicate tank levels to the fire department. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update MUNICIPAL SERVICES 3-15 30. The District has identified an additional opportunity to share fuel storage with WVFD for the two stand-by generators. 31. The District has received operational support from the City of Fort Bragg (City), located 13 miles south of Westport. The City’s public works supervisor has provided support with addressing the District’s underground maintenance. The arrangement is not facilitated under a formal work agreement and the support is unpaid. 3.4.1.6 ACCOUNTABILITY, STRUCTURE AND OPERATIONAL EFFICIENCIES Accountability for community service needs, including governmental structure and operational efficiencies 32. The District Board is fully seated with five Board members and no vacancies. 33. With the passage of Senate Bill (SB) 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 maintains a website that includes current Board member and staff contact information, Board meeting agendas, meeting minutes, District Bylaws, Consumer Confidence Reports (CCRs), and other materials since 2019. It is 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. 34. 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 2023, allow local government officials limited circumstances for participating in meetings remotely (GC §54953).24 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. 35. The Political Reform Act requires all state and local government agencies to adopt and promulgate a Conflict-of-Interest Code pursuant to GC §81000 et seq.25 The District does not currently maintain a Conflict-of-Interest code. 36. Every elected official and public employee who makes or influences governmental decisions is required to submit a State of Economic Interest (Form 700) to provide transparency and accountability. At the time of this study, all District Board members are in compliance with the required filing obligations. 37. The District Board members regularly attend Brown Act and ethics training courses. 38. 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. 3.4.1.7 OTHER SERVICE DELIVERY MATTERS Any other matter related to effective or efficient service delivery, as required by commission policy. 39. There are no other matters related to service delivery required by Mendocino LAFCo Policy. 24 GC §54953 (2022) can be found here: Today's Law As Amended - AB-2449 Open meetings: local agencies: teleconferences. 25 GC §81000 (2011) can be found here: ARTICLE 3. Conflict of Interest Codes [87300 - 87314]. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update SPHERE OF INFLUENCE 4-1 4 SPHERE OF INFLUENCE The Local Agency Formation Commission (LAFCo/Commission) 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 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).26 4.1 Mendocino LAFCo Policies In addition to making the necessary determinations for establishing or modifying an SOI consistent with the CKH Act, the appropriateness of an agency’s SOI is also based on an evaluation of consistency with LAFCo policies. The following SOI policies are from the Mendocino LAFCo Policies and Procedures Manual, adopted November 5, 2018.27 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 26 GC §56425(e) (2024) can be found here: California Government Code § 56425 (2024) :: 2023 California Code :: US Codes and Statutes :: US Law :: Justia. 27 The Mendocino LAFCo Policies and Procedures Manual can be found here: http://www.mendolafco.org/policies.html. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update SPHERE OF INFLUENCE 4-2 c) an “update” refers to a comprehensive change to an established sphere of influence typically initiated by the Commission. 10.1.3 Sphere Updates 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 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 of 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 Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update SPHERE OF INFLUENCE 4-3 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 Before territory can be annexed to a city or district, it must be within the agency’s SOI (GC §56375.5).28 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 SOI or a city SOI 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 §56425.29 If an agreement is reached between the city and County the agreement shall be forwarded to LAFCo. The Commission shall consider and adopt an SOI for the city consistent with the policies adopted 28 GC §56375.5 (2023) can be found here: California Code, Government Code - GOV § 56375 | FindLaw. 29 GC §56425 (2023) can be found here: California Government Code § 56425 (2023) :: 2023 California Code :: US Codes and Statutes :: US Law :: Justia. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update SPHERE OF INFLUENCE 4-4 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 SOI 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 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 District’s SOI was first adopted in November 2015 (LAFCo Resolution No. 15-16-07).30 The SOI is considered to be coterminous with the District’s boundaries with the addition of Westport Beach RV Park and Campground (assessor parcel numbers (APNs) 013-240-49 and 013-240-51) and one District-owned parcel, which houses the District’s water plant (APN 013-240-47); the parcel is divided between the District service area and the SOI area. The parcels are designated as water service specific SOI area. 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 30 LAFCo Resolution No. 15-16-07 (2015) can be found here: 2015-16-07+Westport+CWD+SOI+Update+(signed).pdf. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update SPHERE OF INFLUENCE 4-5 Study areas can result in a proposed SOI or sphere expansion area or the designation of an Area of Interest to earmark areas for enhanced interagency coordination or for future SOI consideration. There are no study areas in or immediately surrounding the WCWD. 4.2.2 Area of Interest Designation LAFCo’s Area of Interest 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 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 WCWD. 4.3 Proposed Sphere of Influence LAFCo staff recommend the Commission affirm the 2015 SOI that is coterminous with the District boundary and includes a water service specific SOI consisting of the two Westport Beach RV Park and Campground parcels. Additionally, staff recommends the inclusion of one parcel developed with a single- family residence and an existing water service connection (APN 013-240-50) into the water specific SOI adopted by the Commission in 2015 (see Figure 4-1). 4.4 Consistency with LAFCo Policies Mendocino LAFCo has established policies to implement its duties and mandates under the Cortese-Knox- Hertzberg (CKH) Act. 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 SOI for an agency, LAFCo must consider and prepare written determinations with respect to five factors as outlined in GC §56425(e).31 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; 31 GC §56425(e) (2023) can be found here: California Government Code § 56425 (2023) :: 2023 California Code :: US Codes and Statutes :: US Law :: Justia. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update SPHERE OF INFLUENCE 4-6 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 recommend the Commission approve the SOI determinations as presented below. 4.5.1 Present and Planned Land Uses The primary land uses within the District service area are described in Section 2.5.2.1. The District is located within the community of Westport in coastal unincorporated Mendocino County (County). The primary land uses of the Coastal Zone are rural residential uses and small commercial zones. In addition, agricultural uses also exist within the area. The Mendocino County Housing Element (HE) identifies Westport as having major housing development constraints due to steep slopes and lack of water and sewer access. However, the HE also identifies 23 parcels (11.3 acres total) in Westport that are suitable for residential development to meet the Regional Housing Needs Assessment (RHNA) allocation goal (Mendocino County 2020, pg. 245). It is likely that total 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 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 Present and Probable Need for Facilities and Services in the Area Out of the 105 lots within the District boundary, the District provides water service to 72 connections and wastewater service to 70 connections. Of the water connections, 64 are residential and 8 are commercial, while wastewater service is provided to 62 residential and 8 commercial. The District’s water system has capacity to serve 95 connections and appears to have sufficient water supply and storage to accommodate an additional capacity of approximately 23 connections. District staff indicate that the District’s wastewater system currently does not have any capacity to support additional or future wastewater connections. In addition, the District provides outside agency water service to the Westport Park RV and Campground under contract and to one parcel developed with a single-family residence. Westport Park RV and Campground has its own on-site septic system and therefore does not receive wastewater service from the District. The parcel with the single-family residence was previously owned by the campground and has had a District water service connection since the campground’s ownership. The parcel also does not receive wastewater service from the District. In the past, the District has supplied surplus water to export water delivery trucks by request and fee. The District anticipates little growth in the resident population within the near term (five years) and long- term (20 years). The projected decline of 2.7 percent throughout the County suggests that buildout of the undeveloped parcels will not likely occur until well beyond the planning horizon of this document. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update SPHERE OF INFLUENCE 4-7 4.5.3 The Present Capacity of Public Facilities and Adequacy of Public Services that the Agency Provides or is Authorized to Provide The District has two developed sources of water: an appropriative water right on Wages Creek (State Water Resources Control Board (SWRCB) Permit No. 16729) and a deep groundwater well near the water tank site. However, the deep groundwater well is unusable due to high concentrations of manganese and iron. The District is actively exploring opportunities to enhance service delivery by expanding its water portfolio to include a suitable groundwater source. Recent test wells have so far been unsuccessful in finding a suitable groundwater source to supplement its supply. The system pumps water primarily from Wages Creek, with emergency water coming from the largely unusable well. The Wages Creek permit was obtained in 1972 and allows the District to divert flows year- round at a rate of 0.125 cubic feet per second (cfs) for a maximum 47 acre-feet/year (AFY). Average day demand is approximately 12,300 gallons per day (gpd) based on 2019-2024 District water diversion data. The water distribution system consists of two 100,000-gallon storage tanks, waterlines, meters, and two fire hydrants shared with the Westport Volunteer Fire Department (WVFD). The District has existing water storage for a total of 200,000 gallons. The District reports that parts of the water system have not been updated since installation in 1976. Replacement of the 100,000-gallon redwood storage tank is required to continue providing adequate service to its existing customers. The WCWD water system operates at approximately 76 percent capacity. Operations, maintenance, and inspections are performed daily by the full-time operations manager or the part-time drinking water plant shift operator and distribution operator employed by the District. WCWD also provides wastewater service to 62 residential connections and 8 commercial connections. The District owns and operates a wastewater collection, treatment, and disposal system with permitted land disposal of treated effluent. The wastewater system has a treatment capacity of a maximum of 20,000 gpd averaging over a period of 30 consecutive days of average dry weather flow. The District is currently regulated by the California Regional Water Quality Control Board (RWQCB), North Coast Region Waste Discharge Requirements (WDR) Order No. 96-028. Wastewater treatment consists of two aerated ponds, followed by an approximately 11.3-million-gallon polishing/storage pond. Wastewater from the polishing/storage pond is then disinfected prior to being irrigated over a 16.8-acre open irrigation field north of the community. The WWTP handles approximately 6.4 million gallons of rainfall and storm water annually. In addition, the plant is designed to provide primary and secondary treatment of wastewater. Other facilities include a spray return pump station located west of the aerated ponds and another pump station located on Omega Drive. Effluent is pumped from the pump stations via collection line to the aerated ponds. Average daily wastewater flow for the District is estimated to be 5,865 gpd based on actual flows from 2021-2024. The District staff indicate that the District’s wastewater system currently does not have any capacity to support additional or future wastewater connections. SWRCB documents that the District has received three violations over the past six years, with the most recent violation occurring in 2022. In July 2021 and August 2022, the District’s 30-day average limit for Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update SPHERE OF INFLUENCE 4-8 total suspended solids (TSS) exceeded the 50 milligrams per liter (mg/l) threshold. In addition, the total coliform monthly median limit exceeded the 23 most probable number/100 milliliters (MPN/100 mL) limit. 4.5.4 The Existence of any Social or Economic Communities of Interest in the Area if the Commission Determines That They are Relevant to the Agency The District encompasses the community of Westport in the unincorporated Coastal Zone of Mendocino County. Given its isolated location, no additional communities of interest have been identified. 4.5.5 The Present and Probable Need for Public Facilities and Services of any Disadvantaged Unincorporated Communities (DUCs) The statewide median household income (MHI) for the 2023 U.S. Census American Community Survey (ACS) 1-Year estimate dataset is $95,511. The qualifying threshold for a disadvantaged unincorporated community (DUC) is 80 percent of that value, $76,417. The qualifying threshold for a severely disadvantaged unincorporated community (SDUC) is 60 percent of that value, $57,313. The District serves the unincorporated community of Westport. Because Westport is not a census-designated place (CDP), the next smallest geographical entity that Westport is located within is the census tract (Census Tract 102). As such, the median household income (MHI) of its residents is assumed to approximate the Census Tract 102 MHI of $35,515. The MHI is less than 60 percent (37 percent) of the statewide MHI of $95,521. Under this assumption, it would generally be considered a severely disadvantaged unincorporated community (SDUC). However, the District and surrounding areas are developed with a notable number of short-term rentals and vacation homes that are only occupied part of the year. As such, it is difficult to get an accurate representation of the District’s representative MHI. Therefore, it is difficult to characterize the District as an SDUC. However, the District reports that Westport qualifies as a DUC and is eligible for grant funding opportunities to replace system infrastructure and pursue capital improvement projects without cost to the District or its customers. In addition, the District establishes eligibility to apply for a state- state- sponsored program that assists qualified customers pay delinquent water and sewer bills (WCWD 2024a, pg. 2). 4.6 Recommendation Pursuant to California Water Code (WAT) §3540 et seq., and GC §56425(i), the Commission does hereby establish the functions and classes of services provided by WCWD as limited to providing water and wastewater collection, treatment, and disposal services. Based upon the information contained in this report, it is recommended that the 2015 SOI that is coterminous with the District boundary is affirmed and includes a water service specific SOI consisting of two Westport Beach RV Park and Campground parcels. Additionally, staff recommends the inclusion of one parcel developed with a single-family residence and an existing water service connection (APN 013-240-50) into the water specific SOI adopted by the Commission in 2015 (see Figure 4-1). Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update Figure 4-1: Proposed Westport County Water District Boundary Map SPHERE OF INFLUENCE 4-9 |ÿ 1 W A G E S C R E E K R D P a c i f i c O c e a n R D A G E M Westport O ABALONE ST R E T T S E R C L L HI PACIFIC AV C A H T O |ÿ R D 1 Proposed Sphere of Influence Proposed Water Service Specific Westport County Water District Sphere of Influence Westport County Water Distirct Proposed Sphere of Influence Parcels Source: This map was prepared by the Mendocino County Highways o Information Services, GIS Program. April 25, 2025. 250 125 0 250 Roads Note: This map is not a survey product. Feet Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update REFERENCES 5-1 5 REFERENCES Assembly Committee on Local Government Honorable Juan Carrillo, Chair. Guide to the Cortese-Knox- Hertzberg Local Government Reorganization Act of 2000. 2023. California Department of Finance (DOF). Demographic Research Unit. Report P-2A: Total Population Projections, California Counties, 2020-2070 (Baseline 2023 Population Projections; Vintage 2024 Release). Sacramento: California. September 2024. P2A_County_Total.xlsx (live.com). California Department of Housing and Community Development (HCD). “Housing Element Annual Progress Report (APR) Data by Jurisdiction and Year”. California Open Data Profile. October 8, 2024. Housing Element Annual Progress Report (APR) Data by Jurisdiction and Year - Dataset - California Open Data. California Department of Transportation (Caltrans/DOT). Mendocino County Economic Forecast. 2023. Accessed May 10, 2024. Mendocino County Economic Forecast. California Regional Water Quality Control Board (RWQCB), North Coast Region. Order No. 96-28, ID No. 1b752600MEN, Waste Discharge Requirements for the Westport County Water District Wastewater Treatment and Disposal Facilities, Mendocino County. 1996. Accessed December 9, 2024. ----. Mendocino County General Plan, Coastal Element. November 9, 2021. https://www.mendocinocounty.gov/home/showpublisheddocument/56978/638167184738370 000. ----. Mendocino County Housing Element 2019 – 2027 Update. Resolution No. 20-118. September 1, 2020. https://www.mendocinocounty.gov/home/showpublisheddocument/38190/637371541454530 000. California Special Districts Association (CSDA). Special District Reserve Guidelines, Second Edition. 2013. Accessed April 24, 2025. 2013_csda_reserve_guidelines_special districts.pdf. Coastview. “Westport, Mendocino Coast.” February 23, 2025. Coastview. Accessed March 26, 2025. Westport, Mendocino Coast - CoastView. Government Finance Officers Association (GFOA). “Best Practices: Fund Balance Guidelines for the General Fund.” September 30, 2015. Accessed April 24, 2025. Fund Balance Guidelines for the General Fund. ----. “Should We Rethink Reserves?” May 2023. Accessed April 24, 2025. Should We Rethink Reserves? Lorentzen, Robert. "History of Westport." Seaview Farm Westport, 2021. Seaview Farm Westport, Accessed March 26, 2025. https://seaviewfarmwestport.com/westport-history- 2/#:~:text=Westport%20started%20out%20as%20Beall's,acquiring%20land%20here%20by%201 860. Mendocino County, 2024. "Mendocino County Zoning Map" [Web Map]. Scale Not Given. "County of Mendocino, California". Mendocino County Zoning Map (arcgis.com) (November 29, 2024). Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update REFERENCES 5-2 Mendocino County Grand Jury (Mendocino County), 2007. Fire and Water Don’t Mix: Report on the Westport County Water District – Volunteer Fire Department. March 1, 2007. Microsoft Word - WESTPORT REPORT - final-edit - 1-31-07.doc. Mendocino Local Agency Formation Commission (LAFCo), 2024a. "Commission." Mendocino LAFCo. Accessed October 10, 2024. https://mendolafco.specialdistrict.org/commission. ----. Final Water and Wastewater Municipal Service Review: Caspar South Water District, Elk County Water District, Gualala Community Services District, Irish Beach Water District, Laytonville County Water District, Pacific Reefs Water District, Round Valley County Water District, Westport County Water District. October 2014. Prepared by Kateri Harrison, SWALE, Inc.; Uma Hinman, Uma Hinman Consulting. October 6, 2014. MUNICIPAL SERVICE REVIEWS. ----a. Mendocino Local Agency Formation Commission, Policies & Procedures Manual, November 5, 2018. Resolution No. 2018-19-03. Policies & Procedures Manual (specialdistrict.org). ----b. Mutual Water Companies in Mendocino County. August 2018. 2018+Mutual+Water+Company+Profile+Report+w+maps.pdf. ----. Westport County Water District Sphere of Influence Update. November 2, 2015. https://mendolafco.specialdistrict.org/files/9b6b9865c/Westport+CWD+SOI+Update+Adopted+ 11-2-15+w+Reso.pdf. ----b. Request for Information – Westport County Water District Response, August 26, 2024. ----a. Request for Information – Westport County Water District Response, January 14, 2025. ----b. Request for Information – Westport County Water District Response, March 17, 2025. ----c. Request for Information – Westport County Water District Response, April 15, 2025. ----d. Request for Information – Westport County Water District Response, June 3, 2025. O'Malley, Marianne. "Understanding Proposition 218." Legislative Analyst's Office. Legislative Analyst's Office, December 1, 1996. Understanding Proposition 218 (ca.gov). Pehling PnPCPA, 2024. Westport County Water District Financial Statements Audit Report, June 30, 2019, June 30, 2020, June 30, 2021, June 30, 2022, and June 30, 2023. June 10, 2024. Accessed January 17, 2025. PlaceWorks, 2019. Memorandum – Senate Bill 244 Disadvantaged Community Analysis. December 9, 2019. Accessed March 17, 2025. Social Studies Fact Cards. “Yuki, Coast.” 2006. Accessed March 26, 2025. California Indians. State Water Resources Control Board (SWRCB) a. "Facility At-A-Glance Report - Westport CWD." California Integrated Water Quality System. Accessed December 9, 2024. California Integrated Water Quality System (CIWQS 100.0) - Build Number: mainTrunk.mm.dd.yyyy.1. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update REFERENCES 5-3 ----b. "Facility At-A-Glance Report - Westport CWD CS." California Integrated Water Quality System. Accessed December 9, 2024. California Integrated Water Quality System (CIWQS 100.0) - Build Number: mainTrunk.mm.dd.yyyy.1. ----c. "Monitoring Results for Individual Sampling Points." Public Drinking Water Watch - California. Safe Drinking Water Information System, Drinking Water Branch, Accessed May 30, 2024. https://sdwis.waterboards.ca.gov/PDWW/JSP/NMonitoringSchedules.jsp?tinwsys_is_number=2 929&tinwsys_st_code=CA&ReportFormat=SR#. ----d. "SAFER Dashboard – Westport County Water District." California Water Boards. State Water Resources Control Board, April 23, 2024. https://www.waterboards.ca.gov/drinking_water/certlic/drinkingwater/saferdashboard.html. ----e. "System Area Boundary Layer (SABL) Look-up Tool" [Web Map]. Scale Not Given. https://gispublic.waterboards.ca.gov/portal/apps/webappviewer/index.html?id=272351aa7db1 4435989647a86e6d3ad8 (July 29, 2024). ----f. "Violations." Public Drinking Water Watch - California. Safe Drinking Water Information System, Drinking Water Branch, January 2, 2018. Violations (ca.gov). ----g. "Water System Facility Reports." United States Environmental Protection Agency. Safe Drinking Water Information System, Drinking Water Branch, Accessed May 30, 2024. https://sdwis.epa.gov/ords/sfdw_pub/r/sfdw/sdwis_fed_reports_public/fd?ireq_pwsid=CA2300 730&clear=12,RIR. ----h. "Water System Site Visits." United States Environmental Protection Agency. Safe Drinking Water Information System, Drinking Water Branch, Accessed May 30, 2024. https://sdwis.epa.gov/ords/sfdw_pub/r/sfdw/sdwis_fed_reports_public/wssv?ireq_pwsid=CA2 300730&clear=15,RIR. U.S. Census Bureau a. "Households and Families,". American Community Survey, ACS 5-Year Estimates Subject Tables, Table S1101, 2023, accessed on April 25, 2025, https://data.census.gov/table/ACSST5Y2023.S1101?g=040XX00US06_1400000US06045010200 &y=2023&d=ACS+5-Year+Estimates+Subject+Tables. ----b "Income in the Past 12 Months (in 2023 Inflation-Adjusted Dollars)," 2023. American Community Survey, ACS 1-Year Estimates Subject Tables, Table S1901, 2023, accessed on April 25, 2025, https://data.census.gov/table/ACSST1Y2023.S1901?g=040XX00US06_050XX00US06045_140000 0US06045010200&y=2023. ----c. "Income in the Past 12 Months (in 2023 Inflation-Adjusted Dollars)," 2023. American Community Survey, ACS 5-Year Estimates Subject Tables, Table S1901, 2023, accessed on April 25, 2025, https://data.census.gov/table/ACSST5Y2023.S1901?g=040XX00US06_1400000US06045010200 &y=2023&d=ACS+5-Year+Estimates+Subject+Tables. Westport Beach RV Park and Campground. “Park Map - Westport Beach RV Park and Campground”. Accessed May 16, 2024. Park Map — Westport RV Park (westportbeachrvpark.com). Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update REFERENCES 5-4 Westport County Water District, 2021a. Westport County Water District Bylaws. Accessed May 7, 2024. Website: Bylaws | Westport County Water District. ----, 2021b. Westport County Water District Drought Emergency Plan. Accessed May 14, 2024. Drought Emergency Plan. ----, 2023. Resolution Regarding Billing and Collection Policy (Enacted July 18, 2023, and Effective September 1, 2023). Accessed May 10, 2024. Westport County Water District - Westport, California. ----, 2024a. Notice of Passage of the Westport County Water District’s 5-Year Budget and Rate Schedule for Years 2024-2028. Accessed May 10, 2024. Westport County Water District - Westport, California. ----b. Notice of Initial Lead Service Line Inventory. September 16, 2024. Accessed December 4, 2024. ----c. Minutes December 12, 2024. December 12, 2024. Accessed January 16, 2024. ----a. Annual Water diversion 2019. Unpublished data. Accessed March 17, 2025. ----b. Annual Water diversion 2020. Unpublished data. Accessed March 17, 2025. ----c. Annual Water diversion 2021. Unpublished data. Accessed March 17, 2025. ----d. Annual Water diversion 2022. Unpublished data. Accessed March 17, 2025. ----e. Annual Water diversion 2023. Unpublished data. Accessed March 17, 2025. ----f. Annual Water diversion 2024. Unpublished data. Accessed March 17, 2025. ----g. Westport County Water District Board of Directors, Minutes of Regular Meeting, Thursday, March 13, 2025. March 12, 2025. Accessed April 15, 2025. ----h. Westport Wastewater Treatment and Disposal Facility, Self Monitoring Report Jan-Dec 2021. Accessed March 17, 2025. ----i. Westport Wastewater Treatment and Disposal Facility, Self Monitoring Report Jan-Dec 2022. Accessed March 17, 2025. ----j. Westport Wastewater Treatment and Disposal Facility, Self Monitoring Report Jan-Dec 2023. Accessed March 17, 2025. ----k. Westport Wastewater Treatment and Disposal Facility, Self Monitoring Report Jan-Dec 2024. Accessed March 17, 2025. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update 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 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. John Morill, Operations Manager Westport County Water District Kayla Cooper, Administrator-Financial Controller Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update APPENDICES 7-1 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 Local Agency Formation Commission (LAFCo) office at (707) 463-4470 to make suggestions for 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 (GC) Section (§) 6250 et seq.), (2) Political Reform Act – Conflict-of- Interest regulations (GC §81000 et seq.), (3) Ethics Principles and Training (Assembly Bill (AB) 1234 and GC §53235), (4) Brown Act – Open Meeting regulations (GC §54950 et seq.), and (5) Online Compliance regulations (Section 508 of the US Rehabilitation Act and GC §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 FPPC is available at the following link: http://www.fppc.ca.gov/. Refer to the California Department of Rehabilitation website for information regarding §508 of o 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 ILG website to download the Ethics Law Principles for Public Servants pamphlet at o the following link: www.ca-ilg.org/node/3369. Refer to the ILG website for information regarding Ethics Training Courses required pursuant to o 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/. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update APPENDICES 7-2 7.2 Appendix B – Website Compliance Handout Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update 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 7-3 7.3 Appendix D – Housing Legislation Trends and Results Mendocino County and ADUs In response, the County of Mendocino has taken a series of steps to facilitate Accessory Dwelling Unit (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 County General Plan update was adopted on November 9, 2011, which amended the Coastal Zoning Code component of the Local Coastal Plan (LCP) to establish and revise standards for ADUs in the Coastal Zone. Because Westport is in the County Coastal Zone, 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 of the Public Health and Safety Requirements in 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 in a service district (such as Westport), 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 §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 California 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 Regional Housing Needs Assessments (RHNAs). 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 water and wastewater services provided by WCWD in Westport. However, any new development requires written approval from the service provider to authorize services. Regional Housing Needs Assessment (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 Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update APPENDICES 7-4 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 considered 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 were 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 August 15, 2019, and August 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 GC §65583(a)(1). Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update APPENDICES 7-5 Extremely Low- 145 15 26 21 62 83 Income Units* Source: HCD 2024. With respect to how RHNA requirements may affect Westport, the State continues to push for more housing across the state including in communities located on the coast such as Westport. 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 Westport, 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. • Senate Bill (SB) 9 - 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. Senate Bill 9 also mandates that local agencies approve development projects that meet specified size and design standards. • SB 10 - 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 January 1, 2021, and January 1, 2029, and is exempt from the California Environmental Quality Act (CEQA). • SB 35 - Applies in cities that are not meeting their RHNA goal for construction of above- moderate income housing and/or housing for households below 80 percent Area Median Income (AMI). Senate Bill 35 amends California Government Code (GC) §65913.432 to require local entities to streamline the approval of certain housing projects by providing a ministerial approval process. 32 GC §65913.4 (2024) can be found here: California Code, GOV 65913.4. Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update APPENDICES 7-6 7.4 Appendix E – District Financial Audits Westport County Water District | 2025 Municipal Service Review and Sphere of Influence Update Westport County Water District FINANCIAL STATEMENTS AUDIT REPORT June 30, 2019, June 30, 2020, June 30, 2021 June 30, 2022, and June 30, 2023 June 10, 2024 Westport County Water District Westport INDEPENDENT AUDITOR'S REPORT Opinions We have audited the accompanying financial statements of Westport County Water Districtas of and for the year-ended June 30, 2019, June 30, 2020, June 30, 2021, June 30, 2022and June 30, 2023, as listed in the Table of Contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Westport County Water Districtas ofJune 30, 2019, June 30, 2020,June 30, 2021 June 30, 2022 and June 30, 2023, and the respective changes in financial position, and cash flows where applicable for the years then ended, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica (GAAS). Our responsibilities under those standards are further described in the Auditor’sResponsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidencewehaveobtainedissufficientand appropriate to provide abasis for our audit opinions. Responsibilities of Management for the Financial Statements The District’s management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whetherdue to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about The District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of 1 internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by areasonableuserbased onthefinancialstatements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Other Matters The District has not presented Management’s Discussion and Analysis or budgetary comparison information that accounting principles generally accepted in the United States of America require be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. PNPCPA 2 Westport County Water District Audit Report June 30, 2019, June 30, 2020, June 30, 2021, June 30, 2022, and June 30, 2023 TABLE OF CONTENTS Page Independent Auditor’s Report 1 Financial Statements Statement of Net Position 4 Statement of Activities 5 Statement of Revenues, Expenses and Change in Net Position 8 Statement of Cash Flows 9 Notes to Financial Statements 10 3 Westport County Water District Statement of Net Position ASSETS Current Assets: 2023 2022 2021 2020 2019 Cash $ 68,055 62,090 66,464 54,983 36,704 Accounts Receivable 40,328 30,006 39,055 49,501 44,493 Deposits & Prepaid Expenses - - - 313 313 Total Current Assets 108,383 92,096 105,519 104,797 81,510 Capital Assets: Land 42,807 42,807 42,807 42,807 42,807 Buildings, Improvements & Equipment 1,510,885 1,510,885 1,510,885 1,510,885 1,510,885 Less: Accumulated Depreciation (1,510,685) (1,510,229) (1,509,773) (1,509,317) (1,508,861) Total Capital Assets 43,007 43,463 43,919 44,375 44,831 TOTAL ASSETS 151,390 135,559 149,438 149,172 126,341 DEFERRED OUTFLOW - - - - - TOTAL DEFERRED OUTFLOW - - - - - TOTAL ASSETS AND DEFERRED OUTFLOWS 151,390 135,559 149,438 149,172 126,341 LIABILITIES Current Liabilities: Accounts Payable 427 - - - 20 Accrued Liabilities 497 656 427 7,721 5,817 Current Portion - - - - - Total Current Liabilities 924 656 427 7,721 5,837 Long-term Liabilities: Note Payable 38,709 38,709 38,709 38,709 38,709 Total Long-term Liabilities 38,709 38,709 38,709 38,709 38,709 TOTAL LIABILITIES 39,633 39,365 39,136 46,430 44,546 DEFERRED INFLOWS - - - - - TOTAL DEFERRED INFLOWS - - - - - TOTAL LIABILITIES AND DEFERRED INFLOWS 39,633 39,365 39,136 46,430 44,546 NET POSITION Net Investment in Capital Assets 4,298 4,754 5,210 5,666 6,122 Unrestricted 107,459 91,440 105,092 97,076 75,673 TOTAL NET POSITION $ 111,757 $ 96,194 $ 110,302 $ 102,742 $ 81,795 The accompanying notes are an integral part of these financial statements. 4 Westport County Water District Statement of Activities For the Year ended 2019 Program Revenue Charges for Grants and Business-type Functions/Programs Expenses Services Contributions Activities Primary government Business-type activities Water 125,213 116,242 1,935 (7,035) Wastewater 68,475 85,813 - 17,339 Total business-type activities 193,687 202,055 1,935 10,304 General revenues: Unrestricted investment earnings 4 Total general revenues, special items 4 Change in net position 10,308 Net Position - beginning 71,487 Net Position - ending $ 81,795 2020 Program Revenue Charges for Grants and Business-type Functions/Programs Expenses Services Contributions Activities Primary government Business-type activities Water 128,710 128,699 1,935 1,925 Wastewater 69,230 88,246 - 19,017 Total business-type activities 197,939 216,945 1,935 20,942 General revenues: Unrestricted investment earnings 5 Total general revenues, special items 5 Change in net position 20,947 Net Position - beginning 81,795 Net Position - ending $ 102,742 The accompanying notes are an integral part of these financial statements. 5 Westport County Water District Statement of Activities For the Year ended 2021 Program Revenue Charges for Grants and Business-type Functions/Programs Expenses Services Contributions Activities Primary government Business-type activities Water 141,429 138,556 1,935 (937) Wastewater 79,799 88,288 - 8,490 Total business-type activities 221,227 226,844 1,935 7,553 General revenues: Unrestricted investment earnings 7 Total general revenues, special items 7 Change in net position 7,560 Net Position - beginning 102,742 Net Position - ending $ 110,302 2022 Program Revenue Charges for Grants and Business-type Functions/Programs Expenses Services Contributions Activities Primary government Business-type activities Water 140,379 117,580 1,935 (20,863) Wastewater 78,101 84,847 - 6,746 Total business-type activities 218,480 202,427 1,935 (14,117) General revenues: Unrestricted investment earnings 9 Total general revenues, special items 9 Change in net position (14,108) Net Position - beginning 110,302 Net Position - ending $ 96,194 The accompanying notes are an integral part of these financial statements. 6 Westport County Water District Statement of Activities For the Year ended 2023 Program Revenue Charges for Grants and Business-type Functions/Programs Expenses Services Contributions Activities Primary government Business-type activities Water 137,767 126,088 1,935 (9,743) Wastewater 71,406 96,700 - 25,294 Total business-type activities 209,172 222,787 1,935 15,551 General revenues: Unrestricted investment earnings 12 Total general revenues, special items 12 Change in net position 15,563 Net Position - beginning 96,194 Net Position - ending $ 111,757 The accompanying notes are an integral part of these financial statements. 7 Westport County Water District Statement of Revenues, Expenses and Change in Net Position For the Year Ended OPERATING REVENUE 2023 2022 2021 2020 2019 Charges for Service $ 222,319 $ 201,999 $ 225,169 $ 214,965 $ 201,656 Connection Fee - - - - - Misc Revenue 449 155 1,645 1,666 400 Grants & Contributions 1,935 1,935 1,935 1,935 1,935 TOTAL OPERATING REVENUE 224,703 204,089 228,749 218,566 203,991 OPERATING EXPENSES Depreciation 456 456 456 456 9,720 Insurance 13,083 11,028 17,763 9,455 5,115 Repairs & Maintenance 5,643 22,564 12,837 15,736 9,299 Salaries and Employee Benefits 128,151 132,570 126,774 122,881 122,943 Services, Supplies and Refunds 37,304 24,241 34,094 23,756 20,860 Professional Fees - - 961 348 1,467 Administration 7,717 10,253 10,553 9,343 8,894 Utilities 14,863 15,159 15,823 13,714 13,454 TOTAL OPERATING EXPENSES 207,217 216,271 219,261 195,689 191,752 OPERATING INCOME (Loss) 17,486 (12,182) 9,488 22,877 12,239 NON-OPERATING REVENUES/EXPENSES Interest Income 12 9 7 5 4 Property Taxes - - - - - Interest Expense (1,935) (1,935) (1,935) (1,935) (1,935) TOTAL NON-OPERATING REVENUES/EXPENSES (1,923) (1,926) (1,928) (1,930) (1,931) CHANGE IN NET POSITION 15,563 (14,108) 7,560 20,947 10,308 NET POSITION, BEGINNING OF PERIOD 96,194 110,302 102,742 81,795 71,487 NET POSITION, END OF PERIOD $ 111,757 $ 96,194 $ 110,302 $ 102,742 $ 81,795 The accompanying notes are an integral part of these financial statements. 8 Westport County Water District Statement of Cash Flows For the Year-Ended 2023 2022 2021 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received from Charges for Service $ 212,447 $ 211,203 $ 237,260 $ 211,623 $ 200,309 Cash Received from Grants & Contributions - - - - - Cash Received from Other Income - - - - - Deduct: Cash paid for Operating Expenses (206,494) (215,586) (225,786) (193,349) (185,258) NET CASH FLOWS FROM OPERATING ACTIVITIES 5,953 (4,383) 11,474 18,274 15,051 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Interest Expense - - - - - Notes Payable - - - - - NET CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES - - - - - CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property Tax Receipts - - - - - NET CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES - - - - - CASH FLOWS FROM INVESTING ACTIVITIES Interest Receipts 12 9 7 5 4 NET CASH FLOWS FROM INVESTING ACTIVITIES 12 9 7 5 4 NET INCREASE (DECREASE) IN CASH 5,965 (4,374) 11,481 18,279 15,055 CASH, BEGINNING OF YEAR 62,090 66,464 54,983 36,704 21,649 CASH, END OF YEAR $ 68,055 $ 62,090 $ 66,464 $ 54,983 $ 36,704 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income (Loss) $ 17,486 $ (12,182) $ 9,488 $ 22,877 $ 12,239 Adjustments to reconcile operating income to net cash provided by operating activities Add back depreciation 456 456 456 456 9,720 Add back income not received as cash (1,935) (1,935) (1,935) (1,935) (1,935) (Increase) Decrease in Operating Accounts Receivable (10,322) 9,049 10,446 (5,008) (1,747) (Increase) Decrease in Prepaid - - 313 - 201 Increase (Decrease) in Accounts Payable - - - - - Increase (Decrease) in Current Liabilities 267 229 (7,294) 1,884 (3,427) Net Cash Provided by Operating Activities $ 5,953 $ (4,383) $ 11,474 $ 18,274 $ 15,051 The accompanying notes to the financial statements are an integral part of this statement. 9 Westport County Water District NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Westport County Water District (the District) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the District's accounting policies are described below. A. Description of the Reporting Entity The District was established, under the California State Government Code. The District currently provides water and sewer services throughout the un-incorporated area of the Westport in Mendocino County. The District is a governed entity administered by a Board of Directors (Board) that acts as the authoritative and legislative body of the entity. The Board is comprised of five board members who are elected by voters living within the District’s boundaries. Elections are held within the Board to appoint the President. The President’s responsibilities are to preside at all meetings of the Board; be the chief officer of the District; perform all duties commonly incident to the position of presiding officerof a board, commission, or business organization; and exercise supervision over the business of the District, its officers, and its employees. The accompanying general-purpose financial statements comply with the provisions of GASB Statement No. 14, “The Financial Reporting Entity,” in that the financial statements include all organizations, activities, and functions that comprise the District. Component units are legally separate entities for which the District (the primary entity) is financially accountable. Financial accountability is defined as the ability to appoint a voting majority of the organization’s governing body and either (1) the District’s ability to impose its will over the organization or (2) the potential that the organization will provide a financial benefit to, or impose a financial burden on, the District. Using these criteria, the District has no component units. B. Basis of Accounting/Measurement Focus The accounts of the District are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, revenues, expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. C. Government-Wide Financial Statements The District Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of Governmental and Business-Type Activities for the District accompanied bya total column. These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the District’s assets and liabilities, including capital assets as well as infrastructure assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities 10 Westport County Water District NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED June 30, 2023 presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as operating revenues for the District are reported as charges for services. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business- type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The statement of activities presents a comparison between direct expenses and program revenues for each function of the District’s governmental activities demonstrating the degree to which the direct expenses of a given project are offset by project revenues. Direct expenses are those that are specifically associated with a program or function and therefore, are clearly identifiable to a particular function or segment. Operating revenues include (1) charges paid by the recipients of services offered by the program and (2) grants and contributions that are restricted to meeting the operational or capital requirements if a particular program. Revenues that are not classified as program revenues, including taxes are presented instead as non-operating revenues. Enterprise Funds –The enterprises funds are used to account for all the financial resources of the District. The enterprise net assets is available to the District for any purpose, provided it is expended or transferred according to the general laws of California and the bylaws of the District. The District maintains separate funds for Water, and Sewer. Exchange and Non-Exchange Transactions of Revenues –Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. Non-exchange transactions, in which the District receives value without directly giving value in return, include taxes and donations. Revenues are recognized when susceptible to accrual, when they become both measurable and available. Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The District considers property taxes as available if they are collected within 60 days after year-end. The assessor of the County determines the assessed valuations of such property and the tax collector of the County collects the taxes. On an accrual basis, revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the fiscal year when use is first permitted, matching requirements, in which the District must provide local resources to be used for a specific purpose, and expenditure requirements, in which the resources are provided to the District on a reimbursement basis. Expenses -On an accrual basis of accounting, expenses are recognized at the time they are incurred. 11 Westport County Water District NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED June 30, 2023 E. Funds on Deposit, County and Bank The Districtmaintains its cash in a pool managed by the County Treasury. The County Treasury, in turn, invests its cash with the State of California in the local agency investment fund as well as other banking institutions. The District does not own any specific identifiable investments in the pool. The risk of loss is minimal. As ofJune 30, 2023, the primary government had the following investments: Fair Value Rating Rating Agency Cash in Local Bank $68,055 FDIC ins. NA As ofJune 30, 2022, the primary government had the following investments: Fair Value Rating Rating Agency Cash in Local Bank $62,090 FDIC ins. NA As ofJune 30, 2021, the primary government had the following investments: Fair Value Rating Rating Agency Cash in Local Bank $66,464 FDIC ins. NA As ofJune 30, 2020, the primary government had the following investments: Fair Value Rating Rating Agency Cash in Local Bank $54,983 FDIC ins. NA As ofJune 30, 2019, the primary government had the following investments: Fair Value Rating Rating Agency Cash in Local Bank $36,704 FDIC ins. NA Interest rate risk. - The District does not currently have a policy regarding interest rate risk. Credit risk. -The District does not have a formal policy regarding credit risk Custodial credit risk. -The District’s investment in the State and County Treasurer’s investment pools represents a proportionate interest in the pool’s portfolio; however, the District’s portion is not identified with specific investments and is not subject to custodial credit risk. Cash in local bank is covered by federal depository insurance. Concentration of credit risk. -The District does not have a policy for concentration of credit risk. F. Accounts Receivable Accounts receivable are recorded at their gross value, where appropriate are reduced by the portion that is considered uncollectable. Accounts receivable consists primarily of service fees that have been billed but not paid as of year-end. Management believes its receivables to be fully collectable due to the ability 12 Westport County Water District NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED June 30, 2023 to place a lien against property for unpaid receivables and, accordingly no allowance for doubtful accounts is necessary. G. Prepaid Expenses Certain payments to vendors reflectcosts applicable to future accounting periods are recorded as prepaid items. H. Fixed Assets Capital assets, which include property, plant, and equipment, infrastructure assets and intangible are reported in the applicable governmental -type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an estimated useful life in excess of one year. Property, plant and equipment purchased or acquired is carried at historical cost or estimated historical cost. Donated or contributed capital assets are recorded at their estimated fair value on the date received. The current capitalization threshold is $4,000 for an individual item. The costs of normal maintenance and repairs are charged to operations as incurred. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. I. Accounts Payable On an accrual basis, expenses are recognized in the fiscal year in which the goods or services are received. Payables are liabilities of the District based upon current year charges for goods or services received but not paid in the current year. K. Long-Term Debt All long-term liabilities to be repaid from the governmental resources are reported as liabilities in the government-wide statements. The District has an outstanding loan to one of the board members in the amount of $38,709 dating from 2011-2014. The loan has no due date and no payment due at this time. The District’s cost of capital is 5% and as such charged interest expense of $1,935 and an associated donation $1.935 from the board member to account for the zero payment. L. Property Tax Revenue The County, through the Auditor-Controller’s Office and the Treasury-Tax Collector, is responsible for collecting and distributing property taxes according to the alternative method of distributing known as the Teeter Plan. Under the Teeter Plan, the current year’s secured property tax levy is distributed to participating agencies with the County without consideration of whether the tax has been collected. 13 Westport County Water District NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED June 30, 2023 M. Net Position The District’s net position represents the difference between its assets and liabilities in the statement of net position. Net position is reported as restricted when there are legal limitations imposed on their use by their source. N. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. NOTE 2: RISK MANAGEMENT The District is exposed to various risks of loss related to torts; damage to, and theft or destruction of assets; errors and omissions; injuries to employees; and natural disasters. During 2023, the District contracted with private insurance agencies for liability, property, crime damage, and employee and director insurances. NOTE 3: USE OF RESTRICTED/UNRESTRICTED NET POSITION When an expense is incurred for purposes for which both restricted and unrestricted net position is available, the District’s policy is to apply restricted net position first. NOTE 4: COMPARATIVE DATA AND RECLASSIFICATIONS Comparative data for the prior year have been presented in certain sections of the accompanying financial statements in order to provide an understanding of changes in the District’s financial position and operations. Also, certain amounts presented in theprior year data have been reclassified in order to be consistent with current year’s presentation. NOTE 5: CONTIGENCIES As of June 30, 2023, the District did not have any pending litigation or potential nondisclosed liabilities that management believes would have a material effect on the financial statements. NOTE 6 : DATE OF MANAGEMENT’S REVIEW Subsequent events have been evaluated throughJune 10, 2024, which is the date the financial statements were available to be issued. 14