VCWD 38 MSR 2022 05 18

Ventura Local Agency Formation Commission Ventura County Waterworks District No. 38 Municipal Service Review Prepared By: Ventura Local Agency Formation Commission 801 S. Victoria Avenue, Suite 301 Ventura, CA 93003 Accepted by the Commission on May 18, 2022 Table of Contents Introduction .............................................................................................................................................. 1 Maps .......................................................................................................................................................... 3 Profile ........................................................................................................................................................ 5 Growth and Population Projections .......................................................................................................... 9 Review of Municipal Services .................................................................................................................. 10 Sphere of Influence ................................................................................................................................. 13 Written Determinations .......................................................................................................................... 14 Introduction Purpose of the Municipal Service Review Local Agency Formation Commissions (LAFCos) exist in each county in California and were formed for the purpose of administering state law and local policies relating to the establishment and revision of local government boundaries. According to the Cortese-Knox- Hertzberg Local Government Reorganization Act of 2000 (California Government Code § 56000 et seq.), LAFCo’s purposes are to: • discourage urban sprawl; • preserve open space and prime agricultural land; • ensure efficient provision of government services; and • encourage the orderly formation and development of local agencies. To achieve these purposes, LAFCos are responsible for coordinating logical and timely changes in local government boundaries (such as annexations), conducting special studies that identify ways to reorganize and streamline governmental structure, and determining a sphere of influence for each city and special district over which they have authority. A sphere of influence is a plan for the probable physical boundaries and service area of a local agency, as determined by LAFCo (Government Code § 56076). Beginning in 2001, each LAFCo was required to review, and as necessary, update the sphere of each city and special district on or before January 1, 2008, and every five years thereafter (Government Code § 56425(g)). Government Code § 56430(a) provides that in order to determine or update a sphere of influence, LAFCo shall prepare a Municipal Service Review (MSR) and make written determinations relating to 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 are not prepared for counties, but are prepared for special districts including those governed by a county Board of Supervisors. Additionally, while LAFCos are authorized to prepare studies relating to their role as boundary agencies, they have no investigative authority. Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 1 of 17 LAFCo staff prepared this MSR for Ventura County Waterworks District No. 38 (VCWD 38 or District) using information obtained from multiple sources, including, but not limited to: • MSR Questionnaire: A questionnaire supplied by LAFCo elicited general information about the District (e.g., contact information, governing body, financial information), as well as service-specific data; • Budget: The adopted budget provided information regarding services and funding levels; • General Plan: Ventura County General Plan (including the Lake Sherwood/Hidden Valley Area Plan) provided information regarding land use, populations, and service levels; • District Documents: Various District documents provided supplementary information relating to service provision; • Historical MSR: The 2016 MSR provided certain data that remain relevant and accurate for inclusion in the current MSR; • District Website: The District’s website provided supplementary and clarifying information; and • District Staff: District staff provided supplementary and clarifying information. Organization of the MSR This report is organized into several sections, as follows: • Maps: A general location map and the official LAFCo map of the District; • Profile: Summary profile of information about the District, including contact information, governing body, summary financial information, and staffing levels; • Growth and Population Projections: Details of past, current, and projected population for the District; • Review of Municipal Services: Discussion of the municipal services that the District provides; • Sphere of Influence: Discussion of the existing sphere of influence of the District and potential modifications to the sphere; and • Written Determinations: Recommended determinations for each of the seven mandatory factors for the District. The Commission’s acceptance of the MSR and adoption of written determinations will be memorialized through the adoption of a resolution that addresses each of the seven mandatory factors based on the Written Determinations section of the MSR. Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 2 of 17 Maps Figure 1: Location Map for Ventura County Waterworks District No. 38 Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 3 of 17 Figure 2: Official LAFCo Map Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 4 of 17 Profile The formation of Ventura County Waterworks District No. 38 (District or VCWD 38), a dependent district of the County of Ventura, was approved by LAFCo on November 19, 2015, subject to voter approval. Voters approved the formation via special election held on May 5, 2015 and the formation was effective on June 3, 2015. The District provides potable water service to the unincorporated community of Lake Sherwood, south of the City of Thousand Oaks. The District assumed the water service responsibilities that were previously being provided by the Lake Sherwood Community Services District (LSCSD). VCWD 38 provides services through the Water and Sanitation Department of the Ventura County Public Works Agency (VCPWA). The mission of the Water and Sanitation Department of the Ventura County Public Works Agency is provided as follows: To deliver efficient, responsive and cost effective public works services that protect and enhance the safety, health and quality of life in Ventura County. History The historical Lake Sherwood community was originally developed in the early 1900s as a rural residential community surrounding a private lake constructed in 1904. The lake was named Lake Sherwood in the 1920s when the surrounding areas were dubbed “Sherwood Forest” and “Maid Marian Park” after being featured in the 1921 film “Robin Hood.” The community is located immediately south of the City of Thousand Oaks and north of the Santa Monica Mountains, near the county line between the counties of Ventura and Los Angeles. In 1984, the Murdock Development Company (MDC) purchased much of the surrounding area and began to further develop the community into a gated residential community oriented around a golf course. Until the 1990s, the community received water service from the Lake Sherwood Mutual Water Company. In 1989, the Lake Sherwood Community Services District (LSCSD) was formed. The County Board of Supervisors served as the LSCSD Board of Directors and County staff served as LSCSD staff. The purpose of the formation of the LSCSD was to initially provide the new development with potable water service in place of the mutual water company, and then various other services in the future once the new community was built out. At the time the LSCSD was formed, LAFCo, the County of Ventura and the MDC agreed to exclude the pre- existing residential areas from the LSCSD’s boundaries. The reason for this action was to prevent existing residents’ lots from being assessed for repayment of the bonds that were sold to finance the construction of the new water system. Although these historical neighborhoods were excluded from the LSCSD, MDC agreed to install water infrastructure throughout the Lake Sherwood community, including the historical neighborhoods, allowing for the historical neighborhoods to receive water service from the LSCSD. Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 5 of 17 In 2000, Government Code Section 56133 became effective, requiring LAFCo approval in order for a district to extend service outside its boundaries. Prior to 2000 (and prior to the enaction of Government Code Section 56133), several properties in the historical neighborhoods were connected to LSCSD’s water system although they remained outside the LSCSD boundaries. Between 2000 and 2009, the LSCSD permitted several additional properties in the historical neighborhoods to be connected to the water system without LAFCo approval because the LSCSD believed that it was obligated to do so as part of its takeover of the mutual water company, specifically LSCSD Rules and Regulations, Rule 1-B-11. In 2009, LAFCo informed the LSCSD that Government Code Section 56133 applied to all new service connections in the historical neighborhoods and that, pursuant to local policies, annexation to the LSCSD would be required to accommodate all future service connections. Soon thereafter, the LSCSD’s Rules and Regulations were revised to comply with Section 56133. There were several undeveloped parcels that remained in the historical neighborhoods, many of which were being contemplated for development. The matter was considered by LAFCo multiple times in 2011 and 2012 as several owners of vacant properties in the historical neighborhoods sought building permits. Some landowners viewed the requirement to annex portions of their neighborhood to the LSCSD as a threat to their community’s character, as the purpose of the LSCSD was primarily to provide water and other future services to the recently-developed gated community. The gated community is a much larger and distinctly separate community from the historical neighborhoods. Moreover, some argued that the requirement to annex was inconsistent with the original agreement from 1989 that excluded the historical neighborhoods from the LSCSD in the first place. The Commission considered the concerns of the residents and took various actions that would preserve the character of the historical neighborhoods while ensuring that efficient water service continued to be provided to the entire community. The Commission was faced with a situation that included: • An agreement made before Government Code Section 56133 was enacted that allowed for water service in the historical neighborhoods without the requirement to annex to the LSCSD; • Several unauthorized water service connections in the historical neighborhoods that occurred after Government Code Section 56133 became effective; • Several owners of vacant properties in the historical neighborhoods who were seeking building permits and were in need of water service; • An active community desiring to preserve the character of the community; and • A community services district that was intended to provide future services to the more recently-developed community. 1 Rule 1-B-1: “SERVICE AREA MAPS AND LEGAL DESCRIPTION: Maps and legal descriptions of Lake Sherwood Community Services District shall be maintained in the office of the District. Although the District boundaries do not presently include the service area of Lake Sherwood Mutual Water Company, the District shall serve this area as if it were included, and Part 1, Section E of these Rules and Regulations do not apply to that portion of the Lake Sherwood Mutual Water Company service area outside the District’s boundaries.” Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 6 of 17 The Commission resolved the multi-faceted dilemma in a way that appeased every stakeholder: it encouraged the LSCSD Board of Directors (i.e., the Board of Supervisors) to submit an application to form a county waterworks district to provide potable water service to the entire community. This approach would resolve the issues as follows: • The new district would provide potable water service to the historical neighborhoods without the need to annex to the LSCSD, meeting the intent of the 1989 agreement; • It would legalize the several unauthorized water service connections by including them within the boundaries of the new waterworks district; • In the meantime, it would allow for the approval of extraterritorial water service agreements with the LSCSD for those owners of vacant properties seeking building permits, as Government Code Section 56133 allows for such agreements to be approved “in anticipation of a later change of organization,” which includes a district formation; • It would recognize and accommodate the desires of the community to preserve the community’s character; and • It would retain the LSCSD in order for it to potentially provide services to the more recently-developed community in the future. In November 2014, the Commission approved the proposal to form VCWD 38 to provide water service in the Lake Sherwood community and divest the LSCSD of its power to provide water service, subject to confirmation by the voters within the entire Lake Sherwood community. In May 2015, a special election was held and the formation was approved by the voters, with 81 percent of the votes in favor of the proposal. The new district began providing water service in July 2015. Contact Information District Manager Joseph Pope District Office 6767 Spring Road, Moorpark, CA 93020 Mailing Address P.O. Box 250, Moorpark, CA 93020-0250 Phone Number (805) 378-3000 Website pwa.vcpublicworks.org/wsd E-mail Address joseph.pope@ventura.org Governance Information Formation Date May 5, 2015 Legal Authority Water Code Section 55000 (County Waterworks District Law) Type of District Dependent Board of Directors Five members Board of Directors consists of the Ventura County Board of Supervisors Elected by voting district to staggered, four-year terms of office (elections held in even-numbered years) Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 7 of 17 Board Meetings Tuesdays as scheduled, beginning at 8:30 a.m., in the Board of Supervisors Hearing Room located at 800 S. Victoria Avenue, Ventura, CA 93009 Webcast live on the County’s website, and available for viewing anytime on the County’s website Services Provided VCWD 38 is authorized to provide potable retail water service. Population and Area Information Population2 Area (square miles) Jurisdictional Area 1,759 3.2 Sphere of Influence Area 1,759 3.2 Staffing – Full Time Equivalent Positions3 Executive/Management Professional/Support Operational Total 8 16 36 60 Revenues Expenditures Primary Revenue Sources Primary Expenses Charges for Services Services and Supplies Revenue Use of Money and Property Fixed Assets Miscellaneous Revenues Other Charges FY 2021-22 Revenues (Budget) FY 2021-22 Expenditures (Budget)4 $ 3,925,600 $ 4,522,800 Public Agencies with Overlapping Jurisdiction Calleguas Municipal Wa ter District Ventura County Fire Protection District Conejo Recreation and Park District Ventura County Resource Conservation District Gold Coast Transit District Ventura County Service Area No. 14 Lake Sherwood Community Services District Ventura County Service Area No. 32 Metropolitan Water District of Southern California Ventura County Transportation Commission Triunfo Water and Sanitation District Ventura County Watershed Protection District Ventura County Air Pollution Control District Ventura Regional Sanitation District 2 Source: 2020 U.S. Census data 3 The District is staffed by the Ventura County Water and Sanitation Department (VCWSD or Department). The duties associated with each of the positions within the VCWSD involves all of the projects and facilities managed by the VCWSD, including those associated with the District. Therefore, the number of employees identified above does not reflect full-time positions assigned to the District. 4 VCWD 38 staff (i.e., County staff) indicates that the budgeted net cost is due to capital improvement projects being estimated approximately $597,200 higher than estimated revenues for Fiscal Year 2021-22. Unrestricted net position, totaling $7,776,645 for the year ending June 30, 2021, is used to cover the difference. Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 8 of 17 Growth and Population Projections LAFCo is required to project the growth and population for the affected area (Government Code § 56430(a)(1)). The U.S. Census Bureau estimates the 2020 population of the Lake Sherwood community to be 1,759. Based on the number of vacant residential parcels (approximately 83) within the community and the average household size (2.8 persons per household)5, the community’s population is expected to grow by about 233 to a total of 1,992 upon build-out of the community. 5 According to 2020 U.S. Census data, the average household size within Lake Sherwood was 2.8. Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 9 of 17 Review of Municipal Services The review of the District’s services is based on provisions of state law which require LAFCo to make determinations regarding the present and planned capacity of public facilities, the adequacy of public services, infrastructure needs and deficiencies, and the District’s financial ability to provide these services (Government Code § 56430(a)(3)). Potable Water Services Service Area and Distribution System The District provides potable water service to the unincorporated community of Lake Sherwood, south of the City of Thousand Oaks, to approximately 794 connections. In July 2015, the District assumed the water service responsibilities that were previously being provided by the LSCSD. The sphere of influence for the District is nearly identical to that of the LSCSD at the time of service transfer in July 2015 (i.e., the boundaries are different only in that VCWD 38 includes Ventura County Fire Protection District Station No. 33 which was receiving water from the LSCSD). According to District staff, the District’s water distribution system consists of 18 miles of pipeline (including 8-inch to 18-inch distribution lines), two pump stations, and two reservoirs (a 1.64 million gallon tank and a 0.97 million gallon tank), as well as a 3.4 million gallon water storage tank owned by Calleguas Municipal Water District (CMWD) and used exclusively by the District, to support the distribution of water to its customers. The Sherwood Development Co. Water Master Plan Update (October 2006) documents that the service area includes residential uses and a golf course.6 As a result of assuming water service from the LSCSD, the District provides water service to two properties located outside both its jurisdictional boundaries and sphere of influence: (1) Assessor’s Parcel Number (APN) 695-0-031-17 is served by two 2-inch meters that originate at the Lake Sherwood Country Club tennis facility within APN 695-0-290-10 (service initiated in 1990) and a 1-inch meter (service initiated in January 1991), and (2) APN 664-0-020-10 is served by a 2-inch meter and a 6-inch fire meter (service initiated October 7, 1998). These services were approved pursuant to LSCSD’s previous Rule 1-B-1 as discussed above. Pursuant to Government Code Section 56133, a city or district may provide new or extended services outside its jurisdictional boundary only if it first requests and receives approval from LAFCo, except under limited circumstances (i.e., LAFCo approval is not required for services provided by an agency on or prior to January 1, 2001). Therefore, the District’s service to these two parcels appears to predate the requirement for LAFCo approval to provide the service. 6 The source of irrigation water for the golf course varies from year to year, and depends on the quality of recycled water available from the Triunfo Water & Sanitation District (TWSD) and the level of accumulated compounds in the soil. During some years, irrigation water is either provided exclusively by TWSD (i.e., recycled water) or VCWD 38 (i.e., potable water), and in other years it consists of a blend of the two sources. When at its maximum, golf course irrigation consists of approximately 20 percent of VCWD 38 demand. Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 10 of 17 Water Supply and Demand VCWD 38 purchases all of its retail water from the CMWD. The District’s entire water supply consists of imported water from the State Water Project (which is occasionally supplemented with water from the Colorado River Aqueduct).7 Water demand during 2021 was 1,820 acre feet (AF); however, average water demand for the period covering 2019 through 2021 was 1,687 AFY. In 2016, District staff anticipated the total water demand for the service area, including demand upon buildout of the community, to be 1,665.7 AFY. Currently, District staff anticipates demand of 1,450 AFY during normal years, 1,800 AFY during single-dry years, and 1,300 AFY during multiple-dry years with the imposition of conservation measures. Because the District serves fewer than 3,000 customers and less than 3,000 AFY, it does not qualify as an urban water supplier that is required, every five years, to prepare and adopt an urban water management plan (UWMP) pursuant to the Urban Water Management Planning Act enacted by the California State Legislature in 1983. Therefore, a comprehensive and up-to- date discussion of current and expected water supply and demand, supply reliability, and water shortage contingency planning and conservation efforts is not regularly consolidated into a single report that is easily accessible to the public. While the District’s master plan guides its actions related to operation, maintenance, and infrastructure improvements to meet its service needs, the District and its customers would benefit from an update to the master plan to reflect current water supply and demand figures, infrastructure, population, and capital improvement needs, availability of the master plan on the VCPWA’s website, and/or formal reporting/updates that are easily accessible to the public. Capital Improvement Projects The existing facilities and infrastructure appear to be adequate to provide service at the current level of development. Upgrades to the District’s facilities and installation of new infrastructure (e.g., main lines and lateral lines) will be funded by the developer of new development within the Lake Sherwood community, as needed, to support new development and maintain existing levels of service for existing development. New development may trigger the need for greater water storage capacity and pipelines to accommodate increased water demand and fire flow needs. The District recently initiated use of advanced metering infrastructure (AMI), which enables the service provider to electronically collect usage data and detect leaks, and allows customers to track usage. Additional planned capital improvement projects include upgrades to a booster station, electrical equipment, and pressure-reducing station, and the supervisory control and data acquisition (SCADA) system (which allows for electronic operation and management of the District’s infrastructure), installation of a pressure-reducing station between zones, and other general water system improvements. 7 State Water Project water and Colorado River Aqueduct water are supplied by the Calleguas Municipal Water District (a wholesaler of the Metropolitan Water District of Southern California). Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 11 of 17 Water Conservation Measures and Efforts The Ventura County Waterworks Districts Rules and Regulations (R&Rs) were revised and approved on September 14, 2021, per Resolution No. 21-126. The update to the R&Rs outlines the Shortage Levels 1 through 6 that are imposed when water supply is reduced. For example, a Shortage Level 1 and 2 are imposed when the District expands public information asking for voluntary water restrictions. Shortage Level 3 and 4 are mandatory and prohibited measures imposed with noncompliance penalties. Shortage Level 5 is imposed when the District restricts outside irrigation with enforcement. Shortage Level 6 is imposed when the District demands reduction measures such as no new potable water services or annexations. The District’s ongoing customer outreach program includes reminders for voluntary water conservation and information regarding Metropolitan Water District of Southern California’s offers. Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 12 of 17 Sphere of Influence There have been no changes to the District’s service area that would require alterations to its sphere of influence boundary, and no changes are anticipated in the foreseeable future. Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 13 of 17 Written Determinations The Commission is required to prepare a written statement of its determinations with respect to each of the subject areas provided below (Government Code § 56430(a)). 1. Growth and population projections for the affected area • The U.S. Census Bureau estimates the 2020 population of the Lake Sherwood community to be 1,759. Based on the number of vacant residential parcels (approximately 83) within the community and the average household size (2.8 persons per household)8, the community’s population is expected to grow by about 233 to a total of 1,992 upon build-out of the community. 2. The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence • A disadvantaged unincorporated community is defined as a community with an annual median household income that is less than 80 percent of the statewide annual median household income (Government Code § 56033.5). No disadvantaged unincorporated communities are located within or contiguous to the District’s sphere of influence. According to Ventura LAFCo Commissioner’s Handbook Section 3.2.5, Ventura LAFCo has identified Nyeland Acres (within the City of Oxnard’s sphere of influence to the north of the city) and Saticoy (within the City of San Buenaventura’s sphere of influence to the east of the city) as disadvantaged unincorporated communities. 3. Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies Water services: • VCWD 38 operates a public water system that provides domestic water service to the Lake Sherwood community, as well as to two residential properties that are adjacent to the community (i.e., Assessor’s Parcel Numbers (APNs) 664-0-020-10 and 695-0-031-17). The District plans to continue serving existing customers as well as provide service to new customers located within its service boundary. • The District’s water is sourced exclusively from the Calleguas Municipal Water District (CMWD), which serves water delivered to it by the Metropolitan Water District of Southern California. The District expects that water supply from the CMWD will allow it to continue to provide sufficient water supply to serve its customers and accommodate additional future water demand generated as a result of buildout of the Lake Sherwood community (approximately 197 currently-undeveloped parcels). • The District’s water distribution system consists of 18 miles of pipeline, two pump stations, and two reservoirs, as well as a 3.4 million gallon water storage tank owned by CMWD and used exclusively by the District, to support the distribution of water to its customers. 8 According to 2020 U.S. Census data, the average household size within Lake Sherwood was 2.8. Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 14 of 17 • In 2016, District staff anticipated the total water demand for the District’s service area, including demand upon buildout of the community, to be 1,665.7 AFY. Currently, District staff anticipates demand of 1,450 AFY during normal years, 1,600 AFY during single-dry years, and 1,300 AFY during multiple-dry years with the imposition of conservation measures. Water demand during 2021 was 1,820 AF, and average demand for the period covering 2019 through 2021 was 1,687 AFY. The District should consider formalizing its water use projections for normal years, single-dry years, and multiple-dry years. • Existing infrastructure and pipes are sized and located to accommodate future development within the community; however, infrastructure will not be fully established until buildout of the community occurs. • To help meet anticipated future demands, the District is planning capital improvement projects, including upgrades to several components of water delivery infrastructure and equipment. • The District recently initiated use of advanced metering infrastructure, which enables the service provider to electronically collect usage data and detect leaks, and allows customers to track usage. • The District has a water shortage contingency plan, which is contained within the Ventura County Waterworks Districts Rules and Regulations. • The District is equipped with a back-up generator to enable its facilities to be operated during a power outage. • The District recently began using a utility management system (i.e., Sedaru), which allows District staff to digitally view its mapped infrastructure as an overlay to the County’s GIS data, and assists the District in analyzing its existing services and anticipated needs. 4. Financial ability of agencies to provide services • VCWD 38 has a steady stream of revenue through service fees collected from its customers. It has predictable expenses related operation and maintenance services, as well as administrative and management services provided by the County. • VCWD 38 staff (i.e., County staff) indicates that the budgeted net cost is due to capital improvement projects being estimated approximately $597,200 higher than estimated revenues for Fiscal Year 2021-22. Unrestricted net position, totaling $7,776,645 for the year ending June 30, 2021, is used to cover the difference. As part of the annual budget process, the water rates are reviewed to determine whether adjustments are needed to accommodate projected expenses. Rate adjustments are considered by the VCWD 38 Board of Directors (i.e., the Ventura County Board of Supervisors) subject to Proposition 218 (which, generally, establishes that new taxes are subject to voter approval). Service charges are collected by VCWD 38 through monthly service bills mailed to customers. • VCWD 38’s reserves policy adopted on December 8, 2020 (Resolution No. 20-145) established reserve fund targets of 25 percent of operating expenses, 10 percent of operating revenue, and 2 percent of net assets. Over the last three years, VCWD 38 has met and maintained reserves targets ranging between 174 percent and 197 percent of total revenue. Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 15 of 17 • VCWD 38 has a five-year capital improvement plan (FY 2022-26) consisting of $2.1 million, of which 100 percent is projected to be funded through service charges. • VCWD 38 indicates that it has no long-term debt. • Based on the information above, it appears that VCWD 38 has the ability to finance the services it currently provides. • VCWD 38 is independently audited on a regular basis as part of the annual audit of the County. The most recent audit (March 11, 2022) prepared for the County was unqualified. An unqualified report reflects fair and transparent financial statements in compliance with generally accepted accounting principles and statutory requirements. 5. Status of, and opportunities for, shared facilities • None were identified. 6. Accountability for community service needs, including governmental structure and operational efficiencies • The District is accountable to its constituents through its elected Board of Directors (i.e., the Ventura County Board of Supervisors), adherence to applicable government code sections, open and accessible meetings, and dissemination of information. • The District has adapted to the changing needs of public access as a result of the disease caused by the novel coronavirus (COVID-19) pandemic, by providing live internet access and public participation opportunities for its meetings. • The District achieves operational and management efficiencies by being managed and staffed by the County of Ventura. Additionally, it has arrangements with various service providers. For example, the District receives the following services from the County of Ventura: office space, management, accounting/auditing, legal counsel, real estate, and insurance. • The District promotes water conservation with the requirement that all new customers install water-efficient plumbing fixtures, prohibition of activities that promote water waste (e.g., overwatering of landscaping, washing of cars without a shut-off device on hoses, washing of paved surfaces), imposition of conservation pricing (i.e., a tiered rate structure that discourages high water use), and through public outreach and education programs. • The District’s Water Master Plan was prepared in October 2006. There are no efforts currently underway to update the master plan; however, District staff acknowledges that the master plan will need to be updated as additional development occurs. The District should consider initiating the process to update its master plan to reflect current water supply and demand figures, infrastructure, population, and capital improvement needs. Additionally, the District should consider making the master plan available on the VCPWA’s website, and/or formal reporting/updates that are easily accessible to the public. • The District, through the County of Ventura, is a member of the California Water/Wastewater Agency Response Network WARN (CALWARN) program (which supports and promotes statewide emergency preparedness, disaster response, and Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 16 of 17 mutual assistance processes for public and private water and wastewater utilities in coordination with the State Office of Emergency Services). • The County Public Works Agency’s Water and Sanitation Department maintains a website that contains general information about the District, contact information, a summary of services, and projects recently completed and under construction. The website provides a Spanish translation option. The District could improve its transparency by clarifying that the District is a dependent district that is managed and operated by the County of Ventura, and by posting links to the District’s history, mission, enabling legislation, boundary map, summary of facilities, Board of Directors meeting information (agendas, staff reports, minutes, and video recordings), current and historical budgets, studies and reports, most recent municipal service review completed by LAFCo, and the State Controller’s “By the Numbers” (agency financial reporting information) and “Public Pay” (employee salary) webpages. Much of this information could likely be provided by means of links to the appropriate webpages of the County’s website. Additionally, to improve the public’s ability to easily access District information, the utilities pages of the Water and Sanitation Department could be organized to include all District information (e.g., including Master Plans, Water Quality Reports, rates and charges, construction projects, and citizens’ advisory committee meetings) into one central location. • The District is supported by a Citizens’ Advisory Committee, which meets quarterly and serves as a liaison between the community and the District. The Citizens’ Advisory Committee reviews staff recommendations regarding annual budgets, water and sanitation rate adjustments, capital improvement projects, annexation issues, new policy items, and other issues related management of the District, and makes recommendations to the Board of Directors. • District staff was responsive in providing information for this MSR during the requested timeframe. 7. Any other matter related to effective or efficient service delivery, as required by Commission policy • No other matters were identified. Ventura County Waterworks District No. 38 – Municipal Service Review May 18, 2022 Page 17 of 17