The City of Davis (City) provides wastewater (sewer) services to the El Macero County Service Area (CSA) pursuant to Agreement No. 75-97 (the 1975 Agreement). The City bills the County for sewer operation and maintenance and the County, in turn, bills residents within the CSA.

In 2008, the City adopted new sewer rates to include a variable charge that is based on the previous year’s winter water use. Winter water use is the average water used during November- to February of the prior calendar year. Residents of the CSA successfully protested the sewer rate increase pursuant to the majority protest process described in Proposition 218 for property-related fees. A dispute arose between the City and County under the 1975 Agreement regarding the methodology for calculating the variable portion of the charges for sewer service and the amount owed by the CSA to the County and, in turn, to the City.

The following key elements of the two agreements resolve the dispute between the City and County:

1. City and County staff have reconciled the past due balance owed under the wholesale rate established by Amendment to 1975 Agreement (Attachment A). The past due amount owed to the City is $77,397. This amount will be paid to the City with CSA funds within 60 days of the Board's approval of the agreements.

2. The proposed wholesale single family residential sewer rate shall be based on the median winter water use for residential customers within the City of Davis.

3. The proposed wholesale multi-family residential rate shall be based on 76.1% of the median winter water use for residential customers within the City of Davis.

4. The Clubhouse will billed for sewer services at the same rate as the City's adopted "Commercial-Restaurant" rate.

5. The City agrees to include a representative of the CSA in future community discussions of sewer rate structures and methodology. The City and County agree to discuss future sewer rates in the year 2020.