Agenda

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Time Set # 40.

Board of Supervisors Meeting

Meeting Date:	07/28/2015
Brief Title: Prop 218 Public Hearing for Proposed Water Fee Increase in El Macero County Service Area
From:	Taro Echiburu, Director, Planning, Public Works & Environmental Services
Staff Contact:	Regina Espinoza, Manager of County Service Areas and Special Districts, PPWES, x8725
Supervisorial District Impact:

Subject

Hold a Proposition 218 Public Hearing, tabulate protest ballots, and adopt the resolution incorporating water fee increases for future fiscal years for the El Macero County Service Area. (No general fund impact) (Echiburu/Espinoza)

Recommended Action

Direct staff to tabulate Prop. 218 ballots received by the close of the public hearing.
Adopt resolution to include water fee increases for future fiscal years for the El Macero County Service Area (CSA).
Direct the Clerk of the Board of Supervisors to forward a certified copy of the resolution to the Department of Financial Services.

Strategic Plan Goal(s)

Provide fiscally sound, dynamic and responsive services

Reason for Recommended Action/Background

The recommended actions are required to obtain authority to modify the rate/fee for water service in the El Macero County Service Area . These changes have been included in the Notices of Public Hearing and Protest. If the change or increase is subject to a majority protest, services to the community will be impacted. Based on the City of Davis’ escalating water fee, and El Macero’s full cost recovery of increased prices for operations and maintenance of the water system, the annual water expenditures will exceed annual water revenue in 2015/2016 should the proposed fee increases not occur.

Over the last several years, the cost to provide water service has increased significantly, and in order to continue to provide the service at cost, the county needs to increase revenues collected from property owners within the district. Any change in the water fee is subject to Proposition 218, which requires more than 50%, plus one of the property owners to successfully protest a fee increase.

The City of Davis is the provider of the services through agreement with the CSA. The CSA has been paying the same price for water services as a City of Davis resident would within the City. This will not change with the new fee increase. The city charges the CSA per resident based on a meter base charge for a ½”, 1”, or 1 ½”meter and a meter consumption rate charge including a $/ccf calculation. Each property owner in the El Macero CSA pays a water charge based on the amount of water that is consumed. The Property owner pays the CSA and the CSA pays the City of Davis that same amount. This City of Davis rate has been steadily increasing, and at this time the El Macero CSA must increase its water fee in order to pass through the same charge to its residents as the City is currently charging the CSA for water service. The residents are paying based on the previous proposition 218 fees that the City had undergone some years ago. Revenues will no longer equal expenditures if the CSA water charge does not equal the City water charge. In essence the proposed fee increase is a pass through from the City of Davis most recent Proposition 218 rate. The background of the City of Davis rate election is available at the City of Davis Finance Division.

Collaborations (including Board advisory groups and external partner agencies)

El Macero CSA Advisory Committee, City of Davis, County Counsel

Fiscal Impact

Fiscal Impact (Expenditure)
No Fiscal Impact
Total cost of recommended action:		$ 0
Amount budgeted for expenditure:		$ 0
Additional expenditure authority needed:		$ 0
On-going commitment (annual cost):	$

Source of Funds for this Expenditure

Explanation (Expenditure and/or Revenue)

Further explanation as needed:

There is no fiscal impact to the general fund. Services provided to the county service area are paid for through revenues collected on the property tax bills of property owners in the CSA.

Attachments
Att. A. Resolution
Att. B. Public Hearing Notice

Form Review

Inbox	Reviewed By	Date
County Counsel	Eric May	07/21/2015 11:26 AM
Form Started By: respinoza		Started On: 06/23/2015 04:25 PM
Final Approval Date: 07/21/2015