The recommended actions are to initiate the process for the El Macero CSA to adopt sewer and water operations fee changes to cover the costs of providing sewer and water service in the CSA.
Periodically, the charges for CSA services should be re-examined to determine whether the revenue being collected covers all the costs related to providing the service and builds adequate reserves if necessary. The current sewer fee was last considered in 2005 and the water operations fee in 1997. When a change in a charge is warranted, Proposition 218 proceedings are conducted. Prop. 218 imposes certain requirements before local entities can impose property-related fees, such as the requirement of public notice of the proposed rate change and how a property owner can support or oppose the charge.
At this time, it has been determined a change in the sewer and water operations fees is warranted, and as such, Prop. 218 proceedings are being conducted to revise those property-related fees.
Sewer Charge
The El Macero CSA provides sewer services through contract with the City of Davis. The CSA’s sewer rate, which has been charged equally to all occupied residential parcels, at a reduced rate to property owners of vacant lots and at a higher rate to the El Macero Country Club, was last revised in 2005 as sewer-related expenses were outpacing CSA revenue.
In 2015, the County entered into a Settlement Agreement with the City of Davis which identified the method in which the El Macero CSA would be charged by the City for sewer service in El Macero, including different rates for single-family residences vs. condos vs. commercial (the El Macero Country Club), and with no charge for vacant lots. As such, the proposed CSA sewer charge takes into account these variances in how the City charges the entire CSA for sewer service, and then the CSA sewer charge is distributed within these categories. The proposed rate change also considers the cost of CSA administration related to sewer service. The proposed sewer fee changes are as follows:
| Fee Type |
No. of Parcels
in the CSA
|
Current
2018-19 Fee
|
Proposed
2019-20 Fee
|
| Sewer Charge – Single Family Parcel |
403 |
$596 |
$516.50 |
| Sewer Charge – Condos |
37 |
$596 |
$371 |
| Sewer Charge – El Macero Country Club |
1 |
$11,912 |
$6,865 |
| Sewer Charge – Vacant Lot |
7 |
$429 |
$0 |
Water Operations Charge
The water operations charge covers the costs related to providing water services to El Macero, above and beyond the City of Davis’ costs for potable water that are passed through to El Macero residents. The CSA proposes to maintain Well EM-3 for current irrigation needs and possible future uses. The proposed water operations fee is partially based on the March 2019 Well Asset Management Report which recommends a program for maintenance of the well and estimates those costs, as well as replacement costs. The rate change also considers CSA administration costs related to providing all water services and that all properties receive the same water operations service. The proposed water operations fee changes are as follows:
| Fee Type |
No of Parcels
in the CSA |
Current
2018-19 Fee |
Proposed
2019-20 Fee |
| Water Operations Charge – Single Family Parcel |
403 |
$50 |
$43 |
| Water Operations Charge – Condos |
37 |
$50 |
$43 |
| Water Operations Charge – Country Club |
1 |
$1,000 |
$43 |
| Water Operations Charge – Vacant Lot |
7 |
$33 |
$43 |
Changes in CSA charges related to sewer and water are subject to Proposition 218 protest proceedings which require the CSA to give 45-day notice and hold a public protest hearing prior to adopting the proposed fee changes. If more than 50% of the affected property owners submit written protest against the proposed fee changes, the changes can not be adopted. A letter was sent to all property owners on April 30 letting them know of the proposed fee changes and inviting them to attend the May 16 CSA Advisory Committee meeting in which the charges and the Proposition 218 process was discussed (Attachment A). Notice of the public protest hearing, scheduled for July 9 at 9:00 a.m., will be mailed to property owners no later than May 24.
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