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Time Set # 43.
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| Board of Supervisors |
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| Subject |
| Hold a Proposition 218 public hearing, tabulate protests and, if no majority protest exists, adopt resolution approving a decrease in the fee for water service and an increase in the fee for sewer service for future fiscal years for the Wild Wings County Service Area. (No general fund impact) (Nunes/Gabor) |
| Recommended Action |
- Hold a Proposition 218 public hearing, direct staff to tabulate protests; and
- If no majority protest exists, adopt resolution approving a decrease in the fee for water service and an increase in the fee for sewer service for future fiscal years for the Wild Wings County Service Area (CSA); and
- Direct the Clerk of the Board to forward a certified copy of the resolution to the Department of Financial Services.
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| Strategic Plan Goal(s) |
Operational Excellence
Safe Communities
Sustainable Environment |
| Reason for Recommended Action/Background |
Water and sewer fees are charged to Wild Wings CSA customers in order to fund the costs of providing safe and reliable water service and to fund the costs of operating and maintaining the sewer and sewage treatment system for the Wild Wings community. The proposed charges were calculated in order to evenly spread applicable costs amongst users according to the cost of providing service to that user. The water and sewer services and the basis for the proposed rate changes are described in more detail in the April 2018 Water and Wastewater Engineer’s Fee Report (Att. B.). The Engineer’s Fee Report provides the estimated annual cost of providing water and sewer service to each parcel within the Wild Wings CSA, the revenue sources anticipated to provide the services and the basis of the allocation of the costs of the services.
The update to the Engineer’s Fee Report in April 2018 indicates a slightly reduced annual water fee is adequate for the on-going operation and maintenance, capital replacement and water treatment (arsenic) costs for the water system. The updated Engineer’s Fee Report, however, indicates the current annual sewer fee is inadequate for the operation and maintenance and capital replacement costs for the sewage system. Additionally, due to unexpected expenses incurred in 2017-18 as a result of lack of redundancy in the wastewater treatment plant, deferred maintenance of the plant and State discharge permit compliance issues, all available sewer funds were depleted and additional funds needed to facilitate significant rehabilitation of the wastewater recycling facility to ensure continued, uninterrupted sewer service. A temporary loan of $450,000 from the CSA's Water Fund was necessary to address the deficit in the CSA's Sewer Fund, and will be repaid also through the sewer rate change.
The County Department of Financial Services calculated the rate for the loan from the Water Fund. The loan was calculated using a five year term for the $450,000 loan, paid back semi-annually after receipt of property assessments. The rate of interest was estimated on what the funds would otherwise have earned deposited in the County of Yolo Treasury. As a result, the annual rate of $291.50 was determined and will be charged for the five year term, or until the loan is repaid if repaid earlier.
The Engineer's Fee Report update and an expected change in fees, as well as the need for a loan from the Water Fund to the Sewer Fund was discussed at the April 4, 2018 CSA Advisory Committee meeting. The updated Engineer's Fee Report was posted online soon thereafter. On April 24, the Board of Supervisors authorized staff to provide notice of the proposed fee changes. On May 8, the Board authorized the loan from the Water Fund to the Sewer Fund. On May 10, a public notice (Att. A.) was sent to property owners in the Wild Wings CSA informing them of a proposed decrease in the annual fee for water service from $1,202 in 2017-18 to $1,184 in 2018-19 and a proposed increase in the annual fee for sewer service from $1,385 in 2017-18 to $2,936.50 in 2018-19. The proposed change in fees were further discussed during the June 6, 2018 CSA Advisory Committee meeting. |
| Collaborations (including Board advisory groups and external partner agencies) |
| Wild Wings CSA Advisory Committee |
| Competitive Bid Process |
| N/A |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| All fees collected go toward water and sewer service in the Wild Wings CSA, and replenishing CSA's Water Fund. |
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