Title
a. Rescind previously adopted Resolutions Numbers 25-251, 25-254 and 25-255 approving the FY 2025-26 assessment charges with Cost of Living Adjustment (COLA) increase of 2.7% for Flood Zones 1, 1A, 8, 9, 12, and 17 due to a clerical error in certain rates contained in the Resolutions; and
b. Adopt revised resolutions approving the FY 2025-26 assessment charges with Cost of Living Adjustment (COLA) increase of 2.7% for Flood Zones 1, 1A, 8, 9, 12, and 17 to address the clerical errors.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors:
a. Rescind previously adopted Resolutions Numbers 25-251, 25-254 and 25-255 approving the FY 2025-26 assessment charges with Cost of Living Adjustment (COLA) increase of 2.7% for Flood Zones 1, 1A, 8, 9, 12, and 17 due to a clerical error in certain rates contained in the Resolutions; and
b. Adopt revised resolutions approving the FY 2025-26 assessment charges with Cost of Living Adjustment (COLA) increase of 2.7% for Flood Zones 1, 1A, 8, 9, 12, and 17 to address the clerical errors.
SUMMARY/DISCUSSION:
The Monterey County Water Resource Agency (“MCWRA”) ordinances that govern MCWRA flood zones are Ordinance Nos. 2626, 2974, 3878, and 3881 (“Ordinances”). These Ordinances were adopted for the main purposes of protecting life and property, and reducing the impact caused by flooding.
On May 28, 2025, the MCWRA Board of Supervisors held a public hearing for the requested FY 2025-26 COLA increase of 2.7% to the assessments of MCWRA’s flood control benefit assessment zones below, based on the annual change in Consumer Price Index (CPI) February 2024 -February 2025 for the San Francisco, Oakland and San Jose urban area:
• Zones 1 & 1A - Pajaro River Fund 112
• Zone 8 - Soledad Storm Drain Fund 121
• Zone 9 - Reclamation Ditch Fund 122
• Zone 12 - San Lorenzo Creek Fund 124
• Zone 17 - Moro Cojo Slough Fund 127
Although this action was approved by the MCWRA Board of Supervisors on May 28, 2025, there was a clerical error in the resolution calculating the 2.7% CPI increase on some of the rates leading to a lesser rate being displayed in the associated resolutions. The attached updated Summary Chart details the corrected assessment rates for FY 2025-26 with 2.7% COLA increase from the rates of FY 2024-25. The potential fiscal impact of not collecting the assessments due to this clerical error is approximately $43,250 across five MCWRA funds.
It is requested that the Water Resources Agency Board of Supervisors approve and adopt FY 2025-26 assessment rates with the 2.7% COLA increase applied to the FY 2025-26 assessment rates.
OTHER AGENCY INVOLVEMENT:
At the April 21, 2025 meeting, the Monterey County Water Resources Agency Board of Directors recommended that the Monterey County Water Resources Agency Board of Supervisors approve and adopt a FY 2025-26 COLA increase of 2.7% for Flood Zones 1, 1A, 8, 9, 12, and 17.
At the May 28, 2025 meeting, the Monterey County Water Resources Agency Board of Supervisors approved and adopted a FY 2025-26 COLA increase of 2.7% for Flood Zones 1, 1A, 8, 9, 12, and 17; and adopted the related resolutions for that action.
FINANCING:
Estimated revenue with the requested 2.7% COLA increase in FY2025-26 to the flood control benefit assessment Zones is as follows:
Zones 1 & 1A - Pajaro River Fund 112 : $539,935
Zone 8 - Soledad Storm Drain Fund 121 : $90,675
Zone 9 - Reclamation Ditch Fund 122 : $1,451,590
Zone 12 - San Lorenzo Creek Fund 124 : $38,288
Zone 17 - Moro Cojo Slough Fund 127 : $101,913
Prepared by: Nan Kyung Kim, Finance Manager III (831) 755-4860
Approved by: __________________________________________
Shaunna Murray, Deputy General Manager (831) 755-4860
Attachments:
1. Updated Summary Chart
2. Revised Resolution Zones 1 and 1A
3. Revised Resolution Zones 8, 9, 12
4. Revised Resolution Zones 17