Title
a. Set a date for a public hearing on June 18, 2013, at 1:30 P.M., to consider adopting Zone 2C Fiscal Year 2013-14 assessment charges for the Salinas Valley Water Project; and
b. Direct the Clerk of the Board to public a hearing notice in the CALIFORNIAN and the KING CITY RUSTLER at least ten days prior to the date set for the hearing.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Set a date for a public hearing on June 18, 2013, at 1:30 P.M., to consider adopting Zone 2C Fiscal Year 2013-14 assessment charges for the Salinas Valley Water Project; and,
b. Direct the Clerk of the Board to public a hearing notice in the CALIFORNIAN and the KING CITY RUSTLER at least ten days prior to the date set for the hearing.
SUMMARY/DISCUSSION:
This Board action sets a date for a public hearing for Fiscal Year (FY) 2013-14 Zone 2C assessments charges on June 18, 2013, at 1:30 P.M.
On April 8, 2003, the electorate of the Agency's Zone 2C approved the levying of Zone 2C assessments for the Salinas Valley Water Project (SVWP) in accordance with Ordinance 04203 adopted by the Board of Supervisors on July 22, 2003. The ordinance allows for the increase in operations and maintenance and administration assessments by the rise of the CPI.
In the years following the first full fiscal year in which the SVWP Assessment is collected, the operation and maintenance component of the SVWP Assessment is subject to increase based on the San Francisco, Oakland, San Jose Urban Consumers Price Index (CPI) for the previous year as measured from February to February, or the nearest date for which figures are available. All increases pursuant to this section will be calculated from the base year of 2003. The base year February 2003 CPI is 197.7
Annual assessments of approximately $1.11 million will pay for the capital cost until the debt is retired. Annual assessments of $2.92 million will pay for the operation and maintenance and administrative cost of the Zone. The assessments that pay for operation and maintenance replace the previous Zones 2 and 2A Water Standby or Availability Charges.
The benefit assessments for Fiscal Year 2013-14 are for Operations and Maintenance, $2,816,520 Spillway Modification, $443,406; Diversion Facility,$664,579, and Administration, $332,203. The Fiscal Year 2013-14 Budget figures are estimated and may vary slightly with what is actually collected. The Fiscal Year 2013-14 assessments include a cost of living increase for the Operations and Maintenance and the Administration components. There is no change for the Spillway and Diversion Facility rates for Fiscal Year 2013-14.
OTHER AGENCY INVOLVEMENT:
On April 22, 2013, the Monterey County Water Resources Agency Board of Directors recommended a 2.4 % CPI increase for the assessment rates for FY 2013-14. The proposed assessments include CPI increase.
FINANCING:
Total estimated assessment revenue increase for Zone 2C (Funds 116) is $164,152.
Prepared by:
Cathy Paladini, Finance Manager II, (831) 755-4861
Approved by:
David E. Chardavoyne, General Manager, (831) 755-4896
Attachments
1. Zone Maps
2. Proposed Assessments
3. Proposed Resolution
4. Notice of Public Hearing
5. MCWRA Executed Board Order