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a. Set a date for a public hearing on June 12, 2012, at 1:30 P.M., to consider adopting Zone 2C Fiscal Year 2012-13 assessment charges for the Salinas Valley Water Project; and, b. Direct the Clerk of the Board to publish a hearing notice in the CALIFORNIAN and the KING CITY RUSTLER at least ten days prior to the date set for the hearing.
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RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Set a date for a public hearing on June 12, 2012, at 1:30 P.M., to consider adopting Zone 2C Fiscal Year 2012-13 assessment charges for the Salinas Valley Water Project; and, b. Direct the Clerk of the Board to publish a hearing notice in the CALIFORNIAN and the KING CITY RUSTLER at least ten days prior to the date set for the hearing.
SUMMARY:
This Board action sets a date for a public hearing for Fiscal Year (FY) 2012-13 Zone 2C assessments charges on June 12, 2012, at 1:30 P.M. A map of Zone 2C is attached along with information showing the rates that are proposed to be published in the notice for the public hearing. These rates were recommended by the Agency Board of Directors on April 30, 2012. The Monterey County Water Resources Agency Board of Directors recommended no change in the assessment rates for FY 2012-13.
DISCUSSION:
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. The CPI for FY 2012-13 is approximately three percent.
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.
The proposed assessments do not reflect the CPI increase.
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 shown in the County Final Budget for FY 2011-12 were for Operations and Maintenance - $2,617,236; Spillway Modifications - $441,780; Diversion Facility - $666,548; and, Administration - $306,257. The estimated benefit assessments for FY 2012-13 for Zone 2C are: Operations and Maintenance - $2,667,415; Spillway Modifications - $442,290; Diversion Facility - $662,645; and, Administration $313,565. The FY 2012-13 budget figures are estimated and may vary slightly with what is actually collected. The FY 2012-13 assessments do not 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 FY 2012-13.
The Board is being asked to set a public hearing on Zone 2C, receive public testimony and adopt Zone 2C assessment charges. The Board of Supervisors may approve or lower any of these assessments; but, not raise them above the CPI.
OTHER AGENCY INVOLVEMENT:
The Monterey County Water Resources Agency Board of Directors recommended approval of the Zone 2C resolution at its meeting on April 30, 2012.
FINANCING:
The estimated revenues for FY 2012-13 for Zone 2C are as follows: Operations and Maintenance, Fund 116 - $2,667,415; Spillway Modifications, Fund 422 - $442,290; Diversion Facility, Fund 423 - $662,645; and, Administration, Fund 116 - $313,565. The 2012-13 Recommended Budget figures are estimated and may vary slightly with what is actually collected.
Prepared by: Brent Buche, Acting Assistant General Manager, (831) 755-8982
Approved by: David E. Chardavoyne. Interim General Manager, (831) 755-4896
Attachments:
1. Zone 2C Map
2. Proposed Assessment - Zone 2C
3. Proposed Resolution - Zone 2C
4. Notice of Public Hearing
5. MCWRA Executed Board Order - Zone 2C