Title
a. Receive the County Service Area 75 - Chualar Consolidated Draft Wastewater Rate Study;
b. Support approval of Rate Alternative 2A - Loan Payback, No Phase-In; and
c. Support authorizing staff to proceed with the Proposition 218 Majority Protest Process.
Report
RECOMMENDATION:
It is recommended that the Capital Improvement Committee:
a. Receive the County Service Area 75 - Chualar Consolidated Draft Wastewater Rate Study;
b. Support approval of Rate Alternative 2A - Loan Payback, No Phase-In; and
c. Support authorizing staff to proceed with the Proposition 218 Majority Protest Process.
SUMMARY:
Wastewater service rates for County Service Area 75 (CSA 75) - Chualar have remained unchanged for over fourteen years. This has resulted in an inability of CSA 75 to generate sufficient revenues to offset operational and infrastructure costs and has resulted in the need for General Fund loans over the past few years. Between June 2012 and September 2014, the Board of Supervisors has authorized four (4) loans totaling $1,166,483. In November 2015, the County Service Area 75 - Chualar Consolidated (CSA75) Draft Wastewater Rate Study (Rate Study) was completed by the Wallace Group. The Rate Study identified four (4) rate options needed to sustain wastewater operations, accomplish capital improvements, and establish reasonable reserves over the next five (5) years:
1A - No Loan Payback, No Phase-In
1B - No Loan Payback, Three (3)-Year Phase-In
2A - Loan Payback, No Phase-In
2B - Loan Payback, Three (3)-Year Phase-In
The current rate for Single Residential Rate is $13.92 per month.
The rate for Alternative 1A - No Loan Payback, No Phase-In would be $62.30 for the first year, with subsequent rates of $63.51, $64.74, $66.03 and $67.35 in each of the following four (4) years.
The rate for Alternative 1B - No Loan Payback, Three (3)-Year Phase-In would be $23.40 for the first year, with subsequent rates of $38.97, $64.74, $66.03 and $67.35 in each o...
Click here for full text