REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  July  18, 2017
CATEGORY:  Scheduled Hearings - Public Works-10.

SUBJECT:

County Service Area No. 25-Keswick Water

Supervisorial District No. :  2

DEPARTMENT CONTACT:  Pat Minturn, Public Works Director, (530) 225-5661

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

Take the following actions on behalf of County Service Area (CSA) No. 25-Keswick Water: (1) Conduct a public hearing to consider increasing the bi-monthly water rates; (2) close the public hearing; (3) direct the Clerk of the Board to tabulate written protests from property owners and tenants within CSA No. 25-Keswick Water and report back to the Board with the results; and (4) in the absence of a majority protest, introduce, waive the reading of, and enact an Ordinance of the Board of Supervisors of the County of Shasta, County Service Area No. 25-Keswick Water Setting Forth the Charges and Rates for Water and Related Services.

SUMMARY

Operational costs exceed revenues in the CSA.

DISCUSSION

County Service Area (CSA) No. 25-Keswick Water provides water service to approximately 200 customers in Keswick. The community qualifies for low-income grants for capital expenses and a $2,000,000 plant upgrade was recently completed. Water quality objectives are increasingly difficult to meet even with these improvements. Compliance has been maintained though modified operations and intensive maintenance. Customers are responsible for these ongoing costs. A rate study has been prepared (attached). The proposal was summarized in a notice to all property owners and tenants per Article XIIID, Section 6, of the California Constitution (attached).

ALTERNATIVES

The Board may decline to revisit rates at this time. Water is being sold for less than the cost of production.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the Notice of Public Hearing and proposed ordinance as to form. The Community Advisory Board has actively monitored the CSA’s fiscal condition and recommended that a second year be added to the initial rate proposal. The recommendation has been reviewed by the County Administrative Office.

FINANCING

Adequate funds to operate and maintain the CSA were included in the Adopted FY 2017/18 Budget for County Service Area No. 25-Keswick Water. As long as the CSA remains financially self-sufficient, there is no General Fund impact.