REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  October  3, 2017
CATEGORY:  Scheduled Hearings - Public Works-10.

SUBJECT:

County Service Area No. 6-Jones Valley Water Rate Increase Hearing

Supervisorial District No. :  3

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. 6-Jones Valley 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. 6-Jones Valley 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. 6-Jones Valley Water, Repealing Ordinance No. 707 and Setting Forth the Charges, Rates, and Fees for Water and Related Services.

SUMMARY

Costs exceed revenues and the CSA is insolvent.

DISCUSSION

CSA No. 6-Jones Valley Water (CSA) provides water service in Jones Valley.  Expenses are incurred to operate and maintain infrastructure.  A rate study has been prepared (attached).  On August 15, 2017, the Board received a presentation on the proposed rate increase.  On August 16, 2017, a Proposition 218 Notice was mailed 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 rate ordinance as to form.  The County Administrative Office has reviewed this recommendation.

FINANCING

As long as the CSA remains financially self-sufficient, there is no General Fund impact.