REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  November  7, 2017
CATEGORY:  Regular - Public Works-10.

SUBJECT:

CSA No. 6-Jones Valley Water Repeal Urgency Ordinance

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) Introduce and waive the reading of an Ordinance of the Board of Supervisors of the County of Shasta Repealing Ordinance No. 719 Declaring a Water Shortage Emergency and a Necessity for a Water Conservation Program, Adopting a Water Conservation Program and Finding that the Actions are Exempt from the California Environmental Quality Act (CEQA) in County Service Area No. 6-Jones Valley Water, operative November 1, 2017; (2) direct the Public Works Director to stay shutoff of water service for accounts that are in arrears on penalty payments; and (3) direct staff regarding the re-establishment of the Community Advisory Board pursuant to Board Resolution No. 84-6 and CSA No. 6-Jones Valley Water bylaws.

SUMMARY

It is recommended that the Board rescind water use restrictions in the CSA.

DISCUSSION

CSA No. 6 provides water service to approximately 500 customers in Jones Valley.  Water is pumped out of Shasta Lake, filtered, chlorinated and conveyed to customers. Operating expenses have exceeded revenues culminating in a negative fund balance.  A three-year rate increase was rejected due to a majority protest pursuant to Proposition 218 and, therefore, the Board was legally prohibited from adopting the rate increase.  On June 27, 2017, the Board enacted Ordinance No. 719 limiting water use to 225 gallons per day for each connection and suspending operation of the Community Advisory Board (CAB).  These steps were taken to minimize monetary losses to the CSA and thereby maintain operations for basic health and safety needs.  New water rates have since been adopted to recover operating costs and eventually restore solvency. It is recommended that the Board repeal the water use restrictions and re-establish the CAB.

ALTERNATIVES

The Board may decline to repeal the water conservation measures. The fiscal emergency has abated so water conservation and other austerity measures are no longer necessary.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the ordinance as to form. The County Administrative Office has reviewed this recommendation.

FINANCING

CSA No. 6 currently has a negative fund balance of $61,000 and owes an additional $28,000 to the Water Agency.  If and when solvency is restored, there will be no General Fund impact.