REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  September  18, 2018
CATEGORY:  Scheduled Hearings - Public Works-8.

SUBJECT:

County Service Area No. 8-Palo Cedro Rate Increase

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. 8-Palo Cedro Sewer and Water: (1) Conduct a public hearing to consider increasing the bi-monthly water and sewer 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. 8-Palo Cedro and report back to the Board with the results; (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. 8-Palo Cedro Sewer and Water, Repealing Ordinance No. 633 and Setting Forth the Charges, Rates, and Fees for Sewer, Water, and Related Services; and (5) repeal Ordinance No. 633.

SUMMARY

Operational costs exceed revenues in the CSA No. 8-Palo Cedro Sewer and Water.

DISCUSSION

County Service Area No. 8-Palo Cedro Sewer and Water (CSA) provides water and sewer in Palo Cedro.  Water is sourced from a well.  Sewage is pumped, stored and land-applied.  Customers are responsible for the 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 re-visit rates at this time.  Water and sewer services are being provided below cost.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the Notice of Public Hearing and proposed ordinance as to form. The County Administrative Office has reviewed the recommendation.

FINANCING

Adequate funds to operate and maintain the CSA were included in the Adopted FY 2018/19 budget for County Service Area No. 8-Palo Cedro. As long as the CSA remains financially self-sufficient, there is no General Fund impact.