REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  October  2, 2018
CATEGORY:  Regular - Public Works-7.

SUBJECT:

CSA No. 25-Keswick Water – Status Report

Supervisorial District No. :  2

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

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

On behalf of County Service Area (CSA) No. 25-Keswick Water, direct the Public Works Director to enter into interconnection and annexation discussions with Shasta Community Services District.

SUMMARY

The Carr Fire has undermined the fiscal viability of CSA No. 25-Keswick Water.

DISCUSSION

County Service Area (CSA) No. 25-Keswick Water served 209 customers prior to the Carr Fire.  Twenty-seven customers remain in place.  On August 21, 2018, the Board assigned the impacted customer accounts to the lowest fee category (Vacation Status). The resulting revenues will be insufficient to fund ongoing operational costs.  Water treatment plant operations are a major fixed cost for the CSA.  Shasta Community Services District (CSD) could provide treated water to the CSA at a lower cost if the two distribution systems were interconnected.  A temporary interconnection was installed two years ago while a storage tank was constructed.  Shasta CSD has contracted with PACE Engineering, Inc. to prepare a Preliminary Engineering Report (PER) for a permanent interconnection.  That PER is being funded through a grant from the U.S. Department of Agriculture (USDA) and similar grants are available for construction.  Annexation of the CSA territory into the Shasta CSD service area may further promote fiscal sustainability.

ALTERNATIVES

The Board may decline to pursue collaborative opportunities with Shasta CSD at this time.  The CSA is insolvent.

OTHER AGENCY INVOLVEMENT

Shasta CSD has accepted a USDA grant and contracted with PACE Engineering, Inc. to prepare the PER.  The CSA Community Advisory Board supports the interconnection and annexation of the CSA territory into the Shasta CSD service area.  These recommendations have been reviewed by the County Administrative Office.

FINANCING

The CSA No. 25-Keswick Water Administration fund is currently in a negative cash position. Potential General Fund impact is unknown at this time.