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Home My WebLink About7 Proposed water rates Agenda Item # 7 Public PUBLIC HEARING To: Board of Directors From: Robert Mescher Date: January 15, 2014 Subject: Conduct a Public Hearing on Proposed Water Rates 1. WHY THIS MATTER IS BEFORE THE BOARD This matter involves a public hearing prior to the consideration of adopting an ordinance increasing water rates. The Board conducts this hearing. 2. HISTORY California's Proposition 218 was adopted in 1996 and became effective in 1997. It is also known as the "Right to Vote on Taxes Act." The adoption of new water rates is subject to the requirements of Proposition 218. The main requirements are: Rates must be based on actual cost of service; • District must mail a notice to all rate payers and may mail a notice to property owners of the proposed change in rates; • District must hold a public hearing at least 45 days after the mailing of the notices; • Proposed change in rates is considered rejected if written protests are received from a majority of the affected property owners; or • Rates can become effective 30 days after the public hearing and adoption of an -ordinance. The District's water rates have not been increased since FY11. The approved FY14 and FY15 Budget and the ten-year Financial Master Plan require water revenue to increase by 3% in FY14 and 3% in FY15 to achieve the District's short-term and long-term goals. The District hired HDR to conduct a water rate study and HDR completed that study. At the November 6, 2013 Board Meeting, Shawn Koorn presented the study (Attachment 1 of tonight's Agenda Item 13) and discussed several rate structure options to achieve the revenue requirements of the approved FY14 and FY15 Budget. The Board approved a rate structure (subject to a public hearing scheduled on January 15, 2014) that spread the increases evenly across both fixed and variable charges, and a draft ordinance was accepted by the Board (Attachment 2 of tonight's Agenda Item 13). Therefore the following schedule was developed for implementation of new rates in FY14 and FY15: November 6 • Presented an updated water rate study • Approved the water rate increase subject to a public hearing November 26 • Mailed notices to customers and parcel owners of proposed rates and of public hearing December • Published a notice of a public hearing in the local newspaper January 15 (tonight) • Hold a public hearing regarding proposed water rates • Consider adoption of an ordinance for the new water rates February 15 (or after) • New rates can become effective 3. NEW INFORMATION The remaining steps to complete the requirements of Proposition 218 and the District's policies regarding adoption of an ordinance are: • Hold the public hearing on increasing water rates for FY14 and FY15 (tonight) • Consider the Public Comments; as of January 10, five written protests (Attachment 1) were received by the District. • Consider adopting the water rate increase ordinance (tonight -Agenda Item 13) 4. FISCAL IMPACT There is no fiscal impact with this agenda item. 5. RECOMMENDATION Conduct the public hearing. -- Robert Mescher Michael D. Holley Administrative Services Manager General Manager Attachment 1 Truckee Donner Public Utility District attn: Deputy Clerk of the District 11570 Donner Pass Road Truckee, CA 96161-4947 January 2, 2014 Dear Deputy Clerk of the District, As the owner of Nevada County parcel#17-246-08-000 located at 10541 Cedar St.,Truckee, CA 96161 I oppose the proposed water rate increases in Fiscal Years 2014 and 2015. As a"seasonal"resident user I am currently charged a minimum"base charge"of$53.95 per month for water use even though I am not at my residence using any water. While I do not mind paying for water that I actually utilize I find it to be unfair as well as somewhat of a financial burden to pay for something I do not utilize let alone the fact that I am now facing an increase to the current rates. I in fact would like to recommend to TDPUD that they investigate a more fair system of charging for water on an actual use basis rather than the current"base charge"plus use. In other words,how about charging less of a base charge and more on the actual water use? Thank you for allowing me to express my opinion and adding my name on the"opposed"list for this potential water rate increase. Sin erely, Lawrence A. Bromley (Truckee Donner Public Utility District Account#9000024027 @ mailing address 4238 Carle Lane, Sacramento, CA 95841) NOTICE OF PUBLIC HEARING REGARDING 2014 AND 2015 WATER RATES Notice is hereby given that the Truckee Donner Public Utility District is considering water rate changes for 2014 and 2015. The District Board of Directors will hold a public hearing and receive public comment: \� Date: Wednesday, January 15, 2014 Time: 6:00 p.m. Place: District Board Room at 11570 Donner Pass Road, Truckee, California Notice is further given that the District's Board may continue the public hearing to another time. This notice has been sent to all District customers and property owners receiving water services. All customers and interested parties are invited to express their views during the public hearing in written or oral form or to submit written views prior to the time of the public hearing at the District office or by mail to 11570 Donner Pass Road, Truckee, CA 96161. The other side of this notice describes the water rate increase amounts, background information, and how to file a protest against the rate increases. For more information or questions about the water rate increases, you may contact the District Office at 11570 Donner Pass Road, Truckee, CA 96161, or visit the District's web site at tdpud.org. ZU£-90996 VO 13WOMWO MO 0131JAVO 9W7 NI'M36IM AaN" 98611010'£ EVT96 'IIvwvI d IaIS T9t96 dD 'aqanal QIVd U,LSOd 'S'I1 � peod ssed Jauuoa OLSZT 9J Q J,S0 2'S i Iaialsia Aimia oijgnd JODUOa aapnal C, 1, O py p^ t r I �"� �r d Wilaha PYibble C bepoTy Us(,R' i W W P } t 7,A— c. XTj®®o R r W kA A i 4f! e 3 k a i ^ a S December 6, 2013 Truckee Donner Public Utility District Deputy Clerk 11570 Donner Pass Road Truckee, CA 96161 RE: 15351 Cedar Point, Truckee, CA 96161 Dear Sirs, Please consider this letter my protest in regard to the proposed raising of water rates for 2014 and 2015 for the above referenced account. hank you, David S. Roche (property owner) � Fr. 10 January 2014 Truckee Donner PUD 11570 Donner Pass Road Truckee,CA 96161 Dear Deputy Clerk, According to the notification we received a few weeks ago,we wish to protest the upcoming proposed water rate increase.We have a second(vacation)home-in Tahoe Donner,which we have owned for approximately 4 years. I am sure that we are in the same situation as a majority of the Tahod Donner property owners. Our Truckee home is not our primary residence,and we rarely consume over 1000 gallons of water each month,as we occupy the home maybe 4 to 6 days per month. We feel it is unfair that we incur a rate increase;these incremental increases add up and begin to make our;home less affordable. Thank you for your consideration. i Ju aCara and Paul Shufflebotham Account#9000015206 16457 Skislope Way Truckee,CA 96161 Mailing Address: 1667 Hurst Avenue San Jose,CA 95125-5514