HomeMy WebLinkAbout5 Donner Lake Surcharge Agenda Item # 50k
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Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: June 30, 2006
Subject: Donner Lake Surcharge public hearing
Why this matter is before the Board: This matter involves holding a public
hearing prior to adopting an ordinance establishing a billing surcharge applicable
to Donner Lake Customers. The board conducts this hearing.
History: This matter has been discussed at recent Board meetings and will be
discussed during a staff presentation on Wednesday evening. I will not take time
here to go over the entire history again.
New Information: A public hearing has been advertised in the Sierra Sun and on
the District's website. Notices were posted in the Nevada County Library and the
Post Office, as well as emailed to interested parties and associations for
distribution within the groups. Notice of this public hearing was also announced
on the local KTKE Truckee Radio Station over the past weekend.
Staff has prepared a FAQ sheet addressing the Donner Lake Surcharge, a copy
of which is attached. It was posted on the website and available to the public
upon request.
Recommendation: At the conclusion of the public hearing you will not be taking
any action. The adoption of this ordinance will be addressed at the Special
meeting held July 12, 2006,
Donner Lake Billing Surcharge
Frequently Asked Questions
Q: How much will the billing surcharge be?
A: The proposal is to establish a monthly billing surcharge of$6.65 for TDPUD
customers at Donner Lake.
Q: When will the increase occur?
A: The surcharge would take effect approximately October 1, 2006.
Q: How long will the surcharge last?
A: The surcharge will last for thirty years
Q: Why is the surcharge necessary?
A: Acquisition and reconstruction of the Donner Lake water system exceeded our
original estimate by$1,500,000. The original estimated cost was $12,000,000. The
actual cost was $13,500,000, an increase of 12.5% over five years. The bulk of the cost
increase is related to acquiring the system from Del Oro Water Company through
condemnation.
Q: Why is the surcharge being imposed on just Donner Lake customers?
A: The Donner Lake customers are expected to pay the cost of acquiring and
reconstructing the Donner Lake system without there being a financial contribution from
the other TDPUD customers.
Q: We are already paying an annual assessment. Why do we need to pay a surcharge
also?
A: The assessment that appears on your annual property tax bill is not sufficient to pay
the entire cost of acquisition and reconstruction of the Donner Lake water system. The
surcharge makes up the difference.
Ordinance No. 2006 - ZZ
ESTABLISING A MONTHLY BILLING SURCHARGE
APPLICABLE TO THE DONNER LAKE AREA
WHEREAS the District acquired and reconstructed the Donner Lake water system; and
WHEREAS the customers at Donner Lake who use the new water system and therefore
directly benefit by is reconstruction are required to pay the cost of such reconstruction; and
WHEREAS the Donner Lake Assessment District was formed to provide funding to pay the
cost of reconstruction, but the assessment district revenues are not sufficient to pay the full
cost; and
WHEREAS the District intends to establish a monthly billing surcharge in the amount of $6.65
applicable to customers in the Donner Lake area to provide revenues to pay for the remainder
of the cost of reconstruction; and
WHEREAS, on July 5, 2006 a public hearing was held to receive comments from the public
concerning the proposal to adopt such billing surcharge;
NOW, THEREFORE, BE IT ENACTED by the Board of Directors of the Truckee Donner Public
Utility District as follows:
Section 1. Effective October 1, 2006 a surcharge in the amount of six dollars and sixty-five
cents ($6.65) shall be added to the water bills of customers in the Donner Lake water system
area.
Section 2. If no protest is made pursuant to Public Utilities Code Section 16078, then the terms
of this ordinance shall be effective thirty days after adoption by the board of directors of the
District.
Section 3. The Clerk of the District shall immediately cause a copy of this ordinance to be
published in a newspaper of general circulation and posted in three places within the District.
Section 4. The provisions of other Ordinances shall remain in effect to the extent that they do
not conflict with this ordinance.
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District
at a meeting duly called and held within the District on the _ day of 2006 by the
following roll call vote:
AYES:
NOES:
ABSENT:
Ordinance 2006-ZZ 1
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
J. Ron Hemig, President of the Board
ATTEST:
Peter L. Holzmeister, Clerk of the Board
Ordinance 2006-ZZ 2
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June 27, 2006
CBR Enterprises
Ellis and Carol Rose
905 Wendell Way
Woodland, CA 95695
Attn.: Sara Owens
To the Board of Directors of the Truckee Donner Public Utility District:
We have owned a seasonal home at 15473 South Shore Drive, Donner Lake, for almost
thirty-five years. We have often been engulfed by various fees, "taxes", town expansion
charges, and other surcharges.
For example:
✓ Cebridge Cable: PEG Access Support charge, maintenance charge, FCC fee,
and Franchise fee, totaling$3.42. They often slip in a Safeguard protection fee,
too.
✓ Southwest Gas Corporation: PPP Surcharge, CPUC Surcharge, Expansion Area
Facilities Surcharge, Town of Truckee Franchise Fee, and a basic service charge,
totaling$10.22,
✓ Truckee Donner PUD: Customer charge and CA State surcharge tax, totaling
$6.19.
✓ And, finally, we are all familiar with the most famous of the fee and surcharger
people, AT&T/SBC: Federal subscriber line charge, rate surcharge, state
regulatory fee, federal universal service fee, totaling $4.73 for"surcharges and
Other Fees". Then they list the Government Fees and Taxes: CA High Cost Fund
Surcharge-A, CLA High Cost Fund Surcharge-LB, California teleconnect Fund
Surcharge, Universal Lifeline Telephone Service Surcharge, CA Relay Service
and Communications Devices Fund, 911 Emergency System, lastly, Federal,
totaling$1.94. Those come to $6.67, 37 percent of my entire telephone bill!
And now you want to slam us with another tax/surcharge just because we happen to own
property at Donner Lake! Why not the people at Tahoe Donner or North Star, or Martis
Valley, or Glenshire, or Serene Lakes? They must be next.
Please register this: we are very much again another tax or surcharge to be added to
our tax bill or to be leveled just as T-TSA and TSD.
Sin5orely,
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CBR Enterprises