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HomeMy WebLinkAbout9 Public Hearing Standby ChargesAGENDA ITEM #9 Page 1 of 2 MEETING DATE:April 7, 2021 TO:Board of Directors FROM:Michael Salmon,CFO SUBJECT:Hold a Public Hearing Related to Adoption of District Resolutions 2021-08, 2021-09, 2021-10, and 2021-11 for Annual Electric and Water Standby Charges. APPROVED BY______________________________ Brian C. Wright, Interim General Manager RECOMMENDATION: a)Conduct a public hearing for the purpose of receiving input on the adoption of annual Electric and Water Standby Charges. b)Adopt the following resolutions: 1)Resolution 2021-08 Continuing and Fixing Water Standby Charges for Fiscal Year 2021-2022; 2)Resolution 2021-09 Continuing and Fixing Electric Standby Charges for Fiscal Year 2021-2022; 3)Resolution 2021-10 Fixing and placing Electric and Water Standby Charges on County of Placer Tax Roll for Collection; and 4)Resolution 2021-11 Requesting Collection of Electric and Water Standby Charges on Placer County Tax Roll. BACKGROUND: It is the Board's purview to conduct public hearings.At the March 3, 2021 meeting, the Board set a public hearing to be held on April 7, 2021 to receive written and oral Comments from the public regarding the adoption of certain resolutions establishing/continuing and collecting electric and water standby charges for the 2021-2022 property tax year.The Public Hearing was advertised in the Sierra Sun Newspaper on March 19th and 26th, 2021. Board action is required annually to adopt electric and water standby charges for the 2021- 2022 property tax year.This process begins by scheduling a public hearing to renew the existing electric and water standby charges. Each year the Board is required to adopt resolutions establishing and setting electric and water standby charges and requesting Nevada and Placer Counties to collect the charges as a component of the annual property tax bills. Page 2 of 2 Standby charges have been assessed on vacant parcels in the District since 1975. These annual charges recoup the District's operating and maintenance costs of the electric and water distribution facilities from parcel owners who benefit from their vacant lot being in close proximity to the distribution facilities. The current Electric Standby Charge applies to vacant parcels with a District electric distribution line installed along an easement or along a public road or right of way within 200 feet of the nearest exterior boundary line of any such parcel.The Electric Standby Charge is $20.00 per year for each parcel 1 acre or larger, or $10.00 per year for each parcel less than 1 acre. The current Water Standby Charge applies to vacant parcels with a District water distribution line not less than two inches in diameter installed within 100 feet of the nearest exterior boundary line of any such parcel. The current Water Standby Charge is $80.00 per parcel per year. Standby rates have not been modified in many years.No changes to Standby Charge rates is recommended for 2021/2022.The qualifying parcel lists are currently in preliminary draft form. Final lists will be on record with Placer and Nevada Counties and the District Clerk's Office. Staff recommends after hearing and considering all public comments in the Public Hearing, review and discussion of the Resolutions and this Staff report; to renew the existing Electric and Water Standby Charges on vacant parcels in the District for 2021/2022. FISCAL IMPACT: The estimated standby revenue for 2021-2022 is $18K for Electric and $115K for Water, consistent budgeted revenue in the approved FY21 Budget.There are an estimated 1710 parcels in Nevada County and 65 parcels in Placer County subject to Standby Charges. ATTACHMENTS: Attachment 1 contains four resolutions required to continue assessing standby charges and place them on Nevada and Placer County tax rolls. Resolution 2021-08 is continuing the Water Standby Charge for the 2021-2022 property tax year. Resolution 2021-09 is continuing the Electric Standby Charge for the 2021-2022 property tax year. Resolutions 2021-10 and 2021-11 request Placer and Nevada Counties to collect the charges on the tax roll.