HomeMy WebLinkAbout9 Public Hearing Standby ChargesAGENDA ITEM #9
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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.
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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.