HomeMy WebLinkAbout14 California State Water Board's InvioceTo: Board of Directors
From: Brian Wright
Date: May 03, 2017
Subject: Consideration to Approve the California State Water Board's Invoice
1. WHY THIS MATTER IS BEFORE THE BOARD
District Code requires that all procurements or expenses in excess of $15,000 are
approved by the Board of Directors.
2. HISTORY
The District operates two public drinking water systems, the Truckee -Main System
and the Truckee-Hirschdale System. Each of these systems are defined as "Public
Water Systems" under the Safe Drinking Water Act (SDWA), and are operated under
a individual permit issued by the State Water Resources Control Board (SWRCB), as
required under the California Health and Safety Code. The Drinking Water Program
(DWP) is a program within the SWRCB assigned to manage the permitting and
regulatory compliance of all public water systems in the State of California, and is
funded by an annual fee required by all public water systems.
On April 10, 2017 the California Office of Administrative Law (OAL) approved
regulation providing a revision to the California Health Cl" Safety Code (HSC)
schedule of fees for public water systems with the establishment of HSC section
116565. The SWRCB Initial Statement of Reason provided that a new fee schedule
has been established to "reimburse the State Board for costs it incurs administering
the SDWA". The recent regulation allows for modification of the fee schedule from a
"fee for services" to a combined flat fee and tiered fee structure. The tiered portion of
the fee structure is a de-escalating tiered, per customer service connection fee.
Additionally, the regulation authorizes the SWRCB to adjust the fees to match budget
appropriations on an annual basis. A breakdown of the new schedule of fees has
been provided as an attachment to this document.
The SWRCB revised fee schedule has significantly increased the annual fee required
to be paid by the District. To provide perspective on the fee increase a comparison
between the FY15-16 and FY16.17 has been provided in the table below:
Fee Period
Fee Structure
Total Annual Fee
7/1/15-6/30/16
Fee for Services
$ 13,738.00
7/1/16-6/30/17
Flat Fee +Tiered Fee
$ 35/302000
The District has received invoices from the SWRCB, dated April 121 2017, for the
annual fees associated with the Truckee -Main System and the Truckee-Hirschdale
System, in the total combined amount of $35,052.
4. FISCAL IMPACT
The additional expenses incurred due to the recently adopted regulation and revised
fee schedule by the SWRCB were not included in the Board approved FY17 Water
Operations Budget. Sufficient funds exist in the Board approved FY17 Water General
Fund for the 2017 SWRCB Water System Fee,
5. RECOMMENDATION
Authorize the General Manager to remit payment to the State Water Resources
Control Board for the annual Water System Fees associated with the Truckee -Main
System and the Truckee-Hirschdale System, for the total invoiced amount of $35,302,
0 -Z -
Michael D. Holley
General Manager / Water Utility Manager