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HomeMy WebLinkAbout7 Standby ChargesAgenda Item #7 To: From: Date: Subject: Board of Directors Mike Salmon May 20, 2020 Hold a Public Hearing Related to Adoption of District Resolutions 2020-12, 2020-13, 2020-14, and 2020-15 for Annual Electric and Water Standby Charges PUBLIC HEARING 1. WHY THIS MATTER IS BEFORE THE BOARD It is the Board's purview to conduct public hearings. At the May 6, 2020 meeting, the Board set a public hearing to be held on May 20th 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 2020-2021 property tax year.2. HISTORY 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 on the annual property tax bills. 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. 3. NEW INFORMATION A Public Hearing was advertised in the Sierra Sun Newspaper on May 8, 2020. Mike Salmon Michael D. Holley Chief Financial Officer General Manager The District has not changed the standby rates in many years, and no changes to the charges are being proposed at this time. The 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. Attachment 1 contains four resolutions required to continue assessing standby charges and place them on Nevada and Placer County tax rolls. Resolution 2020-12 is continuing the Water Standby Charge for the 2020-2021 property tax year. Resolution 2020-13 is continuing the Electric Standby Charge for the 2020-2021 property tax year. Resolutions 2020-14 and 2020-15 request Placer and Nevada Counties to collect the charges on the tax roll. 4. FISCAL IMPACT The estimated standby revenue for the 2020-2021 tax year is: Nevada County Placer County Electric $18,640 $450 Water $111,120 $3,120 Parcels 1,717 67 This is a Budgeted revenue item. 5. RECOMMENDATION 1) Conduct a Public Hearing to accept comments on establishing electric and water standby charges. 2.) Adopt the following resolutions: Resolution 2020-12 Continuing and Fixing Water Standby Charges for Fiscal Year 2020-2021; Resolution 2020-13 Continuing and Fixing Electric Standby Charges for Fiscal Year 2020-2021; Resolution 2020-14 Fixing and placing Electric and Water Standby Charges on County of Placer Tax Roll for Collection; and Resolution 2020-15 Requesting Collection of Electric and Water Standby Charges on Placer County Tax Roll.