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HomeMy WebLinkAbout9 Public Hearing Standby ChargesAGENDA ITEM #9 Page 1 of 2 MEETING DATE:April 6, 2022 TO:Board of Directors FROM:Michael Salmon, CFO SUBJECT:Conduct a Public Hearing Related in Consideration to Adopt District Resolutions 2022-06, 2022-07, 2022-08, and 2022-09 for Annual Electric and Water Standby Charges. APPROVED BY______________________________ Brian C. Wright, General Manager RECOMMENDATION: Conduct a public hearing and adopt the following resolutions:  Resolution 2022-06 Continuing and Fixing Water Standby Charges for the Fiscal Year 2022-2023;  Resolution 2022-07 Continuing and Fixing Electric Standby Charges for the Fiscal Year 2022-2023;  Resolution 2022-08 Requesting Collection of Electric and Water Standby Charges on Placer County Tax Roll; and  Resolution 2022-09 Fixing and Placing Electric and Water Standby Charges on County of Nevada Tax Roll for Collection. BACKGROUND: It is the Board's purview to conduct public hearings. At the March 2, 2022 meeting, the Board set a public hearing to be held on April 6, 2022 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 2022-2023 property tax year. The Public Hearing was advertised in the Sierra Sun Newspaper on March 25, 2022. Board action is required to adopt electric and water standby charges for the 2022-2023 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 Page 2 of 2 water standby charges and requesting Nevada and Placer Counties to collect the charges as a component of 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. ANALYSIS: 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 2022/2023.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 2022/2023. FISCAL IMPACT: The estimated standby revenue for 2022-2023 is $17K for Electric and $105K for Water, consistent with budgeted revenue in the approved FY22 Budget. There are an estimated 1560 parcels in Nevada County and 60 parcels in Placer County subject to Standby Charges. ATTACHMENTS: Attachment 1 Resolution 2022-06 Continuing and Fixing Water Standby Charges for the Fiscal Year 2022-2023 Attachment 2 Resolution 2022-07 Continuing and Fixing Electric Standby Charges for the Fiscal Year 2022-2023 Attachment 3 Resolution 2022-08 Requesting Collection of Electric and Water Standby Charges on Placer County Tax Roll Attachment 4 Resolution 2022-09 Fixing and Placing Electric and Water Standby Charges on County of Nevada Tax Roll for Collection