HomeMy WebLinkAbout8 Water Electric standby charges Agenda Item # 8
Public Utility District
Workshop
To: Board of Directors
From: Neil Kaufman
Date: June 4, 2008
Subject: Review of Water and Electric System Standby Charges
1. WHY THIS MATTER IS BEFORE THE BOARD
The Board requested a review of water and electric system standby charges.
2. HISTORY
In 1975, the District began collecting standby charges on vacant parcels for both the electrical and
water systems. The fees in 1975 were:
Parcel Size Electric System Standby Charge Water System Standby Charge
One acre or larger $20.00 $10.00
Smaller than one acre $10.00 $5.00
In 1991, the District revised the water system standby fees. A report prepared by Sauers
Engineering recommended that the Water System Standby Charge be changed to$80.00 per parcel
regardless of parcel size. The $80 fee has been authorized annually since 1991 in accordance with
the Uniform Standby Procedures Act. Electric system standby fees have remained unchanged
since 1975.
In 2001, the District acquired the Donner Lake Water System. In 2002, the District acquired the
Glenshire Water System. After acquisition of these systems, the District charged the same $80
charge to vacant parcels in the Donner Lake and Glenshire areas.
In 2006, it was determined that the District had not followed the proper procedures in imposing the
standby charge in the Donner Lake and Glenshire area. The monies collected in these areas were
then refunded to the property owners.
In April 2007, a presentation was given to the Board regarding the possibility of imposing Standby
Charges at Donner Lake and Glenshire. A number of alternatives were presented, along with a
memorandum from Steve Gross regarding how Proposition 218 applies to Standby Charges. The
Board decided not to pursue the imposition of Standby Charges at Donner Lake and Glenshire and
no changes to prior practice were made.
3. NEW INFORMATION
The agenda for the June 4 Board meeting includes an action item to approve resolutions
requesting Nevada County and Placer County to collect the appropriate Standby Charges.
4. FISCAL IMPACT
There no fiscal impact associated with this workshop. This information is presented at the
request of the Board.
5. RECOMMENDATION:
That the Board receive this report and provide comments.
Ed Taylor, Water Utility Manager Michael D. Holley, General Manager
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