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HomeMy WebLinkAbout13 Proposed Water Rates Agenda Item # 13 DONNER Public Utility Di U,A`E�M WORKSHOP To: Board of Directors From: Neil Kaufman Date: September 02, 2009 Subject: Discussion of the Process to Adopt the Proposed Water Rates 1. WHY THIS MATTER IS BEFORE THE BOARD The purpose of this workshop is to discuss the process for adopting new water rates. 2. HISTORY Proposition 218 was adopted in 1996 and became effective in 1997. It is also known as the "Right to Vote on Taxes Act." In February 2009, Steve Gross gave a presentation to the Board regarding Proposition 218 and how it impacts the District. 3. NEW INFORMATION The adoption of new water rates is subject to the requirements of Proposition 218. The main issues are: • The District is required to mail a notice to all ratepayers and property owners of the proposed change in rates; • The District is required to hold a public hearing at least 45 days after the mailing of the notices; and • The proposed change in rates is considered rejected if written protests are received from a majority of the affected property owners. Therefore, the following schedule has been developed for implementation of the new rate structure: • Board Workshop on proposed water rates and draft ordinance - September 2 • Consideration/Approval of new water rates - September 16 • Printing and mailing of notices for public hearing - September 17 to September 25 • Notice published in Sierra Sun - Week of October 19 • Public Hearing on Proposed Water Rates and Board adoption vote - November 18 • Implementation of New Rates-January 2010 The public hearing on November 19 meets both the requirements of Proposition 218 and District policies regarding adoption of an ordinance. The draft of the Water Rate Study Report is attached for review and comment. The adoption of the Final Water Rate Study Report will come before the Board for formal consideration at the September 19 Board meeting. 4. FISCAL IMPACT There is no direct fiscal impact associated with this workshop item. 5. RECOMMENDATION Receive this report and provide comment. y -,� Ed Taylor Michael D. Holley Water Utility Manager General Manager