Authorize staff to initiate Wild Wings County Service Area Proposition 218 proceedings for water and sewer fee changes and set a public hearing for July 23, 2024, for the Board to consider approval of new maximum water and sewer rates to be billed to Wild Wings CSA customers starting on the FY 2024/25 tax roll. (No general fund impact) (Lindbo/Cormier)

The recommended actions are to initiate the process for the Wild Wings County Service Area (CSA) to adopt a change to the water and wastewater fees to cover the costs of providing water and wastewater (sewer) service within the CSA. 

Yolo County contracted with Luhdorff and Scalmanini Consulting Engineers (LSCE) to identify and analyze costs and confirm revenue needs for the Wild Wings water and wastewater systems.  Per the Water and Wastewater Rate Study Reports prepared by LSCE (provided as Attachments B and C), the costs for services have increased for staffing, equipment, regulatory compliance, materials and supplies, supply chain issues resulting in higher costs for delivering services and products, cost increases and increased capital construction projections from the last engineer's report, which was prepared in 2018. 

The current Fiscal Year (FY) 2023/2024 charges and proposed water and wastewater rates and charges for residential customers are provided below. If approved, these rates and charges will be adopted as maximum rates and charges for the next five years, commencing with the FY 2024/2025 tax bills through FY 2028/2029. All revenues collected will be used to operate, maintain, rehabilitate, and/or replace water and wastewater utility infrastructure in accordance with applicable state and federal standards, requirements, and regulations.  The proposed rate changes will implement a two-tier water charge based on prior year usage.  Any usage above 180,000 will be charged at a new, higher Tier 2 rate.  The tiers are designed to recover the incremental costs incurred by the CSA operating and maintaining the water system to meet the consumption demand of those who use the most water and place the greatest demand on the water system.  The majority of Wild Wings CSA customers, however, are expected to use less than 180,000 gallons of water per year and will not be charged the Tier 2 water rate. More information regarding the reason and basis for the proposed rate changes is provided in the Rate Study Reports (Attachments B and C), the Water and Sewer Rate FAQ (Attachment D), and the notice that will be mailed to all Wild Wings CSA property owners of record (Attachment A). 

 

Max. Annual Water Charges - Residential	Current	FY 24/25	FY 25/26	FY 26/27	FY 27/28	FY 28/29
Fixed Meter Charge	$1,371.31	$875.32	$887.35	$899.61	$911.47	$914.00
Tier 1 Water Charge (0-180,000 gallons annually)		$0.605 per 100 gallons	$0.62 per 100 gallons	$0.636 per 100 gallons	$0.652 per 100 gallons	$0.668 per 100 gallons
Tier 2 Water Charge (180,001+ gallons annually)		$1.25 per 100 gallons	$1.28 per 100 gallons	$1.31 per 100 gallons	$1.34 per 100 gallons	$1.37 per 100 gallons
Total Annual Water Charge:	Fixed Meter Charge = Tier 1 Water Charge + Tier 2 Water Charge (if applicable)
Max. Annual Wastewater (Sewer) Charges - Residential	Current	FY 24/25	FY 25/26	FY 26/27	FY 27/28	FY 28/29
Annual Fixed Charge	$3,170.44	$3,571.07	$3,584.34	$3,574.92	$4,647.14	$5,257.28
Total Annual Wastewater Charge	$3,170.44	$3,571.07	$3,584.34	$3,574.92	$4,647.14	$5,257.28

The Wild Wings Golf Course is the only non-residential property in the Wild Wings CSA.  The proposed golf course water rate for FY 24/25 is $25,547.59, subject to an annual CPI adjustment up to 2.5% per year through FY 28/29. The golf course wastewater charge for FY 24/25 is $14,660 with increases thereafter as follows: FY 25/26: $14,715; FY26/27: $14,676; FY27/28: $19,078; and FY 28/29: $21,583. The proposed water and wastewater commercial rates charged to the golf course are decreasing from the current rates based on the updated costs of service and cost allocation analysis in LSCE's updated Rate Study Reports (Attachments B and C).  

County staff and LSCE presented the Rate Study Reports to the Wild Wings CSA Advisory Committee at the October and December 2023 and February and April 2024 meetings.  Feedback provided by the CSA Advisory Committee has been incorporated into the final LSCE Rate Study Reports.  

Water and wastewater fees are subject to Proposition 218, and any changes to the fees require the CSA to hold a public protest hearing before adopting the proposed fee increases. A protest can be made against the proposed water fee increase, wastewater fee increase, or both fee increases, but must be specified in the protest. If more than 50% of the affected property owners submit written protests against the proposed fee increases, the increase(s) cannot be adopted. Notice of the protest hearing will be mailed to residents at least 45 days before the July 23rd public hearing. The Proposition 218 notice that will be sent to Wild Wings property owners of record is provided in Attachment A and summarizes the reason for the charges, the basis on which the proposed rate changes are based, and the maximum five-year rate schedule of changes.  A list of frequently asked questions (FAQ) has also been prepared with additional information for the community regarding the proposed rates (Attachment D).  

Wild Wings CSA Advisory Committee, County Counsel, Ludhorff and Scalmanini Consulting Engineers

Not applicable