Time Set # 35.
Board of Supervisors
- Meeting Date:
- 07/23/2024
- Brief Title
- Public Hearing on Proposition 218 for Wild Wings CSA Water & Sewer Fees
From:
Leslie Lindbo, Director of the Department of Community Services
Staff Contact:
Yana Pavlova, County Service Areas Manager, County Administrator's Office, x8157
Supervisorial District Impact:
District 3
Subject
Hold a Proposition 218 public hearing, tabulate protests and, if no majority protest exists, adopt a resolution approving an increase in the water and sewer service charges, commencing with FY 2024-25, for the Wild Wings County Service Area (CSA) and setting the charges to be collected on the County tax roll for FY 2024-2025 in the Wild Wings CSA, including the rate for Measure O (golf course special tax). (No general fund impact) (Lindbo/Pavlova) (Est. Time: 10 min)
Recommended Action
- Hold a Proposition 218 public hearing;
- Direct staff to tabulate protests received prior to the close of the public hearing;
- If no majority protest exists, adopt a resolution approving an increase in the water and sewer service fees, commencing with FY 2024-25, for the Wild Wings County Service Area and setting the charges to be collected on the FY 2024-2025 County tax roll, including setting the Measure O special tax rate (Wild Wings golf course) for FY 2024-25, as set forth in Attachment A;
- If a majority protest exists, adopt the alternative resolution confirming the charges to be collected on the FY 2024-2025 County tax roll consistent with the current water and sewer service charges, as well as setting the Measure O special tax rate for FY 2024-25, as set forth in the alternative resolution included as Attachment I;
- Direct the Clerk of the Board to forward a certified copy of the resolution to the Department of Financial Services.
Strategic Plan Goal(s)
 |
Thriving Residents |
 |
Sustainable Environment |
Reason for Recommended Action/Background
Water and sewer fees are charged to Wild Wings CSA customers in order to fund the costs of providing safe and reliable water service and to fund the costs of operating and maintaining the sewer and sewage treatment system for the Wild Wings community. The proposed charges were calculated in order to evenly spread applicable costs among users according to the cost of providing service based on residents' use of the services. The water and sewer services and the basis for the proposed rate changes are described in more detail in the 2024 Water and Wastewater Rate Study Reports (Attachments B and C). The Engineer’s Fee Study Reports provide the estimated annual cost of providing water and sewer service to each parcel within the Wild Wings CSA, the revenue sources anticipated to provide the services and the basis of the allocation of the costs of the services.
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 2024 Water and Wastewater Rate Study Reports (Attachments B and C) prepared by LSCE, 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 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. 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. Revenues will also be used towards capital improvement projects in the community, such as the arsenic treatment project pending at the community's Pintail well, and the building of a new Wood Duck well to assist the community with stable and clean water supply.
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 are expected to use less than 180,000 gallons of water per year and would not be charged the Tier 2 water rate. More information regarding the reason and basis for the proposed rate changes is provided in the 2024 Water and Wastewater Rate Study Reports (Attachments B and C), the Water and Sewer Rate Update Frequently Asked Questions (Attachment D), and the notice that was mailed to all Wild Wings CSA property owners of record (Attachment E).
The Wild Wings Golf Course is the only non-residential property in the Wild Wings CSA. The proposed golf course water rate for FY 2024-2025 is $25,547.59, subject to an annual CPI adjustment up to 2.5% per year through FY 2028-2029. The golf course wastewater charge for FY 2024-2025 is $14,660 with increases thereafter as follows: FY 2025-2026: $14,715; FY 2026-2027: $14,676; FY 2027-2028: $19,078; and FY 2028-2029: $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 2024 Water and Wastewater Engineer’s Fee Study Reports (Attachments B and C).
Water and wastewater fees are subject to Proposition 218, and any changes to the fees require a public hearing and tabulation of valid written protests received by the Clerk of the Board before the conclusion of the public hearing (if any), before adopting the proposed fee increases. A protest can be made against either the proposed water fee increase, the proposed wastewater fee increase, or against both fee increases, but must be specified in the written protest. Protests that do not identify whether they are for water or wastewater will be counted as protests for both the water and wastewater rate changes. If more than 50% of the affected property owners submit written protests against the proposed fee increases, the increase(s) cannot be adopted.
County staff and LSCE presented the 2024 Water and Wastewater 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 was incorporated into the final 2024 Water and Wastewater Engineer’s Rate Study Reports. On May 14, 2024, the CSA Advisory Committee convened to discuss the proposed water and wastewater rates with the community and reviewed the updated Proposition 218 notice and Frequently Asked Questions. On July 11, 2024, the CSA Advisory Committee also held a Town Hall meeting to again review the proposed rates with residents and answer their questions. The Town Hall presentation to the community is provided in Attachment G).
Notice of the public hearing was mailed to residents at least 45 days before the July 23, 2024 public hearing (Attachment E). The notice summarized the reason for the charges, the basis for the calculation of the proposed rate charges, and the maximum five-year rate schedule of charges. The community also received in the mail along with a cover letter dated June 7, 2024, the list of Frequently Asked Questions (Attachment D) and an optional protest form (Attachment F).
Protest Tabulation
The Board of Supervisors previously approved guidelines for tabulating protests in such property -related fee proceedings consistent with Proposition 218 (Resolution No. 19-66). That resolution is provided as Attachment H for reference. A majority protest exists if written protests are timely submitted and not withdrawn by the record owners or customers of record with respect to a majority (50% plus one) of the parcels subject to the proposed change. Only one protest per parcel is counted. There are 338 residential parcels within the Wild Wings CSA that receive water and sewer service. As a result, at least 170 valid protests are required to preclude the Board of Supervisors from approving the proposed water and sewer rate changes. Absent a majority protest, the Board may adopt the resolution (Attachment A) approving the revised water and wastewater rates consistent with the Proposition 218 notice (Attachment E) and LSCE's rate studies.
If there is a majority protest precluding the Board from approving the proposed water and sewer rates, we have provided an alternative resolution (Attachment I) that would maintain the water and sewer rates at the current rate consistent with the last successful Proposition 218 rate process (Resolution No. 18-76).
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 2024 Water and Wastewater Rate Study Reports (Attachments B and C) prepared by LSCE, 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 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. 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. Revenues will also be used towards capital improvement projects in the community, such as the arsenic treatment project pending at the community's Pintail well, and the building of a new Wood Duck well to assist the community with stable and clean water supply.
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 are expected to use less than 180,000 gallons of water per year and would not be charged the Tier 2 water rate. More information regarding the reason and basis for the proposed rate changes is provided in the 2024 Water and Wastewater Rate Study Reports (Attachments B and C), the Water and Sewer Rate Update Frequently Asked Questions (Attachment D), and the notice that was mailed to all Wild Wings CSA property owners of record (Attachment E).
| Max. Annual Water Charges - Residential |
FY 23/24 | 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 | FY 23/24 | 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: | $3,571.07 | $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 2024-2025 is $25,547.59, subject to an annual CPI adjustment up to 2.5% per year through FY 2028-2029. The golf course wastewater charge for FY 2024-2025 is $14,660 with increases thereafter as follows: FY 2025-2026: $14,715; FY 2026-2027: $14,676; FY 2027-2028: $19,078; and FY 2028-2029: $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 2024 Water and Wastewater Engineer’s Fee Study Reports (Attachments B and C).
Water and wastewater fees are subject to Proposition 218, and any changes to the fees require a public hearing and tabulation of valid written protests received by the Clerk of the Board before the conclusion of the public hearing (if any), before adopting the proposed fee increases. A protest can be made against either the proposed water fee increase, the proposed wastewater fee increase, or against both fee increases, but must be specified in the written protest. Protests that do not identify whether they are for water or wastewater will be counted as protests for both the water and wastewater rate changes. If more than 50% of the affected property owners submit written protests against the proposed fee increases, the increase(s) cannot be adopted.
County staff and LSCE presented the 2024 Water and Wastewater 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 was incorporated into the final 2024 Water and Wastewater Engineer’s Rate Study Reports. On May 14, 2024, the CSA Advisory Committee convened to discuss the proposed water and wastewater rates with the community and reviewed the updated Proposition 218 notice and Frequently Asked Questions. On July 11, 2024, the CSA Advisory Committee also held a Town Hall meeting to again review the proposed rates with residents and answer their questions. The Town Hall presentation to the community is provided in Attachment G).
Notice of the public hearing was mailed to residents at least 45 days before the July 23, 2024 public hearing (Attachment E). The notice summarized the reason for the charges, the basis for the calculation of the proposed rate charges, and the maximum five-year rate schedule of charges. The community also received in the mail along with a cover letter dated June 7, 2024, the list of Frequently Asked Questions (Attachment D) and an optional protest form (Attachment F).
Protest Tabulation
The Board of Supervisors previously approved guidelines for tabulating protests in such property -related fee proceedings consistent with Proposition 218 (Resolution No. 19-66). That resolution is provided as Attachment H for reference. A majority protest exists if written protests are timely submitted and not withdrawn by the record owners or customers of record with respect to a majority (50% plus one) of the parcels subject to the proposed change. Only one protest per parcel is counted. There are 338 residential parcels within the Wild Wings CSA that receive water and sewer service. As a result, at least 170 valid protests are required to preclude the Board of Supervisors from approving the proposed water and sewer rate changes. Absent a majority protest, the Board may adopt the resolution (Attachment A) approving the revised water and wastewater rates consistent with the Proposition 218 notice (Attachment E) and LSCE's rate studies.
If there is a majority protest precluding the Board from approving the proposed water and sewer rates, we have provided an alternative resolution (Attachment I) that would maintain the water and sewer rates at the current rate consistent with the last successful Proposition 218 rate process (Resolution No. 18-76).
Collaborations (including Board advisory groups and external partner agencies)
Wild Wings CSA Advisory Committee, County Counsel, Ludhorff and Scalmanini Consulting Engineers
Competitive Bid Process/Vendor Performance
Not applicable.
Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $ 0
- Amount budgeted for expenditure:
- $ 0
- Additional expenditure authority needed:
- $ 0
- One-time commitment:
- Yes
Source of Funds for this Expenditure
- General Fund
- $0
Further explanation as needed:
There is no fiscal impact to the County General Fund as a result of the recommended action.
Attachments
- Att. A. Resolution
- Att. B. Water Rate Study Report
- Att. C. Wastewater Rate Study Report
- Att. D. Water/Wastewater Rate Studies FAQs
- Att. E. Proposition 218 Notice
- Att. F. Letter and Optional Protest Form
- Att. G. July 11, 2024 CSA AC Townhall Presentation
- Att. H. Protest Tabulation Guidelines
- Att. I. Alternative Resolution
- Att. J. Presentation
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kimberly Hood | Kimberly Hood | 07/16/2024 05:44 PM |
| Financial Services | mrobertson | 07/17/2024 08:46 AM |
| County Counsel | Hope Welton | 07/17/2024 09:11 AM |
| Berenice Espitia | Berenice Espitia | 07/17/2024 01:46 PM |
| Berenice Espitia | Berenice Espitia | 07/17/2024 02:46 PM |
| Berenice Espitia | Berenice Espitia | 07/17/2024 02:48 PM |
- Form Started By:
- ypavlova
- Started On:
- 07/03/2024 10:50 AM
- Final Approval Date:
- 07/17/2024