HomeMy WebLinkAboutMINUTES - 12162014 - C.18RECOMMENDATION(S):
FIX a public hearing for March 3, 2015 at 9:00 a.m. to consider increasing the water service charge imposed on real
property within County Service Area (CSA) M-28; ADOPT Resolution No. 2014/456 establishing procedures for
submitting and counting protests against the proposed increase; and, DIRECT the Public Works Director, or designee,
to mail written notice of the hearing to the owner of each parcel that will be subject to the increased water service
charge, as recommended by the Public Works Director, Bethel Island area. (District III)
FISCAL IMPACT:
The increase of the water service charge from $91,937.40 to $335,939 will provide revenues for continued operation
and maintenance of a water supply system as well as provide funds necessary to construct the capital improvement
projects in CSA M-28 (100% CSA M-28 Funds).
BACKGROUND:
On December 10, 1991, the Contra Costa County Board of Supervisors adopted County Resolution No. 91/807,
which formed County Service Area M-28 (CSA M-28). CSA M-28 was formed pursuant to the County Service Area
Law to provide treated water service to a single parcel of real property within CSA M-28, identified as Assessor’s
Parcel No. 029-020-004 (the “Parcel”). The County provides treated water to the Parcel owner’s connection, and the
Parcel owner is responsible for distributing the water to the individual units of the Willows at Bethel Island
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 12/16/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Jason Chen,
925-313-2999
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: December 16, 2014
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Engineering Services, W. Lai, Special Districts Manager, S. Cohen, J. Chen, Special Districts/Engineering Services, Clerk of The Board
C. 18
To:Board of Supervisors
From:Julia R. Bueren, Public Works Director/Chief Engineer
Date:December 16, 2014
Contra
Costa
County
Subject:FIX a public hearing to consider increasing the water service charge within County Service Area M-28, Bethel Island
area.
BACKGROUND: (CONT'D)
Mobile Home Park. The County imposes a service charge on the Parcel to fund the operation, maintenance, and
servicing of the water system.
The current CSA M-28 system is over 20 years old and, as an aging system, the operational costs have increased
over the years. The current service charge automatically adjusts each year based on the rate of the change in the
consumer price index. However, even with these increases, revenue from the current service charge has been
insufficient to fund the operation, maintenance, and servicing of the CSA M-28 water system. The County relies
on General Fund monies to fund CSA M-28 expenses that exceed revenue from the current CSA M-28 service
charge.
In the current fiscal year, Fiscal Year 2014-2015, the annual service charge is $91,937.40. During the same fiscal
year, County staff estimates that it will cost $104,395.40 to operate, maintain, and service the CSA M-28 water
system and provide treated water service to the Parcel. In addition, a consultant retained by the Public Works
Department has determined that the aging CSA M-28 water system will require approximately $1,231,000,
adjusted for inflation, in improvements and repairs to remain operational. A copy of the consultant’s report is
attached hereto as Attachment A.
To recover the County’s actual costs to operate, maintain, and service the CSA M-28 water system, County staff
proposes increasing the CSA M-28 annual service charge to $335,939, beginning in Fiscal Year 2015-2016.
Public Works Department staff calculated the amount of the increased service charge, as follows:
*Estimated Operation Expenditures - $111,000
This is the estimated cost to operate, maintain, and service the CSA M-28 system. Operational expenses include:
communications, utilities, chemical and parts, publications and legal notices, membership, operator, lab testing,
tax and assessment fees, National Pollutant Discharge Elimination System (NPDES) permit, County
Environmental Health permit, and other County staff costs. The budget for Fiscal Year 2014-2015 is $104,395.40.
The proposed budget for Fiscal Year 2015-2016 is $111,000. The majority of the increase is due to an increase in
the operator line item. (See Table 1 in Attachment B.)
*Estimated Loan Payment – $151,368
As explained above, the aging CSA M-28 water system requires significant repairs to remain operational. The
estimated cost of those repairs (in 2014 dollars) is $1,231,000. In addition, $60,000 will be required to obtain a
NPDES permit. To fund these repairs and the costs to obtain a NPDES permit, a revolving fund will need to be
established. Money would be borrowed from this fund for CSA M-28 capital repairs and replacements and to
obtain a NPDES permit. Those funds would need to be repaid over a period of up to 10 years with an estimated
interest at the rate of 3% per year until the revolving fund is fully repaid. This will require an annual payment of
$151,368 to the revolving fund, until the revolving fund is fully repaid.
Because the amount required to repay the revolving fund will be fixed for the duration of the repayment term, this
component of the increased service charge will not be subject to inflationary increases in Fiscal Year 2016-2017,
or in any fiscal year thereafter. (See below.) After the revolving fund is fully repaid at the end of the repayment
term, this repayment component of the increased service charge will be eliminated, resulting in a reduction in the
then-current increased service charge.
*Estimated Capital Replacement Reserve – $73,571
In the past, a capital replacement reserve was not set aside for future capital replacement projects. County staff
proposes a capital replacement reserve to fund future capital repairs and improvements. The improvement
proposed by the consultant replaced many components of the CSA M-28’s system but not all. Regardless if CSA
M-28 utilizes an existing component or a new component is constructed, each of these components will need to
be replaced in the future. Major components of the CSA M-28’s system were analyzed with their useful lives,
their remaining useful lives and their estimated replacement costs. The remaining useful life of these components
ranges from 0 to 53 years. Dividing the current replacement cost by the remaining useful life in years gives the
amount that should be placed into reserve each year so that the asset can be replaced when it fails.
*Estimated Total Annual Service Rate – $335,939
As indicated above, the revenue from the increased service charge for Fiscal Year 2015-2016 will be equal to the
County’s actual costs to operate, maintain, and service the CSA M-28 treated water system. Therefore, revenue
from the increased service charge will not exceed the County’s costs to provide treated water service within CSA
M-28. Revenue from the increased service charge will be used only for the purposes of operating, maintaining,
and servicing the CSA M-28 water system, as described above. The treated water service provided to the Parcel is
actually used by the Parcel. The Parcel is the only parcel of real property within CSA M-28 that receives CSA
M-28 treated water service. Therefore, the increased service charge will not exceed the proportional cost to
provide treated water service that is attributable to the Parcel.
If approved, the increased service charge for Fiscal Year 2015-2016 will be $335,939. In fiscal year 2016-2017,
and in each subsequent fiscal year, the increased service charge will increase based on the change in the
Consumer Price Index for the San Francisco Bay Area All Urban Consumers for the twelve-month period ending
January 30 prior to the fiscal year in which the service charge will be levied.
CONSEQUENCE OF NEGATIVE ACTION:
The County would not be able to increase CSA M-28’s annual service charge to $335,939 beginning in Fiscal
Year 2015-2016. The County would continue to charge its existing service charge, which increases annually
based on the change in the Consumer Price Index for the San Francisco Bay Area All Urban Consumers.
However, because the amount of this service charge is lower than the County’s actual costs to operate, maintain,
and service the CSA M-28 treated water system, the County would need to continue to rely on General Fund
revenue transfers to pay costs to operate, maintain, and service the CSA M-28 water system. Alternatively, the
County could take steps to reduce the level of water treatment currently provided within CSA M-28, thereby
reducing the County’s costs to operate CSA M-28.
CHILDREN'S IMPACT STATEMENT:
Not applicable.
ATTACHMENTS
Resolution No. 2014/456
Attachment A
Attachment B
Exhibit A
Notice of Proposed Service Charge Increase & Protest Form
Resolution EXHIBIT A
CONTRA COSTA COUNTY
PROCEDURES FOR SUBMITTING AND COUNTING PROTESTS AGAINST A
PROPOSED INCREASE TO THE COUNTY SERVICE AREA M-28 WATER SERVICE
CHARGE BEGINNING FISCAL YEAR 2015-2016
Section 1. Purpose. The Board of Supervisors will consider whether to increase the annual
water service charge it levies on property within County Service Area M-28 (CSA M-28), in
accordance with section 6 of article XIIID of the California Constitution. The Board of
Supervisors will not impose the increase if owners representing a majority of parcels that would
be subject to the increased fee present timely written protests against the i ncrease. The purpose
of these procedures is to specify how protests must be submitted, and how protests will be
counted.
Section 2. Submission of Protests.
(a) Protest Submittal.
(1) To be considered, a protest must be submitted and received before the close of the
public hearing on the proposed increase.
(2) Only written protests by a record owner of real property within CSA M-28 will be
counted. A written protest may be submitted as follows:
(A) Before the hearing, by delivering the protest in person or by mail to:
Warren Lai, Assistant Public Works Director, Contra Costa County Public
Works Department, 255 Glacier Drive, Martinez, California 94553; or
(B) At the hearing, by personally submitting the written protest to the Clerk of
the Board of Supervisors before the closed of the hearing.
(3) Only an original written protest will be counted. An emailed, faxed, or
photocopied protest will not be counted.
(b) Written Protest Requirements.
(1) A written protest must include all of the following:
(A) The name of the record owner submitting the protest.
(C) The assessor’s parcel number of the parcel for which the protest is
submitted.
(D) A statement that the protest is against the proposed increase to the CSA
M-28 water service charge.
(2) A written protest must include the original signature of the record owner who
submits the protest.
(3) To protect the confidentiality of the person who submits a written protest, the
written protest may be submitted in a sealed envelope.
(c) Protest Withdrawal. At any time before the close of the public hearing, a record owner
who submits a written protest may withdraw the protest by submitting a written statement
withdrawing the protest. The statement must include all of the information required of
protests under subsection (b)(1), above, and must be signed by the person who is
withdrawing the protest. A protest will be withdrawn only if the protest and the written
statement withdrawing the protest are submitted and signed by the same person.
(d) Confidentiality and Disclosure.
(1) Any written protest received by the County will remain confidential until
counting of protests begins following the close of the public hearing.
(2) After a protest has been counted, it becomes a disclosable public record.
Section 3. Counting of Protests.
(a) Duties of Public Works Department Staff.
(1) The Public Works Department will receive and maintain all written protests
submitted before the close of the public hearing on the proposed increase to the
CSA M-28 water service charge. If a written protest is submitted at the hearing,
the Clerk of the Board will deliver the written protest to Public Works
Department staff present at the hearing before protest counting begins.
(2) After the close of the public hearing, Public Works Department staff will count all
written protests completed and submitted in compliance with these procedures
and report the results of the count to the Board of Supervisors. Public Works
Department staff will count only one written protest per parcel in accordance with
Government Code section 53755, subdivision (b).
(3) Public Works Department staff will not count a protest under any of the following
circumstances:
(A) The protest was not timely submitted in accordance with Section 2(a),
above.
(B) The protest does not meet the requirements of Section 2(b)(1)-(2), above.
(C) The protest is withdrawn before the close of the fee protest proceeding, in
accordance with Section 2(c), above.
(D) The protest was altered in a way that raises a fair question as to the
validity of the protest.
(2) The decision by Public Works Department staff that a protest will or will not be
counted is a final action of the County and is not subject to appeal.
(b) Determination of the Board of Supervisors. After Public Works Department staff reports
the results of the counting of protests to the Board of Supervisors, the Board of
Supervisors will determine whether a majority protest exists against the proposed
increase to the CSA M-28 water service charge. A majority protest will be deemed to
exist if counted written protests are from owners representing a majority of parcels that
will be subject to the increased charge.
CONTRA COSTA COUNTY
COUNTY SERVICE AREA M-28
NOTICE OF PROPOSED SERVICE CHARGE INCREASE AND PROTEST FORM
To: Dennee Willow LP Assessor’s Parcel No. 029-020-004
Wong Karel Kin Ming
Clanton Donal G & Esther TRE
3620 Charter Park Drive
San Jose, CA 95136-1345
County Service Area M-28
On December 10, 1991, the Contra Costa County Board of Supervisors adopted County
Resolution No. 91/807, which formed County Service Area M-28 (CSA M-28). CSA M-28 was
formed pursuant to the County Service Area Law to provide treated water service to the Willows
at Bethel Island mobile home park, located on the above-identified parcel, and to fund the
operation, maintenance, and servicing of the water system. The funding that supports the
operation, maintenance, and servicing of the CSA M-28 water system comes from an annual
service charge on the above-identified parcel.
Reason for Increasing the Service Charge
The current service charge automatically adjusts each year based on the rate of inflation.
However, even with these increases, revenue from the current service charge has been
insufficient to pay all costs associated with the operation, maintenance, and servicing of the CSA
M-28 water system.
In fiscal year 2014-2015, the County’s annual service charge imposed on the above-identified
parcel is $91,937.40. During the same fiscal year, the County estimates that it will cost
$104,395.40 to operate, maintain, and service the CSA M-28 water system and provide treated
water service within CSA M-28. The County relies on General Fund monies to pay costs not
paid by revenue from the current service charge. The CSA M-28 water system is an aging
system that requires approximately $1,231,000 in improvements and repairs to remain
operational. The County’s costs for all of these items are described in the enclosed board order.
To recover the County’s actual costs to operate, maintain, and service the CSA M-28 water
system, make needed repairs to the system, and establish a reserve fund, the County will need to
increase its service charge to $335,939 beginning in fiscal year 2015-2016 (the “Increased
Service Charge”). The entire amount of the Increased Service Charge will be levied on the
above-identified parcel of real property. Beginning in fiscal year 2016-2017, and in each
subsequent fiscal year, the Increased Service Charge will increase based on the change in the
Consumer Price Index for the San Francisco Bay Area All Urban Consumers for the twelve-
month period ending January 30 prior to the fiscal year in which the service charge will be
levied. The method the County used to calculate the Increased Service Charge is described in
the enclosed board order.
Notice of Public Hearing and Protest Procedure
In accordance with section 6 of article XIIID of the California Constitution, the Contra Costa
County Board of Supervisors will hold a public hearing on March 3, 2015, at 9:00 a.m., in the
Board Chambers, 651 Pine Street, Martinez, California 94553, to consider all public comments
and protests submitted against, and to consider the adoption of, the Increased Service Charge.
As the owner of the above-identified parcel of property that will be subject to the Increased
Service Charge, you may protest the Increased Service Charge by submitting a signed, written
protest, in accordance with the procedures adopted by Resolution No. 2014/456, a copy of which
is enclosed for your reference. Only a signed, written protest will be considered in determining
whether there exists a majority protest against the Increased Service Charge. The protest must be
received by the County before the close of the public hearing. The protest may be mailed or
personally delivered to: Warren Lai, Division Manager, 255 Glacier Drive, Martinez, CA 94553.
You also may deliver the protest in person at the hearing, before the close of the hearing.
The Increased Service Charge is a charge for water service. Therefore, the Board of Supervisors
may adopt the Increased Service Charge after the hearing, as long as protests are not received by
a majority of owners of the parcels that will be subject to the Increased Service Charge.
If you wish to protest the Increased Service Charge, you may detach and submit this form in
person at the hearing on the proposed Increased Service Charge, or you may return this form to:
Warren Lai, Division Manager
Contra Costa County Public Works Dept.
255 Glacier Drive
Martinez, California 94518
I, _______________________________________, protest the County Service Area M-28 water
service charge increase. I am the owner of the parcel of real property identified as Assessor’s
Parcel No. 029-020-004.
Date:__________ Signature: __________________________________________
SMS
H:\Client Matters\Public Works\CSA M-28\Notice and Protest Ballot.docx