Proposition 218 Public Notification

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Proposition 218 Notification
NOTICE TO EL MACERO COUNTY SERVICE AREA PROPERTY OWNERS OF
PROPOSED SEWER AND WATER OPERATIONS RATE CHANGES AND PUBLIC HEARING

Hearing Date & Time: July 9, 2019, 9:00 a.m.
Hearing Location: County Administration Building
625 Court Street, Room 206
Woodland, CA 95695

This notice is being provided to you by the Yolo County Board of Supervisors, as the governing body of the El Macero County Service Area (CSA), pursuant to Article XIII.D, section 6 of the California Constitution (also known as Proposition 218). Proposition 218 requires the El Macero CSA to notify property owners of proposed changes to rates for CSA services. This letter serves as notice of the following:

  • The CSA is considering changes to the annual property-related sewer and water operations fees for properties in the El Macero CSA. If approved, the new sewer and water operations charges will annually appear on your property tax bill, beginning with the fiscal year 2019-20 property tax bill.
  • A public hearing will be held on Tuesday, July 9, 2019 at 9:00 a.m. in the Yolo County Board of Supervisors Chambers to accept public comment and receive written protests on the proposed sewer and water operations fees.
  • More information regarding the proposed sewer rate and water operations rate changes is available at: www.YoloCounty.org/El-Macero-CSA.
  • Más información sobre los cambios propuestos del costo del drenaje y operaciones de agua, están disponibles en: www.YoloCounty.org/El-Macero-CSA (elija “Translate” ubicado en la esquina superior derecha).
  • Более подробная информация относительно предлагаемых изменений тарифов на канализацию и водоснабжение доступна на:www.YoloCounty.org/El-Macero-CSA (выберите “Translate” в правом верхнем углу).

Why are the charges changing?

The CSA levies a sewer fee and a water operations fee to provide sources of funding for sewer and water operation services in El Macero that the CSA would not otherwise be able to fund, and which were calculated in order to appropriately spread applicable costs amongst users according to the cost of providing service to that user. Periodically, the charges for CSA services should be re-examined to determine whether the revenue being collected covers all the costs related to providing the service, and builds adequate reserves if necessary. When a change in the fee is warranted, Proposition 218 proceedings are conducted. Prop. 218 imposes certain requirements before local entities can impose property-related fees, such as the requirement of public notice of the proposed fee change and how a property owner can support or oppose the charge. 

The current sewer charge was set in 2005 and the current water operations charge was set in 1997. The basis for the proposed sewer fee and water operations fee changes are described below. All documents referenced below are available at www.YoloCounty.org/El-Macero-CSA and are on file with the Clerk of the Board at 625 Court Street, Room 204, Woodland, California.


Proposed Sewer Charge

 The El Macero CSA provides sewer services through contract with the City of Davis. The CSA’s sewer rate, which has been charged equally to all occupied residential parcels, at a reduced rate to property owners of vacant lots and at a higher rate to the El Macero Country Club, was last revised in 2005 as sewer-related expenses were outpacing CSA revenue.

In 2015, the County entered into a settlement agreement with the City of Davis which identified the method by which the City would charge the El Macero CSA for sewer service, including different rates for single-family residences vs. condos vs. commercial (the El Macero Country Club), and at no charge for vacant lots. As such, the proposed CSA sewer charge takes into account these variances in how the City charges the entire CSA for sewer service, and then the CSA sewer charge is distributed within these categories. For example, on average, 91% of the City bill to the CSA for sewer service is for service to single-family residences. As such, 91% of the estimated revenue required for sewer service in El Macero is divided equally among the 403 single family residences within the CSA. The proposed rate change also considers the cost of CSA administration related to sewer service.

Estimated Total Annual El Macero CSA Costs for Sewer Service

 Sewer Service Description     Annual Cost 
 City Sewer Service  $226,600
 CSA Administration Related to Sewer Service  $2,142
 Total amount of charge against the CSA  $228,742


Proposed El Macero CSA Sewer Fees

The current and proposed amounts chargeable per year to each owner’s parcel are provided below. If approved, these charges will be collected annually on the property tax roll as maximum rates until the El Macero CSA determines that the fee requires further adjustment or is no longer necessary.

 Fee Type

Number of
Parcels
in the CSA

Current
2018-19
Fee*
 Proposed
2019-20
Fee
Total
2019-20
Revenue
 
 Sewer Charge – Single Family Parcel  403   $596  $516.50  $208,150
 Sewer Charge – Condos  37   $596   $371  $13,727
 Sewer Charge – El Macero Country Club  1  $11,912  $6,865  $6,865
 Sewer Charge – Vacant Lot  7   $429  $0  $0
 Total amount of charge against the CSA  $228,742

* The current sewer charge was set in 2005.

Note: Beginning on July 1, 2020 and ending on June 30, 2025, rates shall increase by no more than the Consumer Price Index (CPI-W and CPI-U) for the San Francisco-Oakland-San Jose, CA area for the most recent February to February as compiled by the Bureau of Labor Statistics.


Proposed Water Operations Charge

The water operations charge covers the costs related to providing water services to El Macero, above and beyond the City of Davis’ costs for potable water which are passed through to El Macero residents. The CSA proposes to maintain Well EM-3 for current irrigation needs and possible future uses. The proposed water operations fee is partially based on the March 2019 Well Asset Management Report which recommends a program for maintenance of the well and estimates those costs, as well as replacement costs.

Because regular use of the well supports its long-term health and avoids other maintenance costs, the CSA entered into Well Use Agreement 16-184 with the El Macero Country Club which obligates the Club to regularly operate the well. Under the terms of the agreement, the Club also bears the burden of related energy costs. As such, the labor and energy costs identified in the Well Asset Management Report have been subtracted.

Water Use Agreement No. 16-182 with the El Macero Country Club provides non-potable water to the CSA for CSA purposes, with the current use being irrigation. Per the agreement, the CSA pays the club $2,400 annually.

A workgroup of El Macero residents considered the recommendations of the Well Asset Management Report and have determined, given that there are alternatives to replacing the well entirely, it is not necessary to plan on a full replacement. Rather, they suggest 50% of the replacement costs be factored into the proposed water charge at this time and further adjustments be considered during future re-examination of the charge and the community’s needs. The CSA would then need to use its general funds or money from subsequent Proposition 218 proceedings to finance the remainder of the replacement costs if needed. Additionally, the CSA is estimated to begin fiscal year 2019-20 with a water operations reserve of $240,000. As such, the annualized replacement costs have been calculated accordingly. 

Estimated Well Replacement Costs

  Costs per Well
Asset Management
Report
 Working Group
Funding
Recommendation
 Recalculated
Estimated
Costs
Well Asset
Replacement 
(32 year life)
  $434,250  50%   $217,125
Pump/Motor
Replacement 
(20 year life)
 $74,590  100%  $74,590
Misc. Replacement
Repairs 
(20 year class)
  $12,000  100%  $12,000
 Total Replacement Costs  $303,715
 Available Water Operations Reserves  ($204,000)
 Remaining Funding Needed over 32 Years   $63,715

 
The rate change also considers CSA administration costs related to providing all water services.

Estimated Total Annual El Macero CSA Costs for Water Operations Service

Water Service Description   Annual Cost
Well Asset Management – Annual O&M   $910
Well Asset Management – Annualized Periodic Costs   $10,895
Well Asset Management – Annualized Replacement Costs  $1,991
Irrigation per Water Use Agreement 16-182 $2,400 
CSA Administration Related to Water Service   $3,060
 Total amount of charge against the CSA  $19,256

 

Proposed El Macero CSA Water Operations Fees

 The current and proposed amounts chargeable per year to each owner’s parcel are provided below. As all properties receive the same benefit from services related to the water operations, the proposed fee will be the same for all properties. If approved, these charges will be collected annually on the property tax roll as maximum rates until the El Macero CSA determines that the fee requires further adjustment or is no longer necessary.

 Fee Type

Number
of Parcels
in the CSA

Current
2018-19
Fee*
Proposed
2019-20
Fee
Total
2019-20
Revenue 
 Water Operations Charge – Single Family Parcel  403   $50  $43   $17,329
 Water Operations Charge – Condos  37  $50  $43  $1,591
 Water Operations Charge – Country Club  1  $1,000  $43  $43
 Water Operations Charge – Vacant Lot  7  $33  $43  $301
 Total amount of charge against the CSA
 $19,264

 * The current water operations charge was set in 1997.

Note: Beginning on July 1, 2020 and ending on June 30, 2025, rates shall increase by no more than the Consumer Price Index (CPI-W and CPI-U) for the San Francisco-Oakland-San Jose, CA area for the most recent February to February as compiled by the Bureau of Labor Statistics.


How do I participate in the Proposition 218 proceedings?

The Yolo County Board of Supervisors will conduct a public hearing to consider the proposed rate changes on Tuesday, July 9, 2018 at 9:00 a.m. in the Board of Supervisors Chambers, located in the County Administration Building at 625 Court Street, Room 206 in Woodland.

You are invited, but not required, to attend the public hearing and to present oral or written testimony to the Board of Supervisors. At the public hearing, the Board will consider all objections or protests, if any, to the proposed charges. The public hearing may be continued from time to time, if necessary. Protest ballots will not be tabulated before the close of the public comment portion of the public hearing, but ballots will be public records during and after tabulation. A protest ballot may be submitted, changed or withdrawn by the person who submitted the ballot prior to the conclusion of the public testimony on the proposed fee changes at the hearing.

How do the Proposition 218 proceedings work?

Water operations and sewer charges are subject to majority protest proceedings which means, if a majority of all the property owners in the CSA submit written protests against the changes (regardless of the number of votes cast), the CSA cannot institute the new rates.

Any property owner may submit a written protest per parcel, per service. Only one protest ballot per parcel, per service will be counted, even if there are co-owners.

Written protests must include the address of the property (or Assessor’s Parcel Number) and your name and signature. You can mail or hand-deliver your protest to the Clerk of the Board of Supervisors at 625 Court Street, Room 204, Woodland, CA 95695 prior to the hearing, or bring it to the hearing on July 9. Protests must be submitted in writing before the conclusion of the public hearing. If you do not want to protest the proposed rates, you do not need to take any action. The protest forms provided below may be used to submit written protests but are not required. Email or FAXed protests will not be accepted.  


Sewer Fee Protest Ballot

Sewer charges are subject to majority protest proceedings which means, if a majority of property owners in the CSA submit written protests against the changes (regardless of the number of votes cast), the County cannot institute the new rates. Only one protest ballot per parcel will be counted, even if there are co-owners. This protest ballot can be used to oppose the Sewer fee change. In order to be counted, a written protest from the property owner must be received by the Clerk of the Board at 625 Court Street, Room 204 in Woodland, California 95696 by 9:00 a.m. on Tuesday, July 9, 2019.

El Macero County Service Area Sewer Fee Change Protest Ballot

Protest: I oppose the proposed annual Sewer fee change to $516.50 per single family residence, $371 per condo and $6,865 per commercial property, beginning in fiscal year 2019-20, with a Consumer Price Index adjustment in the subsequent five years.

Ballot declaration: I, the undersigned, declare that I am authorized to cast a protest of the proposed Sewer fee change for the below identified parcel as the owner.

Property address or Assessor’s Parcel Number:

Signature:

Name (printed):


Water Operations Fee Protest Ballot

Water Operations charges are subject to majority protest proceedings which means, if a majority of property owners in the CSA submit written protests against the changes (regardless of the number of votes cast), the County cannot institute the new rates. Only one protest ballot per parcel will be counted, even if there are co-owners. This protest ballot can be used to oppose the Water Operations fee change. In order to be counted, a written protest from the property owner must be received by the Clerk of the Board at 625 Court Street, Room 204 in Woodland, California 95696 by 9:00 a.m. on Tuesday, July 9, 2019.

El Macero County Service Area Water Operations Fee Change Protest Ballot

Protest: I oppose the proposed annual Water Operations fee change to $43 per property, beginning in fiscal year 2019-20, with a Consumer Price Index adjustment in the subsequent five years.

Ballot declaration: I, the undersigned, declare that I am authorized to cast a protest of the proposed Water Operations fee change for the below identified parcel as the owner.

Property address or Assessor’s Parcel Number:

Signature:

Name (printed):