09 - SET PUBLIC HEARING DATE WASTEWATER RATE ADJUSTMENTItem 09
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Memorandum
To: Board of Directors
From: Scott Carroll, General Manag?j�
Date: January 24, 2013
Subject: Set a Public Hearing Date for Wastewater Rate Adjustment
Summary
On December 20, 2012, the Board of Directors accepted and approved a wastewater
rate study performed by HF &H Consultants. The purpose of the study is to ensure
that each customer class is paying their fair and proportionate share of the cost for a
sewer collection system and to make sure there is adequate funding for the operating
and capital components of the system to meet California General Waste Discharge
Requirements.
Staff Recommendation
That the Board of Directors sets a public hearing date for April 18, 2013.
Analysis
The purpose for the proposed rate adjustment is to ensure equity between customer
classes and adequate revenues for operating and maintaining a sewer collection
system. Funding will also pay for needed capital replacements because the District's
sewer infrastructure is aging.
Before the proposed rates can be considered by the Board, the District must comply
with Proposition 218 that requires a public hearing date be set and members of the
public are notified at least 45 days in advance. If you set the public hearing tonight,
staff will begin mailing the notices during the week of February 4th, which is more than
the minimum 45 day notice requirement.
However, the District will go beyond the minimum requirement of Proposition 218 for
informing the public about the proposed rate adjustment. For instance, a special
workshop is scheduled for Thursday evening, March 14th in the City's Neighborhood
Community Center. Consultants from HF &H will be available to describe the
methodology used for creating the proposed rate adjustments and they will answer
L3 Protecting our community's health and the environment by providing solid waste and sewer collection services.
www.crosdca.gov
Board of Directors
January 24, 2013
Page 2 of 2
questions. Copies of the study will be available at the workshop, HQ and on the
District's website. Frequently asked questions (FAQ) about the proposed rate
adjustment and the answers to those questions will also be available on the District's
website.
Strategic Plan Element & Goal
This item will achieve the objective and strategy of CMSD's Strategic Plan Element
1.0, Sewer Infrastructure, which states:
Objective: "Our objective is to collect and transport wastewater to meet the needs of
existing and future customers. "
Strategy: "We will do this by the careful management of the collection
infrastructure using prudent planning and maintenance, with financial strategies to
maintain sufficient capacity and respond to changing regulatory demands."
Legal Review
District Counsel has reviewed and approved the resolution. District Counsel also
reviewed and approved the Prop 218 Notice to ensure compliance with the
regulations.
Financial Review
The cost to print and mail approximately 45,000 notices is $12,200. There is sufficient
funding in the budget to pay for this expense.
Committee Recommendation
Not applicable
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for
the January 24, 2013 regular Board of Directors meeting at District Headquarters and
on District's website.
Alternative Actions
1. Do not approve the resolution and set the public hearing for a different day.
Reviewed by:
arc Davis
District Treasurer /Acting Accounting Manager