G:\PW\SanWaterEng\Water\Rates\Standby Charges\2022-23\2022-23 Standby Charge.SR
CITY OF SIMI VALLEY
MEMORANDUM
May 16, 2022
TO: Board of Directors, Ventura County Waterworks District No. 8 FR
OM: Department of Public Works
SUBJ
ECT: ADOPTION OF A RESOLUTION ESTABLISHING A WATER SERVICE STANDBY CHARGE FOR FY 2022-23
STAFF RECOMMENDATION
It
is recommended that the Board of Directors of the Ventura County Waterworks District No. 8 (Board ) adopt attached Resolution No. WWD-287 (page 3) continuing the water service standby charge of $15.70 per acre per year for unserved parcels one acre or larger for FY 2022-23.
BACKGROUND AND OVERVIEW
The w
ater service standby charge is based upon the nexus between a water service connection’s potential value and the cost to facilitate the service opportunity. The charge covers the expense of maintaining and operating water supply facilities that were installed but not yet used to serve water. Water service standby charges are authorized pursuant to California Water Code Section 55501.5. The charge applies to properties where water service is available and not yet in service, which is currently 41 properties within the District service area.
Si
nce 1971, the District has had a water service standby charge collected on the County tax roll. Since 1985, a standby charge has not been assessed on any parcel smaller than one acre. Since 1996, the option to defer payments until the parcel is developed or subdivided, or a water service connection is requested, has been available.
FINDINGS AND ALTERNATIVES
St
aff recommends that for FY 2022-23, the standby charge remain at $15.70 per acre per year for parcels of one acre or larger, the same rate in effect since FY 1997- 98 with a projected revenue of $5,013.90. Pursuant to California Water Code Section 55501.5, an unchanged charge may be maintained by resolution, while increasing the charge is subject to the assessment procedures under Proposition 218. The charge may be up to $30 per acre and may be increased proportionally to the Consumer Price Index (CPI) for the past year. The applicable CPI has increased 7 % since January of last year, which equates to a potential charge increase from $15.70 to $16.80 per acre per year which would equate to additional District revenue of $351.
AGENDA ITEM NO.
Consent (10)
G:\PW\SanWaterEng\Water\Rates\Standby Charges\2022-23\2022-23 Standby Charge.SR
Staff recommends that the Board adopt attached Resolution No. WWD-287 continuing the existing water service standby charge. Exhibit A of the proposed resolution (page 5) lists the parcels that would be assessed the standby charge.
The following alternatives are presented for the Board of Directors’ consideration:
1. Adopt the attached r esolution continuing the water service standby charge of $15.70 per acre per year for parcels one acre or larger for FY 2022-23;
2. Take no action, but provide other direction to staff.
Staff recommends Alternative No. 1.
SUGGESTED BOARD MOTION
I move to adopt R esolution No. WWD-287 continuing the water service standby charge of $15.70 per acre per year for parcels one acre or larger for FY 2022-23.
SUMMARY
The Board of Directors of the Ventura County Waterworks District No. 8 has charged water service standby charges since 1971. The charge has remained at $15.70 per acre per year since July 1997, and it currently applies to 41 parcels. Staff recommends that the District adopt the attached resolution maintaining a water service standby charge of $15.70 per acre per year for FY 2022-23.
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Michelle Elorde, Senior Engineer
INDEX Page
Resolution No. WWD-287 ...................................................................... 3 Exhibit A ............................................................................................... 5
2 G:\PW\SanWaterEng\Water\Rates\Standby Charges\2022-23\2022-23 Standby Charge.RES RESOLUTION NO. WWD-287
A RESOLUTION OF THE BOARD OF DIRECTORS OF
VENTURA COUNTY WATERWORKS DISTRICT NO. 8
ESTABLISHING A WATER SERVICE STANDBY CHARGE
FOR FY 2022-23
WHEREAS, to provide for the expense of maintaining and operating water supply facilities that were installed but not yet used to serve water, a water service standby charge is levied; and
WHEREAS, the California Water Code Section 55501.5 provides for establishing a water service standby charge for the express purpose of recovering payment from parcels for facilities that a water district installs to serve them before the land generates usage revenue; and
WHEREAS, assessments of water service standby charges placed on the FY 2022-23 secured tax bills are in conformance with provisions of Proposition 218.
WHEREAS, the County of Ventura requires the City of Simi Valley to defend, indemnify, and hold harmless the County of Ventura from any challenge in applying the California Water Code Section 55501.5.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF VENTURA
COUNTY WATERWORKS DISTRICT NO. 8 DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The water service standby charge for parcels of one acre or larger shall be $15.70 per acre per year for FY 2022-23.
SECTION 2. The standby charge shall be levied against those properties listed on Exhibit "A", attached hereto and made a part hereof, in the amount tabulated for each specific assessor’s parcel for FY 2022-23.
SECTION 3
. The City of Simi Valley shall defend, indemnify, and hold harmless the County of Ventura and the County of Ventura Auditor -Controller from any action arising from the City of Simi Valley’s utilization of the procedure established in California Water Code Section 55501.5 to apply a water service standby charge.
SECTION 4
. The District Manager is hereby authorized to enter into all necessary agreements with entities necessary to effectuate this Resolution.
3 RES. NO. WWD-287
G:\PW\SanWaterEng\Water\Rates\Standby Charges\2022-23\2022-23 Standby Charge.RES SECTION 5. The District Secretary shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the District Secretary.
PASSED and ADOPTED this 16th day of May, 2022.
Attest:
Lucy Blanco, District Secretary Keith L. Mashburn, Chair of Ventura County Waterworks District No. 8
Approved as to Form: Approved as to Content:
David L. Caceres, District Counsel Brian Paul Gabler
District Manager
Ronald K. Fuchiwaki
Public Works Director
4 RES. NO. WWD-287
EXHIBIT A
NAME: VENTURA COUNTY WATERWORKS DISTRICT NO. 8
ZONE 16: 0816A
PARCEL NUMBER
CURRENT YEAR
ASSESSMENT
DISTRICT 8
ZONE 16
SA 500-0-370-325 114.82 0816A
SA 500-0-370-575 1570.74 0816A
SA 579-0-150-045 43.18 0816A
SA 579-0-150-055 73.46 0816A
SA 611-0-080-045 31.56 0816A
SA 611-0-080-145 64.08 0816A
SA 614-0-010-215 185.50 0816A
SA 614-0-010-265 197.12 0816A
SA 625-0-161-020 31.42 0816A
SA 630-0-112-015 43.04 0816A
SA 630-0-112-135 73.52 0816A
SA 631-0-101-080 20.88 0816A
SA 637-0-070-110 143.10 0816A
SA 648-0-200-030 15.70 0816A
SA 648-0-210-085 483.78 0816A
SA 648-0-210-220 31.72 0816A
SA 648-0-240-120 90.46 0816A
SA 649-0-010-280 23.58 0816A
SA 649-0-010-405 106.18 0816A
SA 649-0-010-415 123.14 0816A
SA 649-0-020-020 219.90 0816A
SA 649-0-020-030 31.42 0816A
5 RES. NO. WWD-287
PARCEL NUMBER
CURRENT YEAR
ASSESSMENT
DISTRICT 8
ZONE 16
SA 649-0-020-040 62.82 0816A
SA 649-0-020-050 15.70 0816A
SA 649-0-020-060 15.70 0816A
SA 649-0-020-070 15.70 0816A
SA 649-0-020-090 15.70 0816A
SA 649-0-020-100 15.70 0816A
SA 649-0-020-110 15.70 0816A
SA 649-0-020-120 23.58 0816A
SA 649-0-020-130 15.70 0816A
SA 649-0-020-140 15.70 0816A
SA 649-0-020-150 15.70 0816A
SA 649-0-020-160 420.32 0816A
SA 649-0-070-540 94.52 0816A
SA 649-0-070-550 34.54 0816A
SA 649-0-320-100 31.42 0816A
SA 649-0-330-050 121.74 0816A
SA 649-0-340-080 64.08 0816A
SA 650-0-260-030 201.58 0816A
SA 650-0-280-025 99.70 0816A
TOTAL $5,013.90
6