City of Simi Valley
Staff Report
June 22, 20
26 To:
From:
Subject:
Board of Directors, Ventura County Waterworks District No. 8 Public Works Department
Ron Fuchiwaki, Public Works Director
Adoption of a resolution establishing a wa ter service standby charge for Fiscal Year 2026-27
Staff
Recommendation
It is
recommended that the Board of Directors adopt R esolution No. WWD -308 (Attachment A) approving the continued collection of water service standby charges in the amount of $15.70 per acre per year for unserved parcels of one acre or more that are capable of receiving service from the Ventura County Waterworks District No. 8 (District) for Fiscal Year 2026-27.
Back
ground
The Distr
ict operates and maintains a municipal water distribution system that provides potable water service to residential, commercial, industrial, and public customers throughout the community. The water utility incurs ongoing costs associated with maintaining wells, pumps, storage facilities, transmission lines, meters, and emergency response capabilities regardless of actual water usage. California Water Code Section 55501.5 authorizes the District to impose w ater service standby charges where water service is available. This currently includes 32 properties of one acre or more within the District’s service area. An existing standby charge may be continued at the same rate by resolution, while any new or increased standby charge is subject to the procedures established under Proposition 218
The water
service standby charge is based upon the nexus between a water service connection’s potential demand on the system and the cost of maintaining service availability. The charge is intended to recover a portion of the fixed costs associated with maintaining the water system and ensuring service availability for properties where water service infrastructure has been installed but water service is not currently in use.
Certai
n properties (Attachment B) retain the ability to receive water service while consuming no water during portions of the year. Although these properties may not generate volumetric water revenue, the District must continue to reserve system capacity and maintain infrastructure availability to serve these parcels.
Agenda Item No.
Consent (9)
Si
nce 1971, the District has maintained a water service standby charge collected on the County tax roll. Since 1985, a standby charge has not been charged on any parcel smaller than one acre. Since 1996, property owners have had the option to defer payments of the standby charge until the parcel is developed or subdivided, or until a water service connection is requested.
Di
scussion
The pr
oposed w ater service standby charge would r ecover fixed operational and maintenance costs associated with maintaining water service availability and p romote equitable cost allocation among all benefited properties . Pursuant to California Water Code (CWC) Section 55501.5, an unchanged charge may be continued by resolution, while any increase to the charge is subject to the procedures established under Proposition 218. The charge may be imposed at a rate of up to $30 per acre and may be increased proportionally based on the Consumer Price Index (CPI) for the previous year.
The applicable CPI has increased by 2.7% since January of last year, which would allow for a potential increase in the standby charge from $15.70 to $16. 12 per acre per year.
This increase would generate approximately $ 124.62 in annual District r evenue. The projected annual revenue at the current rate of $15.70 per acre is $4,615.60.
St
aff recommends maintaining the standby charge at the current rate of $15.70 per acre per year, as it provides a stable and predictable fee structure for affected property owners.
Although the CWC permits a CPI-based increase, the administrative costs and procedural requirements associated with implementing the rate increas e outweigh the limited additional annual revenue that would be generated. The current rate has remained sufficient to support the District’s standby charge program and has been in effect since Fiscal Year 1997-1998.
Fina
ncial Impact
The pr
oposed standby charge is projected to generate approximately $4,615.60 in revenue to support water utility operations.
Cit
y Council Priority
Thi
s item supports the Fiscal Stability Pillar of Excellence.
Sugge
sted Motion
I m
ove to adopt R esolution No. WWD-308 approving the continued collection of water service standby charges in the amount of $15.70 per acre per year for unserved parcels of one acre or more that are capable of receiving service from the District for Fiscal Year 2026-27.
2 Summa
ry
The District operates and maintains a municipal water dis tribution system that provides potable water service to residential, commercial, industrial, and public c ustomers throughout the community . The water utility incurs ongoing costs assoc iated with maintaining wells, pumps, storage facilities, transmission lines, meters , and emergency response capabilities r egardless of actual water usage. It is recommended that the Board of Directors adopt Resolution No. WWD- 308 approving the continued collection of water service standby charges in the amount of $15.70 per acre per y ear for unserved parcels of one acre or more that are capable of receiving s ervice from the District for Fiscal Year 2026-27.
Prepared by: Michel Kadah, Principal Engineer
Attachments
Attachment A – Resolution No. WWD-308
Attachment B – Parcels with Assessed Water Service Standby Charge 3 Atta chment A
RESOLUTION NO. WWD-308
A R
ESOLUTION OF THE BOARD OF DIRECTORS OF
VENTURA COUNTY WATERWORKS DISTRICT NO. 8
ESTABLISHING A WATER SERVICE STANDBY CHARGE
FOR FISCAL YEAR 2026-2027
WH
EREAS, the Ventura County Waterworks District No. 8 (District) owns and operates a municipal water utility system for the benefit of properties within the District’s service area; and
WH
EREAS, certain parcels within the water service area are presently unserved by active water connections but are capable of receiving water service because water mains and related facilities are available adjacent to or reasonably accessible to such parcels; and
WH
EREAS, the continued operation, maintenance, repair, replacement, and expansion of the municipal water system provide ongoing benefits and service availability to such parcels, including maintaining fire protection capacity, preserving development potential, and ensuring readiness for future connection; and WH
EREAS, 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
WH
EREAS, the Board of Directors finds that parcels of one (1) acre or more that are capable of receiving water service derive a benefit from the availability and maintenance of the municipal water system even if no active service connection currently exists; and
WH
EREAS, 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
WH
EREAS, continuation of the existing water service standby charge is authorized under applicable provisions of Proposition 218 and its implementing statutes; and WH
EREAS, the County of Ventura requires the District 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:
SE
CTION 1. The water service standby charge for parcels of one (1) acre or more shall be $15.70 per acre per year for Fiscal Year 2026-2027. 4 SECT
ION 2. The water service 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 Fiscal Year 2026-2027.
SECT
ION 3. The standby charge shall be billed annually on the property tax roll or through direct utility billing, as determined by the District Manager or designee.
Any delinquent charges may be collected in the same manner as other municipal utility charges and may constitute a lien against the property as authorized by law.
SECT
ION 4. The District shall defend, indemnify, and hold harmless the County of Ventura and the County of Ventura Auditor -Controller from any action arising from the District ’s utilization of the procedure established in California Water Code Section 55501.5 to apply a water service standby charge.
SECT
ION 5. If any section, subsection, sentence, clause, or phrase of this Resolution is for any reason held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Resolution.
SECT
ION 6. The District Manager is hereby authorized to enter into all necessary agreements to effectuate this Resolution.
SECT
ION 7. The District Secretary shall certify the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the District Secretary.
PASSED a
nd ADOPTED this 22nd day of June 2026.
Attes
t:
Lucy Blanco, City Clerk/ Dee Dee Cavanaugh, Chair of the Ventura District Secretary County Waterworks District No. 8
Approv
ed as to Form: Approved as to Content:
Algeria R. Ford, District Counsel Samantha C. Argabrite, District Manager Ronald K. Fuchiwaki
Public Works Director
5 Res. No. WWD-308
District - Zone 08-16
Subfund Number 18060104
Subfund Name SIMI VALLEY WATERWKS #8
File Type Direct Assessment
APN Amount TransCode (A/C/D)
5000370325 114.82 A
5000370575 1570.74 A
5790150045 43.18 A
5790150055 73.46 A
6110080045 31.56 A
6110080145 64.08 A
6140010215 185.50 A
6140010265 197.12 A
6250161020 31.42 A
6310101080 20.88 A
6370070110 143.10 A
6480200030 15.70 A
6480210085 483.78 A
6480240120 90.46 A
6490010280 23.58 A
6490010405 106.18 A
6490020020 219.90 A
6490020030 31.42 A
6490020040 62.82 A
6490020050 15.70 A
6490020070 15.70 A
6490020090 15.70 A
6490020100 15.70 A
6490020110 15.70 A
6490020120 23.58 A
6490020160 420.32 A
6490070540 94.52 A
6490070550 34.54 A
6490320100 31.42 A
6490330050 121.74 A
6500260030 201.58 A
6500280025 99.70 A
6