AP 05-24-11 Special Meetingr
SOUTH TAHOE PUBLIC UTILITY DISTRICT
Tuesday, May 24, 2011
10:00 A.M.
District Board Room
1275 Meadow Crest Drive, South Lake Tahoe, California
Richard Solbrig, General Manager
Dale Rise, President
Chris Cefalu, Director
2. ITEMS FOR BOARD ACTION
3. ADJOURNMENT
NOTICE OF SPECIAL BOARD MEETING
a. Water Rate Schedules
(Paul Hughes)
BOARD MEMBERS
James R. Jones, Director
1. CALL SPECIAL MEETING TO ORDER
Paul Sciuto, Assistant General Manager
Mary Lou Mosbacher, Vice President
Eric W. Schafer, Director
REQUESTED BOARD ACTION
Enact Ordinance No. 531 -11
Amending Water Rate Schedules
Effective July 1, 2011
Public participation is encouraged. Public comments on items appearing on the agenda will be taken at the same time the agenda
item is heard. Backup to any agenda item(s) not included with the Board packet will be made available when finalized
at the District office, at the Board meeting, and upon request to the Clerk of the Board.
The meeting location is accessible to people with disabilities. Every reasonable effort will be made to accommodate participation of
the disabled in all of the District's public meetings. If particular accommodations for the disabled are needed (i.e., disability- related
aids, or other services), please contact the Clerk of the Board at 530.544.6474, extension 6203, at least 24 hours in advance of the
meeting.
South Tahoe Public Utility District • 1275 Meadow Crest Drive • South Lake Tahoe, CA 96150
Phone 530.544.6474 • Facsimile 530.541.0614 • www.stpud.us
BOARD AGENDA ITEM
TO: Board of Directors
FROM: Paul Hughes, Chief Financial Officer
MEETING DATE: May 24, 2011
ITEM - PROJECT NAME: Water Rate Ordinance
SCHEDULE: Rates to be effective July 1, 2011.
COSTS:
ATTACHMENTS: Ordinance 531 -11
South Ta
Public Utility District
General Manager
Richard H. Sotbrig
anyctore
Chris Cefalu
Janes R. Jones
Mary Lou.
Dale Rise
Schafer
1275 Meadow Crest Drive • South Lake Tahoe • CA 96150 -7401
Phone 530 544-6474 • Fax 530 541 -0614 • www.stpud.us
REQUESTED BOARD ACTION: Enact Ordinance No. 531 -11, an amendment to
Ordinance No. 464, and superseding, in part, water and sewer rate Ordinance
No. 523 -10.
DISCUSSION: Ordinance 531 -11 includes the proposed water rates as presented in the
Proposition 218 notice. There is no change to non - metered rates and metered rates
have been restructured in an attempt to create equity between metered and non -
metered customers.
The restructured metered water rates were developed through a water cost of service
study prepared by HDR Engineering, Inc. Although the study includes multiple year rate
recommendations, the Board instructed staff to issue the Proposition 218 notice with
only the first year (2011/12) rate recommendations. During the May 5 public meeting
following comments from the audience, staff was directed to meet with the Finance
Committee and rate consultant to discuss some of the customer concerns and possibly
make adjustments to the proposed metered water rates. At the May 19, 2011 Board
meeting, staff and the rate consultant presented rate options for Board consideration.
Following public comments, staff comments and Board deliberation, staff was directed
to prepare a water rate ordinance incorporating the rate recommendations as
originally proposed by HDR Engineering on May 5, 2011.
ACCOUNT NO:
BUDGETED AMOUNT REMAINING: Budgeted service charge revenue for fiscal year
2011/12 is $9,144,000 and is neutral to current year service charge revenue.
Paul Hughes
May 24, 2011
Page 2
CONCURRENCE WITH REQUESTED ACTION:
GENERAL MANAGER: YES NO
CHIEF FINANCIAL OFFICER: YES NO
CATEGORY: Water
ORDINANCE NO. 531-11
AN AMENDMENT TO THE SOUTH TAHOE PUBLIC UTILITY DISTRICT'S
ORDINANCE NO. 464 — ADMINISTRATIVE CODE SECTIONS 3.1.50 AND
3.1.51 WATER RATE SCHEDULES, AND SUPERSEDING, IN PART, WATER
AND SEWER RATE ORDINANCE NO. 523-10
The Board of Directors of the South Tahoe Public Utility District, El Dorado
County, State of California, makes the following findings:
1. Public Notice of this Ordinance was duly given, authorized, posted and
published, as required by law and specifically, that said Notice fixing the time and place
of the hearing on said Ordinance was duly given, posted, and published, as required by
Government Code of California.
2. Pursuant to said Public Notice, a public meeting by the Board of Directors
of the South Tahoe Public Utility District (District) on this Ordinance took place on May
5, 2011, at 6:00 p.m. and May 19, 2011, at 2:00 p.m. at the place specified in said Notice
of Public Meeting.
3. The Notice of time and place of said meetings, including a general
explanation of the matters to be considered at said meetings was published in the Tahoe
Daily Tribune on April 20, 2011, April 27, 2011 and May 13, 2011. Time and place of
the May 5, 2001 meeting was also published in the Proposition 218 notice mailed to all
District account holders on March 30, 2011.
4. At least ten (10) days prior to said public meeting, the data indicating the
amount of the cost or estimated cost required to provide water and sewer services for
which service charges are proposed for adoption pursuant to this Ordinance, and the
revenue source(s) anticipated to provide such service was available to the public.
5. On March 30, 2011, Proposition 218 notices were mailed to all District
account holders, indicating proposed rate adjustments and protest instructions.
6. Protests were accepted by the District through 2:00 pm on May 19, 2011.
Total water rate protests received were 290, of which 254 were valid protests. Valid
protests were received from approximately 1.5% of the District account holders.
7. District rate payers were notified of the proposed rate adjustments through
the Proposition 218 notice, two newspaper publications, radio advertisements and the
District website.
Ordinance No. 531 -11
Water Rate Schedules
Page 1
WATER RATES
8. The water service charges in Schedules No. 2 and 3 will be effective July
1, 2011 and are for the following purposes:
Annual Minimum Rate
Ordinance No. 531 -11
Water Rate Schedules
Page 2
a. Obtaining funds for capital projects necessary to maintain service for
existing customers;
b. Meeting debt service requirements;
c. Meeting operating expenses;
d. Purchasing or leasing equipment, supplies or materials;
e. Meeting financial reserve needs and requirements.
9. The existing water service charges are necessary to meet the costs and
expenses enumerated in paragraph 8 herein above, and are included in the water budget
adopted on May 19, 2011.
NOW, THEREFORE, BE IT ENACTED BY THE SOUTH TAHOE PUBLIC
UTILITY DISTRICT BOARD OF DIRECTORS THAT ORDINANCE NO. 523-10 IS
SUPERSEDED IN PART AND THAT WATER RATE SCHEDULES NUMBER 2
AND 3 PROVIDED BY ORDINANCE NO. 464 — ADMINISTRATIVE CODE,
SECTION 3.1.50 AND 3.1.51 ARE HEREBY AMENDED AND REPLACED BY THE
FOLLOWING SCHEDULES 2 AND 3:
SCHEDULE 2 — ANNUAL NON - METERED SERVICE
a. Single dwelling unit $479.58
b. Duplex $852.64
c. Triplex $1,158.41
d. Fourplex $1,498.51
e. Each additional unit $251.45
f. Business establishment when serviced from:
3 /4 inch connection
One inch connection
3 /4 inch water connection
1 inch water connection
1 1/2 inch water connection
2 inch water connection
3 inch water connection
4 inch water connection
6 inch water connection
8 inch water connection
10 inch water connection
WATER RATE SCHEDULES
SCHEDULE 3 — METERED SERVICE
$729.72
$1,101.18
$264.00
$440.88
$879.12
$1,407.12
$2,640.00
$4,400.88
$8,799.12
$14,079.12
$20,240.88
All consumption will be charged at the following rates by customer class:
Single Family $2.05 per 100 cubic feet
Multi Family $1.95 per 100 cubic feet
Commercial $1.85 per 100 cubic feet
10. The Water Capital Improvement Charges in the amount of $1,448,000 are
included in Rate Schedules 2 and 3 herein above and will be effective July 1, 2011. The
Capital Improvement Charges are restricted in use to the following purposes:
11. Delinquent charges, when recorded as provided in California Government
Code Section 54354.5, and the District's Administrative Code, shall constitute a lien
upon the real property served.
12. This Ordinance hereby supersedes Ordinance No. 523.10 in part, and
amended Ordinance No. 464 — Administrative Code, Sections 3.1.50 and 3.1.51.
PASSED AND ENACTED by the Board of Directors of the South Tahoe Public
Utility District at its Special Board Meeting on the 24th day of May, 2011, by the
following vote:
AYES:
NOES:
ABSENT:
DATED:
Ordinance No. 531 -11
Water Rate Schedules
Page 3
a. Construction or purchase of capital improvements as designated in the
District's financial statements as "Capital Assets ";
b. Debt service related to items referred to in 10a;
c. Reserves accumulated for future construction or purchase of Capital
Improvements as designated in the District's financial statements as
"Capital Assets."
TEST: Kathy Sharp, Clerk of the Board
Dale Rise, Board President