COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

 

DATE:

May 13, 2008

BOARD MEETING DATE:

June 3, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

Executive Summary – Sewer Service Rates and Charges for the Ten County Sewer/Sanitation Districts Governed by the Board of Supervisors

 

RECOMMENDATION:

Acting as the governing board of the ten County Sewer/Sanitation Districts:

 

1.

Introduce an ordinance, to be adopted on July 22, 2008, increasing the FY 2008-09 sewer service rates for the Burlingame Hills Sewer Maintenance District (BHSMD) and maintaining the Crystal Springs County Sanitation District (CSCSD) rates at the same level as FY 2007-2008; and

 

2.

Adopt a resolution setting a time and place for a hearing to consider the sewer service rates and charges, and directing Public Works to send notices to the affected property owners.

 

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

Goal 7: Maintain and enhance the public safety for all residents and visitors.

 

Setting the sewer service fees for FY 2008-09 will provide revenue to the ten (10) sewer districts and allow for uninterrupted service to district customers.

 

BACKGROUND:

Sewer service charges are collected on the property tax bill. The charges are based on rates approved by the board.

 

In 2006, your Board set sewer service rates for one year (FY 2006-07) for the ten districts. However, sewer service rates were not increased in the CSCSD due to a majority protest.

 

In 2007, your Board increased the sewer service rates for the FY 2007-08 and set rates for the subsequent four fiscal years for eight districts. The sewer service rate for the CSCSD was increased and set for only one year (FY 2007-08). However, your Board did not increase the sewer service rate for the BHSMD for the FY 2007-08 due to a majority protest.

 

DISCUSSION:

In order to impose the charges, it is necessary to set rates for CSCSD and BHSMD. Over the past year, the Department has been meeting with homeowner associations from those districts to discuss sewer service rates. As a result of these meetings, it is recommended that FY 2008-09 rates in BHSMD be increased to $950 per year, and that the rates in CSCSD be held constant at $900 per year. We recommend a one-year rate for both districts, and will continue to discuss finances and rates with both districts. Public meetings to discuss proposed rates were held in both districts in May.

 

The following actions must be taken by August 10, 2008 in order to place the sewer service charges on the tax roll for FY 2008-2009:

 

1.

Adopt an ordinance setting the sewer service rates (used to calculate the sewer service charges) for BHSMD and CSCSD.

 

2.

Hold a public hearing on (1) the proposed sewer service rate increase for the BHSMD, and (2) the imposition of sewer service charges for all ten districts calculated based on the adopted rates. No hearing is required for the CSCSD rates as there is no recommended increase.

 

3.

Adopt a Resolution adopting the FY 2008-2009 Sewer Service Charges Report.

 

Notice of the public hearing to consider the sewer service rate increase must be sent to the property owners in the BHSMD. We are recommending that your Board direct the Department to notify each property owner in the BHSMD of the recommended rate by mail and to explain that protests to the rate increase must be in writing.

 

FISCAL IMPACT:

We are proposing to set sewer service rates for the FY 2008-09 for the BHSMD and the CSCSD. Rates were previously set for the other eight districts.

 

There is no impact on the General Fund.