COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

February 12, 2009

BOARD MEETING DATE:

March 3, 2009

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 County Sewer/Sanitation Districts Governed by the Board of Supervisors

RECOMMENDATION:

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

A.

Amend Section 4.32.020 of Chapter 4.32 of Title 4, Sanitation and Health, San Mateo County Ordinance Code, setting the FY 2009-10 sewer service rates for the Burlingame Hills Sewer Maintenance District (BHSMD) and the Crystal Springs County Sanitation District (CSCSD); and

B.

Adopt a resolution setting time and place for a public hearing on the sewer service rate increases for the Burlingame Hills Sewer Maintenance District and Crystal Springs County Sanitation District, and directing the necessary notices for said hearing.

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 2009-10 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 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). Your Board did not increase the sewer service rate for the BHSMD for FY 2007-08 due to a majority protest.

In 2008, your Board increased the sewer service rate for FY 2008-09 for the BHSMD, and set the sewer service rate for FY 2008-09 the same as the previous year for the CSCSD.

DISCUSSION:

Staff has been meeting with representatives of the homeowner groups in both districts for the past eighteen months. As a result, staff recommends new rates for FY 2009-10 be set for CSCSD and BHSMD. It is recommended that FY 2009-10 rate in BHSMD be increased to $1,150 per year, and that the rate in CSCSD be increased to $1,000 per year. Representatives from both District’s HOA groups understand the need for the rate increase and generally support the recommended rates. We recommend a one-year rate for both districts, and will continue to meet with the homeowner associations to discuss finances and rates. Public meetings to discuss proposed rates were held in both districts in January.

Staff recommends that the Board take the following actions in order to place the sewer service charges on the tax roll for FY 2009-2010:

1.

On March 3, 2009, introduce an ordinance increasing the sewer service rates (used to calculate the sewer service charges) for BHSMD and CSCSD and setting the rates for the remaining eight districts as previously set by Ordinance.

2.

On April 28, 2009, hold a public hearing on the proposed sewer service rate increases for the BHSMD and CSCSD, and adopt the ordinance.

3.

Prior to August 10, 2009, hold a public hearing on the imposition of sewer service charges for all ten districts based on the adopted rates.

4.

Prior to August 10, 2009, adopt a Resolution approving the FY 2009-2010 Sewer Service Charges Report based on the adopted sewer service rates.

Notice of the public hearing to consider the sewer service rate increases must be sent to the property owners in the BHSMD and the CSCSD. We recommend that your Board direct the Department to notify each property owner in both districts of the recommended rates, and to explain the process for protesting the rate increases.

FISCAL IMPACT:

We are proposing to set sewer service rates for FY 2009-10 for the BHSMD and the CSCSD. There is no impact on the General Fund.