COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

May 18, 2011

BOARD MEETING DATE:

June 7, 2011

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:

A.

Adopt an Ordinance to amend Section 4.32.020 of Chapter 4.32 of Title 4, of the San Mateo County Ordinance Code, setting sewer service rate for fiscal year 2011-12 for the Burlingame Hills Sewer Maintenance District and setting the fiscal year 2011-12 sewer service rate at the same level as the fiscal year 2010-11 rate for the Crystal Springs County Sanitation District; and

B.

Adopt a Resolution setting Tuesday, July 26, 2011 at 9:00 A.M. at your regularly scheduled Board meeting, as time and place for a public hearing to consider the sewer service rates and charges, and directing Public Works to send notices to the affected property owners.

BACKGROUND:

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

In 2007, your Board approved the sewer service rates for eight (8) of the ten (10) districts (Districts) for five (5) fiscal years (FY) beginning in FY 2007-08 to FY 2011-12. However, sewer service rates for the Burlingame Hills Sewer Maintenance District (BHSMD) and the Crystal Springs County Sanitation District (CSCSD) were set for only one year. At your Board’s direction, the Department has been working with homeowner association representatives from the BHSMD and the CSCSD to address the issues specific to these districts and sewer service rates have been set annually due to the uncertainty of funding required to maintain and operate the both districts and the successful majority protests from each district.

In 2010, your Board increased the sewer service rate for FY 2010-11 for the CSCSD, and set the rates for the FY 2010-11 for the eight Districts as previously set by Ordinance No. 04382, which was adopted on August 7, 2007. However, your Board did not increase the sewer service rate for the BHSMD for the FY 2010-11 due to a majority protest.

DISCUSSION:

In order to impose the charges, it is necessary to set rates for BHSMD and CSCSD. Over the past year, the Department has been meeting with homeowner associations from these districts to discuss sewer service rates. As a result of these meetings, it is recommended that the rate in BHSMD be increased to $1,595 per year in FY 2011-12 and that the rate in CSCSD remain at the same level as FY 2010-11 and be set to $1,200 per year in FY 2011-12. We will continue to discuss finances and rates with representatives of both districts. The Department coordinated with the Burlingame Hills Improvement Association (BHIA) in communicating with the property owners in the BHSMD and participated in an evening public meeting.

The following actions must be taken by August 10, 2011 in order to place the sewer service charges on the tax roll for FY 2011-12:

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.

3.

Adopt a Resolution adopting the FY 2011-12 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.

County Counsel has reviewed and approved an Ordinance and Resolution as to form.

Your Board’s setting of the sewer service fees for FY 2011-12 contributes to the Shared Vision 2025 outcome of a Healthy Community by providing revenue to the ten (10) sewer districts and allowing for uninterrupted service to district customers.

FISCAL IMPACT:

We are proposing to set the FY 2011-12 sewer service rates for the BHSMD and the CSCSD. Rates were previously set for the other eight districts. There is no impact on the General Fund.