Prop 218 Notification of Public Hearing
Pine Cove Water District
24917 Marion Ridge Dr.
PO Box 2296
Idyllwild, CA 92549-2296
951-659-2675(office)
951-659-3112 (fax)
NOTICE OF PUBLIC HEARING ON
PROPOSED WATER RATES
(Proposition 218 Notification)
Date: Wednesday, May 9, 2018
Time: 10:00 am
Location: 24917 Marion Ridge Drive, Idyllwild CA 92549
You are receiving this notice because you are a Pine Cove Water District customer and you own property that is receiving water service. This notice is being furnished to you pursuant to California Constitution Article XIIID, also known as Proposition 218. Pursuant to Proposition 218, a Public Hearing has been scheduled on May 9 regarding Pine Cove Water District’s rates.
What Do Water Rates Fund
Pine Cove Water District is a non-profit public entity. In order to deliver water to more than 1,100 metered customers, Pine Cove Water District maintains 20 miles of pipe, 16 wells, 6 Storage Tanks and 2 pump stations throughout Pine Cove. Monthly rates paid by the systems users are the primary source of revenue. All revenue generated from your utility bill is used to fund the water system’s maintenance and operation. These revenues are not used for any other general government purposes. They are collected for two purposes: (1) to finance the ongoing administration, operation and maintenance costs associated with the water distribution system; and (2) to pay for capital improvement and replacement program costs. The purpose of the capital replacement program is to provide for long-term replacement of pipes and other infrastructure as they deteriorate.
How Will the Rate Adjustment Be Used
Pine Cove Water District recently utilized the District’s engineer, John Egan of Engineering Resources, to complete an analysis of the needed improvements, maintenance, and requirements for the water system. The system requires investment, primarily in the maintenance and repair of aging tanks, new water sources and upgrades, smart meters, and other equipment, in order to maintain a safe and reliable water delivery system. Rate revenues will be the primary funding for the repairs, maintenance, and upgrades.
What Is the Basis of the Proposed Rates?
Pine Cove Water District has kept meticulous records over the past 3 years on all aspects of producing and delivering water. The District Engineer did a complete assessment of the District using the Budget Comparisons for the previous 3 years, analyzing fixed costs and variable costs for the District. We are proposing to adopt a five-year schedule of proposed water rates to be implemented beginning on June 1, 2018.
Fixed Costs
Year 2014/2015 $592,018
Year 2015/2016 $587,320
Year 2016/2017 $640,094
Average 3-year cost $606,477
Currently, we receive through our bi-monthly minimum $410,316. To achieve our goals, we propose raising our bi‑monthly minimum as follows:
Residential Fixed:
| Year | Meters | Bi-Monthly Incr. | Actual/Yearly | Yearly Income |
| 2017/2018 (now) | 1103 | $62.00/$372 | $410,316 | |
| 2018/2019 | 1105 | $6.00 | $68.00/$408 | $450,840 |
| 2019/2020 | 1107 | $4.00 | $72.00/$432 | $478,224 |
| 2020/2021 | 1109 | $4.00 | $76.00/$456 | $505,704 |
| 2021/2022 | 1110 | $2.00 | $78.00/$468 | $519,480 |
| 2022/2023 | 1111 | $2.00 | $80.00/$480 | $533,280 |
Commercial Fixed – Buckhorn Camp, Coulter Pines and Hummingbird Trailer Parks:
| Now | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Buckhorn Camp | $520.00 | $565.00 | $599.00 | $635.00 | $654.00 | $674.00 |
| Coulter Pines | $1670.00 | $1598.00 | $1692.00 | $1786.00 | $1833.00 | $1880.00 |
| Hummingbird Trailer Park | $605.00 | $578.00 | $612.00 | $646.00 | $663.00 | $680.00 |
Per Ordinance #9, new guidelines are in place to charge multiple units on a single meter. This would be an additional charge on bi-monthly minimums, on three or more units per single meter.
Variable Costs
| Year 2014/2015 | $202,071 | $7.51/per 1000 gallons |
| Year 2015/2016 | $194,263 | $7.39/per 1000 gallons |
| Year 2016/2017 | $203,441 | $7.15/per 1000 gallons |
Average 3 year cost = $199,925. Then, based on water sold the average price per 1000 gallons would be $7.35.
Based on info from previous 3 years, and assuming we sell 30,000,000 gallons of water per year, the breakdown per tier is:
0-7500 gallons 10 MG = 33% of sales (77% of customers)
7500-15000 gallons 10 MG = 33% of sales (16% of customers)
Over 15,000 gallons 10 MG = 34% of sales ( 7% of customers)
93% of our customers fall into Tier 1 and Tier 2. We propose changing Tier 1 from 6000 gallons to 7500 gallons, and Tier 2 from 12,000 gallons to 15,000 gallons. Tier 3 will apply to all water over 15,000 gallons, and we will eliminate the current Tier 4.
| Gallons
|
Now/1000
gallons |
Year 1
2018/2019 |
Year 2
2019/2020 |
Year 3
2020/2021 |
Year 4
2021/2022 |
Year 5
2022/2023 |
| 0-7500 | $1.80 | $4.00 | $5.00 | $6.00 | $7.00 | $8.00 |
| 7500-15,000 | $3.10 | $6.00 | $7.00 | $8.00 | $9.00 | $10.00 |
| Over 15,000 | $4.40 | $8.00 | $9.00 | $10.00 | $11.00 | $12.00 |
| Over 18,000 | $7.40 | |||||
| Now | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| New Rates | 118,110 | 180,000 | 210,000 | 240,000 | 270,000 | 300,000 |
Average Cost: $6.00/1000 $7.00/1000 $8.00/1000 $9.00/1000 $10.00/1000
The following table illustrates the impacts of the proposed rates and tiers on the typical residential and commercial customer. Your bill will vary based on water consumption.
| Now | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Bi-Monthly | $62.00 | $68.00 | $72.00 | $76.00 | $78.00 | $80.00 |
| 5000 gallons | $9.00 | $20.00 | $25.00 | $30.00 | $35.00 | $40.00 |
| Total Bill | $71.00 | $88.00 | $97.00 | $106.00 | $113.00 | $120.00 |
| 10000 gal. | $23.20 | $45.00 | $55.00 | $65.00 | $75.00 | $85.00 |
| Total Bill | $85.20 | $113.00 | $127.00 | $141.00 | $153.00 | $165.00 |
SPECIAL RATES AND CHARGES
Normal Customer Requested Turn on or Off $15.00
After Hours Customer Requested Turn On or Off $40.00 – $75.00
Emergency Turn Off $100.00 – $250.00
Delinquent Turn Off/On $75.00
Transfer Fee $45.00
Return Check Fee $45.00
Late Fee for Payments made after the 10th of month $15.00
Lien Processing Fee $215.00
Special Requests – meter readings, service calls, letters $15.00 – $100.00
Public Records Request – $.25 per page
Fire Service – $ 5.00 per inch of diameter/per month
$10.00 per month minimum
ALL 3/4” METER INSTALLATION FEES BE $740.00 PER BASIC INSTALLATION AND METERS THAT REQUIRE MORE TIME AND MATERIAL OR A NEW SERVICE LINE FROM METER TO MAIN LINE, WILL BE CHARGED TIME AND MATERIAL FOR INSTALLATION OF ALL COSTS OVER $740.00.
METER INSTALLATION FEES FOR OTHER METER SIZES WILL BE CHARGED FOR TIME & MATERIAL. THIS RESOLUTION SUPERCEDES RESOLUTION #461.
FACILITY CHARGES FOR 3/4” METERS WILL BE $8260.00.
THE COST FOR BASIC METER INSTALLATION FEE AND FACILITY CHARGES FOR A 3/4” METER WILL BE $9000.00.
1” METER = $14,042 PLUS INSTALLATION.
2” METER = $43,778 PLUS INSTALLATION.
THESE CHARGES WILL GO INTO EFFECT ON JUNE 1, 2018.
How to Provide Comments or Protest the Rate Adjustment
You may comment or ask questions at any time by contacting Jerry Holldber, General Manager of Pine Cove Water District, or by participating in the May 9, 2018, Public Hearing at 10:00 am. You have the right to protest the rate change if you are:
The record owner of an affected parcel,
A person with a legal interest in an affected parcel, or
A person who is legally responsible to pay the rates for an affected parcel.
Water rates are subject to majority protest, which means if a majority of impacted owners submit written protest against the increase, Pine Cove Water District cannot institute the new rates.
Protests must be in writing and mailed or hand delivered to Pine Cove Water District. Faxed or emailed protests cannot be accepted.
In compliance with Proposition 218, only one protest per property will be counted. All written protests must be received by Pine Cove Water District before the end of the Public Hearing on May 9, 2018. Please direct written protests to Pine Cove Water District, Attn: Jerry Holldber, PO Box 2296, Idyllwild CA 92549.
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