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HomeMy WebLinkAbout07. Approve notice procedures for any proposed revised sewer service chargesO��ENTRAL MEETING DATE: JANUARY9, 2025 BOARD OF DIRECTORS POSITION PAPER Page 1 of 3 Item 7. SUBJECT: CONSIDER ALTERNATIVE NOTICE PROCEDURES FOR ANY PROPOSED REVISED SEWER SERVICE CHARGE TO ENSURE APPROPRIATE ENGAGEMENT WITH RATEPAYERS AND COMPLIANCE WITH PROPOSITION 218 SUBMITTED BY: INITIATING DEPARTMENT: LEAH CASTELLA, COUNSEL FOR THE SECRETARYOF THE DISTRICT DISTRICT REVIEWED BY: EMILYBARNETT, COMMUNICATION SERVICES AND INTERGOVERNMENTAL RELATIONS MANAGER DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER Roger S. Bailey General Manager ISSUE Determine what notice procedures for any proposed revised sewer service charge the District should use to appropriately engage ratepayers and ensure compliance with Proposition 218. BACKGROUND On December 18, 2024 the District conducted a Financial Workshop to discuss rate setting. At that meeting, there was a discussion about the District's planned process for providing notice to rate payers of proposed changes to sewer service charges (SSC). This item provides a detailed description of the legal requirements for notice and the efforts in which the District is engaging to exceed those requirements in an effort to ensure that ratepayers are fully engaged in this process. January 9, 2025 Special Board Meeting Agenda Packet - Page 35 of 93 Page 2 of 3 Proposition 218 Notice & Protest Requirements Article XI I I D, section 6(a)(1) requires that the District provide written notice by mail to the record owner of each parcel upon which the fee or charge will be imposed. The notice must contain the following information: (1) the amount of the fees or charges proposed to be imposed; (2) the basis upon which the fees or charges were calculated; (3) a statement regarding the reason for the imposition of the new, or increases to the existing, fees or charges; and (4) the date, time, and location of the public hearing at which the legislative body will consider the new fees or charges or proposed increases to the existing fees or charges. Article XI I I D, section 6(a)(2) further requires that the public hearing to consider adoption of the rate increases be held not less than forty-five calendar days after the mailing of the notice. Government Code § 53755 addresses how notice may be mailed and provides that an agency may give the notice may give the notice required pursuant to Article XI I I D, section 6(a)(1) of an increase to an existing fee or charge by including the notice in (1) the agency's regular billing statement for the fee or charge; or (2) any other mailing by the agency to the address to which the billing statement for the fee or charge is customarily mailed. Article XI I I D, section 6(a)(2) provides that a property -related fee or charge may not be imposed or increased if a majority of "owners of identified parcels" submit written protests. What constitutes protest is not explicitly stated in the law, so most agencies—including Central San—have adopted procedures to satisfy the protest requirements of Proposition 218. Central San's process is codified in Board Policy BP No.011. Under its terms, written protests must include: (1) identification of a parcel that receives sewer services from Central San or is reasonably served by Central San's recycled water pipelines by either Assessor's Parcel Number or street address; (2) signature of the record owner or tenant of the parcel; and (3) a clear statement of opposition to the proposed fee or charge. The protest must be received (and not withdrawn) by the close of the public hearing. The protest can be delivered by US Postal Service, email with a pdf signature, fax, overnight mail service, or personal delivery. BP No. 011 also allows for verbal protests. Verbal protests must be made during the public hearing by a record owner or tenant of a parcel that receives sewer services from Central San or is reasonably served by Central San's recycled water pipelines and clearly state opposition to the proposed fee. District's Process for Providing Notice & an Opportunity to Protest Central San sends written notices of proposed rate changes via first-class mail to all property owners in our service area at least 45 days in advance of the public hearing. We also distribute a "soft 218" notice through our Pipeline newsletter, sent via presort bulk rate to every mailing address within our service area. This ensures that all customers, including those who are not property owners, are aware of the proposed rates. I n writing and designing both mailings, we strive to communicate this information clearly and effectively, setting a benchmark for the amount of information included in our notices that other agencies around the state are now emulating. This information is further shared via a featured banner on our centralsan.org homepage, an additional dedicated webpage, and our social media channels. For customers seeking additional support, we offer dedicated email and phone lines where they can receive personalized assistance in understanding the proposed rates and staff guidance on how to submit a valid protest, if they wish. ALTERNATIVES/CONSIDERATIONS The Board has previously considered an alternative to supplement the notice currently provided by adding a postage paid, "tear off' mailer. Accordingly, we are including this potential alternative again for Board January 9, 2025 Special Board Meeting Agenda Packet - Page 36 of 93 Page 3 of 3 consideration and discussion. Other alternatives may be possible, but will require additional investigation as to viability and cost. FINANCIAL IMPACTS While we do not yet have definitive numbers for the cost of adding a tear off mailer, the cost estimate is between $80,000 - $100,000. COMMUNITY OUTREACH Central San takes its responsibility to provide customers with clear and detailed information on proposed rate changes very seriously. These outreach efforts significantly exceed the requirements of Proposition 218, including: • Providing an expanded SSC Proposition 218 notice that is more readable, engaging, and accessible to customers by including graphics, locations of projects, and summarizing information. • Incorporating the notice of the proposed rate increases and public hearing in the Pipeline newsletter in an effort to reach additional customers, including both property owners and tenants. Receiving protests and customer rate inquiries through traditional mail, email, fax, and hosting a Community Information Line. • Publishing a calendar of rate -related events, holding public workshops, distributing Proposition 218 notices that comprehensively describe the proposed rate changes, and holding a public hearing regarding the changes as required by Proposition 218. COMMITTEE RECOMMENDATION Due to the time sensitive nature of this item it was brought directly to the Board. RECOMMENDED BOARD ACTION Approve planned notice procedures for any proposed revised sewer service charge. In order to ensure adequate time to implement Board direction, Board action on this matter is requested today. Strategic Plan Tie -In GOAL ONE: Customer and Community Strategy 1— Deliver high-quality customer service, Strategy 2 - Promote initiatives to advance affordable and equitable access to services, Strategy 3 - Build neighborhood and industry relations January 9, 2025 Special Board Meeting Agenda Packet - Page 37 of 93