ITEM:		ACTION ITEM
16.	CONSIDER 1) ADOPTION OF RESOLUTION 2012-10 – CERTIFYING COMPLIANCE WITH STATE LAW WITH RESPECT TO THE LEVYING OF GENERAL AND SPECIAL TAXES, ASSESSMENTS, AND PROPERTY-RELATED FEES AND CHARGES; AND 2) AUTHORIZE AGREEMENT FOR COLLECTION OF SPECIAL TAXES, FEES, AND ASSESSMENTS WITH THE COUNTY OF MONTEREY
Meeting Date:			July 16, 2012	Budgeted:	Yes
From:			David J. Stoldt,	Program/
			General Manager	Line Item No.:	Revenues
Prepared By:			Suresh Prasad	Cost Estimate:	$15,000
General Counsel Approval: Yes
Committee Recommendation: The Administrative Committee reviewed this item on July 9, 2012 and recommended approval.
CEQA Compliance: N/A

SUMMARY: At its February 23, 2012 meeting, the Board directed staff to implement a Proposition 218 process for the development of water supply fees and charges, including the hiring of a rate consultant and the development of the necessary ordinances, resolutions, and notices for implementation thereof.

At its April 16, 2012 meeting the Board reviewed as an informational item two alternative draft resolutions for the collection mechanism of the proposed annual Water Supply Charge. At its June 27, 2012 meeting the Board reviewed and approved Resolution 2012-06 for collection of Water Supply Charge through the County Assessor’s Office. At this time, the Board is asked to adopt Resolution 2012-10 certifying compliance with State law with respect to the Water Supply Charge and enter into an agreement with County of Monterey authorizing collection of the Water Supply Charge on the property tax bill.

The County will charge the District 0.25% of the original amount that is to be collected by the County. The approximate dollar amount for this contract will be $9,250 (3,700,000 x 0.25%).

RECOMMENDATION: The Board should review and adopt Resolution 2012-10 and authorize the General Manager to execute agreement with County of Monterey for collection of Water Supply Charge on the property tax bill. The Administrative Committee reviewed this item at its July 9, 2012 meeting and recommended approval by a vote of 2 to 0.

BACKGROUND: There were two alternatives for the water supply charge collection mechanism: Alternative A was bills sent directly by the District or through a third-party mailing house: Alternative B was the use of the semi-annual County Assessor’s bill, similar to what is the current practice for Carmel Area Wastewater District and the water recipients under the Castroville Seawater Intrusion Project. At its June 27, 2012 meeting the Board reviewed and approved Resolution 2012-06 for collection of Water Supply Charge on the County Assessor’s Office.

Assessors billing states that the County Assessor bills shall be generated every fiscal year (July 1 through June 30) and mailed in mid-October and payment may be made in two installments, due as follows:

1st Installment - Due November 1st, Delinquent after 5:00 p.m. December 10th.

2nd Installment - Due February 1st, Delinquent after 5:00 p.m. April 10th.

If the annual water use fee required by Ordinance No. 152 remains unpaid by 5:00 p.m. on June 30th, the payment shall be declared delinquent by the County Assessor, and the property shall be subject to default. A basic penalty of 10 percent shall be imposed for delinquent payment. A penalty of one-half of 1 percent per month shall be imposed for nonpayment of the charges and the basic penalty. Collection of the charge and penalties shall become a lien upon the real property and collectible at the same time and in the same manner as taxes and assessments are so collected upon such real property. Real property remaining in defaulted status for five or more years shall be subject to sale by the County Assessor. Thereafter the real property may be sold at public auction or otherwise conveyed to new ownership. At such time, unpaid annual water use fees, interest and penalties shall be remitted to the District.

EXHIBITS

16-A Resolution 2012-10

16-B Agreement for Collection of Fees

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