HomeMy WebLinkAboutAgenda Statement 1986/06/24 Item 17 COUNCIL AGENDA STATEMENT
Chula Vista, Cuiiornia Item I
3ted - ,;(/ / /% , Meeting Date 6/24/86
ITEM TITLE: Resolution /_1. ,(') Establishing a sewer service fee for the
Montgomery area for FY 1986-87
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SUBMITTED BY: Director of Public Works/City Engineer
REVIEWED BY: City Manager✓ (4/5ths Vote: Yes No X )
Under the terms and conditions of the Montgomery area annexation,
the
Montgomery Sanitation District and the Areawide Street Lighting District will
be dissolved July 1 , 1986. Beginning July 1 , the City of Chula Vista will
begin operating the sanitary facilities and also will be responsible for the
street lights. The city because of the dissolution will receive revenues from
the sewer user as has the Montgomery Sanitation District. The Board of
Supervisors as the governing board of the District will transfer all the
assets of the Montgomery Sanitation District including reserves sometime in
July. The purpose of this resolution is to set the sewer fee for the
Montgomery area users for FY 1986-87.
RECOMMENDATION: That Council approve the resolution continuing the sewer
service fees for the newly annexed area that are currently in place ($39 per
year per EDU) for FY 1986-87 to be collected on the property tax bill , and
that staff be directed to study and report at a future date on the
disposition of the reserves.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Council policy at the time of the annexation vote was to use the reserves to
continue the same sewer service fee. When determination was made on the
disposition of the reserves, Council would then decide the appropriate fee for
the newly annexed area. The goal was that when the reserves were used up, the
Montgomery area sewer users would pay the same sewer fees as the preannexation
city.
Staff has been informed that during July, the Montgomery Sanitation District
will be transferring an operation reserve of approximately $800,000 and a
capital reserve of approximately $600,000. Staff has reason to believe that
preannexation Chula Vista may have been overcharged in the past. It is
proposed that staff make a study and report back to Council if and how much
these overcharges were. Staff is also looking at alternatives to distribute
the reserves so that once that action is taken the sewer service fees for the
newly annexed area will come in line with those for the remainder of Chula
Vista.
This resolution will continue the sewer service charges for the newly annexed
year the
taff will complete p da this
detailed study and report back to Council g on how to
year sta
dispose of the reserves.
FISCAL IMPACT: This will provide revenues to Chula Vista from the newly
annexed area.
WPC 2178E