ORDINANCE NO. 27

MCCLOUD COMMUNITY SERVICES DISTRICT SUMMARY OF ADOPTED ORDINANCE NO. 27, AMENDING WATER ORDINANCE NO. 23

The following Summary of Adopted Ordinance No 27, Water Ordinance, has been authorized to be published in a newspaper of general circulation throughout the jurisdiction of the District in order to notify citizens of the adoption of Ordinance No. 27 Water Ordinance (the “Water Ordinance”) at a public regular meeting of the Board of Directors of the McCloud Community Services District held on November 26, 2018.

The following Summary of Ordinance No. 27 is adopted by the Board of Directors of the District pursuant to the provisions of Government Code section 25124(b)(1) and has been prepared by the District’s Legal Counsel at the direction of the Board of Directors. The purpose of this Ordinance is to amend certain provisions of the District’s existing Water Ordinance No. 23.

This Summary shall be published within fifteen (15) days following the meeting of the Board of Directors at which the Water Ordinance was adopted on November 26, 2018.

The following constitutes the official Summary of Adopted Ordinance No. 27, Water Ordinance of the McCloud Community Services District.

Ordinance No. 27 Water Ordinance of the McCloud Community Services District contains the following provisions:

1. The Ordinance at Section 4.01 assigns to each user within the District boundaries a number of Household Equivalents for water rate purposes according to the service line size of water distribution installed on their property by the District, in accordance with the equivalency tables establishing the number of Household Equivalents for each service line size compiled by the American Water Works Association (hereinafter “AWWA”), attached to the Ordinance as Exhibit A. This Ordinance establishes a Service Line Size Water Rate Structure to be applied to all existing District customers, including those customers who were previously assigned Household Equivalents based on the nature of their use of the premises. The Service Line Size Water Rate Structure is also applicable to all new construction, including modifications to buildings or premises or changes in occupancy initiated after the effective date of this Ordinance making such water rate structure applicable to all existing customers. The purpose of the Service Line Size Water Rate Structure is to facilitate compliance with Article XIIID of the California Constitution, to facilitate the regulation and conservation of water use, to provide an effective means of source water capacity estimations, and to provide an equitable basis for the establishment and levying of charges for water services provided to all users.

2. The Ordinance at Chapter 3 contains provisions regarding requiring the applicant to provide two separate bonds in the name of the District in the amount of 100% of the estimated costs of the construction of all water main extensions and related improvements, using prevailing wage rates. The first bond shall be a Performance Bond issued by a surety company admitted to do business in the State of California as an insurer, maintained during the entire life of the Development Agreement at the expense of applicant, and shall guarantee the faithful performance of all aspects of the work of improvements specified in the Development Agreement. The second bond shall be the payment bond required by Division 4, Part 6, Title 3, Chapter 5 of the Civil Code of California, issued by a surety company admitted to do business in the State of California as an insurer, shall be in the amount of 100% of the estimated cost of the improvements at prevailing wage rates, and shall guarantee the payment of wages and materials, supplies, or equipment used by all contractors and subcontractors in the performance of the work specified in the Agreement.

Prior to commencing work the applicant or the applicant’s contractor shall furnish a certification from either the California Department of Insurance and/or the Siskiyou County Clerk evidencing the status of any and all sureties issuing the bonds required pursuant to this Ordinance and representing that said sureties are authorized to do business in the State of California and that the bonds fully comply with the requirements of Civil Code sections 3247 and 3248.

3. The Ordinance at Chapter 2 clarifies certain water use regulations regarding supply of water to separate structures and changes by customers in the size, character, or extent of the equipment or operations utilizing water service, or whose change in operations results in an increase in the use of water. Should the owner of a single property subsequently subdivide such parcel, then the portion of that parcel not directly connected with the District’s water system through a separate service connection must be connected with the District’s public water system through a separate service connection, for which additional connection charges are payable. Any failure by an owner or customer to comply with such order from the District shall be enforceable by discontinuance of service. In addition, customers making any material changes in the size, character, or extent of the equipment or operations utilizing water service, or whose change in operations results in a large increase in the use of water will be required to install a larger service connection as required by the District within the time period specified by the District, and will be required to pay any applicable additional connection capacity charges associated with such larger service connection as a condition of receiving water service.

4. The Ordinance at Chapter 3 provides that any water system improvements required to provide water to annexed property, including but not limited to main extensions, service connections, water storage facilities, pumping stations, valves, booster stations, pressure regulating valves and fire hydrants shall be installed at the sole cost of the applicant and shall be at no cost to the District. The applicant shall pay the total construction cost of all such improvements, and, if additional right-of-way acquisition is required in order to construct line extensions to the point of connection, the applicant shall pay the entire cost of all such right-of-way acquisitions.

5. The Ordinance at Chapter 4 revises the methodology for payment of connection/capacity fees based on service line size of water distribution installed on a customer’s property by the District, in accordance with the equivalency tables establishing the number of Household Equivalents for each service line size compiled by the American Water Works Association (hereinafter “AWWA”). The Connection/Capacity Fee is based on the capital cost of capacity and represents a reimbursement to the District’s rate payers for providing available capacity to future users of the water system. By paying this fee new customers have participated equally with existing rate payers in sharing the capital cost of water system capacity. The revised basis for computation of the Connection/Capacity Fee is the number of Household Equivalents assigned to the service line size of a customer’s premises as specified in Exhibit A of the ordinance multiplied by the Connection/Capacity Fee for a single Household Equivalent as detailed in Board Policy 1060, Miscellaneous Fee Schedule. The Connection/Capacity Fee for a single Household Equivalent is computed based on an analysis of the capital cost of capacity of the District’s Water System, as updated from time to time by the District Board of Directors.

6. The Ordinance at Chapter 5 clarifies the enforcement remedies available to the District for unauthorized water connections. An unauthorized water connection, when discovered by the District, will require payment in an amount equal to the avoided user charges in effect during the period of time since such unauthorized service connection was made, plus an amount of liquidated damages in the same amount of the avoided user charges during the period of time the unauthorized service connection was in effect, plus payment of applicable connection/capacity fees, service call charges and administrative charges incurred in the enforcement of this section. Such unauthorized connections will be disconnected by District until full payment of all avoided user charges and liquidated damages required by this ordinance are deposited with the District.

7. The Ordinance at Chapter 5 specifies an enforcement remedy for a customer’s failure to report a change of use which results in water usage through the water service connection in excess of the AWWA service line capacity standard. When discovered by the District, such change of use shall require payment by customer equal to the avoided user charges in effect during the period of time between the last recorded inspection by the District of the customer’s water connection and the date of discovery of the unauthorized change in use by the District, plus an identical amount of avoided user charges which will be assessed as liquidated damages. In addition, payment by customer of an additional capacity/connection fee in effect at the time of discovery for the additional line size required to properly service the customer’s property will be required as a condition of future water service. Failure by the customer to pay such service charges, additional connection/capacity fees and liquidated damages when due will result in discontinuance of service.

8. The Ordinance at Chapter 5 clarifies the enforcement remedies available to the District to recover delinquent service charges and fees. If an account has not been paid in full on or by the twenty-fifth day of the month following the date of the invoice, such account shall be considered delinquent and a penalty assessed in the amount of 10% of the amount due. Thereafter, a Second Notice will be issued and penalties shall be applied to the account in the amount of 1% per month of the total delinquent balance plus the basic 10% penalty for each month beyond the date of the Second Notice will be issued and penalties shall be applied to the account remains delinquent. All delinquent amounts and penalties shall continue to bear interest at the rate of 1.5% per month until paid.

The Board of Directors may also recover any water service charges, penalties and interest which are delinquent for a period of 30 days by recording in the office of the County Recorder of Siskiyou County a Notice of Lien for unpaid delinquent charges, penalties, interest, lien administration charges and applicable Recorder’s fees.

For any water charges which have been delinquent for sixty (60) days, the Ordinance provides for a procedure by which the District nay collect any delinquent charges, penalties and interest on the property tax roll in the same manner as property taxes pursuant to the provisions of Government Code section 61115(b).

9. The Ordinance at Section 6 provides a process for disconnection of water service for failure to pay delinquent water service charges, penalties and interest when due, and for failure to comply with other provisions of the Ordinance. Section 6 also requires a customer whose water service has been disconnected by the District to pay a reconnection charge together with all delinquent charges, penalties, interest, and District administrative and legal costs prior to resumption of water service from the District.

10. The Ordinance at Section 7 provides penalties for violation of the provisions of the Ordinance. Any violation of the Ordinance shall be a misdemeanor and shall be punishable by imprisonment in the County Jail for a period not to exceed six (6) months, or by fine, not exceeding $1000, or by both. Every day of violation of the Ordinance continues shall constitute a separate offense. Section 7 also provides a procedure by which any property owner/customer who is of the opinion that any provision of this Ordinance is unjust or inequitable as applied to his premises due to special circumstances, such property owner/customer may make written application to the Board of Directors, stating the special circumstances, citing the provisions complained of, and requesting suspension or modification of such provisions as applied to the premises of such property owner/customer. Section 7 also provides that the Board of Directors may, on its own motion, find that, by reason of special circumstances, any provision of this Ordinance should be suspended or modified as applied to particular premises, and may, by resolution, order such suspension or modification for such premises during the period of such special circumstances.

THE BOARD OF DIRECTORS HEREBY CERTIFIES that this Summary of Ordinance No. 27 was duly considered and adopted by the Board of Directors at its regular board meeting scheduled on November 26, 2018. The Board of Directors hereby directs District staff to publish and post this Summary of Ordinance No. 27 as provided in Government Code section 25124.

McCloud Community Services District

Dated: November 27, 2018

By: Catherine Young,

President of the Board

ATTEST:

I HEREBY CERTIFY that the foregoing Summary of Ordinance No. 27 was duly agendized and adopted by a majority vote of the Board of Directors at a regular meeting of the Board of Directors of the McCloud Community Services District on November 26, 2018 and was duly adopted by the following vote at a regular meeting:

AYES: Hitchcock, Rorke, Young, Zanni

NOES:

ABSENT:

By: Teryl Smith,

Secretary of the Board

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