Resolution of Intent Moving Forward at Castaic Lake Water Agency

Wednesday evening, the Board of the Castaic Lake Water Agency voted 9-1 to move forward with a Resolution of Intent to adopt the 2010 Data Document but hold off on implementation of fee increases for a one year period.  This was one of three Alternative Resolutions presented by staff and it was the Resolution which the BIA requested and recommended the board adopt.  The 2010 Data Document called for fee increases to take effect on January 1, 2010 and increases fees an average of 25%, depending on Water Service Area (WSA).  Resolution 21784 will now be noticed for public hearing and will be heard on April 13, 2011. 

Several BIA members turned out to oppose the fee increases and many others submitted letters objecting to the proposed increases given the state of the economy.  Leading to this regular meeting, the Castaic staff offered a workshop to the board and stakeholders to provide a better understanding of the Data Document.  This workshop encouraged a lengthy dialog between staff, the board and the BIA and lasted five hours.  The public hearing is now scheduled for April 13, 2011and if adopted as recommended, the fee increases will take effect January 1, 2012. 

In conjunction with fee increase opposition, the BIA also requested the agency also adjust the timing of fee collection from permit to certificate of occupancy. The current fee payment policy requires developers to make a huge cash-outlay up front.  The board responded to the BIA request to move forward with the implementation of timing of the collection of fees from permit to occupancy which provides builders some relief in their carrying costs by avoiding payment of facility capacity fees until the units are sold and closer to when builders have the cash in hand to pay.  Staff indicated that this shift in payment timing process would be handled administratively.