Public Hearing Notice - Protect Ground Water

NOTICE OF PUBLIC HEARING AND PROPOSED ASSESSMENT
HI-DESERT WATER DISTRICT ASSESSMENT DISTRICT NO. 2014-1
[WASTEWATER RECLAMATION AND SEWER PROJECT]
The purpose of this notice is to provide you with information regarding:
(a) A Public Hearing of the Board of Directors (“Board”) of the Hi-Desert Water District (“HDWD” or “the District”), to be held on May 13, 2015, at
9:00 a.m., in the HDWD Board Room, located at 55439 29 Palms Highway, Yucca Valley, CA 92284, to consider the formation of Assessment
District No. 2014-1 (“AD 2014-1”) for the Wastewater Treatment and Reclamation Project (“the Sewer Project”) and the levy of an assessment
on properties to finance the installation of a centralized sewer collection system, a wastewater treatment and reclamation facility, and other
related sewer improvements.
(b) Enclosed you will find a Property Owner Assessment Ballot, which allows you to express whether you APPROVE or DO NOT APPROVE the levy of
an assessment on your property to finance the Sewer Project. In ink, please sign and date your assessment ballot. Once complete, return it on
or before the CLOSE OF THE PUBLIC HEARING to be held on May 13, 2015.
WHY AM I RECEIVING THIS?
You have received this information because the California Regional Water Quality Control Board (CRWQCB) is prohibiting septic discharges in parts
of Yucca Valley beginning May 19, 2016. To help property owners comply with this prohibition, HDWD is proposing to construct the Sewer Project. As
a property owner, you may submit a ballot expressing your support for or opposition to how to finance the costs of the Sewer Project.
A YES VOTE MEANS:
A NO VOTE MEANS:
• You approve an assessment to be levied on your
property to fund the Sewer Project
• You do not approve an assessment to be levied on
your property to fund the Sewer Project
• Your assessment will be used to repay and secure
a low-interest loan from the State to finance the
Sewer Project
• The State will not release the Loan funds
• The septic discharge prohibition will remain in
place and property owners will be responsible
for complying with the State’s Septic Discharge
Prohibition on their own
• HDWD will use the proceeds of the low-interest loan
to pay for the construction of the Sewer Project
WHAT IS THE REASON FOR THE ASSESSMENT?
Why is an assessment necessary?
The prolonged use of septic systems in Yucca Valley has resulted in
the pollution of the local groundwater supply. On May 19, 2011, the
California Regional Water Quality Control Board (CRWQCB) adopted
a groundwater Basin Plan Amendment that prohibits septic tank
discharges in Yucca Valley to protect groundwater quality. HDWD is
proposing to construct a sewer collection system and wastewater
reclamation facility (the “Sewer Project”) to assist property owners
in complying with this State prohibition. HDWD is proposing to form
an assessment district (“AD 2014-1”) and levy an assessment on
all properties that will specially benefit from the Sewer Project. This
assessment allows property owners to finance the Sewer Project to
ease the financial burden of complying with the State prohibition and to
construct the Sewer Project to protect the local groundwater supply.
How will my assessment be used?
The assessment will be used to repay a low interest loan from the State
Revolving Fund (the “Loan”) for the Sewer Project. Revenues from the
assessment levied within AD 2014-1, will go toward paying construction
costs, interest on the Loan, and certain incidental and administrative
expenses required in connection with the Loan. The assessment MAY
ONLY BE USED to pay for costs associated with the Sewer Project. The
revenues from the assessment will be separately accounted for from all
other revenues and funds of HDWD and will be subject to independent
annual audits.
What will my assessment pay for?
If the assessment is approved, the Sewer Project will include:
• Approximately 78 miles of sewer main
• 3 Pump stations
• A wastewater treatment and reclamation facility
• Replacing existing roads with new roads due to construction of the
Sewer Project
How do the assessments and state loans work?
The construction and installation of the Sewer Project will specially
benefit properties within the proposed AD 2014-1. If the assessment is
approved, you will have an assessment lien placed on your property. The
Loan, if secured by approval of the assessment, will provide HDWD with
$145,229,718 to pay for the costs of constructing the Sewer Project.
The low interest Loan will be repaid over a period of 30 years from the
original Loan date with a set interest rate of 1%. The assessment levied
on property owners in AD 2014-1 will be used to repay the Loan.
HOW MUCH WILL I BE ASSESSED?
How is my assessment calculated?
Property owners within AD 2014-1 will pay a portion of approximately
$145,229,718 of the $150,081,314 estimated cost of the Sewer Project.
Your property’s portion of this cost will be paid through your assessment
that is based on the special benefit that your parcel will receive from the
Sewer Project. This assessment was calculated based on the assignment
of equivalent dwelling units (“EDU’s”) to each parcel. EDU is a term
used to compare wastewater discharges (“flows”) generated from nonresidential units to those generated by single-family residential units. A
single-family residential unit is assigned one EDU, which is based on a
single-family residence generating 175 gallons of wastewater per day. The
number of EDU’s assigned to a parcel is therefore based on the type of land
use and the potential sewer flow generated by that land use category.
More information about assessment calculations and details of the Sewer
Project costs are available in the Assessment Engineer’s Report available
at: ProtectGroundwater.com/assessment-info
How long will the assessment be on my property?
If you choose to finance the assessment through the Loan at a low
interest of 1%, the assessment will be levied and be a lien on your
property for 30 years. The assessment will be collected and appear
as an additional line item on your property tax bill beginning one year
prior to completing Phase 1 of the Sewer Project, currently projected
to be completed in 2018. If the assessment is approved, you will have
the opportunity to prepay your assessment prior to the issuance of
the Loan. If you prepay your assessment, you will receive a discount
of approximately 2% of your total assessment amount. You have the
right at any time in the future to prepay all or any portion of your total
assessment, but you will not receive this same discount.
shown on the enclosed Property Owner Assessment Ballot. You may also
find the number of EDU’s used for calculating your assessment by land
use category in the table below. The assessment on commercial property
varies based upon projected flows.
Land Use
Single Family Multi-Family
Mobile Home
MH Vacant
Vacant
Phases 2 & 3
Deferred Properties
Commercial
EDU
1 Per Unit
0.75 Per Unit
0.60 Per Unit
0.60 Per Unit
1 Per Unit
1 Per Unit
1 Per Unit
Varies
Cost
$18,160.17
$13,831.74
$10,407.32
$7,924.28
$14,009.51
$4,878.70
$8,289.71
Varies
Annual Payment (1%)
$703.67
$535.95
$403.26
$307.05
$542.84
$189.04
$321.21
Varies
Individual property assessments can be found by APN or Address at:
ProtectGroundwater.org/assessment-info
What are Phase 2 and Phase 3 of the project, and why are they being
assessed?
What is my proposed assessment?
Three benefit areas (phases) were established based upon the
proportionate special benefits that properties will receive from the sewer
system as a whole. While properties in Phase 1 will connect to the Sewer
Project and begin receiving service when the first phase of construction
is complete, properties in Phases 2 and 3 will or may connect at a later
time. These later connecting properties will also receive special benefits
from the Phase 1 of the Sewer Project and will be paying for their share
of the treatment facilities and sewer lines that they will use in the future.
Because they are connecting at a later date, their assessment is smaller
and these phases will be assessed in the future to construct Phase 2 and
3 of the Sewer Project.
The total amount assessment chargeable to the entire AD 2014-1 is
$145,229,718. The proposed ‘not to exceed amount’ of the total
assessment for your property and the estimated annual assessment are
The complete calculations are in the Engineer’s Report, which can be
found on file at the District offices at 55439 29 Palms Hwy, Yucca Valley,
CA 92284 and online at: ProtectGroundwater.org/assessment-info
HOW DO I VOTE AND PARTICIPATE?
What is a “mail back” ballot?
The enclosed Property Owner Assessment Ballot is your
opportunity to express your support for or opposition to the
proposed assessment to finance the costs of the Sewer Project.
A pre-addressed envelope is enclosed for you to mail or deliver
your ballot. The envelopes will remain sealed until the close of
the Public Hearing. If you plan to mail your ballot, please allow
enough time for it to reach the Secretary to the Board before
the close of the Public Hearing, which will occur when all public
testimony at the Public Hearing is complete. You may also hand
deliver your ballot at the District offices, 55439 29 Palms Hwy,
Yucca Valley, CA, or at the Public Hearing (date, time, and location
previously noted). If you deliver your ballot in an envelope
other than that enclosed, please indicate on the outside of the
envelope: ASSESSMENT BALLOT. The District is not responsible
for lost, stolen, misdirected, or late mail. Late ballots or ballots
partially completed cannot be counted. If you lose your ballot,
require a new one for any reason, or wish to withdraw or change
a ballot that you have submitted to the District, please contact the
Secretary to the Board at the District offices, and a new one will
be provided to you.
How does the public hearing work?
At the Public Hearing, the Board will consider and hear all oral
testimony against the proposed assessment. After the Public
Hearing is closed, the Board will direct the Secretary to the Board
and/or their designee to have all properly returned assessment
ballots counted. Results will be made public as soon as possible.
The Board may not impose the assessment if there is a majority
protest. A majority protest exists if the assessment ballots
submitted, and not withdrawn, in opposition to the proposed
assessment exceed the assessment ballots submitted, and not
withdrawn, in its favor, weighting those assessment ballots by
the amount of the proposed assessment to be imposed upon the
identified parcel for which each assessment ballot was submitted.
Further Questions? Contact Hi-Desert Water District at 760-365-8333 or by email at JenniferP@hdwd.com.