YOU ASK, WE ANSWER
Q&A
Questions Appear in CSDA Online Communities
Required Rate Consultants
Volume 17 • Issue 2
Emily Arnbrister Account Administrator, Ventura River Water District Hello, I was wondering if anyone knew if there is a legal requirement that water agencies must use a rate consultant every 10 years? My general manager thought he remembered something along those lines, but we haven’t been able to find a water code to back that up. Thank you! Robert Bosso Law Office of Robert E. Bosso, Santa Cruz, CA I know of no “requirement,” but adopting new rates without a professional study is risky business in the Post Prop 218 era because the courts have imposed an approach which usually requires an expert.
Thomas Brightbill, PE Senior Engineer, Planning and Development Services Division, Central Contra Costa Sanitary District Hi Emily, Government Code section 54999.7 requires any public agency providing “public utility service” to public schools to complete a costof-service study “at least once every 10 years.” Government Code section 537956 (Prop 218 implementation) discusses a 5-year cost of service requirement. That specific section deals with automatic “pass through” adjustments for water, wastewater, and solid waste under Prop 218. The guidance I’ve received a couple of times from legal counsel and from lawyers at a CSDA Prop 218/Prop 26 workshop training was that the 5-year requirement for a cost-of-service study should not be considered to be limited to only pass-through adjustments. I do not know of a specific requirement that the cost-of-service studies be done by an outside consultant. CSDA Disclaimer: This section is not intended to be legal advice. Members should always seek legal counsel. The information contained here is for general reference purposes only.
Engage with your peers and ask questions on CSDA’s Open Forum community! 17
