Undeveloped Lots
Water and sewer systems require ongoing maintenance and investment to remain safe, reliable, and ready to serve our community. Even when a connected parcel is undeveloped or not actively using service, the District must maintain pipelines, operate pumps and treatment facilities, preserve storage capacity, and keep the system ready to provide service when needed.
Because these costs exist regardless of an individual property's actual water or sewer use, California law allows the District to charge an applicable base rate to an undeveloped parcel when water and/or sewer service is "immediately available" to the property.
What Does "Immediately Available" Mean?
Under Proposition 218 (Cal. Const., art. XIII D, § 6(b)(4)), a property-related fee may be charged for a service that is "actually used by, or immediately available to," a parcel.
In Paland v. Brooktrails Township Community Services District (2009) 179 Cal.App.4th 1358, the California Court of Appeal addressed when utility service may be considered immediately available to a property. The Court determined that service may meet this standard when the necessary District infrastructure and connections have been installed to serve the property and the remaining action needed to initiate service is within the property owner's control, such as requesting a meter or activation of service.
When water and/or sewer service is immediately available to an undeveloped parcel, the property may therefore be subject to the District's applicable base rate in accordance with the District's adopted rate schedule.
Why Are Undeveloped Parcels Charged a Base Rate?
Base rates help support the fixed costs of maintaining the shared water and sewer systems. These costs continue whether a particular property uses a small amount of service, a large amount, or no service at all.
The Court in Paland recognized that excluding undeveloped but service-ready parcels from these charges could shift a greater share of the fixed costs of maintaining the system to active customers, even though the undeveloped parcel benefits from having District service available when the property owner chooses to develop or use the property.
Proposition 218 Protections
Proposition 218 also establishes important protections for property owners. Before adopting or changing property-related water or sewer rates, the District must follow the applicable notice and protest procedures, including providing written notice to affected property owners and conducting a public hearing at which written protests may be submitted.
The District's current water and sewer rates, including applicable base rates for undeveloped parcels where service is immediately available, are established by Resolution No. 26-08, adopted following the Proposition 218 process.
Questions About Your Property?
Whether a base rate applies depends on the service availability and circumstances of the individual parcel. Property owners with questions about their parcel or the availability of water or sewer service are encouraged to contact the District office at (707) 998-3322.
