January 13, 2015 - At the Tuesday, January 13, 2015 Mariposa County Board of Supervisors meeting the Board approved temporarily reducing the water and sewer rates charged to the Jeffery Hotel in Coulterville from commercial to residential. This action saves the hotel from paying hundreds of dollars a month in commercial rates.
Once the Bar/Restaurant is back in operation after repairs are made from the November 2014 fire the rates will return to commercial from residential.
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The following are excerpts from the discussion:
Supervisor Merlin Jones made it known to the public that he has no financial interest in the Jeffery Hotel contrary to rumors.
Supervisor Jones thinks the time frame until the Jeffery bar/restaurant is back open is 6-10 months.
The hotel is currently red tagged.
The restoration is about a $1,000,000 project.
Supervisor Marshall Long asked if they were setting a precedent by approving this reduction. Interim CAO Mary Hodson said that this had not been done before.
Supervisor John Carrier asked if the hotel was current in their bills to the county. Prior to the fire the hotel consistently ran 90 days in arrears. Currently the hotel owes slightly over $2,000.
The Coulterville Water District utility capital fund balance is slightly over $2,000. They do not have the funding if something major were to happen in the district.
Supervisor Merlin Jones said the fees for the district should be increased.
Supervisor Marshall Long said by providing this reduction they could provide the hotel with 'breathing room.'
On the vote: passes 4-1 with Supervisor Carrier opposed.
Board Packet Item:
RECOMMENDATION AND JUSTIFICATION:
Approve Temporarily Reducing the Water and Sewer Rates Charged to the Jeffery Hotel from Commercial to Residential Effective January 1, 2015, and Until Such Time that the Jeffery Hotel Bar/Restaurant is in Operation. The Jeffery Hotel was partially destroyed by a fire in November 2014, leaving the hotel and restaurant portion of the building inoperable. The Jeffery Hotel receives water and sewer service through the Coulterville Community Service District. Staff is recommending that the rates charged to The Jeffery Hotel be temporarily reduced from commercial to residential, to allow the owner of the building to realize some financial savings while working to reconstruct the building. The owner is anticipating that the bar/restaurant portion of the building will be operation before hotel will, and staff is recommending that the water and sewer rates revert back to commercial when the bar/restaurant is once again in operation.
Currently The Jeffery Hotel is being charged $143.82 a month plus $1.7/1,000 gallons for water; and $452.48 a month for sewer. Changing the rates to residential will reduce the water service to $25 a month plus $1.7/1,000 gallons and the sewer service to $56 a month. It is anticipated that this change will result in approximately $500 a month in savings to the owner of The Jeffery Hotel.
BACKGROUND AND HISTORY OF BOARD ACTIONS:
The Board adopted Resolution #13-341 on April 13, 2013, requiring customers in the Community Services Districts who pay a fee for water usage to continue to pay the base-rate minimums when their water has been turned off.
ALTERNATIVES AND CONSEQUENCES OF NEGATIVE ACTION:
Do not approve temporarily reducing the water and sewer rates charged to The Jeffery Hotel from commercial to residential. The Jeffery Hotel will continue to pay the higher commercial water/sewer rates even though they are not using or producing a commercial amount.
CAO RECOMMENDATION
Requested Action Recommended
