HomeMy WebLinkAboutProposition 218 Notice - Multi-Residential Sewer
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The Otay Water District Board of Directors will conduct a public hearing at the time, date and location specified above, to consider a
five-year schedule of sewer rates and charges that would be implemented beginning with bills issued on or after January 1, 2026, for
sewer use as early as the beginning of December 2025.
WHAT DO SEWER CHARGES PAY FOR? The District is your sewer service provider. It is a public agency that cannot make a profit, and
cannot operate at a loss. All costs for your sewer service are paid for by customers like you or by state or federal grants. Each customer
must pay their fair share of the cost of sewage conveyance, treatment, and disposal. This includes the costs of: operations,
construction, and maintenance of the public sewer system and facilities; energy or pumping costs; employee payroll and benefits;
materials; chemicals used in sewage treatment; administrative expenses; and amounts required to meet bond covenants and to
maintain adequate reserves and ensure rate stability. The District works to keep its expenses to a minimum and, as a result, has sewer
service rates that are among the lowest in San Diego County.
PROPOSED RATE CHANGE AND ACTIONS.
The District proposes to adopt a 5-year schedule of sewer rates and charges, as shown below. Your sewer bill has two components:
(1) a variable Sewer Rate that varies based on the estimated amount of wastewater discharged to the sewer; and
(2) a fixed Sewer System Charge, that varies based on your water meter size.
The current and proposed rates and charges for each of the five years are as follows:
Sewer Rate
Per Unit (HCF)
of Three-Year
Avg. Winter
Water Use
Current
Charge
Effective
1/1/2026
Effective
1/1/2027
Effective
1/1/2028
Effective
1/1/2029
Effective
1/1/2030
$3.56 $3.92 $4.12 $4.53 $4.97 $5.46
Fixed Sewer System Charge by Water Meter Size
Water Meter
Size
Current
Charge
Effective
1/1/2026
Effective
1/1/2027
Effective
1/1/2028
Effective
1/1/2029
Effective
1/1/2030
¾” $19.87 $21.60 $22.72 $24.95 $27.40 $30.08
1" $49.64 $33.32 $35.05 $38.49 $42.26 $46.40
1 ½" $99.25 $62.60 $65.86 $72.31 $79.40 $87.18
2" $158.80 $97.74 $102.82 $112.90 $123.96 $136.11
3" $297.77 $209.02 $219.89 $241.44 $265.10 $291.08
4" $496.28 $373.02 $392.42 $430.87 $473.10 $519.46
6" $992.56 $823.99 $866.84 $951.79 $1,045.06 $1,147.48
8" $1,588.12 $1,409.68 $1,482.98 $1,628.32 $1,787.89 $1,963.10
10" $2,282.91 $2,229.65 $2,345.59 $2,575.46 $2,827.85 $3,104.98
HOW TO CALCULATE YOUR ESTIMATED BILL IMPACTS.
To calculate your estimated monthly bill for each year, determine your average monthly water use in January through April of the
last three years. The sewer bill formula for multi-residential customers is:
(Three-Year Winter Average x 88% x Sewer Rate) + System Charge = Total Monthly Sewer Bill
NOTICE OF PUBLIC HEARING
Regarding Proposed Changes in Multi-Residential
Sewer Service Rates
Wednesday, October 1, 2025, at 3:30 p.m.
Otay Water District Board Room
2554 Sweetwater Springs Blvd. Spring Valley, CA 91978
Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.
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WHY ARE SEWER RATE CHANGES NECESSARY?
Over the next five-year period, the District’s costs of providing sewer service will increase, primarily due to increases in the City and
County of San Diego charges for sewage treatment and conveyance, District payroll increases, and construction cost increases.
HOW WERE THESE PROPOSED RATES DETERMINED?
The District’s projected overall costs of sewer service for the next 5 years were determined by the Board of Directors as part of the
annual budget process. The District commissioned a Cost of Service Study to determine the most equitable way to proportionally
allocate among all customers the District’s projected costs of sewer service, in compliance with the California Constitution, Article XIII
D, Section 6 (“Proposition 218”).
These proposed rates and charges, if adopted, would implement the Cost of Service Study’s recommended sewer charges for a period
of five years, and pass-through to customers unanticipated increased costs due to inflation or City/County charges. For more
information on the basis for the rates, please see the full rate study online at otaywater.gov/SewerCOSS2025.
ASSUMPTIONS REGARDING COST ESCALATIONS
As part of the rate-setting process, the District projects the revenue needed in future years based on assumptions and projections of
cost increases including, among other things, general and construction cost inflation (CPI and CCI, respectively), and increases in
wholesale wastewater treatment or collection services (provided by the City of San Diego and the County of San Diego). The District
projects such cost increases based on historical data and trends. The proposed annual increases to sewer rates and charges each year
from 2027 to 2030 assume an average annual rate of cost inflation of 6.3% for power, administrative, materials, and payroll costs (CPI),
an annual rate of 6% wholesale conveyance and treatment services (except for FY 2028, in which year a rate of 8.88% is assumed)
(City/County rates), and a rate of 4% for construction costs for capital improvement projects (CCI).
If overall inflation or construction inflation increases in amounts that exceed those assumptions, then, pursuant to Government Code
section 53756, the District is proposing to pass-through such unforeseen inflationary increases directly to customers in future years as
follows:
If the annual change in the Consumer Price Index (“CPI”), San Diego-Carlsbad Area as of January 31 of the preceding year,
exceeds the assumed rate for the applicable year, the District will pass through the difference.
If the City or County rates exceed 6% in any given year, or 8.88% in FY 2028, the District will pass through the difference.
If the annual change in the Engineering News Record ConstrucƟon Cost Index (“CCI”) measured from February to February of
the following year, exceeds the assumed rate for the applicable year, the District will pass through the difference.
Collectively, the proposed adjustments described above are referred to as the “Pass-Throughs.” The District may implement the Pass-
Throughs at any time commencing January 1, 2026, through and including December 31, 2030, upon notice of such adjustment to
each impacted property owner and customer of record at least 30 days prior to implementation. The Pass-Throughs may be applied
to sewer rates and fixed charges as applicable, and in no event shall the Pass-Throughs cause the proposed rates to exceed the cost
of providing sewer service.
HOW IS MY SEWER BILL CALCULATED?
Three-Year Winter Average. To estimate sewer use, the District averages metered water use for the winter months of January through
April of the previous three years. The “three-year winter average” is the basis of the sewer charges for the entire year. These months
are used to measure average indoor water use because less water is typically used outdoors during this time and therefore this average
water use will more accurately measure the typical amount of wastewater that flows into the sewer system. One HCF equals 748
gallons or one “unit” of water. The minimum consumption charge is based on a winter average of 1 unit.
Return to Sewer Factor. The 88% return to sewer factor acknowledges that not all metered water goes to the sewer system – the
District’s engineering estimates determined that approximately 88% of the influent water flow is returned to the sewer as wastewater.
Meter Size. Customers with a 5/8” meter will be subject to the 3/4” meter monthly fixed sewer system charge. Customers with a 1”
meter for fireflow who otherwise would only require a 3/4” meter will be subject to the 3/4” meter fixed sewer system charge.
Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.
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LEGAL OBJECTION PROCEDURE
The District prepared these sewer rates to be in legal compliance with Proposition 218. Any person that wishes to challenge the legal
sufficiency of the proposed sewer rates must first file a legal objection as described below.
Legal objecƟons must be in wriƟng and received by the District no later than September 15, 2025.
Mail or hand deliver to Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978.
Must include the following informaƟon:
o Your name, parcel number and/or service address.
o A statement that your communicaƟon consƟtutes a legal objecƟon.
o A descripƟon of the nature of the legal objecƟon, with sufficient specificity to allow the District to respond in wriƟng.
A statement that the proposed sewer rates and charges violate ProposiƟon 218, without an explanaƟon as to the
basis of your claim, will be insufficient to consƟtute a legal objecƟon.
Failure to submit a legal objection, or to meet the requirements set forth above, will bar any right to challenge the proposed sewer
rates and charges through a legal proceeding. In addition, Per Government Code Section 53759, any legal challenge to the proposed rate adjustments must be filed within 120 days of the date that the resolution adopting the proposed rate adjustments is adopted, or
when the rate goes into effect, whichever is later.
PROTEST PROCEDURE
As the owner or customer of record of a property identified to be subject to the imposition of proposed rate, fee, and charge changes,
you may submit a written protest against the proposed actions. By law, each protest must: be in writing; state the specific rate change
for which the protest is being submitted in opposition; provide the location of the identified property (by assessor’s parcel number or
street address); and include the original signature of the owner of record or customer of record submitting the protest. Protests
submitted by email or other electronic means will not be accepted. Written protests may be submitted by mail or in person to the
Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Written protests may also be
delivered in person at the public hearing, as long as they are received prior to its conclusion. Please identify on the front of the envelope
for any protest, whether mailed or submitted in person to the Board Secretary that a protest letter is enclosed. Only one protest is
allowed per property.
At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. If, at
the close of the public hearing, written protests against the proposed rates are not presented by a majority of the record owners or
customers of record of the identified properties upon which they are to be imposed, the Board of Directors may adopt the proposed
rates.
This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing
of rates, fees, and charges see the Otay Water District’s Code of Ordinances at otaywater.gov.
Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.