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Home My WebLink About09-04-13 Board Packet (Part 2) STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: September 4, 2013 SUBMITTED BY: Rita Bell, Finance Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Public Hearing Concerning the Implementation of Rate Changes as Proposed for the Fiscal Year 2013-2014 Operating and Capital Budget; Adoption of Ordinance No. 539 Approving the Rate Changes; Authorization of Five-year Pass-through Increases and District Increases Not-to-Exceed 10% Annually; Consolidation of Improvement Districts; and Authorizing Related Actions GENERAL MANAGER’S RECOMMENDATION: That the Board hold a public hearing on the proposed rates and charges; and if no majority protest is received 1)approve the implementation of rate changes as proposed for the Fiscal Year 2013- 2014 Operating and Capital Budget by adopting Ordinance No. 539 amending Section 25, Conditions for Water Service; Section 31, Temporary Water Service; Section 34, Issuance and Payment of Water Bills; Section 38, Service for Fire Protection Systems; Section 53, Fees, Rates, Charges and Conditions for Sewer Service; and Appendix A, Schedule of Fees of the District's Code of Ordinances, 2) authorize, for a period of five-years, the pass-through of cost increases from water wholesalers and sewer service providers, 3)authorize District rate increases, for a period of five-years, not-to-exceed 10% annually, and 4)authorize the detachment of parcels within Improvement Districts (IDs) 19 and 25 to be annexed into IDs 22 and 20, respectively. PURPOSE: That the Board consider adopting the Ordinance No. 539 to establish water and sewer rates and charges, authorize for a period of five- years, the pass-through of cost increases from water wholesalers and sewer service providers and District rate increases not to exceed 10% annually. In addition, authorize the detachment of parcels within Improvement Districts (IDs) 19 and 25 to be annexed into IDs 22 and 20, respectively. Following are the sections requiring amendments due to rate structure changes, rate increases, or reorganization of code sections to improve readability and consistency: Section 25.03 Definitions of Water Service Categories, Water Rates, Charges and Fees Section 31.02 Requirement of Temporary Meter for Service Section 31.03 Fees and Charges for Temporary Meters Section 31.04 Payment of Capacity and Annexation Fees for Temporary Service Section 34.02 Delinquent Accounts Section 38.02 Rules and Regulations for Fire Hydrant and/or Fire Sprinkler Service for Commercial or Industrial Purposes on Private Property Section 38.03 Services for Individually Metered Residential Fire Protection Section 53 Fees, Rates, Charges and Conditions for Sewer Service Section 53.01 Conditions for Acquisition of Sewer Service Capacity Section 53.02 Service Areas Section 53.03 Acquisition of Sewer Connections for Service Section 53.04 Deleted - Acquisition and Purchase of Sewer Capacity for Service in the Russell Square Sewer Service Area and replaced with Charges for Installation of Sewer Laterals Section 53.05 Payment of Fees Section 53.06 Sewer Service Use Changes Resulting in Increased System Utilization Section 53.07 Wastewater Discharge Permit Issuance and Limitation Section 53.08 Basis for Determination of Equivalent Dwelling Units Section 53.09 Transfer, Assignment, or Resale of Sewer Connection Rights Section 53.10 Definitions of Residential and Multi-Residential Sewer Rates, Charges and Fees Section 53.11 Added - Definitions of Commercial and Industrial Sewer Service Rates, Charges and Fees Section 53.12 Issuance and Payment of Sewer Bills Section 53.13 Delinquent Accounts Appendix A - Schedule of Fees Authorize staff to submit the appropriate forms and fees required to complete the Board action with the State Board of Equalization and the County of San Diego that would detach parcels within IDs 19 and 25 to be annexed into IDs 22 and 20, respectively. ANALYSIS: On March 18, 2013, the Board directed staff to incorporate the findings of a water and sewer rate study into the FY2013-2014 Budget. On May 14, 2013, the Fiscal Year 2013-2014 Budget containing the recommendations of the rate study was approved. The budget includes an average water rate increase of 7.5% and an average sewer rate increase of 7.9%, proposed to be effective to water and sewer services billed on or after January 1, 2014 and may apply to water and sewer services used as early as December 2013. The rate increases are needed to balance the Operating Budget and ensure financial stability. Additionally, staff has requested the Board authorize that parcels within IDs 19 and 25 to be annexed into IDs 22 and 20, respectively. The availability charges and water rates and charges are identical between IDs 19 and 22 and IDs 25 and 20, and staff has determined that there is no longer a reason to separate these parcels. This will streamline the accounting and tracking of these parcels within the District’s various information systems. In compliance with the Proposition 218 requirements, notices were sent to all customers to inform them of their option to protest rate changes. The required public hearing is set for the September 4, 2013 Board Meeting where the Board will be able to consider protests. As of August 29, 2013, the protest letters that have been received are attached and will be delivered to the Board. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The Fiscal Year 2013-2014 Budget and the updated rate study both anticipated the additional revenues that would be generated by the proposed rate increases. These revenues ensure continued funding for the District’s administration, maintenance, and operations, and are consistent with the recently adopted Strategic Plan. The proposed increase in potable revenue is approximately $5,279,100, for recycled revenue the increase is $637,700, and for sewer revenue the increase is $146,400. STRATEGIC GOAL: Through well-established financial policies and wise management of funds, the District will continue to guarantee fiscal responsibility to its ratepayers and the community at large. LEGAL IMPACT: None. Attachments: A) Ordinance No. 539 Exhibit 1 Strike-through copy of Section 25 Exhibit 2 Strike-through copy of Section 31 Exhibit 3 Strike-through copy of Section 34 Exhibit 4 Strike-through copy of Section 38 Exhibit 5 Strike-through copy of Section 53 Exhibit 6 Strike-through copy of Appendix A B) Proposed copy of Section 25 C) Proposed copy of Section 31 D) Proposed copy of Section 34 E) Proposed copy of Section 38 F) Proposed copy of Section 53 G) Proposed copy of Appendix A H) Protest letters I) Presentation J) Proposition 218 Notices 1 ORDINANCE NO. 539 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT SETTING RATES AND CHARGES AND AMENDING SECTION 25 - CONDITIONS FOR WATER SERVICE; SECTION 31 – TEMPORARY WATER SERVICE; SECTION 34 – ISSUANCE AND PAYMENT OF WATER BILLS; SECTION 38 – SERVICE FOR FIRE PROTECTION SYSTEMS; SECTION 53 – FEES, RATES, CHARGES AND CONDITIONS FOR SEWER SERVICE; AND APPENDIX A - SCHEDULE OF FEES OF THE DISTRICT’S CODE OF ORDINANCES; AND AUTHORIZING RELATED ACTIONS WHEREAS, the Board of Directors of the Otay Water District (Board of Directors) is empowered by the provisions of the Water Code and other applicable provisions of law to establish rates and charges for the provision of service, including the adoption of a five-year schedule; and WHEREAS, in compliance with the provisions of Article XIIID of the California Constitution, the District mailed out notices of the proposed increases in the rates and charges not less than 45 days prior to the date of public hearing on the proposed rates and charges; and WHEREAS, having held the public hearing and having received no majority protest, the Board of Directors has reviewed and considered the projected expenses and revenues of the District, and has found and determined that approval of the proposed five- year schedule of increases for the rates and charges is necessary and in the best interest of the District. Attachment A 2 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Otay Water District as follows: Section 1. The foregoing recitals are true and correct and are incorporated herein by reference. Section 2. The proposed five-year schedule of rates and charges reflected on the notices and presented to this Board of Directors is hereby approved and adopted. Section 3. The language of the District’s Code of Ordinances contained in Section 25 - Conditions for Water Service; Section 31 – Temporary Water Service; Section 34 - Issuance and Payment of Water Bills; Section 38 – Service for Fire Protection Systems; Section 53 – Fees, Rates, Charges and Conditions for Sewer Service; and Appendix A – Schedule of Fees, are hereby amended as per attached copies of those sections to reflect the revised rates and charges hereby approved. Section 4. All ordinances, resolutions, or administrative procedures of the District, or parts thereof that are inconsistent with any provision of this Ordinance are hereby superseded only to the extent of such inconsistency. Section 5. If any section, subsection, clause or phrase in this Ordinance is for any reason held invalid, the validity of the remainder of this Ordinance shall not be affected thereby. Section 6. This Ordinance and the amendments approved to Sections 25, 31, 34, 38, 53 and Appendix A of the Code of 3 Ordinances shall become effective upon adoption of this Ordinance. Section 7. The General Manager, the District Secretary, the Chief Financial Officer and their designees shall take all action required to carry out the purpose of this resolution, including but not limited to replacing the amended sections of the Code of Ordinances. Section 8. This Ordinance shall become effective immediately upon adoption. The amendments to the Code of Ordinances being incorporated into Sections 25, 31, 34, 38, 53 and Appendix A concerning water and sewer rates, charges and fees, and periodic pass-through increases shall be effective as of January 1, 2014. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 4th day of September 2013, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ Secretary 25-1 25 SECTION 25 CONDITIONS FOR WATER SERVICE 25.01 SERVICE AREA Water service shall be furnished by the District only to property within (annexed to) a water improvement district within the District’s service area. Water service to property located outside an improvement district may be furnished only upon prior approval of the Board of Directors. Temporary water service to property located outside an improvement district may be furnished, in accordance with Section 25.03 E.1012., upon the approval of the General Manager. 25.02 DEFINITION OF "H.C.F." AND "UNIT OF WATER" As used in the Code the terms "H.C.F." and "unit of water" are interchangeable and each shall mean 100 cubic feet or 748 gallons of water. 25.03 DEFINITIONS OF WATER SERVICE CATAGORIES, WATER RATES, CHARGES AND FEES Water service furnished by the District shall be under the categories of services and at the rates, charges and fees as set forth in Appendix A, Section 25. Five-year Rate Increase Schedule - All District water rates, charges and fees are subject to a five-year schedule Board approval of rate increases beginning September 1, 2009January 1, 2014 and periodically thereafter through June 30, 2014December 31, 2018. The increases under this schedule shall be the amount sufficient to cover cost increases related to operations and maintenance, but not to exceed 10% per year. Five-year Periodic Pass–through Rate Increases or Decreases from District Wholesalers – All District water rates, charges and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning September 1, 2009January 1, 2014 through June 30, 2014December 31, 2018. A. Set-up Fees for Accounts. A set-up fee shall be charged for each account transferred to another customer. See Appendix A, 25.03 A. for charges. A deposit will be required of all customers who do not own the property to be served. See Appendix A, 25.04 A. for deposit amounts. B. Monthly Fixed MWD & CWA Charges. Each potable water service customer shall pay a monthly MWD and CWA fixed system charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for operating and maintenance costs, including the following: MWD Readiness-to-Serve Charge and Capacity Reservation Charge; Exhibit 1 25-2 CWA Infrastructure Access Charge, Customer Service Charge, and Emergency Storage Charge. The MWD & CWA charge is based on the size of the water meter(s) in service with the exception of upsizing the meter for individually metered residential fire service, as described in Section 38.03 of the Code. The MWD & CWA charge shall start upon installation of the meter. C. Monthly Fixed System Charges. Each water service customer shall pay a monthly fixed system charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for water system replacement, maintenance, and operation expenses. The system charge is based on the size of the water meter(s) in service. For individually metered residential fire service, as outlined in Section 38.03 of the Code, the size and fee would be set based on water use requirements without additional fire capacity. The system charge shall start upon installation of the meter D. Water Conservation Drought Pricing. To promote conservation, base tiered water rates for all water services are subject to percentage increases during drought stages, as shown in the table below: Drought Stage Pricing Stage 2 Stage 3 Stage 4 Tier 1* 0% 0% 0% Tier 2 Up to 5% Up to 10% Up to 15% Tier 3 Up to 30% Up to 60% Up to 90% *Domestic residential water service has four tiered base rates as outlined in Appendix A, 25.03 E.1.(b). Tier 1 of the above table applies to the first two tiered base rates. Tier 2 of the above table applies to the third tiered base rate. Tier 3 of the above table applies to the fourth tiered base rate. E. Categories of Water Service. The definitions and rates and charges for water service furnished by the District shall be as follows: 1. DOMESTIC RESIDENTIAL WATER (a) Defined as: Water service for single residential and individually metered attached households as well as other domestic uses (other than that provided for in Paragraph 2 below). (b) Base Rate: The tiered base rates of water furnished under this category shall be set forth in Appendix A, 25.03 E.1.(b). 25-3 The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 2. MULTIPLE RESIDENTIAL WATER (a) Defined as: Master metered water service for multiple residential households, for example, duplexes, townhomes, apartments and mobile homes. (b) Base Rate: The tiered base rates of water furnished for each dwelling unit under each block of service in this category shall be as set forth in Appendix A, 25.03 E.2.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 3. BUSINESS AND PUBLICLY-OWNED WATER (a) Defined as: Potable water service for commercial, industrial and publicly-owned establishments. (b) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.3.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 4. IRRIGATION AND COMMERCIAL AGRICULTURAL USING POTABLE WATER (a) Irrigation is potable water service provided solely for irrigation of landscape or landscaping, as defined in Section 0.02 .A. (b) Commercial agricultural engaged in the growing or raising of live stock, in conformity with recognized practices of husbandry, for the purpose of commerce, trade or industry, or for the use by public educational or correctional institutions or agricultural horticultural or floricultural products and produced, (i) for human consumption or for the market, or (ii) for the feeding of fowl or livestock produced for human consumption or for the market, or 25-4 (iii) for feeding fowl or livestock for the purpose of obtaining their products for human consumption or for the market, such products to be grown or raised on a parcel of land having an area of not less than one acre utilized exclusively therefore. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.4.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 5. RECYCLED WATER – LANDSCAPE IRRIGATION AND CERTAIN NON-IRRIGATION PURPOSES (a) Defined as: Non-potable and recycled water service provided for irrigation of landscaping, as defined in Section 0.02 A. of the Code, and certain non-irrigation purposes, other than domestic use, in compliance with federal, state and local laws and regulations regarding use of recycled water. (b) The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.5.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Monthly system charge: The monthly system charge for recycled water service is set forth in Appendix A, 25.03 C. 6. RECYCLED WATER - COMMERCIAL (a) Defined as: Non-potable and recycled water service provided for commercial customers, as defined in Section 0.02 A. of the Code, and certain non-irrigation purposes, other than domestic use, in 25-5 compliance with federal, state and local laws and regulations regarding use of recycled water. (b) The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.65.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Monthly system charge: The monthly system charge for recycled commercial water service is set forth in Appendix A, 25.03 C. 76. POTABLE TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Potable Wwater service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.76.(b). (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system and MWD & CWA charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C. 8. RECYCLED TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Recycled water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. Formatted: Underline 25-6 (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.8(b). (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C. 97. WATER SERVICE UNDER SPECIAL AGREEMENTS (a) Defined as: Water service provided under express agreements approved by the Board of Directors for service to golf courses and other entities, which service may be curtailed or interrupted by the District under conditions provided in such agreements. (b) For water service under this category the base rate shall be determined on a case-by-case basis. Unless otherwise specified in the particular agreement, the tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 108. TANK TRUCKS (a) Defined as: Water service provided for the filling of tanks on motor vehicles transporting water used for other than earth grading purposes, which service shall be made only through a portable meter issued by the District to a customer specifically for use in accordance with the provisions herein for such service. (b) The rate for metered water furnished under this category is reflected in Appendix A, 25.03 E.108. (b), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C. 25-7 The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (c) Requirements for Use of Water Meter (1) To receive such service, the customer must make a deposit for the use a water meter furnished by the District. The fee is set forth in Appendix A, 31.03 A.1. (2) Upon termination of the service, the Dis-trict will refund the amount of deposit remaining after making the following deductions: (i) Cost of repairing or replacing the meter, fire hydrant and/or any fittings damaged or lost while in use; and (ii) Unpaid charges for water or other applicable charges. (3) Prior to the end of each six month period following issuance of a meter under this section, or at the request of the District, whichever is earlier, the customer shall return the meter to the District for inspection, repair, or calibration as deemed necessary by the District. (4) Payment for water service under this cate-gory shall be made as follows: (i) The bill shall be based on the amount of water actually used, which shall be determined by the District’s reading of the meter or by a report made by the customer to the District in the manner prescribed by the District. (ii) Where the actual amount of water used cannot be determined as provided in (i), the District will issue a bill based on a District estimate of the amount of water used, as determined by the District. Such estimates shall be reconciled with actual amounts used when the customer returns the meter to the District as provided in paragraph 3 above. (iii)Payments shall be made as specified on the bill. 25-8 119. WATER SERVICE OUTSIDE DISTRICT (a) Defined as: Water service for real property outside the service area of the District. (b) This service will be provided only upon prior approval of the General Manager when there is a surplus of water over and above the existing needs for service in the District. This service is temporary and may be terminated upon written notice from the District. Customers for this service are sometimes referred to as "outside users." (c) Customers applying for this category of service shall pay an application fee as set forth in Appendix A, 25.03 E.119.(c). (d) The rate for metered water furnished under this category shall be charged the rate as described in Appendix A, 25.03 E.119.(d), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) Customers requesting only fire service or a fire hydrant under this category shall be charged a capacity fee based on one (1) EDU for a permanent meter in the improvement district from which the fire service derives its flow, plus a monthly system charge at the rate set forth in Appendix A, 25.03 E.131.(c). 120. WATER SERVICE OUTSIDE AN IMPROVEMENT DISTRICT (a) Defined as: Water service for property located within the boundaries of the District, but not within a water improvement district. Customers for this service are sometimes referred to as "outside users." (b) Customers applying for this service shall pay an application fee as set forth in Appendix A, 25.03 E.120.(b). The District will review the application to determine whether the land to be served should be annexed to an improvement district. If it is determined that annexation is not practical, the Board of Directors may authorize service as an outside user. This service will be reviewed periodically until it is determined that the property must be annexed to 25-9 an improvement district or that service must be terminated. (c) The rate for metered water furnished under this category is as set forth in Appendix A, 25.03 E.120.(c), plus a monthly system charge as set forth in Appendix A, 25.03.C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Upon approval of the Board of Directors, a cus-tomer, who has paid all construction costs for facilities necessary to serve the customer's property in lieu of annexation to a water improvement district, shall be exempt from the provision for this category of service. 131. SERVICE FOR FIRE PROTECTION (a) Defined as: Water service provided by the Dis-trict solely to feed fire hydrants or fire sprinkler systems from lines or laterals con-nected to District water mains. (b) The District will not make a charge for the quantity of water used for fire protection purposes. (c) The monthly system charge for this category of service is set forth in Appendix A, 25.03 E.131.(c) for each connection to a District water main made for fire protection service. 142. WATER SERVICE TO PROPERTY NOT SUBJECT TO DISTRICT TAXES (a) Pursuant to Section 71613 of the California Water Code, the District may furnish water to property, not subject to District taxes, at special rates, terms and conditions as are determined by the Board of Directors for such service. Such rates, terms and conditions shall be uniformly applied to like classes and conditions of service in the same improvement district or geographical area. (b) Customers in this category, such as publicly-owned establishments, shall pay an additional fee as outlined in Appendix A, 25.03 E.142.(b). 153. INTERIM WATER SERVICE IN IMPROVEMENT DISTRICT 7 (a) Definition of Interim Service. This is water 25-10 Service furnished to a customer in Improvement District 7 (ID 7) for temporary use. (b) Rates for Interim Service. Customers applying for interim service in ID 7 shall not be required to pay the ID 7 water capacity fee and San Diego County Water Authority fee, as required under Section 2801 of this Code. The water rate is set forth in Appendix A, 25.03 E.153.(b). (c) Conversion to Permanent Service. At such time as use expires, the customer shall be required to pay all fees in effect at the time the permanent use is implemented. F. Energy Charges for Pumping Water In addition to water rates and other charges provided for in this Section 25.03, customers shall be charged an energy pumping charge based on the quantity of water used and the elevation to which the water has been lifted to provide service. The energy pumping charge shall be made at the rate set forth in Appendix A, 25.03 F. G. Additional Water Charge for Service in the North District 1. In addition to other applicable water rates and charges provided for in this Section 25.03, each customer receiving water service in the North District shall pay a charge as set forth in Appendix A, 25.03 G.1. The North District area is defined in Section 0.02 of this Code. 2. All proceeds from charges collected pursuant to this Section 25.03 G. shall be set aside by the District in a separate account and shall be used solely for payment of costs and borrowings for construction, installation and maintenance of water storage reservoirs, pump stations and water lines to provide service in the North District. H. Additional Water Charges and Monthly System Charges for Service in the ID 9 Water Service Zone 1. In addition to other applicable water rates and charges provided for in this Section 25.03, effective May 1, 1986, each customer receiving water service in the ID 9 Water Service Zone shall pay a charge set forth in Appendix A, 25.03 H.1. The ID 9 Water Service Zone area is defined in Section 0.02 of this Code. 2. In addition to the monthly system charges provided for, effective May 1, 1986, each customer receiving 25-11 water service in the ID 9 Water Service Zone shall pay a monthly meter system charge as outlined in Appendix A, 25.03 H.2. for each meter in service. 3. All proceeds from charges collected pursuant to this Section 25.03 H. shall be set aside by the District in a separate account and shall be used solely for pay-ment of costs and borrowing for construction, installation and maintenance of water storage reser-voirs, pump stations and water lines to provide ser-vice in the ID 9 Water Service Zone. I. Additional Water Charges for Services in the ID 3, ID 10 and La Presa Water Service Zones 1. In addition to other applicable water rates and charges provided for in this Section 25.03, effective May 17, 1993, each customer receiving water service in ID 3, ID 10 and La Presa Water Service Zones is assessed an additional charge per H.C.F. of water furnished by the District. Said surcharge is assessed as set forth in Appendix A, 25.03 I.1.(a),(b), and (c), respectively. 2. All proceeds from charges collected pursuant to this Section 25.03 I. shall be set aside by the District in a separate account and shall be used solely for payment of costs and borrowings for construction, installation and maintenance of water storage, reservoirs, pump stations and water lines to provide service in the ID 3, ID 10 and La Presa Water Service Zones, respectively. 25.04 DEPOSITS BY LESSEES OR NON-OWNERS OF PROPERTY 8. RECYCLED TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Recycled water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.8(b). (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under this category shall be the base rate charged customers in the same category of service on a permanent meter basis. Formatted: Underline 25-12 (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C. A. AMOUNT OF DEPOSIT The customer's deposit shall be applied to reduce or satisfy any delinquent payment or other amount due the District at the time of termination of water service to the customer. Any portion of the deposit remaining, after satisfaction of the amount due, shall be refunded to the customer that made the deposit. The deposits listed above may be waived for a new resi-dential applicant where the applicant demonstrates credit worthiness based upon prior utility payments or a non-delinquent water account for one year or other similar evidence of credit. B. REFUND OF DEPOSIT Where funds have been on deposit for twelve months in a domestic service account and there has been no more than one delinquent payment on that account during that period, the District will apply a credit to the water account in the amount of the deposit. C. LETTER OF CREDIT A letter of credit, in a form approved by the General Manager or Department Head of Finance, may be submitted to the District to satisfy the deposit requirements. 25.05 SERVICE TO SUBSEQUENT CUSTOMERS After a water meter has been installed for a customer and all fees and charges have been paid, water service may be furnished to a subsequent customer through the water meter installed without payment of further charges, except for the set-up fee for transferred accounts, payment of delinquent charges for the applicant's service or other deposits that may be required by this Code. 31-1 SECTION 31 TEMPORARY WATER SERVICE 31.01 DEFINITION OF TEMPORARY SERVICE Temporary water service is water service provided for a limited period of time not to exceed 365 days, and used for temporary purposes such as construction, hydrotesting water systems, vegetation of slopes, and other uses noted in this section. Temporary water service shall not be provided to residential dwellings or commercial business enterprises. 31.02 REQUIREMENT OF TEMPORARY METER FOR SERVICE Temporary service may be provided after installation of a temporary meter pursuant to a customer's written application for such service. Temporary service by means of a "jumper" or other unauthorized connection to the District water system is prohibited. A. Size and Location. 1. The size and location of temporary meters will be determined solely by the District. 2. For temporary service from a fire hydrant, a meter of at least 4" in size will be required. Only one 2½" fire hydrant port per fire hydrant shall be occupied by a temporary meter at one time. B. Temporary water service from a fire hydrant shall be limited to the following applications: 1. Filling of water trucks and drop tanks. 2. General construction requirements, such as backfill and compaction, guniting and stuccoing, and block wall building. 3. Flushing of storm drains and sewer lines. 4. Filling, hydrotesting, chlorination, and flushing of newly constructed potable and reclaimed water lines. 5. Filling, flushing, hydrotesting, and the initial operational coverage testing of reclaimed water irrigation systems. Temporary service provided for this application shall be limited to a maximum of 60 days. 6. Operation of landscape irrigation for the establishment of vegetation on slopes or other planted areas. Temporary service provided for this application shall be limited to a maximum of 180 days. Exhibit 2 31-2 Item 5 and 6 above shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the temporary service being established. The backflow device shall be installed in plain view and within 3 feet of the temporary hydrant meter. C. Temporary service to construction trailers or other temporary construction buildings shall be provided as follows: 1. Through a temporary meter connected to the 1 or 2 inch service lateral for the lot the trailer is placed on. 2. Where Item 1 above is not possible, through a temporary meter connected to appurtenances other than a fire hydrant, such as a blow off. 3. Where either Item 1 or 2 above is not possible, from a temporary 4 inch meter connected to a fire hydrant. Service to construction trailers or other temporary construction buildings shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the temporary service being established. The backflow device shall be installed in accordance with District requirements. D. Temporary service to community service organizations shall be provided under the conditions set forth below: 1. The community service organization shall make a minimum payment for the temporary connection. See Appendix A, 31.02 B.1. for charges. 2. If the cost of the water used exceeds $25.00, the community service organization shall pay the excess cost. See Temporary Water Service Rates in Appendix A, 25.03 E.67.(b) for rates per meter. 3. The temporary service shall be limited to 48 hours within any one month period. 4. The meter shall be installed by District staff. 5. The rate for water service shall be two times the normal domestic rate. E. If any unauthorized connection, disconnection or relocation of a temporary meter, or other connection device is made by other than District employees, District may discontinue fur-ther water service to the entire project. 31-3 F. Extensions to the time limits referenced in this section may be made by the General Manager. Requests for time extensions shall be made by the customer in writing. 31.03 FEES AND CHARGES FOR TEMPORARY METERS A. Temporary Service. Temporary water service shall be furnished to the property owner or the owners authorized agent only and shall be provided under the following conditions: 1. Requirement of Deposit. At the time application is made for temporary service, the customer shall deposit with the District the amount set forth in Appendix A, 31.03 A.1. 2. Delinquency. No temporary meters shall be furnished to any person with a delinquent account with the District. 3. Refund of Deposit or Additional Payment. Upon cancellation or termination of the temporary service, the District will refund the amount of deposit remaining after making the following deductions: a) cost of installing, moving and removing the meter; b) cost of repairing or replacing the meter, fire hydrant, and/or any fittings damaged or lost while in use; and c) unpaid charges for water used or other applicable charges. 4. Temporary Meter Set-up & Removal. The charges to set-up and remove a temporary meter are set forth in Appendix A, 31.03 A.4. 5. Temporary Meter Move Fee. If a meter needs to be moved from one location to another see Appendix A., 31.03 A.5. B. Rates for Temporary Service. Payment for temporary water service shall be in accordance with rates and charges set forth in Section 25.03 E.67.(b). 31.04 PAYMENT OF CAPACITY AND ANNEXATION FEES FOR TEMPORARY METERS A. Customers, whose property has been annexed into an Improvement District, may elect to pay the capacity and annexation fees in addition to the deposit amount shown in Section 31.03.A.1. 31-4 B. Capacity and annexation fees for this type of temporary service shall be calculated in accordance with Section 28. C. Payment for this type of temporary service shall be in accordance with the rates and charges set forth in Section 25.03 E.47.(c). D. Customers electing this type of temporary service shall be credited the number of equivalent dwelling units they have previously purchased when the meter(s) is returned to the District. The credit shall be applicable to permanent meters purchased within the same subdivision or development where the temporary meter was used. 34-1 SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS 34.01 ISSUANCE, DUE DATE AND FINAL PAYMENT DATE OF STATEMENT OF CHARGES FOR SERVICE A. Issuance of Statements. Statements for water service or other charges will be mailed or presented as soon as practicable after the water meter has been read and the applicable charges have been determined. B. Due Date. Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. C. Final Payment Date. All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. D. Payment of Charges. 1. Place of Payment. Payments shall not be credited to a customer's account until cash, check, credit card, draft, electronic funds transfer, money order, or any other acceptable form of payment that will be honored by the bank has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer's account until received at the business office. 2. Returned Check Charges. A returned payment charge (see Appendix A, 34.01 D.2. for charge) shall be added to a customer's account in each instance where payment has been made to the District with a check, draft, credit card or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. 34.02 DELINQUENT ACCOUNTS A. For Non-Payment of Charges. If full payment of a statement for a water service account is not received at the District business office on or before the final payment date, the account shall become delinquent. B. Late Payment Charge. A late payment charge (see Appendix A, 34.02 B. for charge) of the total amount Exhibit 3 34-2 delinquent shall be added to each delinquent account at the time any amount becomes delinquent, provided that the charge shall not be made on any account which at that time has no delinquencies of record. When a late payment charge is made, such shall be added to the delinquent account as of the date the account becomes delinquent and such charges shall become an inseparable part of the amount due as of that time. C. Notice of Delinquency. A delinquency notice shall be mailed to each customer whose account is delinquent, notifying the customer that service will be turned off unless payment is made. The notice shall indicate the amount due, including late payment charges, and that the total amount must be paid within fifteen (15) calendar days from the date of mailing or presentation of the notice to the customer, or service will be discontinued. D. Record of Delinquent Accounts. The District maintains records of delinquent accounts. Each year one delinquency shall be removed from the record of each account that has one or more delinquencies. E. Partial Payment on Delinquent Account. A partial payment on a delinquent account may be accepted and credited to a customer's account; however, the partial payment shall not cause removal of the account from a delinquent status and furthermore, the partial payment shall not preclude the meter from being turned off for delinquency. F. Financial Arrangements for Delinquent Accounts. 1. Continuation of Service. The General Manager, Chief Financial Officer, or any person delegated by the General Manager, may authorize continuation of service to a delinquent account if financial arrangements, satisfactory to the District, have been established. 2. Requirement of Deposit Due to Repeated Delinquencies. If payments on a customer account have become delinquent five or more times, or if a meter has been turned off three or more times for non-payment of charges, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District, in cash or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief 34-3 Financial Officer, but shall not exceed two times the highest monthly bill during the twelve (12) months preceding the date of demand for a deposit. (a) Handling of Deposit. A deposit shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. (b) Refund of Deposit. A deposit required under this Section shall be refunded to the customer as provided in Section 25.04.BA. G. Termination and Reinstatement of Water Service Under Delinquent Accounts 1. Termination of Service. The water meter or meters under delinquent accounts may be turned off and locked if payment has not been made in accordance with the Notice of Delinquency. (a) Where an owner or manager is listed by the Dis-trict as the customer of record of the service, the District shall make every good faith effort to inform the actual users of the services when the account is in arrears by means of a notice that service will be terminated in ten days. The notice shall further inform the actual users that they have the right to become cus-tomers of the District without being required to pay the amount due on the delinquent account. (b) Residential water service shall not be termi-nated for non-payment in any of the following situations: (1) During an investigation by the District of a customer dispute or complaint. Any residential customer who has initiated a complaint or requested an investigation within five days of receiving the disputed bill, or who has, within 13 days of the mailing of the notice that the customer's service will be terminated for non-payment, or made a request for extension of the payment period of a bill asserted to be beyond the means of the customer to pay in full during the normal period for 34-4 payment, shall be given an opportunity for a review. The review shall include consideration of whether the customer shall be permitted to amortize the unpaid balance of the account over a reasonable period of time not to exceed 12 months. No termination of service shall be effected for any customer complying with an amortization agreement, if the customer also keeps the account current as charges accrue in each subsequent billing period. Any customer, whose complaint or request for an investigation has resulted in an adverse determination by the District, may appeal the determination to the Board. (2) When a customer has been granted an exten-sion of the period for payment of a bill. (3) On the certification of a licensed physi-cian and surgeon that to do so will be life threatening to the customer and the customer is financially unable to pay for service within the normal payment period and is willing to enter into an amortiza-tion agreement to pay the unpaid balance of any bill asserted to be beyond the means of the customer over a period not to exceed 12 months. (c) The ten-day notice of proposed termination may not be sent to the customer until at least 19 days from the date of mailing of the bill for services. The ten-day period shall not com-mence until five days after the mailing of the notice. (d) The District shall make a reasonable, good faith effort to contact an adult person resid-ing at the premises of the customer by tele-phone or in person, at least 48 hours prior to any termination of service. A charge (see Appendix A, 34.02 G.1.(d) for charge) shall be added to the bill for a contact made in person. (e) Every notice of termination of service pursuant to subdivisions (a) and (c) shall include all of the following information: (1) The name and address of the customer whose account is delinquent. 34-5 (2) The amount of the delinquency. (3) The date by which payment or arrangements for payment is required in order to avoid termination. (4) The procedure by which the customer may initiate a complaint or request an inves-tigation concerning service or charges, except that if the bill for service con-tains a description of that procedure, then the notice is not required to contain that information. (5) The procedure by which the customer may request amortization of the unpaid charges. (6) The procedure for the customer to obtain information on the availability of finan-cial assistance including private, local, state or federal sources, if applicable. (7) The telephone number of a representative of the District who can provide additional information or institute arrangements for payment. (f) If a residential customer fails to comply with an amortization agreement, the District shall not terminate service without giving notice to the customer at least 48 hours prior to termi-nation of the conditions the customer is required to meet to avoid termination, but the notice does not entitle the customer to further investigation by the District. (g) Termination of service shall not occur on any Friday, Saturday, Sunday, legal holiday or at any time during which the business offices of the District are not open to the public. (h) No termination of service may be effected with-out compliance with this section and any ser-vice wrongfully terminated shall be restored, without charge, for the restoration of service. (See California Government Code Section 60373.) 2. Reinstatement of Service. Water service terminated for delinquency may not be reinstated until all amounts due and payable, including late payment charges and meter "turn-on" charges, have 34-6 been paid at the District business office, or unless credit arrangements satisfactory to the District have been made. 3. Meter "Turn-On" Charge. A "turn-on" charge shall be made for turning on any meter which has previously been turned off for a delinquent account. The charges for turn-on shall be as follows: (a) For any account turned on during the District’s regular business hours the turn-on charge is set forth in Appendix A, 34.02 G.3.(a). (b) For any account turned on after the District’s regular business hours, the turn-on charge is set forth in Appendix A, 34.02 G.3.(b). ND: 4839-5321-9592, v.2 38-1 SECTION 38 SERVICE FOR FIRE PROTECTION SYSTEMS 38.01 SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES The District will provide water service for fire pro-tection systems for commercial or industrial developments within the District. Such service shall be available only in accordance with the rules and regulations provided in this Code. 38.02 RULES AND REGULATIONS FOR FIRE HYDRANT AND/OR FIRE SPRINKLER SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES ON PRIVATE PROPERTY A. All fire hydrant and/or fire sprinkler service mains installed for commercial or industrial pur-poses on privately-owned land shall be owned and maintained by the land owner; except for fire hydrants installed for developments where the District has accepted an easement for such service mains. B. Where service is provided for fire hydrant or fire sprinkler service on privately-owned land under Paragraph A above, the service shall be provided by the District at the property line of the land to be served. The property owner or developer shall be responsible to construct and maintain the remainder of the facilities to pro-vide fire protection to the property. Each such facilities installation shall include a reduced pressure principle assembly backflow device installed in accordance with District specifica-tions on the fire main on the customer side of the property line. C. Water furnished for fire hydrant or fire sprin-kler service shall be used only for fire protec-tion purposes. Water service for domestic, busi-ness, commercial or irrigation purposes shall be furnished only after a meter or meters have been installed on laterals connected to the District main in the street pursuant to requirements of this Code. D. Upon application for installation of one or more fire service connections to an existing District water main, the customer shall pay such charges as shall be determined on the basis of actual costs incurred by the District in performing the Exhibit 4 38-2 work. At the time of application for the instal-lation, the District will estimate the total costs to be incurred in performing the work. The customer shall deposit the estimated amount with the District prior to commencement of the work. The work shall be performed by the District under a District Water/Sewer Order. If actual costs incurred by the District are less than the amount deposited, the District shall refund the balance of the deposit to the customer. If the costs incurred exceed the amount deposited, the cus-tomer shall reimburse the District for the addi-tional costs. Where the fire service connection is to be made to a water main to be constructed in a street by the owner or developer, the costs for such connection shall be covered under the standard developer's agreement with the District for installation of the water facilities for the development project. E. Water for fire protection services shall be pro-vided in accordance with District fees and charges set forth in Section 25.03.D E.11 of this Code. F. The District shall have no responsibility for the proper function of the fire service system nor for the availability of water from its mains for fire protection in the event of emergency. While the District undertakes at all times to have ade-quate supplies available in its system for ordi-nary uses, it is not a guarantor of continual service in quantities adequate for all purposes however, and each customer shall specifically agree that as a condition of the fire service connection contracted for that the District shall incur no liability nor be subject to any damages resulting from a failure or malfunctioning of the fire sprinkler lateral or fire sprinkler system or from a lack of water in adequate quantity or pressure to make it fully effective. 38.03 SERVICES FOR INDIVIDUALLY METERED RESIDENTIAL FIRE PROTECTION When a single-family residential water meter is required to provide standby capacity for a fire sprinkler system, the capacity charge may be determined according to the size of the meter necessary to meet the water use requirements for 38-3 the property. Additional capacity fees for upsizing the single-family residential meter to meet fire flow requirements will be waived. Standby capacity to provide water for a fire sprinkler system is required when (1) the fire sprinkler system is required by law, including any requirement imposed as a condition of development, permit, or occupancy, and (2) the fire chief, fire marshal, or building official of the city, county, or special district responsible for fire protection service to the property has a requirement for additional meter size due to fire protection. The determination, under this section, shall be made at the time the meter is first obtained, or at the time a meter is replaced with one of greater size due to the later installation of a fire protection system. Water for fire protection services shall be provided in accordance with District fees and charges set forth in Section 25.03 E.1 of this Code. 53-1 SECTION 53 FEES, RATES, CHARGES AND CONDITIONS FOR SEWER SERVICE 53.01 CONDITIONS FOR ACQUISITION OF SEWER SERVICE CAPACITY Sewer service capacity may be acquired only for service to a specific address, parcel of land, or a land development project covered by an approved map. An approved map shall mean a recorded final map, a recorded parcel map or a tentative sub-division map that has been approved by the County or by a City, as applicable. A. District Acceptance of Sewer Facilities for Russell Square Area (‘‘Russell Square’’). Under an Agreement with Cal Dorado Development, Inc., dated June 28, 1981, the District accepted title to a sewer pump station, force main and appurtenances for a sewage system to provide sewer service to the residential dwelling units to be constructed within the parcels of land in San Diego County Tentative Parcel Map 17150. Under an Agreement with Cal Dorado Development, Inc., dated June 18, 1981, the District agreed to provide service to such parcels on the terms and conditions contained therein. On October 1, 1984, pursuant to Resolution No. 2139, the District Board of Directors accepted title to the facilities. 53.02 SERVICE AREAS A. Service Areas. Sewer service shall be furnished by the District only to property located in Improvement District No. 14 ("I.D. 14"), Improvement District No. 18 ("I.D. 18"), and Assessment District No. 4 ("A.D. 4"), and the Russell Square Sewer Service Area. Sewer service to property located outside such areas may be furnished only upon annexation to ID 18 and payment of all applicable annexation fees. (Appendix A, 9.04 C.4.) A. Designation of Russell Square Sewer Area. The geographical area described on the District Map entitled "Russell Square Sewer Service Area," dated October 11, 1988, on file with the District Secretary, constitutes the Russell Square Sewer Service Area. Sewer service to property located outside such areas may be furnished only upon annexation to ID 18 and payment of all applicable annexation fees. Exhibit 5 Formatted: Left: 0.5", Right: 0.5", Footerdistance from edge: 0.33" Formatted: No underline Formatted: Indent: First line: 0.38", SpaceAfter: 10 pt, Don't adjust space between Latinand Asian text Formatted: Indent: Left: 1", Hanging: 0.5",Space After: 10 pt, Don't adjust space betweenLatin and Asian text Formatted: Indent: Left: 0", First line: 0.38",Space After: 10 pt, Don't adjust space betweenLatin and Asian text, Tab stops: Not at 0.5" + 1" Formatted: Indent: Left: 1", Hanging: 0.5",Space After: 10 pt, Numbered + Level: 1 +Numbering Style: A, B, C, … + Start at: 1 +Alignment: Left + Aligned at: 1" + Indent at: 1.25", Don't adjust space between Latin andAsian text Formatted: Indent: Left: 0", First line: 0.38",Space After: 10 pt Formatted: Indent: First line: 0.38", SpaceAfter: 10 pt 53-2 53.03 ACQUISITION OF SEWER CONNECTIONS FOR SERVICE IN I.D. 14, I.D. 18 AND A.D. 4 A. ID 14, ID 18 and AD 4. There shall be no connection capacity fee for sewer service to parcels already annexed into Improvement District No. 14, Improvement District No. 18 and Assessment District No. 4 on or after December 16, 1998. 53.04 ACQUISITION AND PURCHASE OF SEWER CAPACITY FOR SERVICE IN THE RUSSELL SQUARE SEWER SERVICE AREA A. District Acceptance of Sewer Facilities for Russell Square Area. Under an Agreement with Cal Dorado Development, Inc., dated June 28, 1981, the District accepted title to a sewer pump station, force main and appurtenances for a sewage system to provide sewer service to the residential dwelling units to be constructed within the parcels of land in San Diego County Tentative Parcel Map 17150. Under an Agreement with Cal Dorado Development, Inc., dated June 18, 1981, the District agreed to provide service to such parcels on the terms and conditions contained therein. On October 1, 1984, pursuant to Resolution No. 2139, the District Board of Directors accepted title to the facilities. B. Designation of Russell Square Sewer Area. The geographical area described on the District Map entitled "Russell Square Sewer Service Area," dated October 11, 1988, on file with the District Secretary, constitutes the Russell Square Sewer Service Area. B. C. Connection Fees for Connections for Sewer Service through the Russell Square Pump Station Sewer Pump Station. . 1. Sewer Connection Fee A connection fee (see Appendix A, 53.043 CB.1. for fee) for each EqivalentEquivalent Dwelling Unit (EDU) of sewer service provided through Russell Square Pump Station Pump Station shall be collected. The connection fee is due at the time an application for sewer service is submitted. The number of EDUs for the connection shall be as set forth in Section 53.089 of the Code. (a) Exempt parcels. Since tThe Russell Square Pump Station and force main were constructed by the developer or his assignee, at their expense, for the purpose of providing service to the parcels within Tentative Parcel Map 17150., Tthe connection fee shall not apply to connections for sewer service to the parcels within the Tentative Formatted: Indent: Left: 0", First line: 0.38",Space After: 10 pt, Don't adjust space betweenLatin and Asian text, Tab stops: Not at 0.5" Formatted: Underline Formatted: Indent: Left: 0.38", Hanging: 1.12", Don't adjust space between Latin andAsian text Formatted: Underline Formatted: Numbered + Level: 1 +Numbering Style: A, B, C, … + Start at: 1 +Alignment: Left + Aligned at: 1" + Indent at: 1.25", Don't adjust space between Latin andAsian text Formatted: Numbered + Level: 1 +Numbering Style: A, B, C, … + Start at: 1 +Alignment: Left + Aligned at: 1" + Indent at: 1.25" Formatted: Indent: Left: 1", Hanging: 0.5",Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Alignedat: 1" + Indent at: 1.25", Don't adjust spacebetween Latin and Asian text Formatted: Indent: Left: 0", Hanging: 0.5",Don't adjust space between Latin and AsiantextFormatted: Indent: Left: 0.5", Space After: 10 pt Formatted: Space After: 10 pt, Numbered +Level: 1 + Numbering Style: a, b, c, … + Startat: 1 + Alignment: Left + Aligned at: 2" +Indent at: 2.5", Don't adjust space betweenLatin and Asian text Formatted: Underline 53-3 Parcel Map 17150. said map. Such exempt parcels are currently identi- fied as Assessor Parcel Nos. 497-011-41, 497-011-42, 497-011-44, 497-011-46 and 497-011-47. 2. Monthly Sewer Service Charge A monthly sewer service charge (see Appendix A, 53.043 CB.2 for charge) to cover normal operational costs of the Russell Square Pump Station and force mains shall be collected. This charge shall be reviewed by the Board of Directors from time to time to assure that such charges cover the costs for operation of the sewer facilities. 3. The proceeds of the fees and charges received by the District under 53.03. B.1 and 53.03. B.2 above shall be used by the District solely for maintenance, replacement or repair under 53.03. B.1 C.1. above and for the operation of the facilities under 53.03. B.2C.2. above. 4. In addition, the customer for such service shall pay the monthly service charge for sewer service set forth in Section 53.10 A and B1. 53.045 CHARGES FOR INSTALLATION OF SEWER LATERALS Upon application for construction of one or more sewer laterals, the customer shall deposit with the District the estimated costs to be incurred by the District in connection with the instal-lation of the facilities required, as determined by the District. Upon completion of the work, the District shall calculate the actual costs incurred by the District in performing the work. If actual costs are less than the amount deposited, the District shall refund the balance of the deposit to the customer. If actual costs exceed the amount deposited, the customer shall reimburse the District for the additional costs. 53.056 PAYMENT OF FEES All fees prescribed in the Code shall become owing, due and payable at the time application is made to connect a premise to the sewer system of the District. The fees shall be paid to the District prior to the issuance of any permit authorizing the connection of such premise to the District sewer system. If the proposed connection cannot be made, the fee may be refunded when approved by the General Manager. 53.067 SEWER SERVICE USE CHANGES RESULTING IN INCREASED SYSTEM UTILIZATION Formatted: Indent: Left: 0", Hanging: 0.5",Don't adjust space between Latin and Asiantext Formatted: Underline Formatted: Indent: Left: 0.5" Formatted: Indent: Hanging: 0.5" Formatted: Indent: Left: 0", First line: 0.38",Space After: 10 pt, Don't adjust space betweenLatin and Asian text, Tab stops: Not at 0.5" + 1" Formatted: Indent: Left: 0", First line: 0.38",Space After: 10 pt, Don't adjust space betweenLatin and Asian text Formatted: Indent: Hanging: 0.62", SpaceAfter: 10 pt, Don't adjust space between Latinand Asian text, Tab stops: Not at 1" Formatted: Underline 53-4 The use of a sewer connection shall be limited to the type and number of EDUs authorized by the original wastewater discharge permit. Before adding any additional equivalent dwelling units, buildings, modifying existing buildings, or change of occupancy type, the property owner shall make a supplementary wastewater permit application to the District for such change in use and pay additional sewer annexation fees per EDU, if necessary, as may be applicable. Periodic inspection of the premises may be made by the District and if actual use is greater than estimated use, an assessment for additional annexation fees shall be assessed in accordance with the fee schedule in the then current Code of Ordinances. 53.07 53.08 WASTEWATER DISCHARGE PERMIT ISSUANCE AND LIMITATION A. 1. A wastewater discharge permit shall be required for any property for which a request is made to discharge into the District sewage system. B. 2. Every wastewater discharge permit shall expire by llimitations and shall become null and void, if the construction or work authorized by such permit is not commenced within 120 days from date of issuance of such wastewater discharge permit or if the construction or work authorized by such wastewater discharge permit is suspended or abandoned for a period of 120 days at any time after the work is commenced. C. 3. Before such work can be recommenced, a new wastewater discharge permit application must be filed with the District. The District may reactivate the previous wastewater discharge permit provided that wastewater quantity and type is the same as the wastewater discharge allowed under the original permit, and provided further that such suspension and abandonment has not exceeded one year. Fees paid for the previous wastewater discharge permit may be credited toward the total permit fees required on the new permit application. Reactivation of the previous wastewater discharge permit shall be subject to District sewer capacity being available at the time of new application and subject to any additional costs or charges imposed during the period of such suspension or abandonment. 53.0753.08 53.09 BASIS FOR DETERMINATION OF EQUIVALENT DWELLING UNITS (EDUs) 1. The number of EDUs for sewer service shall be deter-mined on the following basis: A. a) Residential Facilities EDUs Formatted: Indent: Left: 0.38", Hanging: 0.62", Space After: 10 pt, Outline numbered +Level: 2 + Numbering Style: 01, 02, 03, … +Start at: 7 + Alignment: Left + Aligned at: 0.63" + Indent at: 1.13", Don't adjust spacebetween Latin and Asian text Formatted: Underline Formatted: Font: 10 pt Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Alignedat: 1.19" + Indent at: 1.44", Tab stops: 1",Left Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Alignedat: 1.19" + Indent at: 1.44", Tab stops: 1",Left Formatted: Underline Formatted: Indent: Left: 1.06", First line: 0" Formatted: Indent: Hanging: 0.44", Linespacing: Exactly 12 pt, Numbered + Level: 1 +Numbering Style: A, B, C, … + Start at: 1 +Alignment: Left + Aligned at: 1.19" + Indentat: 1.44", Don't adjust space between Latinand Asian text, Tab stops: 1", Left Formatted: Underline Formatted: Underline 53-5 EDUs Description 1  Single-Ffamily Rresidence (Includes manufactured homes and mobile homes which are on private lots.)  A secondary structure with a kitchen is considered an additional EDU  Each individual living unit in Aapartments, Mmultiple Ffamily Hhousing and Rresidential Ccondominiums  Each individual space in Mmobile Hhomes and Ttrailer Pparks 1) Single-Family Residence 1.0 ((Includes manufactured homes, and mobile homes which are on private lots) A secondary structure with a kitchen is 1.0 is considered an additional EDU 2) Apartments and Multiple Family Housing Each individual living unit 1.0 3) Residential condominiums Residential condominiums Each individual living unit 1.0 4) Mobile Home and Trailer Parks 1.0 Per each individual space B. b) Commercial/Industrial Facilities 1. Food Service Establishments EDUs Description 3  Take-out restaurants with disposable utensils, no dishwasher and no public restrooms  Take-out restaurants with disposable utensils, no dishwasher and no public restrooms  Miscellaneous food establishments -- ice cream shops, yogurt shops, bakeries (sales on premise only)  Take-out/eat-in restaurants with disposable utensils, but with seating and public restrooms  Restaurants with reusable utensils, seating and public restrooms (0-18 seats) o Add 1.0 EDU for each additional 6 seat unit, or Formatted: Indent: Left: 0", Hanging: 0.25" Formatted: Numbered + Level: 1 +Numbering Style: 1, 2, 3, … + Start at: 1 +Alignment: Left + Aligned at: 1.69" + Indentat: 1.94", Tab stops: 1.5", Left Formatted: Numbered + Level: 1 +Numbering Style: 1, 2, 3, … + Start at: 1 +Alignment: Left + Aligned at: 1.69" + Indentat: 1.94" Formatted: Numbered + Level: 1 +Numbering Style: 1, 2, 3, … + Start at: 1 +Alignment: Left + Aligned at: 1.69" + Indentat: 1.94" Formatted: Indent: Left: 2.19", First line: 0" Formatted: Numbered + Level: 1 +Numbering Style: 1, 2, 3, … + Start at: 1 +Alignment: Left + Aligned at: 1.69" + Indentat: 1.94" Formatted: Indent: Left: 1.94", First line: 0" Formatted: Numbered + Level: 1 +Numbering Style: 1, 2, 3, … + Start at: 1 +Alignment: Left + Aligned at: 1.69" + Indentat: 1.94" Formatted: Indent: Left: 1.94", First line: 0" Formatted: Indent: Hanging: 0.44", Linespacing: Exactly 12 pt, Numbered + Level: 1 +Numbering Style: A, B, C, … + Start at: 1 +Alignment: Left + Aligned at: 1.19" + Indentat: 1.44", Don't adjust space between Latinand Asian text, Tab stops: 1", Left Formatted: Underline Formatted: Underline Formatted: Underline Formatted: Indent: Hanging: 0.44", Don'tadjust space between Latin and Asian text Formatted: Underline 53-6 portion thereof 1) Food Service Establishments 3.0 a) Take-out restaurants with dis- posable utensils, no dishwasher and no public restrooms 3.0 b) Miscellaneous food establishments --- ice e cream /shops, yogurt shops, bakeries (sales on premise only) 3.0 c) 1) Take-out/eat-in restaurants with disposable utensils, but with seating and public restrooms 3.0 d) 2) Restaurants with reusable utensils, sseating and public restrooms (0-18 seats) 3.0 Add 1.0 EDU for Eeach additional 6 seat unit, or portion thereof 1.0 2. 2) Hotels and Motels EDU EDUs Description .38 Per living unit without kitchen .60 Per living unit with kitchen 3. Commercial, Professional, Industrial Buildings and Establishments not specifically listed herein a) Per living unit without kitchen 0.38 b) Per living unit with kitchen 0.60 3) Commercial, Professional, Industriall Buildings and, Establishments not specifi- cally listed herein EDU EDUs Description 1.2 +0 .7 For first 1,000 square feet AND For each additional square feet or portion thereof Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... Formatted ... 53-7 Applies to any office, store or industrial condominium or establishments 1.2 ++0.7 For first 1,000 square feet AND For each additional 1,000 square feet of gross building floor area. Portions less than 1,000 sq. ft. will be prorated. Applies to situations where the occupancy type or usage is unknown at the time of application for service. This shall include, but not be limited to, shopping centers, industrial parks and professional office buildings. 1.0 Self-service laundry per washer a) Any office, store or industrial condominium or establishments. F first 1,000 square. feet. 1.2 Each additional 1,000 sq. ft. or portion thereof 0.7 b) WWhere occupancy type or usage is unknown at the time of application for service, the following EDUs shall apply. This shall include, , but not be limited to, shopping centers, industrial parks and profes- sional office buildings. First 1,000 square. feet. of gross build- ing floor area 1.2 Each additional 1,000 square feet of gross building floor area. Por- tions less than 1,000 sq. ft. will be prorated. 0.7 4) Self-service laundry per washer 1.0 Formatted: Left Formatted: Numbered + Level: 1 +Numbering Style: 1, 2, 3, … + Start at: 1 +Alignment: Left + Aligned at: 1.69" + Indentat: 1.94", Tab stops: 1.5", Left Formatted: Numbered + Level: 1 +Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 2" + Indent at: 2.25", Tab stops: 2.5", Left Formatted: Numbered + Level: 1 +Numbering Style: a, b, c, … + Start at: 1 +Alignment: Left + Aligned at: 2" + Indent at: 2.25", Tab stops: 2.5", Left Formatted: Indent: Left: 1.94", First line: 0",Tab stops: 2.5", Left Formatted: Underline Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: 1, 2,3, … + Start at: 1 + Alignment: Left + Alignedat: 1.69" + Indent at: 1.94" Formatted: Underline 53-8 5) Churches, theaters and auditoriums per each 150 person seating capacity or any fraction thereof. (Does not include office spaces, schoolrooms, day-care facilities, food preparation areas, etc. Additional EDUs will be assigned for these supplementary uses). 1.5 6) Schools a) Elementary Schools - For each 50 pupils or fraction thereof 1.0 b) Junior High Schools - For each 40 pupils or fraction thereof 1.0 c) High Schools, Colleges and Universities - For each 24 pupils or fraction thereof 1.0 Additional EDUs will be prorated based on above values. The number of pupils shall be based on the average daily attendance of pupils at the school during the preceding fiscal year, computed in accordance with the education code of the State of California. However, where the school has had no attendance during the preceding fiscal year, the General Manager shall estimate the average daily attendance for the fiscal year for which the fee is to be paid and compute the fee based on such estimate. 4. 57) Convalescent Homes EDUs Description 0.7/bed Skilled nursing care facilities, psychological hospitals, convalescent hospitals; licensed by the applicable Governmental Agency. Department of Health. 0.5/bed Community Care Facilities with 16 or more beds licensed by the applicable Governmental Agency. State Department of Health. 1.0 Community Care Homes with six or fewer total residents, including resident staff and housekeepers (to be the same EDU as a single family residence). Formatted: Underline Formatted: Underline Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: 1, 2,3, … + Start at: 1 + Alignment: Left + Alignedat: 1.69" + Indent at: 1.94", Tab stops: 1.5",Left Formatted: Underline Formatted: Indent: Left: 0", First line: 0",Tab stops: 1.5", Left 53-9 a) Skilled nursing care facilities, psychological hospitals, con- valescent hospitals; licensed by the Department of Health. 0.7/bed b) Community Care Facilities with 16 or more beds licensed by the State Department of Health. 0.5/bed c) SSmall Community Care Facilities with 7 to 15 beds licensed by the County Health and Human Services Agency. Department of Social Services 0.5/bed d) Community Care Homes with six or fewer total residents, including resident staff and housekeepers (to be the same EDU as a single - family residence). 1.0 C. 68) Other commercial, industrial and other types of business establishments not included in 53.08 B.1 through 53.08 B.4 In the casIf the establishment is not included in 53.08 B.1 through 53.08 B.4 or if the EDUs specified in 53.08 B.1 through 53.08 B.4 are not representative of actual flow due to the number of employees or type of operation, the number of EDUs shall be determined in each case by the list of commercial strengths as defined by the State Water Resources Control Board (SWRCB) or by the General Manager and shall be based upon the estimated vol-ume and type of wastewater discharge into the sewer. Formatted: Indent: Hanging: 0.44" Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: a, b,c, … + Start at: 1 + Alignment: Left + Alignedat: 2" + Indent at: 2.25", Tab stops: 2.5",Left Formatted: Indent: Hanging: 0.44" Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: a, b,c, … + Start at: 1 + Alignment: Left + Alignedat: 2" + Indent at: 2.25", Tab stops: 2.5",Left Formatted: Indent: Hanging: 0.44" Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: a, b,c, … + Start at: 1 + Alignment: Left + Alignedat: 2" + Indent at: 2.25", Tab stops: 2.5",Left Formatted: Indent: Hanging: 0.44" Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: a, b,c, … + Start at: 1 + Alignment: Left + Alignedat: 2" + Indent at: 2.25", Tab stops: 2.5",Left Formatted: Indent: Hanging: 0.44" Formatted: Underline Formatted: Indent: Hanging: 0.44", Linespacing: Exactly 12 pt, Numbered + Level: 1 +Numbering Style: A, B, C, … + Start at: 1 +Alignment: Left + Aligned at: 1.19" + Indentat: 1.44", Tab stops: 1", Left Formatted: Underline Formatted: Indent: Left: 1.44", First line: 0" Formatted: Indent: Left: 1.44", First line: 0",Right: 0.19", Tab stops: Not at 1.5" 53-10 Examples of e of commercial, industrial and other bbusiness establishments include, but are not limited to, such as bottling works, supermarkets, markets, deli/markets, convenience stores, hospitals, laundries (other than self-service laundries), automobile service stations, mortuaries, day-care centers, bars and , pool halls. , and other establishments not included in items 1) through 47) inclusive, or when the EDUs specified in items 1) through 47) are not representative of actual flow due to the number of employees or type of operation, the number of equivalent dwelling units shall be determined in each case by the General Manager and shall be based upon the estimated volume and type of wastewater discharge into the sewer. 53.09 53.10 TRANSFER, ASSIGNMENT, OR RESALE OF SEWER CONNECTION RIGHTS EDU sewer connection rights obtained by a customer may not be sold, transferred, or assigned separately from ownership of the real property for which they were obtained, unless otherwise stated in an agreement with the District. 53.10 DEFINITIONS OF RESIDENTIAL AND MULTI-RESIDENTIAL 53.11 SEWER SERVICE RATES, AND CHARGES AND FEES . All District sewer rates, charges, and fees are subject to Board approval of rate increases to residential and multi-residentailresidential sewer services billed on or after January 1, 2014 and may apply to sewer services as early as the beginning of December 2013 and periodically thereafter through December 31, 2018. The increases under this schedule shall be the amount sufficient to cover cost increases related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers. -- All District sewer rates, charges, and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2014 through December 31, 2018. A. Set-up Fees for Accounts. A set-up fee (see Appendix A, 53.110 A. for fee) shall be charged for each account transferred to another customer. Rate Increase Schedule. All District sewer rates, charges, and fees are subject to a five-year schedule of rate increases to residential and multi-residentail sewer services billed on or after January 1, 2014 and may apply to sewer services as early Formatted: Underline Formatted: Indent: Left: 0.38", Hanging: 0.62", Right: 0", Space After: 10 pt, Linespacing: Exactly 12 pt, Outline numbered +Level: 2 + Numbering Style: 01, 02, 03, … +Start at: 7 + Alignment: Left + Aligned at: 0.63" + Indent at: 1.13", Tab stops: Not at 0.5" Formatted: Underline Formatted: Indent: Left: 0.38", Hanging: 0.62", Space After: 10 pt, Outline numbered +Level: 2 + Numbering Style: 01, 02, 03, … +Start at: 7 + Alignment: Left + Aligned at: 0.63" + Indent at: 1.13" Formatted: Underline Formatted: Underline Formatted: Indent: Left: 0", Hanging: 1", No bullets or numbering, Tab stops: 1", Left Formatted: No underline Formatted: Indent: Left: 1.44", Tab stops: 0.5", Left + 1", Left Formatted: Underline Formatted: Tab stops: 0.5", Left + 1", Left Formatted: Underline Formatted: Indent: Left: 0.75", Numbered +Level: 1 + Numbering Style: A, B, C, … + Startat: 1 + Alignment: Left + Aligned at: 1.19" +Indent at: 1.44", Tab stops: 0.5", Left + 1",Left Formatted: Underline Formatted: Underline Formatted: Indent: Left: 1.44", Tab stops: 0.5", Left + 1", Left Formatted: Indent: Left: 0.94", Numbered +Level: 1 + Numbering Style: A, B, C, … + Startat: 1 + Alignment: Left + Aligned at: 1.19" +Indent at: 1.44", Tab stops: 0.5", Left Formatted: Underline 53-11 as the beginning of December 2013 and periodically thereafter through December 2018. The increases under this schedule shall be the amount sufficient to cover cost increases related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers -- All District sewer rates, charges, and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2014 through December 2018. (1) Residential Sewer Charges . 1. Five-year Rate Increase Schedule -- All District sewer rates, charges, and fees are subject to a five-year schedule of rate increases beginning September 1, 2009 and periodically thereafter through June 30, 2014. The increases under this schedule shall be the amount sufficient to cover cost increases related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers -- All District sewer rates, charges, and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning September 1, 2009 through June 30, 2014. (2) Winter Average Determination. Sewer service usage fee shall be based on the ‘‘Winter Average’’ water consumption, measured in units of hundred cubic feet (HCF). The winter average period is January through April. The winter average is calculated by adding the four months of water consumption for the preceding winter and dividing the resulting amount by four. This average is then reduced by a 15% usage discount, recognizing that not all water used flows into the sewer system, to determine the ‘‘Winter Average’’ for billing purposes see (Appendix A, 53.10). Usage Fee. The usage fee rate (see Appendix A, 53.110B.2) is multiplied by the ‘‘Winter Average’’ calculation for each customer (after the above noted 15% discount) and the resulting amount is added to the Fixed Service Charge System Fee applicable to the size of meter. The resulting fixed fee shall be charged on a monthly basis for an entire calendar year, until a new ‘‘Winter Average’’ is determined for the following year. (3) (4) BaseResidential Sewer System Fee. The monthly base system fee per meter size is set forth in Appendix A, 53.110 B.3. (5) Monthly Residential Sewer Rate without Consumption History. The average residential sewer charge shall be determined by calculating the total usage fee for all residential customers and Formatted: Underline Formatted: Underline Formatted: Indent: Left: 1" Formatted: Indent: Left: 1", Line spacing: single, No bullets or numbering, Tab stops: 0.5", Left + 1.5", Left Formatted: Underline Formatted: Indent: Left: 1" Formatted: Indent: Left: 1", No bullets ornumbering Formatted: Underline Formatted: Underline 53-12 dividing by the number of residential customers. Then the monthly base system fee for a 3/4 inch meter is added to this average fee and this shall be used to determine the rate per ASU sewer strength to be used for residential customers. The monthly residential sewer rate without consumption history is as set forth in Appendix A, 53.11 B.4. A. CD. Single Residential Winter AveragingRate Charges 1. Defined as: Sewer service for individually metered residential households. 2. The monthly sewer bill is calculated by adding the base system fee plus the usage fee as described in 53.101.CB.(1),(2), & (3) above. 3. The maximum ‘‘Winter Average’’ for individually metered residential customers is 30 units (after the 15% discount). 4. Monthly Residential Sewer Service Rate without Consumption 4. HHistory:. The average residential sewer rate shall be determined by calculating the total usage fee for all residential customers and dividing by the number of residential customers. Then the monthly average usage fee is added to the system fee and this shall be used to determine the total monthly fee to be used for residential customers with no prior winter consumption, customers using well water or other unmetered water. Sewer service for new accounts with no prior winter consumption, customers using well water or other unmetered water shall be assigned a ‘‘Winter Average’’ for single individually metered households. See Appendix A, 53.110 A.4. C.4. for Winter Averaging fees. B. ED. Multi-Residential Rate Charges 1. (1) Defined as: Sewer service for master metered water service for multiple-residential households including for example; duplex, townhomes, apartments, and mobile homes. 2. (2) The monthly sewer bill for the complex is calculated by adding a 3/4 inch base system fee based on meter size (as set forth in Appendix A, 53.10. B.2.) times plus the number of units in the complex plus the usage fee (as set forth in Appendix A, 53.10. BD.2.) multiplied by the winter average, for the entire complex. Note: There is no cap on consumption for the multi-residential customers. Formatted: Underline Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Alignedat: 1.19" + Indent at: 1.44", Tab stops: 0.5",Left + 1", Left Formatted: Underline Formatted: No underline Formatted: Indent: Left: 1.44", Tab stops: 0.5", Left + 1", Left Formatted: Indent: Left: 1.43", Tab stops:Not at 1.51" Formatted: Indent: Left: 1.5" Formatted: Indent: Left: 1.44", Hanging: 0.5", Tab stops: 1.94", List tab + Not at 1.51" Formatted: Indent: Left: 1.43", Tab stops:Not at 1.51" Formatted: Indent: Left: 0.5" Formatted: No underline Formatted: Indent: Hanging: 0.07", Tabstops: 1.94", List tab + Not at 1.51" Formatted: No underline Formatted: No underline Formatted: No underline Formatted: Indent: Left: 1.94", No bullets ornumbering Formatted: No underline Formatted: Underline Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Alignedat: 1.19" + Indent at: 1.44", Tab stops: 0.5",Left + 1", Left Formatted: Indent: Left: 1.43", Numbered +Level: 1 + Numbering Style: 1, 2, 3, … + Startat: 1 + Alignment: Left + Aligned at: 1.5" +Tab after: 2.01" + Indent at: 2.01", Tabstops: Not at 0.94" + 2.01" Formatted: Indent: Left: 2.01" Formatted: Indent: Left: 1.43", Numbered +Level: 1 + Numbering Style: 1, 2, 3, … + Startat: 1 + Alignment: Left + Aligned at: 1.5" +Tab after: 2.01" + Indent at: 2.01", Tabstops: Not at 1.5" + 2.01" 53-13 3. Monthly Multi-Residential Sewer Rate without Consumption History: The multi-residential sewer rate shall be determined by calculating the total usage fee for all multi-residential customers and dividing by the number of multi-residential dwelling units. The usage fee per dwelling unit is multiplied by the new customer’s number of dwelling units and this shall be added to the monthly system fee, based on meter size, to determine the monthly rate. This is applicable to (3) NNnew complexes that do not have a prior winter consumption history. to determine their monthly usage fee shall be assigned a ‘‘Winter Average’’ for each multiple-residential unit in a master metered residential complex. See Appendix A, 53.110 C.4. B.3. for Winter Averaging fees. 53.11 DEFINITIONS OF COMMERCIAL AND INDUSTRIAL SEWER SERVICE RATES, CHARGES AND FEES Rate Increase Schedule All District sewer rates, charges, and fees are subject to a five-year schedule Board approval of rate increases to residential and multi-residentailcommercial and industrial sewer services billed on or after January 1, 2014 and may apply to sewer services as early as the beginning of December 2013 and periodically thereafter through December 31, 2018. The increases under this schedule shall be the amount sufficient to cover cost increases related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers -- All District sewer rates, charges, and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2014 through December 31, 2018. Set-up Fees for Accounts A set-up fee (see Appendix A, 53.111 A. for fee) shall be charged for each account transferred to another customer. FE. Commercial Sewer Charges Average Annual Consumption The Average Annual Consumption, measured in units of hundred cubic feet (HCF). The annual consumption period is January through December of the preceding year divided by the number of months of consumption. This average is reduced by a 15% usage discount which recognizes that not all water used flows into the sewer system. Usage Fee The usage fee rate (see Appendix A, 53.111 B.2. for rate) is determined by the commercial customer’s sewer strength category in which they are assigned (low strength, medium strength or high strength). Formatted: Indent: Left: 2.01" Formatted: No underline Formatted: Indent: Left: 1.44", Hanging: 0.5", Numbered + Level: 1 + Numbering Style:1, 2, 3, … + Start at: 1 + Alignment: Left +Aligned at: 1.5" + Tab after: 2.01" + Indentat: 2.01", Tab stops: 1.94", List tab + Not at 2.01" Formatted: Underline Formatted: Not Highlight Formatted: Underline Formatted: Numbered + Level: 1 +Numbering Style: A, B, C, … + Start at: 1 +Alignment: Left + Aligned at: 1.19" + Indentat: 1.44", Tab stops: 0.5", Left + 1", Left Formatted: Underline Formatted: Indent: Left: 1" Formatted: Indent: First line: 0.5" Formatted: Underline Formatted: Indent: Left: 1", No bullets ornumbering Formatted: Not Highlight Formatted: No bullets or numbering 53-14 System Fee The monthly system fee is determined by the commercial customer’s water meter size (as set forth in Appendix A, 53.11 B.3). Strength Factor The State Water Resources Control Board (SWRCB) has grouped commercial customers into various categories and has identified Strength Factors for each of these business categories. The standard of measure for Strength Factors is the typical sewer strength of a single‐family residence (SFR). A SFR has strength factor of 1. (As set forth in Appendix A, 53.11) A. Commercial Rate Charges 1. The monthly sewer bill for commercial sewer customers is calculated by adding the Usage Fee multiplying the average annual consumption, reduced by 15%, by the usage fee based on strength (as set forth in Appendix A, 53.11.D.2.) plus the monthly system fee based on the customer’s water meter size. times the Average Annual Consumption a less fifteen percent discount times the System Fee times the Strength Factor. B. Industrial and Other Users 1. Charges determined by the Board of Directors on a case-by-case basis. Monthly sewer service charges shall commence upon installation of the water meter to serve the premises receiving the sewer service, upon connection to the District sewer system, upon start of occupancy of the premises to be served, or one year after the date the application for sewer service is filed, whichever is earlier. If a sewer service connection has been obtained and if sewer service will not be used until some timesometime after installation of the water meter, commencement of the sewer service charge may be deferred until the later date only upon prior approval of the General Manager. Formatted: Underline Formatted: Indent: Left: 1", No bullets ornumbering Formatted: Not Highlight Formatted: Underline Formatted: Indent: Left: 1", No bullets ornumbering Formatted: Indent: Left: 0" Formatted: Indent: Hanging: 0.44" Formatted: Indent: Left: 0" Formatted: Indent: First line: 0.5" Formatted: Not Highlight Formatted: Indent: Left: 2.01", No bullets ornumbering Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Alignedat: 1.19" + Indent at: 1.44" Formatted: Underline Formatted: Indent: Left: 1.44", No bullets ornumbering Formatted: Numbered + Level: 1 +Numbering Style: 1, 2, 3, … + Start at: 1 +Alignment: Left + Aligned at: 1.5" + Tab after: 2.01" + Indent at: 2.01", Tab stops: 0.5",Left + 1", Left Formatted: List Paragraph, Line spacing: single, No bullets or numbering Formatted: Indent: Left: 1.44" Formatted: No bullets or numbering 53-15 Usage Fee. The usage fee rate (see Appendix A, 53.11 B.2. for rate) is determined by the commercial customer’s sewer strength category in which they are assigned (low strength, medium strength or high strength). Average Annual Consumption. The Average Annual Consumption, measured in units of hundred cubic feet (HCF). The annual consumption period is January through December of the preceding year divided by the number of months of consumption. This average is reduced by a 15% usage discount which recognizes that not all water used flows into the sewer system. System Fee. The monthly system fee is determinedy by the commercial customer’s meter size (as set forth in Appendix A, 53.11 B.3). Strength Factor. The State Water Resources Control Board (SWRCB) has grouped commercial customers into various categories and has identified Strength Factors for each of these business categories. The standard of measure for Strength Factors is the typical sewer strength of a single‐family residence (SFR). A SFR has strength factor of 1. (1) ASU Determination: The charges for commercial sewer service shall be based on the rate of discharge and the strength of sewage. The Board of Directors may adjust the charges in proportion to the amount of water not entering the sewer which is substantiated by the property owner or discharger. (2) The strength of sewage is based on its biochemical oxygen demand (BOD) and the cost of removing suspended solids (SS). (3) The formula is derived by taking the total cost of providing sewer service and charging each user for a pro-rata share. (4) The State Revenue Program Guidelines require use of an "Assigned Service Unit Assignment Formula" which converts higher strength uses into a service unit value which is comparable to the use impact of a single-family residential user or equivalent dwelling unit. The formula for determining an Assigned Service Unit (ASU) for a single-family dwelling is set forth in the annual budget, which is incorporated herein by reference. (5) The formula is based on an estimated daily flow of 250 gal-lons per day plus 280 milligrams per liter of BOD and 234 Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: 1, 2,3, … + Start at: 1 + Alignment: Left + Alignedat: 1.5" + Tab after: 2.01" + Indent at: 2.01" Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: 1, 2,3, … + Start at: 1 + Alignment: Left + Alignedat: 1.5" + Tab after: 2.01" + Indent at: 2.01" Formatted: Indent: Hanging: 0.44", Nobullets or numbering Formatted: Indent: Left: -0.44", Hanging: 0.44" Formatted: Indent: Hanging: 0.44", Linespacing: Exactly 12 pt, Numbered + Level: 1 +Numbering Style: 1, 2, 3, … + Start at: 1 +Alignment: Left + Aligned at: 1.5" + Tab after: 2.01" + Indent at: 2.01", Adjust spacebetween Latin and Asian text, Adjust spacebetween Asian text and numbers Formatted: Indent: Left: -0.44", Hanging: 0.44" Formatted: Indent: Left: 1.06", Hanging: 0.44", No bullets or numbering Formatted: Indent: Hanging: 0.44" Formatted: Indent: Left: 1.06", Hanging: 0.44" Formatted: Indent: Hanging: 0.44" 53-16 milligrams per liter of SS for a residential equivalent dwelling unit. (6) For commercial users the flow is based on 85% of their prior 12-month water consumption to reflect the amount of water that returns to the system. The basis for determining estimated flow for unmetered water will be calculated on the demand imposed on the water system. The strength of discharge for commercial user is based on whether it is classified as a low-strength, medium-strength or high-strength user. (67) Commercial sewer service customers are subject to periodic inspection of the premises by the District for verification of proper sewer strength classification. In addition to such periodic inspections, strength classifications will be reviewed periodically, at the discretion of the District. If warranted following a periodic inspection, periodic classification review, or a change in the nature of a customer’s business and/or use of the property, customers may be reclassified to reflect their current business operations and proper sewer strength, at the discretion of the District and consistent with the standards set forth herein and in the State Water Resources Control Board (SWRCB) listing for sewer strength. C. Commercial User Classifications Commercial sewer service customers are subject to periodic inspection of the premises by the District for verification of proper sewer strength classification. In addition to such periodic inspections, strength classifications will be reviewed periodically, at the discretion of the District. If warranted following a periodic inspection, periodic classification review, or a change in the nature of a customer’s business and/or use of the property, customers may be reclassified to reflect their current business operations and proper sewer strength, at the discretion of the District and consistent with the standards set forth herein and in the State Water Resources Control Board (SWRCB) listing for sewer strength. 1. Low-Strength Commercial = 1.000 Strength Factor Car wash General office and buildings Barber and beauty shops Department, retail stores and general commercial Hospitals and convalescent homes Public Laundromats and dry cleaners Professional office or office building Warehouse Bars without dining facilities CChurches Schools (Elementary, Juniorjunior High, & High Schools, Colleges) Formatted: Indent: Left: -0.44", Hanging: 0.44" Formatted: Indent: Hanging: 0.44" Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Alignedat: 1.19" + Indent at: 1.44", Tab stops: 0.5",Left + 1", Left Formatted: Indent: Left: 1.44", Tab stops: 0.5", Left + 1", Left Formatted: Indent: Left: 1.44" Formatted: Underline Formatted: Indent: Left: 1.44", Tab stops: 0.5", Left + 1", Left Formatted: Underline Formatted: Numbered + Level: 1 +Numbering Style: 1, 2, 3, … + Start at: 1 +Alignment: Left + Aligned at: 1.5" + Tab after: 2.01" + Indent at: 2.01" Formatted: Indent: Left: 2" Formatted: Indent: Left: 1.5", First line: 0.5" Formatted: Indent: Left: 2" 53-17 Other uses having a similar strength as determined by the District 2. Medium-Strength Commercial = 1.238 2.0 Strength Factor Hotels without dining facilities or cooking facilities Auto repair/sales shop and service station Shopping centers Other uses having a similar strength as determined by the District 3. High-Strength Commercial = 2.2034.0 Strength Factor Bakery or bakery with deli Hotel with dining facilities Restaurants and bars with food Grocery stores with onsite butcher and/or bakery Other uses having a similar strength as determined by the District Institutional = 1.000 Strength Factor Churches: Treated the same as Low-Strength Commercial. Schools: For public schools flow is based on average daily attendance ("ADA") for the prior school year, including summer school, as reported by schools to meet state requirements. Private schools will be required to file a report verifying their attendance. For elementary schools 50 students shall equal 1 ASU. For junior high schools 40 students shall equal 1 ASU and for high schools 24 students equals 1 ASU. The formula for schools shall be the same as applies to single-family residential. For charges see Appendix A, 53.11 E.6. Colleges: For colleges, flow is based on the number of Certificated and Classified Staff, and students enrolled in each school session (spring, summer, and fall): Gallons per day (GPD) = no. of students and staff x no. of weeks spring session) + (no. of students and staff x no. of weeks summer session) + (no. of students and staff x no. of weeks fall session) + (no. of staff x no. of non-session weeks) x 23 ÷ 52 ASU = Daily Flow x Strength Factor = [(GPD x 85%) ÷ 250] x 1.000 Formatted: Numbered + Level: 1 +Numbering Style: 1, 2, 3, … + Start at: 1 +Alignment: Left + Aligned at: 1.5" + Tab after: 2.01" + Indent at: 2.01" Formatted: Indent: Left: 1", First line: 0" Formatted: Indent: Left: 2" Formatted: Indent: Left: 2", First line: 0" Formatted: Numbered + Level: 1 +Numbering Style: 1, 2, 3, … + Start at: 1 +Alignment: Left + Aligned at: 1.5" + Tab after: 2.01" + Indent at: 2.01" Formatted: Indent: Left: 2" Formatted: Indent: Left: 2", First line: 0" 53-18 The minimum charge for commercial shall be no lower than 1 ASU at low strength. Charges are determined each fiscal year. The for-mula is set forth in the annual budget, which is incorporated herein by reference. 53-19 GF. MONTHLY SERVICE CHARGES FOR COMMERCIAL SEWER SERVICE. THE MONTHLY SEWER SERVICE CHARGES FOR SERVICE FURNISHED BY THE DISTRICT, SHALL BE: (1) COMMERCIAL AND INSTITUTIONAL (PER ASUSEWER STRENGTH) COMMERCIAL USERS SHALL BE CHARGED BASED UPON THE ASUS SEWER STRENGTH DERIVED IN SECTION 53.11 E.(4). FOR CHARGES SEE APPENDIX A, 53.11.F.1. (2) INDUSTRIAL AND OTHER USERS CHARGES DETERMINED BY THE BOARD OF DIRECTORS ON A CASE-BY-CASE BASIS. MONTHLY SEWER SERVICE CHARGES SHALL COMMENCE UPON INSTALLATION OF THE WATER METER TO SERVE THE PREMISES RECEIVING THE SEWER SERVICE, UPON CONNECTION TO THE DISTRICT SEWER SYSTEM, UPON START OF OCCUPANCY OF THE PREMISES TO BE SERVED, OR ONE YEAR AFTER THE DATE THE APPLICATION FOR SEWER SERVICE IS FILED, WHICHEVER IS EARLIER. IF A SEWER SERVICE CONNECTION HAS BEEN OBTAINED AND IF SEWER SERVICE WILL NOT BE USED UNTIL SOME TIME AFTER INSTALLATION OF THE WATER METER, COMMENCEMENT OF THE SEWER SERVICE CHARGE MAY BE DEFERRED UNTIL THE LATER DATE ONLY UPON PRIOR APPROVAL OF THE GENERAL MANAGER. 53.12 HG. ISSUANCE AND PAYMENT OF SEWER BILLS (1)A.Issuance of Statements: Statements for sewer service or other charges will be mailed monthly or as soon as practical, after the applicable charges have been determined. (2)B.Due Date: Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. (3)C.Final Payment Date: All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. (4)D.Place of Payment: Payments shall not be credited to a customer’s account until cash, check, credit card, draft, Formatted: Underline, All caps Formatted: Indent: Left: 0.38", Hanging: 0.62", Space After: 10 pt, Outline numbered +Level: 2 + Numbering Style: 01, 02, 03, … +Start at: 7 + Alignment: Left + Aligned at: 0.63" + Indent at: 1.13" Formatted: All caps Formatted: Underline, All caps Formatted: All caps Formatted: Underline, All caps Formatted: All caps Formatted: Underline, All caps Formatted: All caps Formatted: Underline, All caps Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Alignedat: 1.19" + Indent at: 1.44", Tab stops: 0.5",Left + 1", Left Formatted: No underline Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Alignedat: 1.19" + Indent at: 1.44", Tab stops: 0.5",Left + 1", Left Formatted: No underline Formatted: Underline Formatted: No underline Formatted: Underline Formatted: Indent: Left: 1.44", Tab stops: 0.5", Left + 1", Left Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Alignedat: 1.19" + Indent at: 1.44", Tab stops: 0.5",Left + 1", Left Formatted: No underline 53-20 electronic funds transfer, money order or any other acceptable form of payment that will be honored by the bank has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer’s account until received at the business office. (5)E.Returned Check Charges: A returned payment charge (see Appendix A, 34.01 D.2 for charge) shall be added to a customer’s account in each instance where payment has been made to the District with a check, draft, credit card or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. 53.13 IH. DELINQUENT ACCOUNTS (1)A.Requirement of Deposit Due to Repeated Delinquencies: If payments on a customer account have become delinquent five or more times, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District, in cash or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief Financial Officer, but shall not exceed two times the highest bill during the twelve (12) months preceding the date of demand for a deposit. (2)B.Handling of Deposit: A deposit shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. (3)C.Refund of Deposit: A deposit required under this Section shall be refunded to the customer as provided in Section 25.04 B. Formatted: Underline Formatted: No underline Formatted: Underline Formatted: Underline, All caps Formatted: Indent: Left: 0.38", Hanging: 0.62", Space After: 10 pt, Outline numbered +Level: 2 + Numbering Style: 01, 02, 03, … +Start at: 7 + Alignment: Left + Aligned at: 0.63" + Indent at: 1.13" Formatted: All caps Formatted: Underline, All caps Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Alignedat: 1.19" + Indent at: 1.44", Tab stops: 0.5",Left + 1", Left Formatted: Indent: Hanging: 0.44",Numbered + Level: 1 + Numbering Style: A, B,C, … + Start at: 1 + Alignment: Left + Alignedat: 1.19" + Indent at: 1.44", Tab stops: 0.5",Left + 1", Left Formatted: Underline Formatted: Underline Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $744.00 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries District-wide Annexation Fee 3/4" $1,553.70 1" $3,884.25 1-1/2" $7,768.50 2" $12,429.60 3" $24,859.20 4 $38,842.50 6" $77,685.00 8" $124,296.00 10" $178,675.50 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts $5,732.41 10 10.01 Filing of Petition $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Reconnection (service resumed)$50.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (1)Meter Size System Charge MWD & CWA Fixed Charge Total Fixed Charge 3/4"$16.74 $13.28 $30.02 1"$21.26 $22.12 $43.38 Exhibit 6 Otay Water District Appendix A Charges (1) All Water used in December and billed in January 2013. 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (continued)(1)1-1/2"$32.57 $44.31 $76.88 2"$46.13 $70.85 $116.98 3"$82.29 $141.71 $224.00 4"$122.99 $221.43 $344.42 6"$236.02 $442.80 $678.82 8"$371.64 $708.53 $1,080.17 10"$529.88 $1,015.06 $1,544.94 25 25.03 E.1.(b) Domestic Residential Water Rates (1)Unit Charge 0 - 5 $1.73 6-10 $2.69 11-22 $3.50 23 or more $5.39 25 25.03 E.2.(b) Multiple Residential Water Rates - Per Dwelling Unit (1) 0-4 $2.66 5-9 $3.45 10 or more $5.32 25 25.03 E.3.(b) Business and Publicly-Owned Water Rates (1)under 10"0-173 $2.84 174-831 $2.92 832 or more $2.96 10" & larger 0-7,426 $2.84 7,427-14,616 $2.92 14,617 or more $2.96 25 25.03 E.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)1" & smaller 0-49 $3.87 50-132 $3.95 133 or more $4.01 1.5" & 2"0-144 $3.87 145-355 $3.95 356 or more $4.01 3" & larger 0-1,044 $3.87 1,045-8,067 $3.95 8,068 or more $4.01 (1) All water used in December and billed in January 2013. 25 25.03 E.5.(c) Recycled Water Rates (1)3/4" - 1" 0-42 $3.31 43-97 $3.35 98 or more $3.42 1.5" & 2"0-168 $3.31 169-402 $3.35 403 or more $3.42 3" & 4"0-403 $3.31 404-820 $3.35 821 or more $3.42 6" & larger 0-7,916 $3.31 7,917-16,357 $3.35 16,358 or more $3.42 25 25.03 E.6.(b) Temporary and Construction Water Service Rates (1)1" & smaller 0-49 $7.74 50-132 $7.90 133 or more $8.02 1.5" & 2"0-144 $7.74 145-355 $7.90 356 or more $8.02 3" & larger 0-1,044 $7.74 1,045-8,067 $7.90 8,068 or more $8.02 25 25.03 E.8.(b) Tank Trucks Water Rates (1)1" & smaller 0-49 $7.74 50-132 $7.90 133 or more $8.02 1.5" & 2"0-144 $7.74 145-355 $7.90 356 or more $8.02 3" & larger 0-1,044 $7.74 1,045-8,067 $7.90 8,068 or more $8.02 25 25.03 E.9.(c) Application Fee for Water Service Outside District Boundaries $500.00 (1) All water used in December and billed in January 2013. 25 25.03 E.9.(d) Water Rate for Service Outside District Boundaries (1)1" & smaller 0-49 $7.74 50-132 $7.90 133 or more $8.02 1.5" & 2"0-144 $7.74 145-355 $7.90 356 or more $8.02 3" & larger 0-1,044 $7.74 1,045-8,067 $7.90 8,068 or more $8.02 25 25.03 E.10.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 E.10.(c) Water Rate for Service Outside Improvement District (1)1" & smaller 0-49 $7.74 50-132 $7.90 133 or more $8.02 1.5" & 2"0-144 $7.74 145-355 $7.90 356 or more $8.02 3" & larger 0-1,044 $7.74 1,045-8,067 $7.90 8,068 or more $8.02 25 25.03 E.11.(c) Fire Service Monthly Charge $34.57 25 25.03 E.12.(b) Additional Water Service for Property Not Subject to District Taxes per unit $0.29 25 25.03 E.13.(b) Interim Service Water Rate in Improvement District 7 (1)1" & smaller 0-49 $7.74 50-132 $7.90 133 or more $8.02 1.5" & 2"0-144 $7.74 145-355 $7.90 356 or more $8.02(1) All water used in December and billed in January 2013. 25 25.03 E.13.(b) Interim Service Water Rate in Improvement District 7 (continued)(1)3" & larger 0-1,044 $7.74 1,045-8,067 $7.90 8,068 or more $8.02 25 25.03 F.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.04 25 25.03 G.1. Additional Water Charge for Service in the North District Per unit charge except for the first 5 units of residential $0.08 25 25.03 H.1. Additional Water Charges for Service in the Improvement District 9 Water Service Zone Per unit charge except for the first 5 units of residential $0.27 25 25.03 H.2. Additional Monthly System Fee for Improvement District 9 $2.00 25 25.03 I.1.(a) Additional Water Charges for Services in Improvement District 3 Per unit charge except for the first 5 units of residential 0.19 per H.C.F. Effective Jan 1, 2011 "0.20 per H.C.F. Effective Jan 1, 2012 "0.21 per H.C.F. Effective Jan 1, 2013 25 25.03 I.1.(b) Additional Water Charges for Services in Improvement District 10 Per unit charge except for the first 5 units of residential 0.27 per H.C.F. Effective Jan 1st 2011-2018(1) All water used in December and billed in January 2013. 25 25.03 I.1.(c) Additional Water Charges for Services in La Presa Per unit charge except for the first 5 units of residential 0.08 per H.C.F. Effective Jan 1st 2011-2013 25 25.04 A.Deposits for Non-Property Owners 3/4"$75.00 1"$150.00 1-1/2"$200.00 2"$360.00 3"$800.00 4"$1,350.00 6"$3,300.00 8"$4,400.00 10"$5,500.00 28 28.01 B.1.Capacity Fees and Zone Charge District-wide Capacity Fee 3/4" $7,888.43 1" $19,721.08 1-1/2" $39,442.15 2" $63,107.44 3" $126,214.88 4 $197,210.75 6" $394,421.50 8" $631,074.40 10" $907,169.45 - 22/27 TRIAD 3/4" $5,903.44 1" $14,758.60 1 -1/2" $29,517.20 2" $47,227.52 3" $94,455.04 4 $147,586.00 6" $295,172.00 8" $472,275.20 10" $678,895.60 28 28.01 B.2.New Water Supply Fee - All IDs including Triad 3/4" $908.87 1" $2,272.18 1-1/2" $4,544.35 2" $7,270.96 3" $14,541.92 4" $22,721.75 6" $45,443.50 - I.D.'s 1,2,3,5,7,9,10,19,20,22,22/27 (excluding Triad), and 25 (only I.D.'s 5,7,10,19,22, and 22/27 require reclaimed irrigation meters). 28 28.01 B.2.New Water Supply Fee (continued) - All IDs including Triad 8" $72,709.60 10" $104,520.05 28 28.02 Installation Charges for Water Meter and Water Service Laterals Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) Potable (Non-Irrigation)3/4" x 7.5"$202.01 $95.86 $297.87 $81.38 3/4" x 9"$215.08 $95.86 $310.94 $81.38 1"$260.68 $95.86 $356.54 $81.38 1.5"$423.71 $95.86 $519.57 $184.50 2"$607.13 $95.86 $702.99 $184.50 3"$1,892.05 $577.18 $2,469.23 $3,291.13 4"$3,286.19 $577.18 $3,863.37 $3,291.13 6"$5,676.14 $911.70 $6,587.84 $3,291.13 8"$7,091.92 $1,398.01 $8,489.93 $4,721.36 10"$10,199.50 $1,398.01 $11,597.51 $4,721.36 Potable/Recycled Irrigation 3/4" x 7.5"$202.01 $95.86 $297.87 $207.41 3/4" x 9"$215.08 $95.86 $310.94 $207.41 1"$260.68 $95.86 $356.54 $207.41 1.5"$423.71 $95.86 $519.57 $207.41 2"$607.13 $95.86 $702.99 $207.41 3"$1,309.49 $577.18 $1,886.67 $3,291.13 4"$2,549.38 $577.18 $3,126.56 $3,291.13 6"$4,589.71 $911.70 $5,501.41 $3,291.13 8"$6,114.31 $1,398.01 $7,512.32 $4,721.36 10"$8,676.67 $1,398.01 $10,074.68 $4,721.36 Combined Fire and Domestic 4"$7,818.14 $577.18 $8,395.32 $3,291.13 6"$10,405.26 $911.70 $11,316.96 $3,291.13 8"$15,128.49 $1,398.01 $16,526.50 $4,721.36 10"$20,645.39 $1,398.01 $22,043.40 $4,721.36 31 31.02 D.1. Requirement of Temporary Meter for Service minimum/per day $25.00 31 31.03 A.1.Requirement of Deposit for Temporary Meters 3/4"$150.00 1"$180.00 1-1/2"$330.00 2"$2,046.00 3"$850.00 4"$1,986.00 6"$2,465.00 31 31.03 A.1.Requirement of Deposit for Temporary Meters (continued) - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4.Temporary Meter Install & Removal $128.00 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 2"$64.00 3" and larger No backflow test $64.00 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$25.00 1-1/2" & 2 "$50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 B.Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d)Delinquency Tag $10.00 34 34.02 G.3.(a)Meter "Turn-On" Charge During regular business hours $35.00 34 34.02 G.3.(b)Meter "Turn-On" Charge After regular business hours $65.00 53 53.04 C.1.Sewer Connection Fee - Russell Square $7,500.00 53 53.04 C.2.Monthly Sewer Service Charge - Russell Square $200.00 53 53.11 A.Set-up Fees for Accounts $10.00 53 53.11 B.2.Residential Sewer Charges (2) Rate multiplied by winter average units $1.92 53 53.11 B.3.Residential Sewer Charges Base Fee (2)5/8" & 3/4"$13.30 1" & larger $19.40 (2) Sewer billed beginning January 1, 2014. 53 53.11 B.4. Monthly Residential Sewer Rate Without Consumption History (2)5/8" & 3/4"$36.15 1" & larger $42.25 53 53.11 C.4.Winter Averaging - Sewer - Single Residential 14 units - 15% discount = 11.9 units - Multi-Residential 6 units - 15% discount = 5.1 units 53 53.11 D.2.Multi-Residential Rate Charges - Sewer (2) Rate multiplied by winter average units $1.92 53 53.11 E.6.Public Schools Sewer Rate (2) Per ASU (Based on Student Count)$45.30 53 53.11 F.1. Monthly Service Charge for Commercial and Institutional Sewer (2)Per ASU $45.30 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$170.00 - Broken Curbstop or Tabs 3/4" - 1"$192.00 - If Customer uses Jumper 3/4" - 1"$149.00 - Broken Lock/Locking Device 3/4" - 1"$56.00 - Cap Lock (Welded)3/4" - 1"$158.00 - Broken Curbstop or Tabs 1.5" - 2"$265.00 - To Pull and Reset Meter 3"$351.00 - To Pull and Reset Meter 4"$454.00 - To Pull and Reset Meter 6"$454.00 - To Pull and Reset Meter 8"$600.00 - To Pull and Reset Meter 10"$600.00 (2) Sewer billed beginning January 1, 2014. 72 72.05 D. A.Type I Fine - First Violation $100.00 - Second Violations $200.00 that same ordinance or requirement within a twelve-month period $500.00 Type II Fine $5,000.00 Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $10.00 $30.00 $3.00 $3.00 Fine up to amount specified per each day the violation is identified or continues. Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 1, 5, & Outside an I.D. Per acre in I.D. 2,3,7,9,10,19,20,22,25,& 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Per acre for outside I.D. & greater than one mile from District facilities. Will not exceed per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes $20.00/year or $0.50/meeting Yearly Subscription Service for Board Packet and Ratified Minutes $100.00/year for first copy and $200.00/year for each copy thereafter Less than one acre I.D. 4, 14, & 18 Per acre I.D. 4, 14, & 18 Per $1000 of assessed value for I.D. 27 25-1 25 SECTION 25 CONDITIONS FOR WATER SERVICE 25.01 SERVICE AREA Water service shall be furnished by the District only to property within (annexed to) a water improvement district within the District’s service area. Water service to property located outside an improvement district may be furnished only upon prior approval of the Board of Directors. Temporary water service to property located outside an improvement district may be furnished, in accordance with Section 25.03 E.12., upon the approval of the General Manager. 25.02 DEFINITION OF "HCF" AND "UNIT OF WATER" As used in the Code the terms "HCF" and "unit of water" are interchangeable and each shall mean 100 cubic feet or 748 gallons of water. 25.03 DEFINITIONS OF WATER SERVICE CATAGORIES, WATER RATES, CHARGES AND FEES Water service furnished by the District shall be under the categories of services and at the rates, charges and fees as set forth in Appendix A, Section 25. All District water rates, charges and fees are subject to Board approval of rate increases beginning January 1, 2014 and periodically thereafter through December 31, 2018. The increases shall be the amount sufficient to cover cost increases related to operations and maintenance, but not to exceed 10% per year. Five-year Periodic Pass–through Rate Increases or Decreases from District Wholesalers – All District water rates, charges and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2014 through December 31, 2018. A. Set-up Fees for Accounts A set-up fee shall be charged for each account transferred to another customer. See Appendix A, 25.03 A. for charges. A deposit will be required of all customers who do not own the property to be served. See Appendix A, 25.04 A. for deposit amounts. B. Monthly Fixed MWD & CWA Charges Each potable water service customer shall pay a monthly MWD and CWA fixed system charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for operating and maintenance costs, including the following: MWD Readiness-to-Serve Charge and Capacity Reservation Charge; CWA Infrastructure Access Charge, Customer Service Charge, and Emergency Storage Charge. The MWD & CWA charge is based on Attachment B 25-2 the size of the water meter(s) in service with the exception of upsizing the meter for individually metered residential fire service, as described in Section 38.03 of the Code. The MWD & CWA charge shall start upon installation of the meter. C. Monthly Fixed System Charges Each water service customer shall pay a monthly fixed system charge, as set forth in Appendix A, 25.03 C. Proceeds of the charge will be used to pay for water system replacement, maintenance, and operation expenses. The system charge is based on the size of the water meter(s) in service. For individually metered residential fire service, as outlined in Section 38.03 of the Code, the size and fee would be set based on water use requirements without additional fire capacity. The system charge shall start upon installation of the meter D. Water Conservation Drought Pricing To promote conservation, base tiered water rates for all water services are subject to percentage increases during drought stages, as shown in the table below: Drought Stage Pricing Stage 2 Stage 3 Stage 4 Tier 1* 0% 0% 0% Tier 2 Up to 5% Up to 10% Up to 15% Tier 3 Up to 30% Up to 60% Up to 90% *Domestic residential water service has four tiered base rates as outlined in Appendix A, 25.03 E.1.(b). Tier 1 of the above table applies to the first two tiered base rates. Tier 2 of the above table applies to the third tiered base rate. Tier 3 of the above table applies to the fourth tiered base rate. E. Categories of Water Service The definitions and rates and charges for water service furnished by the District shall be as follows: 1. DOMESTIC RESIDENTIAL WATER (a) Defined as: Water service for single residential and individually metered attached households as well as other domestic uses (other than that provided for in Paragraph 2 below). (b) Base Rate: The tiered base rates of water furnished under this category shall be set forth in Appendix A, 25.03 E.1.(b). 25-3 The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 2. MULTIPLE RESIDENTIAL WATER (a) Defined as: Master metered water service for multiple residential households, for example, duplexes, townhomes, apartments and mobile homes. (b) Base Rate: The tiered base rates of water furnished for each dwelling unit under each block of service in this category shall be as set forth in Appendix A, 25.03 E.2.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 3. BUSINESS AND PUBLICLY-OWNED WATER (a) Defined as: Potable water service for commercial, industrial and publicly-owned establishments. (b) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.3.(b). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 4. IRRIGATION AND COMMERCIAL AGRICULTURAL USING POTABLE WATER (a) Irrigation is potable water service provided solely for irrigation of landscape or landscaping, as defined in Section 0.02 A. (b) Commercial agricultural engaged in the growing or raising of live stock, in conformity with recognized practices of husbandry, for the purpose of commerce, trade or industry, or for the use by public educational or correctional institutions or agricultural horticultural or floricultural products and produced, (i) for human consumption or for the market, or (ii) for the feeding of fowl or livestock produced for human consumption or for the market, or 25-4 (iii) for feeding fowl or livestock for the purpose of obtaining their products for human consumption or for the market, such products to be grown or raised on a parcel of land having an area of not less than one acre utilized exclusively therefore. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.4.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 5. RECYCLED WATER – LANDSCAPE IRRIGATION AND CERTAIN NON-IRRIGATION PURPOSES (a) Defined as: Non-potable and recycled water service provided for irrigation of landscaping, as defined in Section 0.02 A. of the Code, and certain non-irrigation purposes, other than domestic use, in compliance with federal, state and local laws and regulations regarding use of recycled water. (b) The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.5.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Monthly system charge: The monthly system charge for recycled water service is set forth in Appendix A, 25.03 C. 6. RECYCLED WATER - COMMERCIAL (a) Defined as: Non-potable and recycled water service provided for commercial customers, as defined in Section 0.02 A. of the Code, and certain non-irrigation purposes, other than domestic use, in compliance with federal, state and local laws and regulations regarding use of recycled water. 25-5 (b) The provisions of this Code, relating to use of recycled water, set forth in Section 26 of the Code, including but not limited to cross-connections and backflow protective devices, shall be strictly enforced in connection with the use of recycled water. (c) Base Rate: The tiered base rate for water furnished under this category shall be determined by meter size and usage block as set forth in Appendix A, 25.03 E.6.(c). The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Monthly system charge: The monthly system charge for recycled commercial water service is set forth in Appendix A, 25.03 C. 7. POTABLE TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Potable water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.7.(b). (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system and MWD & CWA charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C. 8. RECYCLED TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Recycled water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.8(b). 25-6 (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system charge shall be the same rates charged to customers in the same category of service on a permanent meter basis per Appendix A, 25.03 C. 9. WATER SERVICE UNDER SPECIAL AGREEMENTS (a) Defined as: Water service provided under express agreements approved by the Board of Directors for service to golf courses and other entities, which service may be curtailed or interrupted by the District under conditions provided in such agreements. (b) For water service under this category the base rate shall be determined on a case-by-case basis. Unless otherwise specified in the particular agreement, the tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. 10. TANK TRUCKS (a) Defined as: Water service provided for the filling of tanks on motor vehicles transporting water used for other than earth grading purposes, which service shall be made only through a portable meter issued by the District to a customer specifically for use in accordance with the provisions herein for such service. (b) The rate for metered water furnished under this category is reflected in Appendix A, 25.03 E.10. (b), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (c) Requirements for Use of Water Meter (1) To receive such service, the customer must make a deposit for the use a water meter 25-7 furnished by the District. The fee is set forth in Appendix A, 31.03 A.1. (2) Upon termination of the service, the Dis-trict will refund the amount of deposit remaining after making the following deductions: (i) Cost of repairing or replacing the meter, fire hydrant and/or any fittings damaged or lost while in use; and (ii) Unpaid charges for water or other applicable charges. (3) Prior to the end of each six month period following issuance of a meter under this section, or at the request of the District, whichever is earlier, the customer shall return the meter to the District for inspection, repair, or calibration as deemed necessary by the District. (4) Payment for water service under this cate-gory shall be made as follows: (i) The bill shall be based on the amount of water actually used, which shall be determined by the District’s reading of the meter or by a report made by the customer to the District in the manner prescribed by the District. (ii) Where the actual amount of water used cannot be determined as provided in (i), the District will issue a bill based on a District estimate of the amount of water used, as determined by the District. Such estimates shall be reconciled with actual amounts used when the customer returns the meter to the District as provided in paragraph 3 above. (iii)Payments shall be made as specified on the bill. 11. WATER SERVICE OUTSIDE DISTRICT (a) Defined as: Water service for real property outside the service area of the District. (b) This service will be provided only upon prior approval of the General Manager when there is a surplus of water over and above the existing 25-8 needs for service in the District. This service is temporary and may be terminated upon written notice from the District. Customers for this service are sometimes referred to as "outside users." (c) Customers applying for this category of service shall pay an application fee as set forth in Appendix A, 25.03 E.11.(c). (d) The rate for metered water furnished under this category shall be charged the rate as described in Appendix A, 25.03 E.11.(d), plus a monthly system charge at the rate set forth in Appendix A, 25.03 C. The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) Customers requesting only fire service or a fire hydrant under this category shall be charged a capacity fee based on one (1) EDU for a permanent meter in the improvement district from which the fire service derives its flow, plus a monthly system charge at the rate set forth in Appendix A, 25.03 E.13.(c). 12. WATER SERVICE OUTSIDE AN IMPROVEMENT DISTRICT (a) Defined as: Water service for property located within the boundaries of the District, but not within a water improvement district. Customers for this service are sometimes referred to as "outside users." (b) Customers applying for this service shall pay an application fee as set forth in Appendix A, 25.03 E.12.(b). The District will review the application to determine whether the land to be served should be annexed to an improvement district. If it is determined that annexation is not practical, the Board of Directors may authorize service as an outside user. This service will be reviewed periodically until it is determined that the property must be annexed to an improvement district or that service must be terminated. (c) The rate for metered water furnished under this category is as set forth in Appendix A, 25.03 E.12.(c), plus a monthly system charge as set forth in Appendix A, 25.03.C. 25-9 The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (d) Upon approval of the Board of Directors, a cus-tomer, who has paid all construction costs for facilities necessary to serve the customer's property in lieu of annexation to a water improvement district, shall be exempt from the provision for this category of service. 13. SERVICE FOR FIRE PROTECTION (a) Defined as: Water service provided by the Dis-trict solely to feed fire hydrants or fire sprinkler systems from lines or laterals con-nected to District water mains. (b) The District will not make a charge for the quantity of water used for fire protection purposes. (c) The monthly system charge for this category of service is set forth in Appendix A, 25.03 E.13.(c) for each connection to a District water main made for fire protection service. 14. WATER SERVICE TO PROPERTY NOT SUBJECT TO DISTRICT TAXES (a) Pursuant to Section 71613 of the California Water Code, the District may furnish water to property, not subject to District taxes, at special rates, terms and conditions as are determined by the Board of Directors for such service. Such rates, terms and conditions shall be uniformly applied to like classes and conditions of service in the same improvement district or geographical area. (b) Customers in this category, such as publicly-owned establishments, shall pay an additional fee as outlined in Appendix A, 25.03 E.14.(b). 15. INTERIM WATER SERVICE IN IMPROVEMENT DISTRICT 7 (a) Definition of Interim Service. This is water Service furnished to a customer in Improvement District 7 (ID 7) for temporary use. (b) Rates for Interim Service. Customers applying for interim service in ID 7 shall not be required to pay the ID 7 water capacity fee and San Diego 25-10 County Water Authority fee, as required under Section 2801 of this Code. The water rate is set forth in Appendix A, 25.03 E.15.(b). (c) Conversion to Permanent Service. At such time as use expires, the customer shall be required to pay all fees in effect at the time the permanent use is implemented. F. Energy Charges for Pumping Water In addition to water rates and other charges provided for in this Section 25.03, customers shall be charged an energy pumping charge based on the quantity of water used and the elevation to which the water has been lifted to provide service. The energy pumping charge shall be made at the rate set forth in Appendix A, 25.03 F. G. Additional Water Charge for Service in the North District 1. In addition to other applicable water rates and charges provided for in this Section 25.03, each customer receiving water service in the North District shall pay a charge as set forth in Appendix A, 25.03 G.1. The North District area is defined in Section 0.02 of this Code. 2. All proceeds from charges collected pursuant to this Section 25.03 G. shall be set aside by the District in a separate account and shall be used solely for payment of costs and borrowings for construction, installation and maintenance of water storage reservoirs, pump stations and water lines to provide service in the North District. H. Additional Water Charges and Monthly System Charges for Service in the ID 9 Water Service Zone 1. In addition to other applicable water rates and charges provided for in this Section 25.03, effective May 1, 1986, each customer receiving water service in the ID 9 Water Service Zone shall pay a charge set forth in Appendix A, 25.03 H.1. The ID 9 Water Service Zone area is defined in Section 0.02 of this Code. 2. In addition to the monthly system charges provided for, effective May 1, 1986, each customer receiving water service in the ID 9 Water Service Zone shall pay a monthly meter system charge as outlined in Appendix A, 25.03 H.2. for each meter in service. 3. All proceeds from charges collected pursuant to this Section 25.03 H. shall be set aside by the District in 25-11 a separate account and shall be used solely for pay-ment of costs and borrowing for construction, installation and maintenance of water storage reser-voirs, pump stations and water lines to provide ser-vice in the ID 9 Water Service Zone. I. Additional Water Charges for Services in the ID 3, ID 10 and La Presa Water Service Zones 1. In addition to other applicable water rates and charges provided for in this Section 25.03, effective May 17, 1993, each customer receiving water service in ID 3, ID 10 and La Presa Water Service Zones is assessed an additional charge per H.C.F. of water furnished by the District. Said surcharge is assessed as set forth in Appendix A, 25.03 I.1.(a),(b), and (c), respectively. 2. All proceeds from charges collected pursuant to this Section 25.03 I. shall be set aside by the District in a separate account and shall be used solely for payment of costs and borrowings for construction, installation and maintenance of water storage, reservoirs, pump stations and water lines to provide service in the ID 3, ID 10 and La Presa Water Service Zones, respectively. 25.04 DEPOSITS BY LESSEES OR NON-OWNERS OF PROPERTY 8. RECYCLED TEMPORARY AND CONSTRUCTION WATER SERVICE (a) Defined as: Recycled water service provided by the District on a temporary basis, pursuant to Section 31 of this Code. (b) If capacity fees have not been paid by the customer, the rates for water furnished under this category is set forth in Appendix A, 25.03 E.8(b). (c) If the customer has paid capacity and annexation fees, the base rate for water furnished under this category shall be the base rate charged customers in the same category of service on a permanent meter basis. (d) The tiered base rates for this category of service are subject to the increased drought pricing outlined in Section 25.03 D. (e) The applicable monthly system charge shall be the same rates charged to customers in the same 25-12 category of service on a permanent meter basis per Appendix A, 25.03 C. A. AMOUNT OF DEPOSIT The customer's deposit shall be applied to reduce or satisfy any delinquent payment or other amount due the District at the time of termination of water service to the customer. Any portion of the deposit remaining, after satisfaction of the amount due, shall be refunded to the customer that made the deposit. The deposits listed above may be waived for a new resi-dential applicant where the applicant demonstrates credit worthiness based upon prior utility payments or a non-delinquent water account for one year or other similar evidence of credit. B. REFUND OF DEPOSIT Where funds have been on deposit for twelve months in a domestic service account and there has been no more than one delinquent payment on that account during that period, the District will apply a credit to the water account in the amount of the deposit. C. LETTER OF CREDIT A letter of credit, in a form approved by the General Manager or Department Head of Finance, may be submitted to the District to satisfy the deposit requirements. 25.05 SERVICE TO SUBSEQUENT CUSTOMERS After a water meter has been installed for a customer and all fees and charges have been paid, water service may be furnished to a subsequent customer through the water meter installed without payment of further charges, except for the set-up fee for transferred accounts, payment of delinquent charges for the applicant's service or other deposits that may be required by this Code. 31-1 SECTION 31 TEMPORARY WATER SERVICE 31.01 DEFINITION OF TEMPORARY SERVICE Temporary water service is water service provided for a limited period of time not to exceed 365 days, and used for temporary purposes such as construction, hydrotesting water systems, vegetation of slopes, and other uses noted in this section. Temporary water service shall not be provided to residential dwellings or commercial business enterprises. 31.02 REQUIREMENT OF TEMPORARY METER FOR SERVICE Temporary service may be provided after installation of a temporary meter pursuant to a customer's written application for such service. Temporary service by means of a "jumper" or other unauthorized connection to the District water system is prohibited. A. Size and Location. 1. The size and location of temporary meters will be determined solely by the District. 2. For temporary service from a fire hydrant, a meter of at least 4" in size will be required. Only one 2½" fire hydrant port per fire hydrant shall be occupied by a temporary meter at one time. B. Temporary water service from a fire hydrant shall be limited to the following applications: 1. Filling of water trucks and drop tanks. 2. General construction requirements, such as backfill and compaction, guniting and stuccoing, and block wall building. 3. Flushing of storm drains and sewer lines. 4. Filling, hydrotesting, chlorination, and flushing of newly constructed potable and reclaimed water lines. 5. Filling, flushing, hydrotesting, and the initial operational coverage testing of reclaimed water irrigation systems. Temporary service provided for this application shall be limited to a maximum of 60 days. 6. Operation of landscape irrigation for the establishment of vegetation on slopes or other planted areas. Temporary service provided for this application shall be limited to a maximum of 180 days. Attachment C 31-2 Item 5 and 6 above shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the temporary service being established. The backflow device shall be installed in plain view and within 3 feet of the temporary hydrant meter. C. Temporary service to construction trailers or other temporary construction buildings shall be provided as follows: 1. Through a temporary meter connected to the 1 or 2 inch service lateral for the lot the trailer is placed on. 2. Where Item 1 above is not possible, through a temporary meter connected to appurtenances other than a fire hydrant, such as a blow off. 3. Where either Item 1 or 2 above is not possible, from a temporary 4 inch meter connected to a fire hydrant. Service to construction trailers or other temporary construction buildings shall require the installation by the customer of a District approved and tested reduced pressure backflow device prior to the temporary service being established. The backflow device shall be installed in accordance with District requirements. D. Temporary service to community service organizations shall be provided under the conditions set forth below: 1. The community service organization shall make a minimum payment for the temporary connection. See Appendix A, 31.02 B.1. for charges. 2. If the cost of the water used exceeds $25.00, the community service organization shall pay the excess cost. See Temporary Water Service Rates in Appendix A, 25.03 E.7.(b) for rates per meter. 3. The temporary service shall be limited to 48 hours within any one month period. 4. The meter shall be installed by District staff. 5. The rate for water service shall be two times the normal domestic rate. E. If any unauthorized connection, disconnection or relocation of a temporary meter, or other connection device is made by other than District employees, District may discontinue fur-ther water service to the entire project. 31-3 F. Extensions to the time limits referenced in this section may be made by the General Manager. Requests for time extensions shall be made by the customer in writing. 31.03 FEES AND CHARGES FOR TEMPORARY METERS A. Temporary Service. Temporary water service shall be furnished to the property owner or the owners authorized agent only and shall be provided under the following conditions: 1. Requirement of Deposit. At the time application is made for temporary service, the customer shall deposit with the District the amount set forth in Appendix A, 31.03 A.1. 2. Delinquency. No temporary meters shall be furnished to any person with a delinquent account with the District. 3. Refund of Deposit or Additional Payment. Upon cancellation or termination of the temporary service, the District will refund the amount of deposit remaining after making the following deductions: a) cost of installing, moving and removing the meter; b) cost of repairing or replacing the meter, fire hydrant, and/or any fittings damaged or lost while in use; and c) unpaid charges for water used or other applicable charges. 4. Temporary Meter Set-up & Removal. The charges to set-up and remove a temporary meter are set forth in Appendix A, 31.03 A.4. 5. Temporary Meter Move Fee. If a meter needs to be moved from one location to another see Appendix A., 31.03 A.5. B. Rates for Temporary Service. Payment for temporary water service shall be in accordance with rates and charges set forth in Section 25.03 E.7.(b). 31.04 PAYMENT OF CAPACITY AND ANNEXATION FEES FOR TEMPORARY METERS A. Customers, whose property has been annexed into an Improvement District, may elect to pay the capacity and annexation fees in addition to the deposit amount shown in Section 31.03.A.1. 31-4 B. Capacity and annexation fees for this type of temporary service shall be calculated in accordance with Section 28. C. Payment for this type of temporary service shall be in accordance with the rates and charges set forth in Section 25.03 E.7.(c). D. Customers electing this type of temporary service shall be credited the number of equivalent dwelling units they have previously purchased when the meter(s) is returned to the District. The credit shall be applicable to permanent meters purchased within the same subdivision or development where the temporary meter was used. 34-1 SECTION 34 ISSUANCE AND PAYMENT OF WATER BILLS 34.01 ISSUANCE, DUE DATE AND FINAL PAYMENT DATE OF STATEMENT OF CHARGES FOR SERVICE A. Issuance of Statements. Statements for water service or other charges will be mailed or presented as soon as practicable after the water meter has been read and the applicable charges have been determined. B. Due Date. Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. C. Final Payment Date. All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. D. Payment of Charges. 1. Place of Payment. Payments shall not be credited to a customer's account until cash, check, credit card, draft, electronic funds transfer, money order, or any other acceptable form of payment that will be honored by the bank has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer's account until received at the business office. 2. Returned Check Charges. A returned payment charge (see Appendix A, 34.01 D.2. for charge) shall be added to a customer's account in each instance where payment has been made to the District with a check, draft, credit card or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. 34.02 DELINQUENT ACCOUNTS A. For Non-Payment of Charges. If full payment of a statement for a water service account is not received at the District business office on or before the final payment date, the account shall become delinquent. B. Late Payment Charge. A late payment charge (see Appendix A, 34.02 B. for charge) of the total amount Attachment D 34-2 delinquent shall be added to each delinquent account at the time any amount becomes delinquent, provided that the charge shall not be made on any account which at that time has no delinquencies of record. When a late payment charge is made, such shall be added to the delinquent account as of the date the account becomes delinquent and such charges shall become an inseparable part of the amount due as of that time. C. Notice of Delinquency. A delinquency notice shall be mailed to each customer whose account is delinquent, notifying the customer that service will be turned off unless payment is made. The notice shall indicate the amount due, including late payment charges, and that the total amount must be paid within fifteen (15) calendar days from the date of mailing or presentation of the notice to the customer, or service will be discontinued. D. Record of Delinquent Accounts. The District maintains records of delinquent accounts. Each year one delinquency shall be removed from the record of each account that has one or more delinquencies. E. Partial Payment on Delinquent Account. A partial payment on a delinquent account may be accepted and credited to a customer's account; however, the partial payment shall not cause removal of the account from a delinquent status and furthermore, the partial payment shall not preclude the meter from being turned off for delinquency. F. Financial Arrangements for Delinquent Accounts. 1. Continuation of Service. The General Manager, Chief Financial Officer, or any person delegated by the General Manager, may authorize continuation of service to a delinquent account if financial arrangements, satisfactory to the District, have been established. 2. Requirement of Deposit Due to Repeated Delinquencies. If payments on a customer account have become delinquent five or more times, or if a meter has been turned off three or more times for non-payment of charges, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District, in cash or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief 34-3 Financial Officer, but shall not exceed two times the highest monthly bill during the twelve (12) months preceding the date of demand for a deposit. (a) Handling of Deposit. A deposit shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. (b) Refund of Deposit. A deposit required under this Section shall be refunded to the customer as provided in Section 25.04.A. G. Termination and Reinstatement of Water Service Under Delinquent Accounts 1. Termination of Service. The water meter or meters under delinquent accounts may be turned off and locked if payment has not been made in accordance with the Notice of Delinquency. (a) Where an owner or manager is listed by the Dis-trict as the customer of record of the service, the District shall make every good faith effort to inform the actual users of the services when the account is in arrears by means of a notice that service will be terminated in ten days. The notice shall further inform the actual users that they have the right to become cus-tomers of the District without being required to pay the amount due on the delinquent account. (b) Residential water service shall not be termi-nated for non-payment in any of the following situations: (1) During an investigation by the District of a customer dispute or complaint. Any residential customer who has initiated a complaint or requested an investigation within five days of receiving the disputed bill, or who has, within 13 days of the mailing of the notice that the customer's service will be terminated for non-payment, or made a request for extension of the payment period of a bill asserted to be beyond the means of the customer to pay in full during the normal period for 34-4 payment, shall be given an opportunity for a review. The review shall include consideration of whether the customer shall be permitted to amortize the unpaid balance of the account over a reasonable period of time not to exceed 12 months. No termination of service shall be effected for any customer complying with an amortization agreement, if the customer also keeps the account current as charges accrue in each subsequent billing period. Any customer, whose complaint or request for an investigation has resulted in an adverse determination by the District, may appeal the determination to the Board. (2) When a customer has been granted an exten-sion of the period for payment of a bill. (3) On the certification of a licensed physi-cian and surgeon that to do so will be life threatening to the customer and the customer is financially unable to pay for service within the normal payment period and is willing to enter into an amortiza-tion agreement to pay the unpaid balance of any bill asserted to be beyond the means of the customer over a period not to exceed 12 months. (c) The ten-day notice of proposed termination may not be sent to the customer until at least 19 days from the date of mailing of the bill for services. The ten-day period shall not com-mence until five days after the mailing of the notice. (d) The District shall make a reasonable, good faith effort to contact an adult person resid-ing at the premises of the customer by tele-phone or in person, at least 48 hours prior to any termination of service. A charge (see Appendix A, 34.02 G.1.(d) for charge) shall be added to the bill for a contact made in person. (e) Every notice of termination of service pursuant to subdivisions (a) and (c) shall include all of the following information: (1) The name and address of the customer whose account is delinquent. 34-5 (2) The amount of the delinquency. (3) The date by which payment or arrangements for payment is required in order to avoid termination. (4) The procedure by which the customer may initiate a complaint or request an inves-tigation concerning service or charges, except that if the bill for service con-tains a description of that procedure, then the notice is not required to contain that information. (5) The procedure by which the customer may request amortization of the unpaid charges. (6) The procedure for the customer to obtain information on the availability of finan-cial assistance including private, local, state or federal sources, if applicable. (7) The telephone number of a representative of the District who can provide additional information or institute arrangements for payment. (f) If a residential customer fails to comply with an amortization agreement, the District shall not terminate service without giving notice to the customer at least 48 hours prior to termi-nation of the conditions the customer is required to meet to avoid termination, but the notice does not entitle the customer to further investigation by the District. (g) Termination of service shall not occur on any Friday, Saturday, Sunday, legal holiday or at any time during which the business offices of the District are not open to the public. (h) No termination of service may be effected with-out compliance with this section and any ser-vice wrongfully terminated shall be restored, without charge, for the restoration of service. (See California Government Code Section 60373.) 2. Reinstatement of Service. Water service terminated for delinquency may not be reinstated until all amounts due and payable, including late payment charges and meter "turn-on" charges, have 34-6 been paid at the District business office, or unless credit arrangements satisfactory to the District have been made. 3. Meter "Turn-On" Charge. A "turn-on" charge shall be made for turning on any meter which has previously been turned off for a delinquent account. The charges for turn-on shall be as follows: (a) For any account turned on during the District’s regular business hours the turn-on charge is set forth in Appendix A, 34.02 G.3.(a). (b) For any account turned on after the District’s regular business hours, the turn-on charge is set forth in Appendix A, 34.02 G.3.(b). ND: 4839-5321-9592, v.2 38-1 SECTION 38 SERVICE FOR FIRE PROTECTION SYSTEMS 38.01 SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES The District will provide water service for fire pro-tection systems for commercial or industrial developments within the District. Such service shall be available only in accordance with the rules and regulations provided in this Code. 38.02 RULES AND REGULATIONS FOR FIRE HYDRANT AND/OR FIRE SPRINKLER SERVICE FOR COMMERCIAL OR INDUSTRIAL PURPOSES ON PRIVATE PROPERTY A. All fire hydrant and/or fire sprinkler service mains installed for commercial or industrial pur-poses on privately-owned land shall be owned and maintained by the land owner; except for fire hydrants installed for developments where the District has accepted an easement for such service mains. B. Where service is provided for fire hydrant or fire sprinkler service on privately-owned land under Paragraph A above, the service shall be provided by the District at the property line of the land to be served. The property owner or developer shall be responsible to construct and maintain the remainder of the facilities to pro-vide fire protection to the property. Each such facilities installation shall include a reduced pressure principle assembly backflow device installed in accordance with District specifica-tions on the fire main on the customer side of the property line. C. Water furnished for fire hydrant or fire sprin-kler service shall be used only for fire protec-tion purposes. Water service for domestic, busi-ness, commercial or irrigation purposes shall be furnished only after a meter or meters have been installed on laterals connected to the District main in the street pursuant to requirements of this Code. D. Upon application for installation of one or more fire service connections to an existing District water main, the customer shall pay such charges as shall be determined on the basis of actual costs incurred by the District in performing the Attachment E 38-2 work. At the time of application for the instal-lation, the District will estimate the total costs to be incurred in performing the work. The customer shall deposit the estimated amount with the District prior to commencement of the work. The work shall be performed by the District under a District Water/Sewer Order. If actual costs incurred by the District are less than the amount deposited, the District shall refund the balance of the deposit to the customer. If the costs incurred exceed the amount deposited, the cus-tomer shall reimburse the District for the addi-tional costs. Where the fire service connection is to be made to a water main to be constructed in a street by the owner or developer, the costs for such connection shall be covered under the standard developer's agreement with the District for installation of the water facilities for the development project. E. Water for fire protection services shall be pro-vided in accordance with District fees and charges set forth in Section 25.03 E.13.(c), Appendix A of this Code. F. The District shall have no responsibility for the proper function of the fire service system nor for the availability of water from its mains for fire protection in the event of emergency. While the District undertakes at all times to have ade-quate supplies available in its system for ordi-nary uses, it is not a guarantor of continual service in quantities adequate for all purposes however, and each customer shall specifically agree that as a condition of the fire service connection contracted for that the District shall incur no liability nor be subject to any damages resulting from a failure or malfunctioning of the fire sprinkler lateral or fire sprinkler system or from a lack of water in adequate quantity or pressure to make it fully effective. 38.03 SERVICES FOR INDIVIDUALLY METERED RESIDENTIAL FIRE PROTECTION When a single-family residential water meter is required to provide standby capacity for a fire sprinkler system, the capacity charge may be determined according to the size of the meter necessary to meet the water use requirements for 38-3 the property. Additional capacity fees for upsizing the single-family residential meter to meet fire flow requirements will be waived. Standby capacity to provide water for a fire sprinkler system is required when (1) the fire sprinkler system is required by law, including any requirement imposed as a condition of development, permit, or occupancy, and (2) the fire chief, fire marshal, or building official of the city, county, or special district responsible for fire protection service to the property has a requirement for additional meter size due to fire protection. The determination, under this section, shall be made at the time the meter is first obtained, or at the time a meter is replaced with one of greater size due to the later installation of a fire protection system. Water for fire protection services shall be provided in accordance with District fees and charges set forth in Section 25.03 E.13.(c), Appendix A of this Code. 53-1 SECTION 53 CONDITIONS FOR SEWER SERVICE 53.01 CONDITIONS FOR ACQUISITION OF SEWER SERVICE CAPACITY Sewer service capacity may be acquired only for service to a specific address, parcel of land, or a land development project covered by an approved map. An approved map shall mean a recorded final map, a recorded parcel map or a tentative sub-division map that has been approved by the County or by a City, as applicable. A. District Acceptance of Sewer Facilities for Russell Square Area Under an Agreement with Cal Dorado Development, Inc., dated June 28, 1981, the District accepted title to a sewer pump station, force main and appurtenances for a sewage system to provide sewer service to the residential dwelling units to be constructed within the parcels of land in San Diego County Tentative Parcel Map 17150. Under an Agreement with Cal Dorado Development, Inc., dated June 18, 1981, the District agreed to provide service to such parcels on the terms and conditions contained therein. On October 1, 1984, pursuant to Resolution No. 2139, the District Board of Directors accepted title to the facilities. 53.02 SERVICE AREAS Sewer service shall be furnished by the District only to property located in Improvement District No. 14 (ID 14), Improvement District No. 18 (ID 18), and Assessment District No. 4 (AD 4), and the Russell Square Sewer Service Area. Sewer service to property located outside such areas may be furnished only upon annexation to ID 18 and payment of all applicable annexation fees. (Appendix A, 9.04 C.4.) A. Designation of Russell Square Sewer Area The geographical area described on the District Map entitled "Russell Square Sewer Service Area," dated October 11, 1988, on file with the District Secretary, constitutes the Russell Square Sewer Service Area. 53.03 ACQUISITION OF SEWER CONNECTIONS FOR SERVICE A. ID 14, ID 18 and AD 4 There shall be no connection capacity fee for sewer service to parcels already annexed into Improvement District No. 14, Improvement District No. 18 and Assessment District No. 4 on or after December 16, 1998. B. Russell Square Pump Station 1. Sewer Connection Fee A connection fee (see Appendix A, 53.03 B.1. for fee) for each Equivalent Dwelling Unit (EDU) of sewer Attachment F 53-2 service provided through Russell Square Pump Station shall be collected. The connection fee is due at the time an application for sewer service is submitted. The number of EDUs for the connection shall be as set forth in Section 53.08 of the Code. (a) Exempt parcels The connection fee shall not apply to connections for sewer service to the parcels within the Tentative Parcel Map 17150. Such exempt parcels are currently identified as Assessor Parcel Nos. 497-011-41, 497-011-42, 497-011-44, 497-011-46 and 497-011-47. 2. Monthly Sewer Service Charge A monthly sewer service charge (see Appendix A, 53.03 B.2 for charge) to cover normal operational costs of the Russell Square Pump Station and force mains shall be collected. This charge shall be reviewed by the Board of Directors from time to time to assure that such charges cover the costs for operation of the sewer facilities. The proceeds of the fees and charges received by the District under 53.03 B.1 and 53.03 B.2 shall be used by the District solely for maintenance, replacement or repair under 53.03 B.1 and for the operation of the facilities under 53.03 B.2. In addition, the customer for such service shall pay the monthly service charge for sewer service set forth in Section 53.10 A and B. 53.04 CHARGES FOR INSTALLATION OF SEWER LATERALS Upon application for construction of one or more sewer laterals, the customer shall deposit with the District the estimated costs to be incurred by the District in connection with the instal-lation of the facilities required, as determined by the District. Upon completion of the work, the District shall calculate the actual costs incurred by the District in performing the work. If actual costs are less than the amount deposited, the District shall refund the balance of the deposit to the customer. If actual costs exceed the amount deposited, the customer shall reimburse the District for the additional costs. 53.05 PAYMENT OF FEES All fees prescribed in the Code shall become owing, due and payable at the time application is made to connect a premise to the sewer system of the District. The fees shall be paid to the District prior to the issuance of any permit authorizing the connection of such premise to the District sewer system. If the 53-3 proposed connection cannot be made, the fee may be refunded when approved by the General Manager. 53.06 SEWER SERVICE USE CHANGES RESULTING IN INCREASED SYSTEM UTILIZATION The use of a sewer connection shall be limited to the type and number of EDUs authorized by the original wastewater discharge permit. Before adding any additional equivalent dwelling units, buildings, modifying existing buildings, or change of occupancy type, the property owner shall make a supplementary wastewater permit application to the District for such change in use and pay additional sewer annexation fees per EDU, if necessary, as may be applicable. Periodic inspection of the premises may be made by the District and if actual use is greater than estimated use, an assessment for additional annexation fees shall be assessed in accordance with the fee schedule in the then current Code of Ordinances. 53.07 WASTEWATER DISCHARGE PERMIT ISSUANCE AND LIMITATION A. A wastewater discharge permit shall be required for any property for which a request is made to discharge into the District sewage system. B. Every wastewater discharge permit shall expire by limitations and shall become null and void, if the construction or work authorized by such permit is not commenced within 120 days from date of issuance of such wastewater discharge permit or if the construction or work authorized by such wastewater discharge permit is suspended or abandoned for a period of 120 days at any time after the work is commenced. C. Before such work can be recommenced, a new wastewater discharge permit application must be filed with the District. The District may reactivate the previous wastewater discharge permit provided that wastewater quantity and type is the same as the wastewater discharge allowed under the original permit, and provided further that such suspension and abandonment has not exceeded one year. Fees paid for the previous wastewater discharge permit may be credited toward the total permit fees required on the new permit application. Reactivation of the previous wastewater discharge permit shall be subject to District sewer capacity being available at the time of new application and subject to any additional costs or charges imposed during the period of such suspension or abandonment. 53.08 BASIS FOR DETERMINATION OF EQUIVALENT DWELLING UNITS (EDUs) The number of EDUs for sewer service shall be determined on the following basis: 53-4 A. Residential Facilities EDUs Description 1  Single-family residence (Includes manufactured homes and mobile homes which are on private lots.)  A secondary structure with a kitchen is considered an additional EDU  Each individual living unit in apartments, multiple family housing and residential condominiums  Each individual space in mobile homes and trailer parks B. Commercial/Industrial Facilities 1. Food Service Establishments EDUs Description 3  Take-out restaurants with disposable utensils, no dishwasher and no public restrooms  Take-out restaurants with disposable utensils, no dishwasher and no public restrooms  Miscellaneous food establishments -- ice cream shops, yogurt shops, bakeries (sales on premise only)  Take-out/eat-in restaurants with disposable utensils, but with seating and public restrooms  Restaurants with reusable utensils, seating and public restrooms (0-18 seats) o Add 1.0 EDU for each additional 6 seat unit, or portion thereof 2. Hotels and Motels EDUs Description .38 Per living unit without kitchen .60 Per living unit with kitchen 3. Commercial, Professional, Industrial Buildings and Establishments not specifically listed herein EDUs Description 1.2 +0.7 For first 1,000 square feet AND For each additional square feet or portion thereof Applies to any office, store or industrial condominium or establishments 1.2 +0.7 For first 1,000 square feet AND For each additional 1,000 square feet of gross building floor area. Portions less than 1,000 sq. ft. will be prorated. 53-5 Applies to situations where the occupancy type or usage is unknown at the time of application for service. This shall include, but not be limited to, shopping centers, industrial parks and professional office buildings. 1.0 Self-service laundry per washer 4. Convalescent Homes EDUs Description 0.7/bed Skilled nursing care facilities, psychological hospitals, convalescent hospitals; licensed by the applicable Governmental Agency. 0.5/bed Community Care Facilities with 16 or more beds licensed by the applicable Governmental Agency. 1.0 Community Care Homes with six or fewer total residents, including resident staff and housekeepers (to be the same EDU as a single family residence). C. Other commercial, industrial and other types of business establishments not included in 53.08 B.1 through 53.08 B.4 If the establishment is not included in 53.08 B.1 through 53.08 B.4 or if the EDUs specified in 53.08 B.1 through 53.08 B.4 are not representative of actual flow due to the number of employees or type of operation, the number of EDUs shall be determined in each case by the list of commercial strengths as defined by the State Water Resources Control Board (SWRCB) or by the General Manager and shall be based upon the estimated volume and type of wastewater discharge into the sewer. Examples of commercial, industrial and other business establishments include, but are not limited to, bottling works, supermarkets, markets, deli/markets, convenience stores, hospitals, laundries (other than self-service laundries), automobile service stations, mortuaries, day-care centers, bars and pool halls. 53.09 TRANSFER, ASSIGNMENT, OR RESALE OF SEWER CONNECTION RIGHTS EDU sewer connection rights obtained by a customer may not be sold, transferred, or assigned separately from ownership of the real property for which they were obtained, unless otherwise stated in an agreement with the District. 53.10 DEFINITIONS OF RESIDENTIAL AND MULTI-RESIDENTIAL SEWER SERVICE RATES, CHARGES AND FEES All District sewer rates, charges, and fees are subject to Board approval of rate increases to residential and multi-residential sewer services billed on or after January 1, 2014 and may apply 53-6 to sewer services as early as the beginning of December 2013 and periodically thereafter through December 31, 2018. The increases shall be the amount sufficient to cover cost increases related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers All District sewer rates, charges, and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2014 through December 31, 2018. Set-up Fees for Accounts A set-up fee (see Appendix A, 53.10 for fee) shall be charged for each account transferred to another customer. Winter Average Determination Sewer service usage fee shall be based on the ‘‘Winter Average’’ water consumption, measured in units of hundred cubic feet (HCF). The winter average period is January through April. The winter average is calculated by adding the four months of water consumption for the preceding winter and dividing the resulting amount by four. This average is then reduced by a 15% usage discount, recognizing that not all water used flows into the sewer system, to determine the ‘‘Winter Average’’ for billing purposes see Appendix A, 53.10. Usage Fee The usage fee rate (see Appendix A, 53.10) is multiplied by the ‘‘Winter Average’’ calculation for each customer (after the above noted 15% discount) and the resulting amount is added to the System Fee applicable to the size of meter. The resulting fixed fee shall be charged on a monthly basis for an entire calendar year, until a new ‘‘Winter Average’’ is determined for the following year. Residential Sewer System Fee The monthly system fee is set forth in Appendix A, 53.10. A. Residential Rate Charges 1. Defined as: Sewer service for individually metered residential households. 2. The monthly sewer bill is calculated by adding the system fee plus the usage fee as described in 53.10 above. 3. The maximum ‘‘Winter Average’’ for individually metered residential customers is 30 units (after the 15% discount). 4. Monthly Residential Sewer Rate without Consumption History: The average residential sewer rate shall be determined by calculating the total usage fee for all residential customers and dividing by the number of residential customers. Then the monthly average usage 53-7 fee is added to the system fee and this shall be used to determine the total monthly fee to be used for residential customers with no prior winter consumption, customers using well water or other unmetered water. See Appendix A, 53.10 A.4. B. Multi-Residential Rate Charges 1. Defined as: Sewer service for master metered water service for multiple-residential households including for example; duplex, townhomes, apartments, and mobile homes. 2. The monthly sewer bill for the complex is calculated by adding a system fee based on meter size (as set forth in Appendix A, 53.10 B.2.) plus the usage fee (as set forth in Appendix A, 53.10 B.2.) multiplied by the winter average, for the entire complex. Note: There is no cap on consumption for the multi-residential customers. 3. Monthly Multi-Residential Sewer Rate without Consumption History: The multi-residential sewer rate shall be determined by calculating the total usage fee for all multi-residential customers and dividing by the number of multi-residential dwelling units. The usage fee per dwelling unit is multiplied by the new customer’s number of dwelling units and this shall be added to the monthly system fee, based on meter size, to determine the monthly rate. This is applicable to new complexes that do not have a prior winter consumption history. See Appendix A, 53.10 B.3. 53.11 DEFINITIONS OF COMMERCIAL AND INDUSTRIAL SEWER SERVICE RATES, CHARGES AND FEES All District sewer rates, charges, and fees are subject to Board approval of rate increases to commercial and industrial sewer services billed on or after January 1, 2014 and may apply to sewer services as early as the beginning of December 2013 and periodically thereafter through December 31, 2018. The increases shall be the amount sufficient to cover cost increases related to operation and maintenance, but not to exceed 10% per year. Five-year Periodic Pass-through Rate Increases or Decreases from District Wholesalers All District sewer rates, charges, and fees are subject to periodic rate changes from the District’s public agency wholesalers for a five-year period beginning January 1, 2014 through December 31, 2018. Set-up Fees for Accounts A set-up fee (see Appendix A, 53.11 for fee) shall be charged for each account transferred to another customer. 53-8 Average Annual Consumption The Average Annual Consumption, measured in units of hundred cubic feet (HCF). The annual consumption period is January through December of the preceding year divided by the number of months of consumption. This average is reduced by a 15% usage discount which recognizes that not all water used flows into the sewer system. Usage Fee The usage fee rate (see Appendix A, 53.11 for rate) is determined by the commercial customer’s sewer strength category in which they are assigned (low strength, medium strength or high strength). System Fee The monthly system fee is determined by the commercial customer’s water meter size (as set forth in Appendix A, 53.11). Strength Factor The State Water Resources Control Board (SWRCB) has grouped commercial customers into various categories and has identified Strength Factors for each of these business categories. The standard of measure for Strength Factors is the typical sewer strength of a single‐family residence (SFR). A SFR has strength factor of 1. (As set forth in Appendix A, 53.11) A. Commercial Rate Charges 1. The monthly sewer bill for commercial sewer customers is calculated by multiplying the average annual consumption, reduced by 15%, by the usage fee based on strength (as set forth in Appendix A, 53.11) plus the monthly system fee based on the customer’s water meter size. B. Industrial and Other Users 1. Charges determined by the Board of Directors on a case-by-case basis. Monthly sewer service charges shall commence upon installation of the water meter to serve the premises receiving the sewer service, upon connection to the District sewer system, upon start of occupancy of the premises to be served, or one year after the date the application for sewer service is filed. If a sewer service connection has been obtained and if sewer service will not be used until sometime after installation of the water meter, commencement of the sewer service charge may be deferred until the later date only upon prior approval of the General Manager. 53-9 C. Commercial User Classifications Commercial sewer service customers are subject to periodic inspection of the premises by the District for verification of proper sewer strength classification. In addition to such periodic inspections, strength classifications will be reviewed periodically, at the discretion of the District. If warranted following a periodic inspection, periodic classification review, or a change in the nature of a customer’s business and/or use of the property, customers may be reclassified to reflect their current business operations and proper sewer strength, at the discretion of the District and consistent with the standards set forth herein and in the State Water Resources Control Board (SWRCB) listing for sewer strength. 1. Low-Strength Commercial = 1.0 Strength Factor Car wash General office and buildings Barber and beauty shops Department, retail stores and general commercial Hospitals and convalescent homes Public Laundromats and dry cleaners Professional office or office building Warehouse Bars without dining facilities Churches Schools (Elementary, junior & High Schools, Colleges) Other uses having a similar strength as determined by the District 2. Medium-Strength Commercial = 2.0 Strength Factor Hotels without dining facilities or cooking facilities Auto repair/sales shop and service station Shopping centers Other uses having a similar strength as determined by the District 3. High-Strength Commercial = 4.0 Strength Factor Bakery or bakery with deli Hotel with dining facilities Restaurants and bars with food Grocery stores with onsite butcher and/or bakery Other uses having a similar strength as determined by the District 53-10 53.12 ISSUANCE AND PAYMENT OF SEWER BILLS A. Issuance of Statements: Statements for sewer service or other charges will be mailed monthly or as soon as practical, after the applicable charges have been determined. B. Due Date: Each statement issued by the District for such charges shall be due and payable on the date of mailing or other presentation to the customer. C. Final Payment Date: All charges in each statement must be paid on or before the final payment date shown on the statement, which shall be at least 20 calendar days following the date of mailing or presentation of the statement. D. Place of Payment: Payments shall not be credited to a customer’s account until cash, check, credit card, draft, electronic funds transfer, money order or any other acceptable form of payment that will be honored by the bank has been received by the District at the District business office during regular office hours. Deposit of payment in the mail or at a location other than the District business office shall not be credited to a customer’s account until received at the business office. E. Returned Check Charges: A returned payment charge (see Appendix A, 34.01 D.2 for charge) shall be added to a customer’s account in each instance where payment has been made to the District with a check, draft, credit card or any other acceptable form of payment that has not been honored upon presentment to the bank upon which it is drawn. 53.13 DELINQUENT ACCOUNTS A. Requirement of Deposit Due to Repeated Delinquencies: If payments on a customer account have become delinquent five or more times, the General Manager, Chief Financial Officer, or any person delegated by the General Manager, shall be authorized to require the customer to make a deposit with the District, in cash or any other form satisfactory to the General Manager. The deposit amount shall be established at the discretion of the General Manager and the Chief Financial Officer, but shall not exceed two times the highest bill during the twelve (12) months preceding the date of demand for a deposit. B. Handling of Deposit: A deposit shall not earn interest and shall only be applied to reduce or satisfy amounts due the District in the event of termination of service. A deposit 53-11 does not constitute payment for service bills and the customer shall be required to comply with bill payment requirements to continue receiving service. C. Refund of Deposit: A deposit required under this Section shall be refunded to the customer as provided in Section 25.04 B. Section #Code #Fee Description Meter Size 9 9.04 A.1.District Annexation Processing Fee $744.00 9.04 B. Annexation Fees for Water Annexations into Otay Water District Boundaries District-wide Annexation Fee 3/4" $1,553.70 1" $3,884.25 1-1/2" $7,768.50 2" $12,429.60 3" $24,859.20 4 $38,842.50 6" $77,685.00 8" $124,296.00 10" $178,675.50 9.04 C.4. Annexation Fees for Annexations to Sewer Improvement Districts $5,732.41 10 10.01 Filing of Petition $50.00 23 23.04 Backflow Certification - Second Notification $10.00 - Third Notification $25.00 - Reconnection (service resumed)$50.00 - Initial Filing Fee (New applicants for addition to the list of approved backflow prevention device testers)$25.00 - Renewal Filing Fee (to remain on list of approved backflow prevention device testers)Annually $10.00 25 25.03 A. Set-up Fees for Accounts $10.00 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (1)Meter Size System Charge MWD & CWA Fixed Charge Total Fixed Charge 3/4"$16.19 $14.45 $30.64 1"$22.87 $26.79 $49.66 Attachment G Otay Water District Appendix A Charges (1) Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 C. Monthly Fixed System Charges, MWD & CWA Charges (continued)(1)1-1/2"$39.58 $60.61 $100.19 2"$59.62 $103.08 $162.70 3"$113.08 $219.23 $332.31 4"$173.22 $351.09 $524.31 6"$340.29 $718.69 $1,058.98 8"$540.76 $1,160.59 $1,701.35 10"$774.64 $1,670.55 $2,445.19 25 25.03 E.1.(b) Domestic Residential Water Rates (1)Unit Charge 0 - 5 $1.86 6-10 $2.90 11-22 $3.77 23 or more $5.80 25 25.03 E.2.(b) Multiple Residential Water Rates - Per Dwelling Unit (1) 0-4 $2.86 5-9 $3.71 10 or more $5.73 25 25.03 E.3.(b) Business and Publicly-Owned Water Rates (1)under 10"0-185 $3.06 186-1400 $3.14 1401 or more $3.19 10" & larger 0-7,426 $3.06 7,427-14,616 $3.14 14,617 or more $3.19 25 25.03 E.4.(c) Irrigation and Commercial Agricultural Using Potable Water Rates (1)1" & smaller 0-54 $4.17 55-199 $4.25 200 or more $4.32 1.5" & 2"0-144 $4.17 145-355 $4.25 356 or more $4.32 3" & larger 0-550 $4.17 551-1,200 $4.25 (1) Water used in December and billed in January 2014.1,200 or more $4.32 Section #Code #Fee Description Meter Size Charges 25 25.03 E.5. (c)Recycled Water (1)3/4" - 1" 0-32 $3.56 Landscape Irrigation and Certain Non-33-75 $3.61 Irrigation Purposes Rates 76 or more $3.68 1.5" & 2"0-130 $3.56 131-325 $3.61 326 or more $3.68 3" & 4"0-440 $3.56 441-1050 $3.61 1051 or more $3.68 6" & larger 0-4,000 $3.56 4,001-10,000 $3.61 10,000 or more $3.68 25 25.03 E.6.(c)Recycled Commercial (1)under 10"0-185 $2.56 186-1400 $2.64 1401 or more $2.66 10" & larger 0-7,426 $2.56 7,427-14,616 $2.64 14,617 or more $2.66 25 25.03 E.7.(b) Potable Temporary and Construction Water Service Rates (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 (1) Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 E.10.(b) Tank Trucks Water Rates (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.11.(c) Application Fee for Water Service Outside District Boundaries $500.00 25 25.03 E.11.(d) Water Rate for Service Outside District Boundaries (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.12.(b) Application Fee for Water Service Outside an Improvement District $275.00 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 (1) Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 E.12.(c) Water Rate for Service Outside Improvement District (continued) (1)3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 E.13.(c) Fire Service Monthly Charge less than 3"$21.14 more than 4"$28.49 25 25.03 E.14.(b) Additional Water Service for Property Not Subject to District Taxes per unit $0.31 25 25.03 E.15.(b) Interim Service Water Rate in Improvement District 7 (1)1" & smaller 0-54 $8.34 55-199 $8.50 200 or more $8.64 1.5" & 2"0-144 $8.34 145-355 $8.50 356 or more $8.64 3" & larger 0-550 $8.34 551-1,200 $8.50 1,201 or more $8.64 25 25.03 F.Energy Charges for Pumping Water (1) Per 100 ft of lift over 450 ft per unit $0.048 25 25.03 G.1. Additional Water Charge for Service in the North District Per unit charge except for the first 5 units of residential $0.08 25 25.03 H.1. Additional Water Charges for Service in the Improvement District 9 Water Service Zone Per unit charge except for the first 5 units of residential $0.27 25 25.03 H.2. Additional Monthly System Fee for Improvement District 9 $2.00 (1) Water used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 25 25.03 I.1.(a) Additional Water Charges for Services in Improvement District 3 Per unit charge except for the first 5 units of residential 0.19 per H.C.F. Effective Jan 1, 2011 "0.20 per H.C.F. Effective Jan 1, 2012 "0.21 per H.C.F. Effective Jan 1, 2013 25 25.03 I.1.(b) Additional Water Charges for Services in Improvement District 10 Per unit charge except for the first 5 units of residential 0.27 per H.C.F. Effective Jan 1st 2011-2018 25 25.03 I.1.(c) Additional Water Charges for Services in La Presa Per unit charge except for the first 5 units of residential 0.08 per H.C.F. Effective Jan 1st 2011-2013 25 25.04 A.Deposits for Non-Property Owners 3/4"$75.00 1"$150.00 1-1/2"$200.00 2"$360.00 3"$800.00 4"$1,350.00 6"$3,300.00 8"$4,400.00 10"$5,500.00 28 28.01 B.1.Capacity Fees and Zone Charge District-wide Capacity Fee 3/4" $7,888.43 1" $19,721.08 1-1/2" $39,442.15 2" $63,107.44 3" $126,214.88 4 $197,210.75 6" $394,421.50 8" $631,074.40 10" $907,169.45 - I.D.'s 1,2,3,5,7,9,10,20,22,22/27 (excluding Triad) and only I.D. 22/27 require recycled irrigation meters. Section #Code #Fee Description Meter Size Charges 28 28.01 B.1.Capacity Fees and Zone Charge (continued) - 22/27 TRIAD 3/4" $5,903.44 1" $14,758.60 1 -1/2" $29,517.20 2" $47,227.52 3" $94,455.04 4 $147,586.00 6" $295,172.00 8" $472,275.20 10" $678,895.60 28 28.01 B.2.New Water Supply Fee - All IDs including Triad 3/4" $908.87 1" $2,272.18 1-1/2" $4,544.35 2" $7,270.96 3" $14,541.92 4" $22,721.75 6" $45,443.50 8" $72,709.60 10" $104,520.05 28 28.02 Installation Charges for Water Meter and Water Service Laterals Meter Size Meter Cost Installation Total Meter Box/Vault (if Needed) Potable (Non-Irrigation)3/4" x 7.5"$202.01 $95.86 $297.87 $81.38 3/4" x 9"$215.08 $95.86 $310.94 $81.38 1"$260.68 $95.86 $356.54 $81.38 1.5"$423.71 $95.86 $519.57 $184.50 2"$607.13 $95.86 $702.99 $184.50 3"$1,892.05 $577.18 $2,469.23 $3,291.13 4"$3,286.19 $577.18 $3,863.37 $3,291.13 6"$5,676.14 $911.70 $6,587.84 $3,291.13 8"$7,091.92 $1,398.01 $8,489.93 $4,721.36 10"$10,199.50 $1,398.01 $11,597.51 $4,721.36 Potable/Recycled Irrigation 3/4" x 7.5"$202.01 $95.86 $297.87 $207.41 3/4" x 9"$215.08 $95.86 $310.94 $207.41 1"$260.68 $95.86 $356.54 $207.41 1.5"$423.71 $95.86 $519.57 $207.41 2"$607.13 $95.86 $702.99 $207.41 3"$1,309.49 $577.18 $1,886.67 $3,291.13 4"$2,549.38 $577.18 $3,126.56 $3,291.13 6"$4,589.71 $911.70 $5,501.41 $3,291.13 8"$6,114.31 $1,398.01 $7,512.32 $4,721.36 10"$8,676.67 $1,398.01 $10,074.68 $4,721.36 Section #Code #Fee Description Meter Size Charges 28 28.02 Installation Charges for Water Meter and Water Service Laterals (continued)Meter Size Combined Fire and Domestic 4"$7,818.14 $577.18 $8,395.32 $3,291.13 6"$10,405.26 $911.70 $11,316.96 $3,291.13 8"$15,128.49 $1,398.01 $16,526.50 $4,721.36 10"$20,645.39 $1,398.01 $22,043.40 $4,721.36 31 31.02 D.1. Requirement of Temporary Meter for Service minimum/per day $25.00 31 31.03 A.1.Requirement of Deposit for Temporary Meters 3/4"$150.00 1"$180.00 1-1/2"$330.00 2"$2,046.00 3"$850.00 4"$1,986.00 6"$2,465.00 - Construction Trailer Temporary Meter 2"$2,046.00 - Tank Truck Temporary Meter (Ordinance No. 372)2"$850.00 31 31.03 A.4.Temporary Meter Install & Removal $128.00 31 31.03 A.5. Temporary Meter Move Fee (includes backflow certification)3/4" - 2"$64.00 3" and larger No backflow test $64.00 33 33.07 A. Customer Request for Meter Test (Deposit)5/8", 3/4" & 1"$25.00 1-1/2" & 2 "$50.00 3" & Larger $125.00 34 34.01 D.2. Returned Check Charges $25.00 34 34.02 B.Late Payment Charge 5% of Delinquent Balance 34 34.02 G.1.(d)Delinquency Tag $10.00 34 34.02 G.3.(a)Meter "Turn-On" Charge During regular business hours $35.00 Section #Code #Fee Description Meter Size Charges 34 34.02 G.3.(b)Meter "Turn-On" Charge After regular business hours $65.00 53 53.03 B.1.Sewer Connection Fee - Russell Square $7,500.00 53 53.03 B.2.Monthly Sewer Service Charge - Russell Square $200.00 53 53.10 & 11 Set-up Fees for Accounts $10.00 53 53.10 Residential Sewer Usage Fee (2) Rate multiplied by winter average units $2.35 53 53.10 Residential Sewer System Fee (2)5/8" to 1"$14.38 53 53.10 A.4. Residential Sewer Without Consumption History (2)5/8" to 1"$44.35 53 53.10 B.2.Multi-Residential Usage Fee - Sewer (2) Rate multiplied by winter average units $2.35 53 53.10 B.2.Multi-Residential System Fee - Sewer (2).75"$25.83 1"$38.03 1.5"$68.53 2"$105.12 3"$190.52 4"$312.51 6"$617.48 8" $983.46 10"$1,410.42 53 53.10 B.3. Multi-Residential Sewer Without Consumption History (2) Usage fee per dwelling unit $13.02 53 53.11 Commercial and Institutional Sewer Strength Factors Low Strength 1 Medium Strength 2 High Strength 4 (2) Sewer service used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges 53 53.11 Monthly Usage Fee for Commercial and Institutional Sewer (2)Low Strength $2.35 Medium Strength $3.37 High Strength $5.37 53 53.11 Monthly System Fee for Commercial and Institutional Sewer (2).75"$25.83 1"$38.03 1.5"$68.53 2"$105.12 3"$190.52 4"$312.51 6"$617.48 8" $983.4610"$1,410.42 60 60.03 Issuance of Availability Letters for Water and/or Sewer Service $75.00 72 72.04 A.1. Locking or Removing Damaged or Tampered Meters - To Pull and Reset Meter 3/4" - 2"$170.00 - Broken Curbstop or Tabs 3/4" - 1"$192.00 - If Customer uses Jumper 3/4" - 1"$149.00 - Broken Lock/Locking Device 3/4" - 1"$56.00 - Cap Lock (Welded)3/4" - 1"$158.00 - Broken Curbstop or Tabs 1.5" - 2"$265.00 - To Pull and Reset Meter 3"$351.00 - To Pull and Reset Meter 4"$454.00 - To Pull and Reset Meter 6"$454.00 - To Pull and Reset Meter 8"$600.00 - To Pull and Reset Meter 10"$600.00 72 72.05 D. A.Type I Fine - First Violation $100.00 - Second Violations $200.00 - Third or each additional violation of that same ordinance or requirement within a twelve-month period $500.00(2) Sewer service used in December and billed in January 2014. Section #Code #Fee Description Meter Size Charges Type II Fine $5,000.00 72 72.05 D. A. (continued)Type III Fine $500.00 Type IV Fine $500.00 State Water Code #71630 & Annual Board Resolution #4142 Water Availability/Standby Annual Special Assessment Charge $10.00 $10.00 $30.00 $3.00 $3.00 State Water Code #71630 & Annual Board Resolution #4142 Sewer Availability/Standby Annual Special Assessment Charge $10.00 $30.00 Annual Board Resolution General Obligation Bond Annual Tax Assessment $0.005 Will not exceed per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Fine up to amount specified per each day the violation is identified or continues. Per acre I.D. 4, 14, & 18 Per $1000 of assessed value for I.D. 27 Less than one acre I.D. 4, 14, & 18 Less than one-acre all I.D.s & Outside an I.D. Per acre in I.D. 1, 5, & Outside an I.D. Per acre in I.D. 2,3,7,9,10,19,20,22,25,& 27 Less than one-acre Outside I.D. and greater than one mile from District facilities. Per acre for outside I.D. & greater than one mile from District facilities. Section #Code #Fee Description Meter Size Charges Policies 5 Copies of Identifiable Public Records $0.10/page Cassette Tape Duplication $2.00/tape Yearly Subscription Service for Agendas and Ratified Minutes Yearly Subscription Service for Board Packet and Ratified Minutes $20.00/year or $0.50/meeting $100.00/year for first copy and $200.00/year for each copy thereafter The Board Secretary Otay Water District 2554 Sweetwater Springs Blvd Spring Valley, CA 91978 Members-of-the-Board: ~IV\S\On l July 31, 2013 1561 Hackberry PI Chula Vista, CA 91915 I'm responding to the Notice of Public Hearing on the changes to rates, fees and charges for the water and sewer service of the Otay Water District. In your notice you are asking for "pass-through increase" for 5 years to cover changes to rates, fees and charges from the District's suppliers and sewer treatment providers. Yet no such charges have been incurred or contracts presented or approved. You are also proposing a 7.5o/o and a 7.9o/o overall rate increase for water and sewer rate respectively. The cost of living has been about 2.5°/o per year. In addition to the "wholesale pass-through costs" you want the ability to raise rates by up to 10% per year to cover labor, benefits, material, energy, maintenance administrative expenses, as well as other operational costs! I find your request to be arbitrary and capricious in regard to actual costs incurred by the water district. The fact that you want an open ended increase of up to 1 0°/o a year gives me pause to wonder what your suppliers, providers and employees will ask for when they know you have the ability to raise our rates by up to 1 Oo/o a year to cover their demands! I haven't had a 7.5o/o raise in over a decade let alone a 10o/o raise! This is virtually a multi-faceted spending proposal with great flexibility to soak your customers as you see fit! I vote NO to all parts of the proposal. To: Board Secretary, Otay Water District August 11, 2013 From: Manuel A. Pacheco 2735 Brighton Court Rd unit 3 Chula Vista, Ca 91915 Subj: Protest against Unreasonable Proposed Rate Increases Dear Sirs: This letter is to formally protest the 15.4% rate increases involving water and sewage services effective January 2014. It is also a protest against the additional 5 years of increases covering pass through costs and all the other costs related to labor, benefits, materials, energy, maintenance, administrative expenses, operational costs, bond covenants, maintain reserves and rate stability. Etc., etc., (This protest is meant to cover any and all of your proposals, whether I named them correctly or not, notwithstanding your penchant for disallowing anything not exactly fitting your interpretation.) From my point of view, you have already made up your minds that these increases are good for your financial wellbeing and profit margin, and therefore they WILL go through, regardless of what your customers may think. The notice you gave us is only a cover to allow you to later say you did everything by the book, but a law suit WILL later prove that the strict conditions under which we were allowed to decline your proposals almost ensured you would win. Why? 1) Because not enough persons would respond by written mail; 2) not all would enumerate each and every point of protest because your notice is convoluted and meant to deceive; and 3) the usual avenues of protest were not allowed. (Etc., etc.) I compare what you are proposing to an unreasonable new employee who demands, as a condition of his working for you; all of his expenses related to attending to that job: i.e.= that you pay his gas and car maintenance bills, his clothing, meals, anything and everything that allows him to work for you. Plus you pay his salary, with bonuses. The result being that there be nothing he has to pay out of his own pocket for the privilege of working for you. You are demanding the same thing! And the answer is No! If the above description fits you, I believe your present Board will find yourselves out of a job after this fiasco because what you are proposing is a dictatorship approach which should not be allowed to survive in American society. Manuel A. Pacheco To whom it may concern, I'm writing to protest both rate increases-7.5% for water service and 7.9% for sewer service. My property address is 1367 Cam in ito Capistrano #6, Chula Vista, CA 91913. Rory Russell Regarding: RATE PROTEST Board Secretary Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978 Dear Board of Directors, \ \SlOV\ 3 July 31, 2013 Gary and Dana Avant 10091 Challenger Circle Spring Valley, CA 91978 This is to express our extreme protest of the rate increase of 7.5% in 2014. This is far above the cost of living increase and is not sustainable by your customers-us. The cost of living is increasing about 3 to 4 % annually, so this increase is outrageous! We request you look at other places for decreasing costs including the following: Decrease Board salaries Decrease staff raises and staff salaries Decrease amenities of the Water Board for example the expensive chairs and tables in your conference rooms. We would like to know the costs of these above items in particular. As your customers we request a response to our protest, in writing, by phone, or in person. Additionally, you make the protest process very complicated and make the likelihood of protests low due to the process you require and the times you have your meetings. This is not convenient to the average owner who works during the day and does not have time to read 8 point font letters with information scattered throughout that makes it difficult to even understand your protest process. Thank you. :t;A-4 ~ClsU Gary and Dana Avant 619-698-7 488 Board Secretary Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978 I hereby protest the 7.5% increase and any other rate increases planned for the next five years by the Otay Water District. Street address or tax assessor's parcel number: _________________ CA ________ _ City Zip Name Don't Forget to mark the front of the envelope: Public Hearing on the Proposed Increase to Residential Water Rates, Fees, and Charges August 27, 2013 To Whom it May concern, I am very opposed to the upcoming rate increase proposal. My water bill is outrageous now, I can't even begin to figure out how I will be able to afford another increase in my rates. Please, please, please reconsider and think about how hard your customers are already struggling just to pay their day-to-day expenses now! Regards, Uoree Shirazi 11682 Avenida Anacapa El Cajon, CA 92019 Otay Water District Proposition 218 Hearing on Water and Sewer Rates September 4, 2013 Attachment I Today’s Agenda •Review Cost of Service Study findings for water and sewer rates •Review cost drivers necessitating rate increases •Hear public comments •After close of public hearing •Adopt Ordinance No. 539 •Water and Sewer Rate •Authorize the ID Consolidation •Authorize the 5-year pass-through of cost increases from wholesale/service providers •Authorize the 5-year overall average rate increase in addition to the pass-through increase not to exceed 10% 2 Cost of Service and Rate Study •Performed a Cost of Service Study and Rate Study •Determined changes to rates, fees, and charges are necessary in order to ensure equity among customer classes based on cost of service •Ensure compliance with industry standard •Set rates to recover sufficient revenues to operate and maintain water and sewer systems 3 Proposed 5-Year Water and Sewer Rates •Pass through all costs from water and sewer providers •MWD & CWA for Potable Water •City of San Diego for Recycled Water •City and County of San Diego for Sewer Services •Authorize rate increases due to internal reasons not to exceed 10% per year 4 Rate Summary 7.5% rate increase for potable and recycled customers •$7.8 million of transfers to maintain reserves and finance the CIP •Rebuilding the Debt Coverage Ratio to 134% •Raising rates to pass-through rate increases by CWA and MWD •Maintaining the District’s relative position with other water providers 7.9% rate increase for sewer customers •Estimated $14 million in Sewer Replacement and Rehabilitation projects planned through FY 2019 5 Water Rate Structure Recommended Changes •Meter Equivalencies •Adjust Tiers and Break Points •Create Recycled Commercial Rate •Update Fire Service Fee 6 Water Meter Equivalencies •Ensures compliance with: •AWWA hydraulic capacity factors (industry standard) •Current capacity fee hydraulic factors •Equitable payment for maintenance of system capacity Meter Size Current Meter Equivalency AWWA Meter Equivalency Current System Fee Recommended System Fee Change Current MWD/CWA Fee Recommended MWD/CWA Fee Change 3/4" 1.0 1.5 $16.74 $16.19 -$0.55 $13.28 $14.45 $1.17 1" 1.3 2.5 $21.26 $22.87 $1.61 $22.12 $26.79 $4.67 1 1/2" 1.9 5.0 $32.57 $39.58 $7.01 $44.31 $60.61 $16.30 2" 2.8 8.0 $46.13 $59.62 $13.49 $70.85 $103.08 $32.23 3" 4.9 16.0 $82.29 $113.08 $30.79 $141.71 $219.23 $77.52 4" 7.3 25.0 $122.99 $173.22 $50.23 $221.43 $351.09 $91.71 6" 14.1 50.0 $236.02 $340.29 $104.27 $442.80 $718.69 $275.89 8" 22.2 80.0 $371.64 $540.76 $169.12 $708.53 $1,160.59 $452.06 10" 31.7 115.0 $529.88 $774.64 $244.76 $1,015.06 $1,670.55 $655.49 7 Potable Water Usage Rate Changes 2013 2014 Water Usage Fee – Single-Family Residential (1) Current Proposed Conservation Tier (< 5 hcf) $1.73 $1.86 6 - 10 6 - 10 $2.69 $2.90 11 - 22 11 - 22 $3.50 $3.77 over 23 hcf over 23 hcf $5.39 $5.80 Water Usage Fee - Master Meter (1) 0 - 4 0 - 4 $2.66 $2.86 5 - 9 5 - 9 $3.45 $3.71 over 10 hcf over 10 hcf $5.32 $5.73 Water Usage Fee - Landscape, Agricultural and Construction Water Customers (3/4" to 1" inch meter) (1) 0 - 49 0 - 54 $3.87 $4.17 50 - 132 55 - 199 $3.95 $4.25 over 133 hcf over 200 hcf $4.01 $4.32 Water Usage Fee - Landscape, Agricultural and Construction Water Customers (1.5" to 2" inch meter) (1) 0 - 144 0 - 144 $3.87 $4.17 145 - 355 145 - 355 $3.95 $4.25 over 356 hcf over 356 hcf $4.01 $4.32 Water Usage Fee - Landscape, Agricultural and Construction Water Customers (3"+ inch meter) (1) 0 - 1,044 0 - 550 $3.87 $4.17 1,045 - 8067 551 - 1,200 $3.95 $4.25 over 8068 hcf over 1,201 hcf $4.01 $4.32 (1) For usage outside the District or a temporary meter the rate is twice the posted rate. 8 Potable Water Usage Rate Changes 2013 2014 Current Proposed Water Usage Fee - Public and Commercial ( < 10" inch meter) (1) 0 - 173 0 - 185 $2.84 $3.06 174 - 831 186 - 1,400 $2.92 $3.14 over 832 hcf over 1,401 hcf $2.96 $3.19 Water Usage Fee - Public and Commercial ( > 10" inch meter) (1) 0 - 7,426 0 - 7,426 $2.84 $3.06 7,427 - 14,616 7,427 - 14,616 $2.92 $3.14 over 14,617 over 14,617 $2.96 $3.19 Water Usage Fee - Government Fee (2) 2013 2014 Current Proposed Per unit $0.29 $0.31 ENERY CHARGE (2) 2013 2014 Current Proposed Per 100 feet of lift $0.042 $0.048 (1) For usage outside the District or a temporary meter the rate is twice the posted rate. (2) Applies to both potable and recycled sales . 9 Add a Recycled Commercial Rate Structure •Anticipation of new commercial customers •Power plant – 6” meter •East Mesa Detention facility – 2” meter (conversion of irrigation, laundry, and toilet flushing) •Quarry operation - in planning stage, meter size unknown •CCA, a private prison – 4” meter •Ensures compliance with CWA Recycled Credits Agreement •Encourages use of recycled water •Ensures equity between user classes •Peaking factor for indoor use is much lower than peaking factor for irrigation 10 Recycled Water Usage Rate Changes 2013 2014 Current Proposed Water Usage Fee - Recycled ( .75" to 1.0" inch meter) 0-42 hcf 0-32 hcf $3.31 $3.56 43-97 hcf 33-75 hcf $3.35 $3.61 over 98 hcf over 76 hcf $3.42 $3.68 Water Usage Fee - Recycled (1.5" to 2.0" inch meter) 0-168 hcf 0-130 hcf $3.31 $3.56 169-402 hcf 131-325 hcf $3.35 $3.61 over 403 hcf over 326 hcf $3.42 $3.68 Water Usage Fee - Recycled ( 3" & 4" inch meter) 0-403 hcf 0-440 hcf $3.31 $3.56 404-820 hcf 441-1,050 hcf $3.35 $3.61 over 821 hcf over 1,051 hcf $3.42 $3.68 Water Usage Fee - Recycled ( > 6" inch meter) 0-7,916 hcf 0-4,000 hcf $3.31 $3.56 7,917 - 16,357 hcf 4,001-10,000 hcf $3.35 $3.61 over 16,358 hcf over 10,001 hcf $3.42 $3.68 Water Usage Fee - Recycled Commercial (<10" inch meter) 0 - 173 hcf 0 - 173 hcf $2.38 $2.56 174 - 831 hcf 174 - 831 hcf $2.45 $2.64 over 832 hcf over 832 hcf $2.47 $2.66 Water Usage Fee - Recycled Commercial (>10" inch meter) 0 - 7,426 hcf 0 - 7,426 hcf $2.38 $2.56 7,427 - 14,616 hcf 7,427 - 14,616 hcf $2.45 $2.64 over 14,617 hcf over 14,617 hcf $2.47 $2.66 11 Calculation of Private Fire Protection Fee Up to 3" 4“ or More Total Admin Cost $669 $22,693 $23,362 Depreciation $2,911 $156,990 $159,901 Valve Exercise $4,510 $4,510 Service Lateral Repairs $1,500 $50,852 $52,352 Service Lateral Maintenance $247 $8,376 $8,623 Total Cost of Fire Service $5,327 $243,421 $248,748 Number of Customers 21 712 733 Month Cost per Fire Service $21.14 $28.49 Proposed Annual Revenue $5,327 $243,419 $248,746 Current Annual Revenue ($34.57 per month) $8,712 $295,366 $304,078 Change in Revenue -$55,332 12 Projected Cost of Water The cost of water from CWA continues to increase Projected Projected Projected Projected Projected 13 Proposed Water Rate Increases •Average 7.5 percent increase through 2018 •Pass‐through increases by the District’s water wholesalers •MWD’s 5.0 % increase •CWA’s 4.3 % increase •Rate increases include the impact to the District due to the Carlsbad Desalination Project •Allows the District to: •Balance the budget •Fund reserves in accordance with the policy •Meet debt coverage ratio requirements 14 2014 Water Rate Increase •The water rate increase is proposed to take effect with water billed on or after January 1, 2014, and may apply to water used as early as the beginning of December 2013. •For a typical single‐family residential water customer using 14 units per month (14 hundred cubic feet or 10,472 gallons of water) the water bill will increase by $4.08 per month. 15 Survey of Member Agency Water Rates 16 $- $20 $40 $60 $80 $100 $120 $6 1 . 5 9 $6 5 . 7 8 $6 7 . 9 7 $7 1 . 5 6 $7 2 . 3 1 $7 4 . 3 3 $7 5 . 6 5 $7 6 . 6 1 $7 7 . 4 4 $7 7 . 8 4 $7 8 . 3 4 $7 8 . 5 3 $7 9 . 0 5 $8 0 . 7 7 $8 4 . 6 4 $8 8 . 0 5 $8 8 . 2 4 $9 1 . 6 6 $9 2 . 8 7 $1 0 3 . 2 6 $1 0 6 . 1 3 $1 0 8 . 5 1 $1 1 2 . 2 7 14 Unit Water Use and 3/4" Residential Meter Projected water bill effective January 2014 * The estimated increase is equal to the average rate increase for FY14 of the other Water Agencies. Sewer Rate Structure Recommended Changes •All customer types - adjust monthly fixed fees based on meter equivalency to match AWWA •Single-Family Residential - make both ¾” and 1” monthly fixed fee the same •Multi-Residential – charge system fee based on meter size •Commercial – eliminate ASU calculation •Commercial – update strength factors to State Water Resources Control Board (SWRCB) standard •Churches and Schools – change methodology to match commercial customers 17 Single-Family Residential Sewer •Maintain the “low” strength classification consistent with SWRCB •Maintain billing based on 85% of winter average flow (January through April) •Maintain cap of 30 units •Change •Set monthly base fee for ¾” and 1” single-family accounts the same •Typical monthly bill increase of $6.20 due mainly to a more equitable allocation between customer classes 18 Single-Family Residential Rate Changes USAGE FEE CURRENT PROPOSED 2014 $1.92 $2.35 Monthly System Fee CURRENT PROPOSED 2014 .75” $13.30 $14.38 1” $19.40 $14.38 PHASE-IN & RECAPTURE PROVISONS PROPOSED 2014 Cost of Service Study Monthly System Fee $15.68 District Approved Monthly System Fee $14.38 Amount of Recapture in 2016 $1.30 If adopted, the 2014 Monthly System Fee is in accordance with the proposed phase-in of the Cost of Service Study‘s findings. The 2015 Monthly System Fee equals the Cost of Service Study’s findings, plus projected rate increases through the rate setting process. The 2016 Monthly System Fee equals the Cost of Service Study’s findings, plus projected rate increases through the rate setting process, and recapturing the 2014 Monthly System Fee shortfall of $1.30 per month in 2016. 19 Multi-Residential Sewer Based on cost of service for this set of customers •Maintain “low” strength classification, consistent with SWRCB •Maintain billing based on 85% of winter average flow (January through April) •Change to system fee based on meter size instead of number of dwelling units 20 Multi-Residential Sewer Rate Changes Proposed Monthly System Fee METER SIZE PROPOSED 2014 .75” $25.83 1” $38.03 1.5” $68.53 2” $105.12 3” $190.52 4” $312.51 6” $617.48 8” $983.46 10” $1,410.42 USAGE FEE CURRENT PROPOSED 2014 $1.92 $2.35 CURRENT SEWER BILL CALCULATION ((Winter Average X .85) x Usage Fee) + (System Fee x Dwelling Units) PROPOSED SEWER BILL CALCULATION ((Winter Average X .85) x Usage Fee) + System Fee 21 Current Monthly System Fee $13.30 x No. of Dwelling Units Commercial Sewer Update the commercial account methodology to current industry standards •Maintain billing based on 85% of annual average water consumption for the usage charge •Eliminate the ASU calculation for commercial accounts (removing the floor for low water users) •Base system fee on water meter size •Change sewer strength to State Water Resources Control Board (SWRCB) factors 22 Schools and Churches •Eliminate the special formulas for schools and churches based on attendance •Use industry standard method •low strength based on SWRCB •System fee based on meter size •85% of average annual water usage times the usage rate 23 Sewer Strength Factors Current Industry Standard Low Strength 1.0 1.0 Medium Strength 1.3 2.0 High Strength 3.2 4.0 - 0.500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 Low Strength Medium Strength High Strength Current Industry Standard 24 Commercial Sewer Rate Changes Usage Fee STRENGTH FACTOR CURRENT Price/ASU PROPOSED Price/Unit Low $45.30 $2.35 Medium $45.30 $3.37 High $45.30 $5.37 System Fee METER SIZE CURRENT PROPOSED 2014 .75” $0 $25.83 1” $0 $38.03 1.5” $0 $68.53 2” $0 $105.12 3” $0 $190.52 4” $0 $312.51 6” $0 $617.48 8” $0 $983.46 10” $0 $1,410.42 CURRENT COMMERCIAL SEWER BILL CALCULATION Step 1: ASU = ((Flow in Gallons per Day x .85)/250) x Strength Factor Step 2: ASU x Usage Fee = Sewer Billing PROPOSED COMMERCIAL SEWER BILL CALCULATION (((Average Annual Consumption x .85) x Usage Fee) x Strength Factor) + System Fee by Meter Size CURRENT FORMULA FOR SEWER RATES AND FEES FOR SCHOOLS The flow for public schools is based on the average daily attendance for the prior year, as reported by schools, to meet state requirements. For elementary schools, 50 students equal one ASU; for junior high schools, 40 students equal one ASU; for high schools, 24 students equal one ASU. For colleges, flow is based on the number of certified and classified staff, and students enrolled in each school session. 25 Proposed Sewer Rate Increases •Average 7.9 percent increase through 2018 •Pass‐through costs that apply to rates, fees, and charges from the District’s transportation, treatment, and disposal providers The current providers include the County of San Diego and the City of San Diego •Allows the District to recover other increases in operational costs •Consistent with the Reserve Policy as all reserves meet or exceed target levels 26 2014 Sewer Rate Increase •The sewer rate increase is proposed to take effect with sewer billed on or after January 1, 2014, and may apply to services provided as early as the beginning of December 2013 •For a single-family residential sewer customer with a 3/4” meter, the bill will increase by $6.20 per month 27 Survey of Sewer Rates in San Diego County 28 $- $20 $40 $60 $80 $100 $120 22 . 8 3 27 . 5 9 28 . 0 0 34 . 0 4 35 . 9 1 42 . 3 5 43 . 0 4 46 . 6 2 47 . 2 0 50 . 1 7 51 . 4 8 53 . 1 0 53 . 5 3 54 . 3 2 56 . 5 0 58 . 0 8 62 . 8 6 65 . 7 1 68 . 8 1 68 . 8 9 70 . 7 3 71 . 9 7 77 . 3 3 80 . 6 6 85 . 3 0 91 . 5 2 99 . 1 5 10 4 . 6 1 12 0 . 9 5 14 Unit Water Use and 3/4" Residential Meter Projected sewer bill effective January 2014 * The estimated increase is equal to the average rate increase for FY14 of the other Sewer Agencies. District Efforts to Control Cost •Through strategic plan initiatives the District has been successful at controlling cost increases •District controlled costs of Labor and Benefits, Administrative Expenses, and Materials and Maintenance were reduced by $118,100 •(FY13 budget compared to FY14 budget) 29 95% of the Budgeted Cost Increase due to Supplier’s Rate Increases FY13 Compared to FY14 Budget 95% 5% CWA & MWD, City and County of San Diego and SDG&E Otay Debt Coverage and Reserve Funding 30 District’s Historical Employee Count 17 4 . 7 5 17 2 . 7 5 16 8 . 7 5 16 6 15 9 15 6 14 8 14 3 120 130 140 150 160 170 180 2007 2008 2009 2010 2011 2012 2013 2014 Employee Count A reduction of 31.75 FTEs or 18.2% over 7 years 31 Savings Due to Staff Reduction $358,000 $843,900 $1,166,300 $1,862,900 $2,340,500 $3,395,900 $4,213,800 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 Cumulative Savings = $14,181,300 32 Customer Accounts per Employee Count 30 1 30 6 31 4 32 1 33 6 34 4 36 6 38 0 250 270 290 310 330 350 370 390 2007 2008 2009 2010 2011 2012 2013 2014 An increase of 26.2% 33 Summary •Neighboring water agencies are facing similar increases in costs and similar rate increases •Maintain debt coverage ratio to lower borrowing costs and ensure compliance with bond covenant •Maintain reserve levels in compliance with Reserve Policy to ensure financial security and credit rating •District costs have been managed effectively by implementing efficiencies that minimize rate increases 34 Improvement Districts 22 and 19 Consolidation of Improvement Districts Detach and attach parcels within Improvement District (ID) ID25 to ID20 and ID19 to ID22 •No purpose to retain these two IDs •The fees are identical for these customers •This allows the District to eliminate two IDs •This change must go through the Proposition 218 process 36 Improvement District 19 37 Improvement District 25 38 Recommendations •Approve Ordinance No. 539 to adopt the rate, fee, and charge increases to water and sewer billed beginning January 1, 2014 and may apply to usage as early as the beginning of December 2013. •Authorize for a period of five years, all future pass‐through increases or decreases to cover changes to water and sewer rates, fees or charges from the District’s suppliers. •Authorize for a period of five years, overall average water and sewer rate increases in addition to the pass-through increases, not to exceed 10 percent per year of all costs other than pass‐through costs. 39 Recommendations (continued) •Detach parcels within Improvement District 25 and Annex to Improvement District 20 •Detach parcels within Improvement District 19 and Annex to Improvement District 22 •Authorize staff to submit the appropriate forms and fees required to complete the Board action with the State Board of Equalization and the County of San Diego 40 Questions? 41 NOTICE OF PUBLIC HEARING In Connection with Proposed CHANGES TO RATES, FEES, AND CHARGES FOR RESIDENTIAL WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on September 4, 2013, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adoption of rate, fee, and charge increases that apply to water billed beginning January 1, 2014; (2) the authorization for a period of five years of all future pass‐through increases or decreases to cover changes to rates, fees, or charges from the District’s water suppliers; and, (3) the authorization for a period of five years, overall average rate increases, in addition to the pass through increases, not to exceed 10 percent per year, of all costs other than pass‐through costs. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all written protests against the proposed rates, fees, and charges that, if approved, will be imposed on properties served by the District. The amount of the proposed rate, fee, and charge increases and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE INCREASES An overall water customer average rate increase of 7.5 percent was considered by the District’s Board of Directors as part of the annual budget review process. If adopted after the public hearing noticed above, for a typical single‐family residential water customer using 14 units per month (14 Hundred Cubic Feet or 10,472 gallons of water), your water bill will increase by $4.08 per month. The water rate increase is proposed to take effect with water billed on or after January 1, 2014, and may apply to water used as early as the beginning of December 2013. The District has performed a Cost of Service Study and Rate Study (i.e. reviewed rates, fees, charges, costs, and the consumption usage structure) and determined that increases in the rates, fees, and charges are necessary in order to recover sufficient revenues to operate and maintain the public water system. The proposed rate, fee, and charge structure will provide revenue that recovers costs reasonably borne in providing the service; are equitable to all customer classes; and are proportionate to the cost of providing the service to each customer class. The rate structure has two basic components: (1) fixed monthly fees and (2) variable monthly rates and fees, which are based on water consumption. The fixed fees are calculated to recover the cost of operating and maintaining the public water system and are based on the size of the water meter serving the record owner or customer of record. Fixed fees include the Metropolitan Water District of Southern California and San Diego County Water Authority (MWD & CWA) fee, and the District’s System Fee. The variable rates, fees, and charges are consumption based and include but are not limited to supply, treatment and transportation costs. Variable rates and fees generally impose greater charges as the level of consumption increases. The variable components are structured in such a way as to deter waste and encourage conservation. Variable components of the bill include the Water Rate, Energy Charge, and Water Charge by Improvement District. The fixed and variable components are calculated to recover the proportionate cost of providing the service attributable to each class of customer. The District will also consider authorizing, for a period of five years, passing through to customers the increased or decreased costs imposed by the District’s water suppliers. If adopted, the average customer’s water rates, fees, and charges will be adjusted annually for all increased or decreased costs and charges from the District’s wholesale water suppliers. The pass‐through costs apply to rates, fees, and charges from the District’s water suppliers. The suppliers include but are not limited to the Metropolitan Water District of Southern California, San Diego County Water Authority, and the City of San Diego. Any changes to rates, fees, and charges subsequently imposed by the District will be subject to a 30‐day prior written notice, but will not be subject to additional hearings or protests. In addition to the wholesale pass‐through costs, the District will consider authorizing, for a period of five years, average rate increases not to exceed 10 percent per year for all costs related to labor, benefits, materials, energy, maintenance, administrative expenses, as well as other operational costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The proposed water rate increase in the average amount of 7.5 percent will pass‐through increases implemented by the District’s water wholesalers (MWD’s 5 percent increase and CWA’s increase of 4.3 percent) and will allow the District to recover other increases in operational costs. Water wholesalers do not anticipate additional rate increases in 2014, but they do expect to implement increases in January 2015 and in subsequent years. As the record owner or customer of record of a property identified to be subject to the imposition of proposed rate, fee, or charge increases, you may submit a written protest against the proposed actions. Provided, however, if the identified property has more than one record owner and/or customer of record, only one written protest will be counted. Each protest must be in writing; state the specific rate increase 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 record owner or customer of record submitting the protest. Protests submitted by e‐ mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or in person at the public hearing, so long as they are received prior to the conclusion of the public hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the Board Secretary, that the enclosed letter is for the Public Hearing on the Proposed Increase to Residential Water Rates, Fees, and Charges. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. If, at the close of the public hearing, written protests against the proposed rate increase, fees, and charges 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 will be authorized to adopt the proposed actions. If adopted, the rates, fees, and charges will apply to water billed on or after January 1, 2014 and may apply to water used as early as the beginning of December 2013. This letter serves as a 45‐day notice of the hearing on the proposed rate increases, and as notice of the increases for water billed on or after January 1, 2014, if adopted. This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to (Continued on page 2) $112.27 $109.42 $106.91 $103.26 $92.87 $91.40 $88.24 $87.81 $84.64 $80.40 $78.87 $78.34 $78.30 $77.84 $77.44 $77.35 $75.32 $74.00 $72.31 $71.56 $67.97 $65.78 $61.59 $- $20 $40 $60 $80 $100 $120 Rainbow *Padre Dam E *Padre Dam W Ramona Valley Center Vista Escondido *Fallbrook Sweetwater *Del Mar *Olivenhain Rincon *Santa Fe Otay San Diego *Carlsbad *Vallecitos *Oceanside Helix Poway San Dieguito Yuima Lakeside SURVEY OF MEMBER AGENCY WATER RATES 14 Unit Water Use and 3/4" Meter-Projected water bill effective Fiscal Year 2014 *With Otay's estimated average rate increase property‐related fees such as water services. This letter serves as notice that the District will hold a public hearing to consider changes to its current water rates, fees, and charges. WHY ARE WATER RATE CHANGES NECESSARY? The District is a revenue‐neutral public agency that provides water service to your community. “Revenue‐neutral” means that water bills reflect only those rates, fees, and charges sufficient to support water service. To continue to provide reliable, safe and high‐quality service, the District must implement and pass through to its customers the higher cost of water imposed by suppliers. This year, as in recent years, a large percentage of the increase is a direct result of higher costs from suppliers and represents a direct pass‐through from those suppliers. The water suppliers include the MWD, CWA, and the City of San Diego. WHAT DO WATER RATES FUND? In the District, each end user pays his or her fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administrative expenses, operations, construction and maintenance of the public water system and facilities. This also includes amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The District is a non‐profit public agency, it does not make a profit from providing water service and it cannot operate at a loss. WHY ARE WHOLESALER WATER SUPPLIERS RAISING THEIR RATES? Wholesale suppliers are raising their rates as they work to obtain new and more reliable supplies of water. This includes more reliable emergency supplies, agricultural to urban water transfers, expansion of existing reservoirs, pipeline relining projects, new water treatment plants, and new supplies including ocean water desalination. In addition, rate increases cover the cost of acquiring imported water from the Colorado River and Northern California. In 2016, for instance, the San Diego County Water Authority anticipates increasing rates, fees, and charges in anticipation of the Carlsbad Desalination Project (ocean water desalination) becoming operational. The Carlsbad project, while providing San Diego County with a new locally controlled, drought‐proof supply of water, could have significant upward pressure on water rates for all San Diego County water customers. For its part the District works continually to reduce internal costs to absorb rate increases from suppliers. The District recognizes and is sensitive to the impact the higher cost of water has on its customers. As a result the District is committed to becoming as efficient as possible, providing the services its customers expect and rely upon, while continuing to be one of the lower cost water service providers in San Diego County. RELIABILITY AND SUPPLY DIVERSIFICATION Water is essential to our region’s quality of life. Our economy depends on it. Families and businesses cannot survive without it. Unfortunately for San Diego residents, our county does not benefit from an abundant natural supply of water. San Diego receives an average just 10 inches of rainfall per year, meeting only 5 percent of local demand, and that is not enough to support our region’s population of 3.1 million people or its $188 billion economy. Because of our semi‐arid climate, 82 percent of the water used locally is imported from Northern California and the Colorado River. Not only is the cost of importing water becoming increasingly costly, but population growth, drought, environmental regulations, litigation, competition for a scarce resource, and increased power costs are driving the price we pay higher. San Diego County’s wholesale and retail water agencies recognized the region was highly dependent on imported water during a severe drought that occurred in the late 1980s and early 1990s. The entities have continued to work aggressively to develop a more reliable water supply system ‐ one that would increase water independence, provide for future population and economic needs, and reduce the likelihood of a future water shortage. Since then, major initiatives have been undertaken to develop new supplies and improved reliability. At the regional level, CWA signed a milestone agreement to address decades of water disputes over the allocation of water from the Colorado River. As part of that agreement, San Diego residents paid to have old, leaky earthen canals in Imperial County lined to save water. This “saved water” is now used by customers in San Diego County. This year, the region will receive 80,000 acre‐feet of water from the canal lining projects (enough water to supply approximately 160,000 homes). Through a combination of land fallowing and efficiency‐based water conservation measures with farmers in Imperial County, the region was able to purchase another 100,000 acre‐feet of water in 2012 (enough water to supply 200,000 existing homes). The water we receive from this part of the agreement will ramp up to 200,000 acre‐feet per year by 2021. Since the 1990s, the District embarked on its own efforts to develop new supply and today operates one of the largest recycled water networks in California. As a benefit, when the drought hit our region in 2008, because of your investments in a recycled water system used for landscape irrigation, mandatory water conservation was not imposed on Otay Water District customers. Additionally, the District is actively supporting the development of an ocean water desalination facility in Rosarito Beach, Mexico. When built, the water from this facility could replace up to two‐thirds of the water we receive from Northern California and the Colorado River. A result of these major projects, such as the canal linings, water transfers, and reservoir construction and expansion efforts, is that the wholesale cost of water has gone up dramatically in recent years, and it is an expense being borne by all water users. Rising costs are financially difficult for everyone, but having made these investments in new supply and improved reliability, the region is better able to ensure that families, businesses, and the local economy will always have the water it needs. WHAT CAN I DO TO SAVE MONEY? Customers interested in learning ways in which they can reduce their water usage and therefore minimize the effects of the rising cost of imported water on their family’s budget, can visit the District’s Conservation page at www.otaywater.gov. Additionally, the Water Conservation Garden located on the campus of Cuyamaca Community College in Rancho San Diego is open to the public and offers various conservation exhibits, programs and classes. For more about the Water Conservation Garden, visit www.thegarden.org. For information about the Otay Water District, please visit www.otaywater.gov or contact us via email at info@otaywater.gov. (Continued from page 1) Page 2 Page 3 Footnotes: 1. These are fixed fees, are based on meter size, and ensure that customers pay their proportionate share of the higher water system replacement, maintenance, and operating expenses. The MWD & CWA Fixed Fee matches in total the cost charged by wholesale water suppliers. As a result of the Cost of Service Study, Otay’s System Fee for customers with 3/4” meters will decrease and the System Fee for customers with 1” or larger meters will increase. 2. This cost varies based on water usage and can be calculated using the consumption block tables. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). The example used above is based on 14 units of consumption. 3. The Conservation Tier discount applies toward the first five units of water when overall consumption is ten units or less. 4. The Energy Charge represents the cost of the energy required to pump or lift each unit of water 100 feet in elevation. This is charged proportionately for every foot of elevation over 450 feet. The increase is due to increased power costs charged by the District’s power supplier. 5. This charge is a per unit charge and your bill will vary based on water consumption. Improvement District charges do not apply to the first five units of water per month. 6. Charges collected through the property tax role (availability fees and general obligation debt) are not included in this total. 7. Fire Service requires a separate meter and is a monthly fee based on meter size. The Fire Service Fee is decreasing based on the Cost of Service Study. Future year projections are for information purposes only. 8. Your bill will vary based on meter size, water consumption in units, and geographic location. 9. Projected rates are for information purposes only. Rates were inflated by 7.5 percent in 2015 through 2017 and by 2.3 percent in 2018. Typical Bill Based on 14 HCF (or Water Units) per Month MWD & CWA Fixed Fee(1) Otay System Fee(1) Water Rate(2) Energy Charge(4) Otay Water Charge by Improvement District(5) Total(6) Current $13.28 $16.74 $40.90 $2.05 $0.79 $73.76 Proposed $14.45 $16.19 $44.08 $2.33 $0.79 $77.84 $4.08 Increase in monthly water bill(8) This information reflects only changes to rates. For a comprehensive listing of rates, please see the Otay Water District’s Code of Ordinances. Consumption Blocks in Units(2) and Usage Fee(2) ‐ 2014 Proposed and 2015‐2018 Projected(9) Consumption Blocks (in Units) Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected Conservation Tier(3) $1.73 $1.86 $2.00 $2.15 $2.31 $2.37 6 ‐ 10 $2.69 $2.90 $3.11 $3.35 $3.60 $3.68 11 ‐ 22 $3.50 $3.77 $4.05 $4.35 $4.68 $4.79 23 or more $5.39 $5.80 $6.24 $6.71 $7.21 $7.37 Otay System Fee(1) ‐ 2014 Proposed and 2015‐2018 Projected(9) Meter Size Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected 3/4" $16.74 $16.19 $17.40 $18.71 $20.11 $20.58 1" $21.26 $22.87 $24.59 $26.43 $28.41 $29.06 1 1/2" $32.57 $39.58 $42.55 $45.74 $49.17 $50.30 2" $46.13 $59.62 $64.09 $68.90 $74.07 $75.77 MWD & CWA Fixed Fees(1) ‐ 2014 Proposed and 2015‐2018 Projected(9) Meter Size Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected 3/4" $13.28 $14.45 $15.53 $16.70 $17.95 $18.36 1" $22.12 $26.79 $28.80 $30.96 $33.28 $34.05 1 1/2" $44.31 $60.61 $65.16 $70.04 $75.30 $77.03 2" $70.85 $103.08 $110.81 $119.12 $128.06 $131.00 Other Charges Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected Energy Charges(4) $0.042 $0.048 $0.051 $0.055 $0.059 $0.061 Improvement District(5) No. 3 $0.21 $0.21 $0.21 $0.21 $0.21 $0.21 Improvement District(5) No. 10 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 La Presa(5) $0.08 $0.08 $0.08 $0.08 $0.08 $0.08 Fire Service(7) $34.57 ≤3” Meter $21.14 ≤3” Meter $22.73 ≤3” Meter $24.43 ≤3” Meter $26.26 ≤3” Meter $26.87 ≥4” Meter $28.49 ≥4” Meter $30.63 ≥4” Meter $32.92 ≥4” Meter $35.39 ≥4” Meter $36.21 Other Charges(8) ‐ 2014 Proposed and 2015‐2018 Projected(9) NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT WATER SERVICE Dedicated to Community Service WWW.OTAYWATER.GOV PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978‐2004 www.otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT WATER SERVICE In Connection with Proposed NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on September 4, 2013, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adoption of rate, fee, and charge increases that apply to sewer service billed beginning January 1, 2014; (2) the authorization for a period of five years of all future pass‐ through increases or decreases to cover changes to rates, fees, or charges from the District’s sewer service providers; and, (3) the authorization for a period of five years of overall average rate increases, in addition to the pass through increases, not to exceed 10 percent per year for all costs other than pass‐through costs. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all written protests against the proposed rates, fees, and charges that, if approved, will be imposed on properties served by the District. The amount of the proposed rate, fee, and charge increases and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE INCREASE AND ACTIONS An overall average sewer rate increase of 7.9 percent will be considered by the Board of Directors at the public hearing noticed above. If adopted, for a typical single‐family residential sewer customer(1), your bill will increase by $6.20 per month. The rate increase is proposed to take effect with sewer service billed on or after January 1, 2014, and may apply to sewer service used as early as the beginning of December 2013. The District has performed a Cost of Service Study and Rate Study (i.e. reviewed rates, fees, charges, costs, and the usage structure) and determined that increases in rates, fees, and charges are necessary in order to recover sufficient revenues to operate and maintain the public sewer system. The sewer customer rate increase was considered by the District’s Board of Directors as part of the annual budget review process. The Board directed staff to propose a phasing‐in of the increase in the Monthly System Fee for single‐family residential customers over a three‐year period. The District will also consider authorizing, for a period of five years, passing through to customers the increased or decreased costs imposed by the District’s sewer service providers. If adopted, the customer’s sewer rates, fees, and charges will be adjusted annually for all increased or decreased costs and charges from the District’s sewer service providers. The pass‐through costs apply to rates, fees, and charges from the District’s treatment and disposal providers. The providers include but are not limited to the County of San Diego and the City of San Diego. Any changes to rates, fees, and charges subsequently imposed by the District will be subject to a 30‐day prior written notice, but will not be subject to additional hearings or protests. In addition to the pass‐through costs, the District will consider authorizing, for a period of five years, overall average rate increases not to exceed 10 percent per year for all costs related to labor, benefits, materials, energy, maintenance, administrative expenses, as well as other operational costs of providing sewer service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. These proposed actions, if adopted, would implement the Cost of Service Study recommended findings over a three‐year period, pass through to customers increased or decreased costs from sewer service providers, and allow the District to recover the full cost of delivering sewer service. The proposed rate, fee, and charge structure will provide revenue that recovers all costs reasonably borne in providing sewer service; are equitable to all customer classes; and are proportionate to the cost of providing the service to each customer class. WHY ARE YOU RECEIVING THIS NOTICE? As the record owner or customer of record of a property identified to be subject to the imposition of proposed rate, fees, or charge increases, you may submit a written protest against the proposed actions. Provided, however, if the identified property has more than one record owner or customer of record, only one written protest will be counted. Each protest must be in writing; state the specific rate increase 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 record owner or customer of record submitting the protest. Protests submitted by e‐ mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or in person at the public hearing, so long as they are received prior to the conclusion of the public hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the Board Secretary, that the enclosed letter is for the Public Hearing on the Proposed Increases to Rates, Fees, and Charges for Residential and Multi‐Residential Sewer Service. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. If, at the close of the public hearing, written protests against the proposed rate, fee, and charges increases 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 will be authorized to adopt the proposed actions. If adopted, the rates, fees, and charges will apply to sewer service billed on or after January 1, 2014 and may apply to sewer service used as early as the beginning of December 2013. This letter serves as a 45‐day notice of the hearing on the proposed rate increases, and as notice of the increases for sewer service billed on or after January 1, 2014, if adopted. This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to property‐related fees such as sewer service. This letter serves as notice that the District will hold a public hearing to consider changes to its current sewer service rates, fees, and charges. WHY ARE SEWER RATE CHANGES NECESSARY? The District is a revenue‐neutral public agency that provides sewer service to your community. “Revenue‐neutral” means that sewer bills reflect only those rates, fees, and charges sufficient to support sewer service. To continue to provide reliable service, the District must implement and pass through to its customers the full and actual cost of providing sewer service, including higher costs imposed by service providers. The actions proposed will help protect the public’s investment in the public sewer system, reduce the possibility of pipeline breaks, blockages or spills, and keep rates affordable. As a non‐profit public agency, the District does not make a profit from providing sewer service, and it cannot operate at a loss. WHAT DO SEWER RATES FUND? Each end user pays his or her fair share of the cost of sewage treatment and disposal, energy or pumping costs, labor and benefits, materials, chemicals used in sewage treatment, administrative expenses, operations, construction, and maintenance of the public sewer system and facilities. This also includes amounts required to (Continued on page 2) INCREASES TO RATES, FEES, AND CHARGES FOR RESIDENTIAL AND MULTI-RESIDENTIAL SEWER SERVICE NOTICE OF PUBLIC HEARING $120.95$104.52$99.06$91.44$85.22$80.75$80.59$71.97$70.67$68.82$68.81$65.71$62.81$58.08$56.45$54.27$53.84$53.53$51.43$50.17$47.15$46.62$43.04$42.35$35.91$34.00$28.00$27.56$22.81 0 20406080100120 Del Mar*Valley …*Valley …*Oceanside*Olivenhain*Padre Dam*FallbrookRainbow*Rancho …*EncinitasImperial BeachSan Diego, City*BuenaChula Vista*Vista*Valley …*RamonaEscondido*El CajonSolana Beach*PowayLa MesaLemon GroveOtayVallecitos*National CitySan Diego, …*CarlsbadLeucadia Sewer Rate Comparison in San Diego County 14 Unit Water Use and 3/4" ResidentialMeter-Projected sewer bill effective January 2014 *With Otay's estimated average rate increase Page 2 meet bond covenants and to maintain adequate reserves and rate stability. The District always works to keep its expenses to a minimum and, as a result, has rates for sewer service that are among the lowest in San Diego County. WHAT CAN I DO TO SAVE MONEY ON MY SEWER BILL? To estimate sewer use, the District averages metered water use. A Winter Average(2) is the basis of your sewer charges for the entire year. The winter months are the best time to average water use because less water is used outdoors and most of the water used flows to the sewer system. By conserving water in winter, you save money on your water bill, and you may also reduce your Winter Average, and that can help save money on your sewer bill all year long. Customers interested in learning ways in which they can reduce their water usage and in turn minimize the effects of the rising sewer disposal and treatment costs on their family’s budget, can visit the District’s Conservation page at www.otaywater.gov. OTHER PROPOSED CHANGES The following changes are proposed to be made to residential and multi‐residential sewer account’s rate calculations: Residential • Ensure water meter equivalencies used for sewer system fees are consistent with American Water Works Association (AWWA) water meter equivalencies. • Make the Monthly System Fee for Single‐Family Residential the same for both .75” and 1" meters. Multi‐Residential • Ensure water meter equivalencies used for sewer Monthly System Fees are consistent with AWWA water meter equivalencies. • Calculate the Monthly System Fee based on meter size rather than the number of dwelling units. For information about the Otay Water District, please visit www.otaywater.gov or contact us via email at info@otaywater.gov. (Continued from page 1) USAGE FEE CURRENT PROPOSED 2014 $1.92 $2.35 CURRENT(3) PROPOSED 2014(5) .75” $13.30 $14.38 1” $19.40 $14.38 MONTHLY SYSTEM FEE PROPOSED RESIDENTIAL USAGE AND MONTHLY SYSTEM FEE CALCULATION The monthly sewer charge for a typical single‐family residential customer(1) with either at .75” or 1” water meter and a Winter Average(2) of 14 hundred cubic feet (HCF or 10,472 gallons) will be calculated as follows: USAGE FEE x WINTER AVERAGE(2) + MONTHLY SYSTEM FEE For a single family residential sewer customer, your bill will increase by $6.20 per month. The Monthly System Fee for single family residential customers with a 1” meter is decreasing based on the Cost of Service Study’s findings. PROJECTED RESIDENTIAL USAGE AND MONTHLY SYSTEM FEE, AND RECAPTURE PROVISIONS The increases to rates, fees, and charges for residential sewer service were considered by the District’s Board of Directors as part of the annual budget review process. The Board directed staff to propose a phasing‐of the Monthly System Fee increase over a three year period. The three‐year phase‐in of the Monthly System Fee is reflected in the tables to the right along with the proposed Monthly System Fee increases based on a 7.9 percent inflator. Recapture of the full Cost of Service Study recommended Monthly System Fee occurs in 2016. If adopted, the 2014 Monthly System Fee is in accordance with the proposed phase‐in of the Cost of Service findings. The 2015 Monthly System Fee equals the Cost of Service Study’s findings, plus projected rate increases through the rate setting process. The 2016 Monthly System Fee equals the Cost of Service Study’s findings, plus projected rate increases through the rate setting process, and recapturing the 2014 Monthly System Fee shortfall of $1.30 per month, in 2016. RECAPTURE PROVISONS PROPOSED 2014 Cost of Service Study Monthly System Fee $15.68 District Approved Monthly System Fee $14.38(5) Amount of Recapture in 2016 $1.30 2014 PROPOSED AND 2015‐2018 PROJECTED FEES CURRENT PROPOSED 2014 PROJECTED 2015 PROJECTED 2016 PROJECTED 2017 PROJECTED 2018 Usage Fee $1.92 $2.35 $2.54 $2.74 $2.96 $3.19 MONTHLY SYSTEM FEE AND 2015‐2018 PROJECTED FEES(4) .75” $13.30 $14.38(5) $16.92(6) $19.56(7) $19.70(8) $21.26(9) 1” $19.40 $14.38(5) $16.92(6) $19.56(7) $19.70(8) $21.26(9) System Fee CURRENT(3) PROPOSED 2014 PROJECTED 2015 PROJECTED 2016 PROJECTED 2017 PROJECTED 2018 PROPOSED MULTI‐RESIDENTIAL SEWER RATES, FEES AND CHARGES The proposed sewer bill for multi‐residential customers will be based on the meter size rather than the number of dwelling units, as shown below. The following is a comparison of the current and proposed sewer bill calculation: The following tables show the proposed rate increases in the Usage Fees and Monthly System Fees for multi‐residential sewer customers effective January 1, 2014. Tables also show the projected 2015 through 2018 rate increases based on the projected 7.9 percent inflator. Projections are for informational purposes only. These fees include the impact of projected pass‐ through increases. Actual Usage and Monthly System Fees in each of the projected years may differ. CURRENT SEWER BILL CALCULATION ((Winter Average(2) X .85(1)) x Usage Fee) + (System Fee x Dwelling Units) PROPOSED SEWER BILL CALCULATION ((Winter Average(2) X .85(1)) x Usage Fee) + System Fee(3) Footnotes: (1) A typical single‐family residential sewer customer’s bill is based on 11.9 HCF of water (14 HCF x.85), where one HCF equals 748 gallons or one unit of water. The 15 percent discount is an acknowledgement that not all water purchased goes to the sewer system. The maximum bill for single‐family residential sewer customer, based on 30 HCF, which has already been reduced by the 15 percent discount, is $74.31. (2) The Winter Average is defined as the units of water billed from January through April of the previous year divided by four. (3) The Monthly System Fee is determined by meter size. (4) Projections are for informational purposes only. Increased annually by 7.9 percent. (5) On March 18, 2013, the Board of Directors directed staff to propose the phasing‐in of the Monthly System Fee increase over a 3 year period. This is $1.30 less than the Cost of Service Study calculation. (6) The projected rate is calculated as follows: 2014 Cost of Service Study Rate + 7.9% inflator ($15.68+$1.24). (7) The projected rate is calculated as follows: 2015 Cost of Service Study Rate + 7.9% inflator + 2014 recapture ($16.92 +$1.34+1.30). (8) The projected rate is calculated as follows: 2016 Cost of Service Study Rate + 7.9% inflator ($18.26+$1.44). (9) The projected rate is calculated as follows: 2017 Cost of Service Study Rate + 7.9% inflator ($19.70 + $1.56) Page 3 CURRENT PROPOSED 2014 PROJECTED 2015 PROJECTED 2016 PROJECTED 2017 PROJECTED 2018 $1.92 $2.35 $2.54 $2.74 $2.96 $3.19 RESIDENTIAL AND MULTI‐RESIDENTIAL USAGE FEES ‐ 2014 PROPOSED AND 2015 ‐ 2018 PROJECTED METER SIZE PROPOSED 2014(3) PROJECTED 2015(3)(4) PROJECTED 2016(3)(4) PROJECTED 2017(3)(4) PROJECTED 2018(3)(4) .75” $25.83 $27.87 $30.07 $32.45 $35.01 1” $38.03 $41.03 $44.27 $47.77 $51.54 1.5” $68.53 $73.94 $79.78 $86.08 $92.88 2” $105.12 $113.42 $122.38 $132.05 $142.48 3” $190.52 $205.57 $221.81 $239.33 $258.24 4” $312.51 $337.20 $363.84 $392.58 $423.59 6” $617.48 $666.26 $718.89 $775.68 $836.96 8” $983.46 $1,061.15 $1,144.98 $1,235.43 $1,333.03 10” $1,410.42 $1,521.84 $1,642.07 $1,771.79 $1,911.76 2014 PROPOSED AND 2015‐2018 PROJECTED(4) MONTHLY SYSTEM FEE CURRENT $13.30 $13.30 $13.30 $13.30 $13.30 $13.30 $13.30 $13.30 $13.30 This information reflects only rates that are proposed to change. For a comprehensive listing of rates, please see the Otay Water District’s Code of Ordinances at www.otaywater.gov. NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RESIDENTIAL AND MULTI‐RESIDENTIAL SEWER SERVICE WWW.OTAYWATER.GOV PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978‐2004 www.otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RESIDENTIAL AND MULTI‐RESIDENTIAL SEWER SERVICE Dedicated to Community Service NOTICE OF PUBLIC HEARING In Connection with Proposed CHANGES TO RATES, FEES, AND CHARGES FOR MULTI-RESIDENTIAL WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on September 4, 2013, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adoption of rate, fee, and charge increases that apply to water billed beginning January 1, 2014; (2) the authorization for a period of five years of all future pass‐through increases or decreases to cover changes to rates, fees, or charges from the District’s water suppliers; and, (3) the authorization for a period of five years overall average rate increases, in addition to the pass through increases, not to exceed 10 percent per year, of all costs other than pass‐through costs. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all written protests against the proposed rates, fees, and charges that, if approved, will be imposed on properties served by the District. The amount of the proposed rate, fee, and charge increases and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE INCREASES An overall water customer average rate increase of 7.5 percent was considered by the District’s Board of Directors as part of the annual budget review process. If adopted after the public hearing noticed above, the water rate increase is proposed to take effect with water billed on or after January 1, 2014, and may apply to water used as early as the beginning of December 2013. The District has performed a Cost of Service Study and Rate Study (i.e. reviewed rates, fees, charges, costs, and the consumption usage structure) and determined that increases in the rates, fees, and charges are necessary in order to recover sufficient revenues to operate and maintain the public water system. The proposed rate, fee, and charge structure will provide revenue that recovers costs reasonably borne in providing the service; are equitable to all customer classes; and are proportionate to the cost of providing the service to each customer class. The rate structure has two basic components: (1) fixed monthly fees and (2) variable monthly rates and fees, which are based on water consumption. The fixed fees are calculated to recover the cost of operating and maintaining the public water system and are based on the size of the water meter serving the record owner or customer of record. Fixed fees include the Metropolitan Water District of Southern California and San Diego County Water Authority (MWD & CWA) fee, and the District’s System Fee. The variable rates, fees, and charges are consumption based and include but are not limited to supply, treatment and transportation costs. Variable rates and fees generally impose greater charges as the level of consumption increases. The variable components are structured in such a way as to deter waste and encourage conservation. Variable components of the bill include the Water Rate, Energy Charge, and Water Charge by Improvement District. The fixed and variable components are calculated to recover the proportionate cost of providing the service attributable to each class of customer. The District will also consider authorizing, for a period of five years, passing through to customers the increased or decreased costs imposed by the District’s water suppliers. If adopted, the average customer’s water rates, fees, and charges will be adjusted annually for all increased or decreased costs and charges from the District’s wholesale water suppliers. The pass‐through costs apply to rates, fees, and charges from the District’s water suppliers. The suppliers include but are not limited to the Metropolitan Water District of Southern California, San Diego County Water Authority, and the City of San Diego. Any changes to rates, fees, and charges subsequently imposed by the District will be subject to a 30‐day prior written notice, but will not be subject to additional hearings or protests. In addition to the wholesale pass‐through costs, the District will consider authorizing, for a period of five years, average rate increases not to exceed 10 percent per year for all costs related to labor, benefits, materials, energy, maintenance, administrative expenses, as well as other operational costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The proposed water rate increase in the average amount of 7.5 percent will pass‐through increases implemented by the District’s water wholesalers (MWD’s 5 percent increase and CWA’s increase of 4.3 percent) and will allow the District to recover other increases in operational costs. Water wholesalers do not anticipate additional rate increases in 2014, but they do expect to implement increases in January 2015 and in subsequent years. As the record owner or customer of record of a property identified to be subject to the imposition of proposed rate, fee, or charge increases, you may submit a written protest against the proposed actions. Provided, however, if the identified property has more than one record owner and/or customer of record, only one written protest will be counted. Each protest must be in writing; state the specific rate increase 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 record owner or customer of record submitting the protest. Protests submitted by e‐mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or in person at the public hearing, so long as they are received prior to the conclusion of the public hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the Board Secretary, that the enclosed letter is for the Public Hearing on the Proposed Increase to Multi‐Residential Water Rates, Fees, and Charges. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. If, at the close of the public hearing, written protests against the proposed rate increase, fees, and charges 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 will be (Continued on page 2) Page 2 authorized to adopt the proposed actions. If adopted, the rates, fees, and charges will apply to water billed on or after January 1, 2014 and may apply to water used as early as the beginning of December 2013. This letter serves as a 45‐day notice of the hearing on the proposed rate increases, and as notice of the increases for water billed on or after January 1, 2014, if adopted. This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to property‐related fees such as water services. This letter serves as notice that the District will hold a public hearing to consider changes to its current water rates, fees, and charges. WHY ARE WATER RATE CHANGES NECESSARY? The District is a revenue‐neutral public agency that provides water service to your community. “Revenue‐neutral” means that water bills reflect only those rates, fees, and charges sufficient to support water service. To continue to provide reliable, safe and high‐quality service, the District must implement and pass through to its customers the higher cost of water imposed by suppliers. This year, as in recent years, a large percentage of the increase is a direct result of higher costs from suppliers and represents a direct pass‐through from those suppliers. The water suppliers include the MWD, CWA, and the City of San Diego. WHAT DO WATER RATES FUND? In the District, each end user pays his or her fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administrative expenses, operations, construction and maintenance of the public water system and facilities. This also includes amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The District is a non‐profit public agency, it does not make a profit from providing water service and it cannot operate at a loss. WHY ARE WHOLESALER WATER SUPPLIERS RAISING THEIR RATES? Wholesale suppliers are raising their rates as they work to obtain new and more reliable supplies of water. This includes more reliable emergency supplies, agricultural to urban water transfers, expansion of existing reservoirs, pipeline relining projects, new water treatment plants, and new supplies including ocean water desalination. In addition, rate increases cover the cost of acquiring imported water from the Colorado River and Northern California. In 2016, for instance, the San Diego County Water Authority anticipates increasing rates, fees, and charges in anticipation of the Carlsbad Desalination Project (ocean water desalination) becoming operational. The Carlsbad project, while providing San Diego County with a new locally controlled, drought‐proof supply of water, could have significant upward pressure on water rates for all San Diego County water customers. For its part the District works continually to reduce internal costs to absorb rate increases from suppliers. The District recognizes and is sensitive to the impact the higher cost of water has on its customers. As a result the District is committed to becoming as efficient as possible, while providing the services its customers expect and rely upon. RELIABILITY AND SUPPLY DIVERSIFICATION Water is essential to our region’s quality of life. Our economy depends on it. Families and businesses cannot survive without it. Unfortunately for San Diego residents, our county does not benefit from an abundant natural supply of water. San Diego receives an average just 10 inches of rainfall per year, meeting only 5 percent of local demand, and that is not enough to support our region’s population of 3.1 million people or its $188 billion economy. Because of our semi‐arid climate, 82 percent of the water used locally is imported from Northern California and the Colorado River. Not only is the cost of importing water becoming increasingly costly, but population growth, drought, environmental regulations, litigation, competition for a scarce resource, and increased power costs are driving the price we pay higher. San Diego County’s wholesale and retail water agencies recognized the region was highly dependent on imported water during a severe drought that occurred in the late 1980s and early 1990s. The entities have continued to work aggressively to develop a more reliable water supply system ‐ one that would increase water independence, provide for future population and economic needs, and reduce the likelihood of a future water shortage. Since then, major initiatives have been undertaken to develop new supplies and improved reliability. At the regional level, CWA signed a milestone agreement to address decades of water disputes over the allocation of water from the Colorado River. As part of that agreement, San Diego residents paid to have old, leaky earthen canals in Imperial County lined to save water. This “saved water” is now used by customers in San Diego County. This year, the region will receive 80,000 acre‐feet of water from the canal lining projects (enough water to supply approximately 160,000 homes). Through a combination of land fallowing and efficiency‐based water conservation measures with farmers in Imperial County, the region was able to purchase another 100,000 acre‐feet of water in 2012 (enough water to supply 200,000 existing homes). The water we receive from this part of the agreement will ramp up to 200,000 acre‐feet per year by 2021. Since the 1990s, the District embarked on its own efforts to develop new supply and today operates one of the largest recycled water networks in California. As a benefit, when the drought hit our region in 2008, because of your investments in a recycled water system used for landscape irrigation, mandatory water conservation was not imposed on Otay Water District customers. Additionally, the District is actively supporting the development of an ocean water desalination facility in Rosarito Beach, Mexico. When built, the water from this facility could replace up to two‐thirds of the water we receive from Northern California and the Colorado River. A result of these major projects, such as the canal linings, water transfers, and reservoir construction and expansion efforts, is that the wholesale cost of water has gone up dramatically in recent years, and it is an expense being borne by all water users. Rising costs are financially difficult for everyone, but having made these investments in new supply and improved reliability, the region is better able to ensure that families, businesses, and the local economy will always have the water it needs. WHAT CAN I DO TO SAVE MONEY? Customers interested in learning ways in which they can reduce their water usage and therefore minimize the effects of the rising cost of imported water on their family’s budget, can visit the District’s Conservation page at www.otaywater.gov. Additionally, the Water Conservation Garden located on the campus of Cuyamaca Community College in Rancho San Diego is open to the public and offers various conservation exhibits, programs and classes. For more about the Water Conservation Garden, visit www.thegarden.org. For information about the Otay Water District, please visit www.otaywater.gov or contact us via email at info@otaywater.gov. (Continued from page 1) Footnotes 1. This cost varies based on water usage and can be calculated using the consumption block tables. One unit of consumption equals 748 gallons of water. 2. Projected rates (2015‐2018) are for information purposes only. Inflator factor for 2015‐2017 is 7.5 percent and 2.3 percent for 2018. 3. These fees are based on the meter size. The MWD&CWA fee is increasing to match the cost from the District’s water suppliers. The System Fee is increasing to pay for higher water system replacement, maintenance, and operating expenses. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in elevation. This is charged proportionately for every foot of elevation over 450 feet. This increase is due to increased power costs to the District. 5. This charge is a per unit charge and your bill will vary based on water consumption. 6. Fire Service requires a separate meter and is a monthly fee based on meter size. The Fire Service Fee is decreasing based on the Cost of Service study. MWD & CWA Fixed Fees3 Size 2014 Proposed and 2015‐2018 Projected2 Meter Size Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected 3/4" $13.28 $14.45 $15.53 $16.70 $17.95 $18.36 1" $22.12 $26.79 $28.80 $30.96 $33.28 $34.05 1 1/2" $44.31 $60.61 $65.16 $70.04 $75.30 $77.03 2" $70.85 $103.08 $110.81 $119.12 $128.06 $131.00 3" $141.71 $219.23 $235.67 $253.35 $272.35 $278.61 4" $221.43 $351.09 $377.42 $405.73 $436.16 $446.19 6" $442.80 $718.69 $772.59 $830.54 $892.83 $913.36 8" $708.53 $1,160.59 $1,247.63 $1,341.21 $1,441.80 $1,474.96 10" $1,015.06 $1,670.55 $1,795.84 $1,930.53 $2,075.32 $2,123.05 This information reflects only changes to rates. For a comprehensive listing of rates, please see the Otay Water District’s Code of Ordinances at www.otaywater.gov. Water Usage Fee1 ‐ Consumption Blocks by Unit 2014 Proposed and 2015‐2018 Projected2 Multi‐Residential Consumption Blocks1 Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected 0 ‐ 4 $2.66 $2.86 $3.08 $3.31 $3.56 $3.64 5 ‐ 9 $3.45 $3.71 $3.99 $4.29 $4.61 $4.72 10 or more $5.32 $5.73 $6.16 $6.62 $7.11 $7.28 Meter Size Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected 3/4" $16.74 $16.19 $17.40 $18.71 $20.11 $20.58 1" $21.26 $22.87 $24.59 $26.43 $28.41 $29.06 1 1/2" $32.57 $39.58 $42.55 $45.74 $49.17 $50.30 2" $46.13 $59.62 $64.09 $68.90 $74.07 $75.77 3" $82.29 $113.08 $121.56 $130.68 $140.48 $143.71 4" $122.99 $173.22 $186.21 $200.18 $215.19 $220.14 6" $236.02 $340.29 $365.81 $393.25 $422.74 $432.46 8" $371.64 $540.76 $581.32 $624.92 $671.78 $687.24 10" $529.88 $774.64 $832.74 $895.19 $962.33 $984.47 System Fee3 by Meter Size 2014 Proposed and 2015‐2018 Projected2 Other Charges Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected Energy Charges4 $0.042 $0.048 $0.051 $0.055 $0.059 $0.061 Improvement District5No. 3 $0.21 $0.21 $0.21 $0.21 $0.21 $0.21 Improvement District5No. 10 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 La Presa5 $0.08 $0.08 $0.08 $0.08 $0.08 $0.08 Government Fee $0.29 $0.31 $0.33 $0.36 $0.38 $0.39 Fire Service6 $34.57 ≤3” Meter $21.14 ≤3” Meter $22.73 ≤3” Meter $24.43 ≤3” Meter $26.26 ≤3” Meter $26.87 ≥4” Meter $28.49 ≥4” Meter $30.63 ≥4” Meter $32.92 ≥4” Meter $35.39 ≥4” Meter $36.21 Other Charges ‐ 2014 Proposed and 2015 ‐ 2018 Projected2 Page 3 NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT MULTI‐RESIDENTIAL WATER SERVICE Dedicated to Community Service WWW.OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT MULTI‐RESIDENTIAL WATER SERVICE PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978‐2004 www.otaywater.gov NOTICE OF PUBLIC HEARING In Connection with Proposed CHANGES TO RATES, FEES, AND CHARGES FOR RECYCLED WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on September 4, 2013, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adoption of rate, fee and charge increases that apply to water billed beginning January 1, 2014; (2) the authorization for a period of five years of all future pass‐through increases or decreases to cover changes to rates, fees, or charges from the District’s water suppliers; and, (3) the authorization for a period of five years overall average rate increases, in addition to the pass through increases, not to exceed 10 percent per year, of all costs other than pass‐ through costs. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all written protests against the proposed rates, fees, and charges that, if approved, will be imposed on the properties served by the District. The amount of the proposed rate increase and the basis upon which it was determined is described in more detail as follows. PROPOSED RATE INCREASES An overall average rate increase of 7.5 percent for water customers was considered by the District’s Board of Directors as part of the annual budget review process. If adopted after the public hearing noticed above, the water rate increase is proposed to take effect with water billed on or after January 1, 2014, and may apply to water used as early as the beginning of December 2013. The District has performed a Cost of Service Study and Rate Study (i.e. reviewed rates, fees, charges, costs, and the consumption usage structure) and determined that increases in the rates, fees, and charges are necessary in order to recover sufficient revenues to operate and maintain the public water system. The proposed rate, fee and charge structure will provide revenue that recovers costs reasonably borne in providing the service; are equitable to all customer classes; and are proportionate to the cost of providing the service to each customer class. Recycled water rates are based on the cost of potable water from the District’s wholesale suppliers. To continue providing reliable high quality service, the District must implement rate increase and pass‐through to its customers higher costs by those water wholesalers. Producing and distributing recycled water is also costly. To help offset the costs of supplying alternative water sources, the District receives financial incentives from its wholesale water suppliers. Everyone benefits from recycled water, including potable water customers because it diversifies our water sources, therefore, potable and recycled water rates are calculated in a combined manner. Recycled rates are then discounted by 15 percent, recognizing the added expense to use recycled water and passing along those incentives to recycled water customers. Today, approximately 13 percent of the District’s water supply is made up of recycled water, and there are plans to continue expanding the system. The rate structure has two basic components: (1) fixed monthly fees and (2) variable monthly rates and fees, which are based on water consumption. Fixed fees are calculated to recover the cost of operating and maintaining the public system and are typically based on the size of the water meter serving the record owner or customer of record. The District’s System Fee is an example of a fixed fee. The variable rates, fees, and charges are consumption based and include but are not limited to supply, treatment, and transportation costs. Variable rates and fees generally impose greater charges as the level of consumption increases. The variable components are structured in such a way as to deter waste and encourage conservation. Variable components of the bill include the Water Rate and Energy Charge. The fixed and variable components are calculated to recover the proportionate cost of providing the service attributable to each class of customer. The District will also consider authorizing, for a period of five years, passing through to customers the increased or decreased costs imposed by the District’s water suppliers. If adopted, the average customer’s water rates, fees, and charges will be adjusted periodically for all increased or decreased costs and charges from the District’s wholesale water suppliers. The pass‐through costs apply to rates, fees, and charges from the District’s water suppliers. The suppliers include but are not limited to the Metropolitan Water District of Southern California, San Diego County Water Authority, and the City of San Diego. Any changes to rates, fees, and charges subsequently imposed by the District will be subject to a 30‐day prior written notice, but will not be subject to additional hearings or protests. In addition to the wholesale pass‐through costs, the District will consider authorizing, for a period of five years, maximum overall annual average increases of all rates, fees, and charges of 10 percent to cover all costs of providing service including, but not limited to, costs related to labor, benefits, materials, energy, maintenance, administrative expenses, as well as other operational costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The proposed water rate increase in the average amount of 7.5 percent, if approved, will pass‐through increases implemented by the District’s water wholesalers (MWD’s 5 percent increase and CWA’s increase of 4.3 percent) and will allow the District to recover other increases in operational costs. Water wholesalers do not anticipate additional rate increases in 2014, but they do expect to implement increases in January 2015 and in subsequent years. As the record owner or customer of record of a property identified to be subject to the imposition of proposed rate, fee or charge increases, you may submit a written protest against the proposed actions. Provided, however, if the identified property has more than one record owner and/or customer of record, only one written protest will be counted. Each protest must be in writing; state the specific rate increase 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 record owner or customer of record submitting the protest. Protests submitted by e‐mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or in person at the public hearing, so long as they are received prior to the conclusion of the public hearing. (Continued on page 2) Page 2 Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the Board Secretary, that the enclosed letter is for the Public Hearing on the Proposed Increase to Recycled Water Rates, Fees, and Charges. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. If, at the close of the public hearing, written protests against the proposed rate increase, fees, and charges 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 will be authorized to adopt the proposed actions. If adopted, the rates, fees, and charges will apply to recycled water billed on or after January 1, 2014 and may apply to recycled water used as early as the beginning of December 2013. This letter serves as a 45‐day notice of the hearing on the proposed rate increases, and as notice of the increases for recycled water billed on or after January 1, 2014, if adopted. This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to property‐related fees such as water services. This letter serves as notice that the District will hold a public hearing to consider changes to its current recycled water rates, fees and charges. WHY ARE WATER RATE CHANGES NECESSARY? The District is a revenue‐neutral public agency that provides water service to your community. “Revenue‐neutral” means that water bills reflect only those rates, fees, and charges sufficient to support water service. To continue to provide reliable, safe and high‐quality service, the District must implement and pass through to its customers the higher cost of water imposed by suppliers. This year, as in recent years, a large percentage of the increase is a direct result of higher costs from suppliers and represents a direct pass‐through from those suppliers. The water suppliers include the MWD, CWA, and the City of San Diego. WHAT DO WATER RATES FUND? In the District, each end user pays his or her fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administrative expenses, operations, construction and maintenance of the public water system and facilities. This also includes amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The District is a non‐profit public agency, it does not make a profit from providing water service and it cannot operate at a loss. WHY ARE WHOLESALER WATER SUPPLIERS RAISING THEIR RATES? Wholesale suppliers are raising their rates as they work to obtain new and more reliable supplies of water. This includes more reliable emergency supplies, agricultural to urban water transfers, expansion of existing reservoirs, pipeline relining projects, new water treatment plants, and new supplies including ocean water desalination. In addition, rate increases cover the cost of acquiring imported water from the Colorado River and Northern California. In 2016, for instance, the San Diego County Water Authority anticipates increasing rates, fees, and charges in anticipation of the Carlsbad Desalination Project (ocean water desalination) becoming operational. The Carlsbad project, while providing San Diego County with a new locally controlled, drought‐proof supply of water, could have significant upward pressure on water rates for all San Diego County water customers. For its part the District works continually to reduce internal costs to absorb rate increases from suppliers. The District recognizes and is sensitive to the impact the higher cost of recycled water has on its customers. As a result the District is committed to becoming as efficient as possible, while providing the services its customers expect and rely upon. RELIABILITY AND SUPPLY DIVERSIFICATION Water is essential to our region’s quality of life. Our economy depends on it. Families and businesses cannot survive without it. Unfortunately, for San Diego residents, our county does not benefit from an abundant natural supply of water do not have an abundant natural supply of water. San Diego receives an average of 10 inches of rainfall per year, meeting only 5 percent of local demand which is not enough to support our region’s population of 3.1 million people or its $188 billion economy. Because of our semi‐arid climate, 82 percent of the water used locally is imported from Northern California and the Colorado River. Not only is the cost of importing water from these locations becoming increasingly costly, but population growth, drought, environmental regulations, litigation, competition for a scarce resource, and increased power costs are driving the price we pay higher. San Diego County’s wholesale and retail water agencies recognized the region was highly dependent on imported water during a severe drought that occurred in the late 1980s and early 1990s. The entities have continued to work aggressively to develop a more reliable water supply system‐ one that will increase water independence, provide for future population and economic needs, and reduce the likelihood of a future water shortage. Since then, major initiatives have been undertaken to develop new supplies and improved reliability. At the regional level, CWA signed a milestone agreement to address decades of water disputes over the allocation of water from the Colorado River. As part of that agreement, San Diego residents paid to have old, leaky earthen canals in Imperial County lined to save water. This “saved water” is now used by customers in San Diego County. This year, the region will receive 80,000 acre‐feet of water from the canal lining projects (enough water to supply approximately 160,000 homes). Through a combination of land fallowing and efficiency‐based water conservation measures with farmers in Imperial County, the region was also able to purchase another 100,000 acre‐feet of water in 2012 (enough water to supply 200,000 existing homes). The water we receive from this part of the agreement will ramp up to 200,000 acre‐feet per year by 2021. Since the 1990s, the District embarked on its own efforts to develop new supply and today operates one of the largest recycled water networks in California. As a benefit, when the drought hit our region in 2008, because of your investments in a recycled water system used for landscape irrigation, mandatory water conservation was not imposed on Otay Water District customers. Additionally, the District is actively supporting the development of an ocean water desalination facility in Rosarito Beach, Mexico. When built, the high‐quality water from this facility could replace up to two‐ thirds of the water we receive from Northern California and the Colorado River. A result of these major projects, such as the canal linings, water transfers, and reservoir construction and expansion efforts, is that the wholesale cost of water has gone up dramatically in recent years, and it is an expense being borne by all water users. Rising costs are financially difficult for everyone, but having made these investments in new supply and improved reliability, the region is better able to ensure that families, businesses, and the local economy will always have the water it needs. (Continued from page 1) Page 3 This information reflects only changes to rates. For a comprehensive listing of rates, please see the Otay Water District’s Code of Ordinances at www.otaywater.gov Meter Size Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected 3/4" $16.74 $16.19 $17.40 $18.71 $20.11 $20.58 1" $21.26 $22.87 $24.59 $26.43 $28.41 $29.06 1 1/2" $32.57 $39.58 $42.55 $45.74 $49.17 $50.30 2" $46.13 $59.62 $64.09 $68.90 $74.07 $75.77 3" $82.29 $113.08 $121.56 $130.68 $140.48 $143.71 4" $122.99 $173.22 $186.21 $200.18 $215.19 $220.14 6" $236.02 $340.29 $365.81 $393.25 $422.74 $432.46 8" $371.64 $540.76 $581.32 $624.92 $671.78 $687.24 10" $529.88 $774.64 $832.74 $895.19 $962.33 $984.47 System Fee2 by Meter Size 2014 Proposed and 2015‐2018 Projected4 Recycled Usage Fee (3/4” ‐ 1” Meter) 2014 Proposed and 2015‐2018 Projected4 Consumption Block1 2014 Proposed Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected 0 ‐ 42 0 ‐ 32 $3.31 $3.56 $3.83 $4.12 $4.43 $4.53 43 ‐ 97 33 ‐ 75 $3.35 $3.61 $3.88 $4.17 $4.48 $4.58 98+ 76+ $3.42 $3.68 $3.96 $4.25 $4.57 $4.68 Recycled (1.5” ‐ 2” Meter) 0 ‐ 168 0 ‐ 130 $3.31 $3.56 $3.83 $4.12 $4.43 $4.53 169 ‐ 402 131 ‐ 325 $3.35 $3.61 $3.88 $4.17 $4.48 $4.58 403+ 326+ $3.42 $3.68 $3.96 $4.25 $4.57 $4.68 Recycled (3” ‐ 4” Meter) 0 ‐ 403 0 ‐ 440 $3.31 $3.56 $3.83 $4.12 $4.43 $4.53 404 ‐ 820 441 ‐ 1,050 $3.35 $3.61 $3.88 $4.17 $4.48 $4.58 821+ 1,051+ $3.42 $3.68 $3.96 $4.25 $4.57 $4.68 Recycled (>6” Meter) 0 ‐ 7,916 0 ‐ 4,000 $3.31 $3.56 $3.83 $4.12 $4.43 $4.53 7,917 ‐ 16,357 4,001 ‐ 10,000 $3.35 $3.61 $3.88 $4.17 $4.48 $4.58 16,358+ 10,001+ $3.42 $3.68 $3.96 $4.25 $4.57 $4.68 Recycled Commercial (<10” Meter) 0 ‐ 173 0 ‐ 173 $2.38 $2.56 $2.75 $2.96 $3.18 $3.26 174 ‐ 831 174 ‐ 831 $2.45 $2.64 $2.84 $3.05 $3.28 $3.35 821+ 832+ $2.47 $2.66 $2.86 $3.07 $3.30 $3.38 0 – 7,426 0 – 7,426 $2.38 $2.56 $2.75 $2.96 $3.18 $3.26 7,427 ‐ 14,616 7,427 ‐ 14,616 $2.45 $2.64 $2.84 $3.05 $3.28 $3.35 14,617 14,617 $2.47 $2.66 $2.86 $3.07 $3.30 $3.38 Recycled Commercial (10” or Larger Meter) Other Charges Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected Energy Charge3 $0.042 $0.048 $0.051 $0.055 $0.059 $0.061 Government Fee $0.29 $0.31 $0.33 $0.36 $0.39 $0.39 Other Charges—2014 Proposed and 2015‐2018 Projected4 Footnotes 1. Recycled water rates are based on meter size and the number of recycled water units used each month. One unit of recycled water equals 748 gallons of water. 2. System Fees are based on the meter size. The System Fee is increasing to pay for higher water system replacement, maintenance, and operating expenses. 3. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in elevation. This is charged proportionately for every foot of elevation over 450 feet. This increase is due to increased power costs to the District. 4. Projected rates (2015‐2018) are for informational purposes only. Inflator factor used is 7.5 percent for 2015‐2017 and 2.3 percent for 2018. NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RECYCLED WATER SERVICE Dedicated to Community Service WWW.OTAYWATER.GOV PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978‐2004 www.otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RECYCLED WATER SERVICE NOTICE OF PUBLIC HEARING In Connection with Proposed CHANGES TO RATES, FEES, AND CHARGES FOR PUBLIC AND COMMERCIAL WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on September 4, 2013, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adoption of rate, fee, and charge increases that apply to water billed beginning January 1, 2014; (2) the authorization for a period of five years of all future pass‐through increases or decreases to cover changes to rates, fees, or charges from the District’s water suppliers; and, (3) the authorization for a period of five years overall average rate increases, in addition to the pass through increases, not to exceed 10 percent per year, of all costs other than pass‐ through costs. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all written protests against the proposed rates, fees, and charges that, if approved, will be imposed on properties served by the District. The amount of the proposed rate, fee, and charge increases and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE INCREASES An overall water customer average rate increase of 7.5 percent was considered by the District’s Board of Directors as part of the annual budget review process. If adopted after the public hearing noticed above, the water rate increase is proposed to take effect with water billed on or after January 1, 2014, and may apply to water used as early as the beginning of December 2013. The District has performed a Cost of Service Study and Rate Study (i.e. reviewed rates, fees, charges, costs, and the consumption usage structure) and determined that increases in the rates, fees, and charges are necessary in order to recover sufficient revenues to operate and maintain the public water system. The proposed rate, fee, and charge structure will provide revenue that recovers costs reasonably borne in providing the service; are equitable to all customer classes; and are proportionate to the cost of providing the service to each customer class. The rate structure has two basic components: (1) fixed monthly fees and (2) variable monthly rates and fees, which are based on water consumption. The fixed fees are calculated to recover the cost of operating and maintaining the public water system and are based on the size of the water meter serving the record owner or customer of record. Fixed fees include the Metropolitan Water District of Southern California and San Diego County Water Authority (MWD & CWA) fee, and the District’s System Fee. The variable rates, fees, and charges are consumption based and include but are not limited to supply, treatment and transportation costs. Variable rates and fees generally impose greater charges as the level of consumption increases. The variable components are structured in such a way as to deter waste and encourage conservation. Variable components of the bill include the Water Rate, Energy Charge, and Water Charge by Improvement District. The fixed and variable components are calculated to recover the proportionate cost of providing the service attributable to each class of customer. The District will also consider authorizing, for a period of five years, passing through to customers the increased or decreased costs imposed by the District’s water suppliers. If adopted, the average customer’s water rates, fees, and charges will be adjusted annually for all increased or decreased costs and charges from the District’s wholesale water suppliers. The pass‐through costs apply to rates, fees, and charges from the District’s water suppliers. The suppliers include but are not limited to the Metropolitan Water District of Southern California, San Diego County Water Authority, and the City of San Diego. Any changes to rates, fees, and charges subsequently imposed by the District will be subject to a 30‐day prior written notice, but will not be subject to additional hearings or protests. In addition to the wholesale pass‐through costs, the District will consider authorizing, for a period of five years, average rate increases not to exceed 10 percent per year for all costs related to labor, benefits, materials, energy, maintenance, administrative expenses, as well as other operational costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The proposed water rate increase in the average amount of 7.5 percent will pass‐through increases implemented by the District’s water wholesalers (MWD’s 5 percent increase and CWA’s increase of 4.3 percent) and will allow the District to recover other increases in operational costs. Water wholesalers do not anticipate additional rate increases in 2014, but they do expect to implement increases in January 2015 and in subsequent years. As the record owner or customer of record of a property identified to be subject to the imposition of proposed rate, fee, or charge increases, you may submit a written protest against the proposed actions. Provided, however, if the identified property has more than one record owner and/or customer of record, only one written protest will be counted. Each protest must be in writing; state the specific rate increase 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 record owner or customer of record submitting the protest. Protests submitted by e‐mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or in person at the public hearing, so long as they are received prior to the conclusion of the public hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the Board Secretary, that the enclosed letter is for the Public Hearing on the Proposed Increase to Public and Commercial Water Rates, Fees, and Charges. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. If, at the close of the public hearing, written protests against the proposed rate increase, fees, and charges 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 will be authorized to adopt the proposed actions. If adopted, the rates, Page 2 fees, and charges will apply to water billed on or after January 1, 2014 and may apply to water used as early as the beginning of December 2013. This letter serves as a 45‐day notice of the hearing on the proposed rate increases, and as notice of the increases for water billed on or after January 1, 2014, if adopted. This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to property‐related fees such as water services. This letter serves as notice that the District will hold a public hearing to consider changes to its current water rates, fees, and charges. WHY ARE WATER RATE CHANGES NECESSARY? The District is a revenue‐neutral public agency that provides water service to your community. “Revenue‐neutral” means that water bills reflect only those rates, fees, and charges sufficient to support water service. To continue to provide reliable, safe and high‐quality service, the District must implement and pass through to its customers the higher cost of water imposed by suppliers. This year, as in recent years, a large percentage of the increase is a direct result of higher costs from suppliers and represents a direct pass‐through from those suppliers. The water suppliers include the MWD, CWA, and the City of San Diego. WHAT DO WATER RATES FUND? In the District, each end user pays his or her fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administrative expenses, operations, construction and maintenance of the public water system and facilities. This also includes amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The District is a non‐profit public agency, it does not make a profit from providing water service and it cannot operate at a loss. WHY ARE WHOLESALER WATER SUPPLIERS RAISING THEIR RATES? Wholesale suppliers are raising their rates as they work to obtain new and more reliable supplies of water. This includes more reliable emergency supplies, agricultural to urban water transfers, expansion of existing reservoirs, pipeline relining projects, new water treatment plants, and new supplies including ocean water desalination. In addition, rate increases cover the cost of acquiring imported water from the Colorado River and Northern California. In 2016, for instance, the San Diego County Water Authority anticipates increasing rates, fees, and charges in anticipation of the Carlsbad Desalination Project (ocean water desalination) becoming operational. The Carlsbad project, while providing San Diego County with a new locally controlled, drought‐proof supply of water, could have significant upward pressure on water rates for all San Diego County water customers. For its part the District works continually to reduce internal costs to absorb rate increases from suppliers. The District recognizes and is sensitive to the impact the higher cost of water has on its customers. As a result the District is committed to becoming as efficient as possible, while providing the services its customers expect and rely upon. RELIABILITY AND SUPPLY DIVERSIFICATION Water is essential to our region’s quality of life. Our economy depends on it. Families and businesses cannot survive without it. Unfortunately for San Diego residents, our county does not benefit from an abundant natural supply of water. San Diego receives an average of just 10 inches of rainfall per year, meeting only 5 percent of local demand, and that is not enough to support our region’s population of 3.1 million people or its $188 billion economy. Because of our semi‐arid climate, 82 percent of the water used locally is imported from Northern California and the Colorado River. Not only is the cost of importing water becoming increasingly costly, but population growth, drought, environmental regulations, litigation, competition for a scarce resource, and increased power costs are driving the price we pay higher. San Diego County’s wholesale and retail water agencies recognized the region was highly dependent on imported water during a severe drought that occurred in the late 1980s and early 1990s. The entities have continued to work aggressively to develop a more reliable water supply system ‐ one that would increase water independence, provide for future population and economic needs, and reduce the likelihood of a future water shortage. Since then, major initiatives have been undertaken to develop new supplies and improved reliability. At the regional level, CWA signed a milestone agreement to address decades of water disputes over the allocation of water from the Colorado River. As part of that agreement, San Diego residents paid to have old, leaky earthen canals in Imperial County lined to save water. This “saved water” is now used by customers in San Diego County. This year, the region will receive 80,000 acre‐feet of water from the canal lining projects (enough water to supply approximately 160,000 homes). Through a combination of land fallowing and efficiency‐based water conservation measures with farmers in Imperial County, the region was able to purchase another 100,000 acre‐feet of water in 2012 (enough water to supply 200,000 existing homes). The water we receive from this part of the agreement will ramp up to 200,000 acre‐feet per year by 2021. Since the 1990s, the District embarked on its own efforts to develop new supply and today operates one of the largest recycled water networks in California. As a benefit, when the drought hit our region in 2008, because of your investments in a recycled water system used for landscape irrigation, mandatory water conservation was not imposed on Otay Water District customers. Additionally, the District is actively supporting the development of an ocean water desalination facility in Rosarito Beach, Mexico. When built, the water from this facility could replace up to two‐thirds of the water we receive from Northern California and the Colorado River. A result of these major projects, such as the canal linings, water transfers, and reservoir construction and expansion efforts, is that the wholesale cost of water has gone up dramatically in recent years, and it is an expense being borne by all water users. Rising costs are financially difficult for everyone, but having made these investments in new supply and improved reliability, the region is better able to ensure that families, businesses, and the local economy will always have the water it needs. WHAT CAN I DO TO SAVE MONEY? Customers interested in learning ways in which they can reduce their water usage and therefore minimize the effects of the rising cost of imported water on their family’s budget, can visit the District’s Conservation page at www.otaywater.gov. Additionally, the Water Conservation Garden located on the campus of Cuyamaca Community College in Rancho San Diego is open to the public and offers various conservation exhibits, programs and classes. For more about the Water Conservation Garden, visit www.thegarden.org. For information about the Otay Water District, please visit www.otaywater.gov or contact us via email at info@otaywater.gov. (Continued from page 1) Footnotes 1. This cost varies based on water usage and can be calculated using the consumption block tables. One unit of consumption equals 748 gallons of water. 2. Projected rates (2015‐2018) are for information purposes only. Inflator factor used is 7.5percent for 2015‐2017 and 2.3 percent for 2018. 3. These fees are based on the meter size. The MWD&CWA fee is increasing to match the cost from the District’s water suppliers. The System Fee is increasing to pay for higher water system replacement, maintenance, and operating expenses. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in elevation. This is charged proportionately for every foot of elevation over 450 feet. This increase is due to increased power costs to the District. 5. This charge is a per unit charge and your bill will vary based on water consumption. 6. Fire Service requires a separate meter and is a monthly fee based on meter size. The Fire Service Fee is decreasing based on the Cost of Service study. This information reflects only changes to rates. For a comprehensive listing of rates, please see the Otay Water District’s Code of Ordinances at www.otaywater.gov. Consumption Block1 Proposed Current Rate 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected 0 ‐ 173 0 ‐ 185 $2.84 $3.06 $3.29 $3.53 $3.80 $3.89 174 ‐ 831 186 ‐ 1,400 $2.92 $3.14 $3.38 $3.63 $3.91 $3.99 832+ 1,401+ $2.96 $3.19 $3.43 $3.68 $3.96 $4.05 Public and Commercial Water Usage Fee (<10” Meter) 2014 Proposed and 2015‐2018 Projected2 Public and Commercial Water Usage Fee (10”+ Meter) 2014 Proposed and 2015‐2018 Projected2 0 ‐ 7,426 0 ‐ 7,426 $2.84 $3.06 $3.29 $3.53 $3.80 $3.89 7,427–14,616 7,427 –14,616 $2.92 $3.14 $3.38 $3.63 $3.91 $3.99 14,617+ 14,617+ $2.96 $3.19 $3.43 $3.68 $3.96 $4.05 MWD & CWA Fixed Fees3 Size 2014 Proposed and 2015‐2018 Projected2 Meter Size Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected 3/4" $13.28 $14.45 $15.53 $16.70 $17.95 $18.36 1" $22.12 $26.79 $28.80 $30.96 $33.28 $34.05 1 1/2" $44.31 $60.61 $65.16 $70.04 $75.30 $77.03 2" $70.85 $103.08 $110.81 $119.12 $128.06 $131.00 3" $141.71 $219.23 $235.67 $253.35 $272.35 $278.61 4" $221.43 $351.09 $377.42 $405.73 $436.16 $446.19 6" $442.80 $718.69 $772.59 $830.54 $892.83 $913.36 8" $708.53 $1,160.59 $1,247.63 $1,341.21 $1,441.80 $1,474.96 10" $1,015.06 $1,670.55 $1,795.84 $1,930.53 $2,075.32 $2,123.05 Meter Size Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected 3/4" $16.74 $16.19 $17.40 $18.71 $20.11 $20.58 1" $21.26 $22.87 $24.59 $26.43 $28.41 $29.06 1 1/2" $32.57 $39.58 $42.55 $45.74 $49.17 $50.30 2" $46.13 $59.62 $64.09 $68.90 $74.07 $75.77 3" $82.29 $113.08 $121.56 $130.68 $140.48 $143.71 4" $122.99 $173.22 $186.21 $200.18 $215.19 $220.14 6" $236.02 $340.29 $365.81 $393.25 $422.74 $432.46 8" $371.64 $540.76 $581.32 $624.92 $671.78 $687.24 10" $529.88 $774.64 $832.74 $895.19 $962.33 $984.47 System Fee3 by Meter Size 2014 Proposed and 2015‐2018 Projected2 Other Charges Current 2014 Proposed Energy Charges4 $0.042 $0.048 Improvement District5No. 3 $0.21 $0.21 Improvement District5No. 10 $0.27 $0.27 La Presa5 $0.08 $0.08 Fire Service6 ≤3” Meter $21.14 ≥4” Meter $28.49 $34.57 2015 Projected2 $0.051 $0.21 $0.27 $0.08 ≤3” Meter $22.73 ≥4” Meter $30.63 2016 Projected2 $0.055 $0.21 $0.27 $0.08 ≤3” Meter $24.43 ≥4” Meter $32.92 2017 Projected2 $0.059 $0.21 $0.27 $0.08 ≤3” Meter $26.26 ≥4” Meter $35.39 2018 Projected2 $0.061 $0.21 $0.27 $0.08 ≤3” Meter $26.87 ≥4” Meter $36.21 Government Fee $0.29 $0.31 $0.33 $0.36 $0.38 $0.39 Page 3 NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT PUBLIC AND COMMERCIAL WATER SERVICE Dedicated to Community Service WWW.OTAYWATER.GOV PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978‐2004 www.otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT PUBLIC AND COMMERCIAL WATER SERVICE NOTICE OF PUBLIC HEARING In Connection with Proposed CHANGES TO RATES, FEES, AND CHARGES FOR LANDSCAPE, AGRICULTURAL, AND CONSTRUCTION WATER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on September 4, 2013, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adoption of rate, fee, and charge increases that apply to water billed beginning January 1, 2014; (2) the authorization for a period of five years of all future pass‐through increases or decreases to cover changes to rates, fees, or charges from the District’s water suppliers; and, (3) the authorization for a period of five years overall average rate increases, in addition to the pass through increases, not to exceed 10 percent per year, of all costs other than pass‐ through costs. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all written protests against the proposed rates, fees, and charges that, if approved, will be imposed on properties served by the District. The amount of the proposed rate, fee, and charge increases and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE INCREASES An overall water customer average rate increase of 7.5 percent was considered by the District’s Board of Directors as part of the annual budget review process. If adopted after the public hearing noticed above, the water rate increase is proposed to take effect with water billed on or after January 1, 2014, and may apply to water used as early as the beginning of December 2013. The District has performed a Cost of Service Study and Rate Study (i.e. reviewed rates, fees, charges, costs, and the consumption usage structure) and determined that increases in the rates, fees, and charges are necessary in order to recover sufficient revenues to operate and maintain the public water system. The proposed rate, fee, and charge structure will provide revenue that recovers costs reasonably borne in providing the service; are equitable to all customer classes; and are proportionate to the cost of providing the service to each customer class. The rate structure has two basic components: (1) fixed monthly fees and (2) variable monthly rates and fees, which are based on water consumption. The fixed fees are calculated to recover the cost of operating and maintaining the public water system and are based on the size of the water meter serving the record owner or customer of record. Fixed fees include the Metropolitan Water District of Southern California and San Diego County Water Authority (MWD & CWA) fee, and the District’s System Fee. The variable rates, fees, and charges are consumption based and include but are not limited to supply, treatment and transportation costs. Variable rates and fees generally impose greater charges as the level of consumption increases. The variable components are structured in such a way as to deter waste and encourage conservation. Variable components of the bill include the Water Rate, Energy Charge, and Water Charge by Improvement District. The fixed and variable components are calculated to recover the proportionate cost of providing the service attributable to each class of customer. The District will also consider authorizing, for a period of five years, passing through to customers the increased or decreased costs imposed by the District’s water suppliers. If adopted, the average customer’s water rates, fees, and charges will be adjusted annually for all increased or decreased costs and charges from the District’s wholesale water suppliers. The pass‐through costs apply to rates, fees, and charges from the District’s water suppliers. The suppliers include but are not limited to the Metropolitan Water District of Southern California, San Diego County Water Authority, and the City of San Diego. Any changes to rates, fees, and charges subsequently imposed by the District will be subject to a 30‐day prior written notice, but will not be subject to additional hearings or protests. In addition to the wholesale pass‐through costs, the District will consider authorizing, for a period of five years, average rate increases not to exceed 10 percent per year for all costs related to labor, benefits, materials, energy, maintenance, administrative expenses, as well as other operational costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The proposed water rate increase in the average amount of 7.5 percent will pass‐through increases implemented by the District’s water wholesalers (MWD’s 5 percent increase and CWA’s increase of 4.3 percent) and will allow the District to recover other increases in operational costs. Water wholesalers do not anticipate additional rate increases in 2014, but they do expect to implement increases in January 2015 and in subsequent years. As the record owner or customer of record of a property identified to be subject to the imposition of proposed rate, fee, or charge increases, you may submit a written protest against the proposed actions. Provided, however, if the identified property has more than one record owner and/or customer of record, only one written protest will be counted. Each protest must be in writing; state the specific rate increase 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 record owner or customer of record submitting the protest. Protests submitted by e‐mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or in person at the public hearing, so long as they are received prior to the conclusion of the public hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the Board Secretary, that the enclosed letter is for the Public Hearing on the Proposed Increase to Landscape, Agricultural, and Construction Water Rates, Fees, and Charges. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. If, at the close of the public hearing, written protests against the proposed rate increase, fees, and charges are not presented by a majority of the record owners or customers of record of the identified properties upon (Continued on page 2) Page 2 which they are to be imposed, the Board of Directors will be authorized to adopt the proposed actions. If adopted, the rates, fees, and charges will apply to water billed on or after January 1, 2014 and may apply to water used as early as the beginning of December 2013. This letter serves as a 45‐day notice of the hearing on the proposed rate increases, and as notice of the increases for water billed on or after January 1, 2014, if adopted. This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to property‐related fees such as water services. This letter serves as notice that the District will hold a public hearing to consider changes to its current water rates, fees, and charges. WHY ARE WATER RATE CHANGES NECESSARY? The District is a revenue‐neutral public agency that provides water service to your community. “Revenue‐neutral” means that water bills reflect only those rates, fees, and charges sufficient to support water service. To continue to provide reliable, safe and high‐quality service, the District must implement and pass through to its customers the higher cost of water imposed by suppliers. This year, as in recent years, a large percentage of the increase is a direct result of higher costs from suppliers and represents a direct pass‐through from those suppliers. The water suppliers include the MWD, CWA, and the City of San Diego. WHAT DO WATER RATES FUND? In the District, each end user pays his or her fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administrative expenses, operations, construction and maintenance of the public water system and facilities. This also includes amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The District is a non‐profit public agency, it does not make a profit from providing water service and it cannot operate at a loss. WHY ARE WHOLESALER WATER SUPPLIERS RAISING THEIR RATES? Wholesale suppliers are raising their rates as they work to obtain new and more reliable supplies of water. This includes more reliable emergency supplies, agricultural to urban water transfers, expansion of existing reservoirs, pipeline relining projects, new water treatment plants, and new supplies including ocean water desalination. In addition, rate increases cover the cost of acquiring imported water from the Colorado River and Northern California. In 2016, for instance, the San Diego County Water Authority anticipates increasing rates, fees, and charges in anticipation of the Carlsbad Desalination Project (ocean water desalination) becoming operational. The Carlsbad project, while providing San Diego County with a new locally controlled, drought‐proof supply of water, could have significant upward pressure on water rates for all San Diego County water customers. For its part the District works continually to reduce internal costs to absorb rate increases from suppliers. The District recognizes and is sensitive to the impact the higher cost of water has on its customers. As a result the District is committed to becoming as efficient as possible, while providing the services its customers expect and rely upon. RELIABILITY AND SUPPLY DIVERSIFICATION Water is essential to our region’s quality of life. Our economy depends on it. Families and businesses cannot survive without it. Unfortunately for San Diego residents, our county does not benefit from an abundant natural supply of water. San Diego receives an average just 10 inches of rainfall per year, meeting only 5 percent of local demand, and that is not enough to support our region’s population of 3.1 million people or its $188 billion economy. Because of our semi‐arid climate, 82 percent of the water used locally is imported from Northern California and the Colorado River. Not only is the cost of importing water becoming increasingly costly, but population growth, drought, environmental regulations, litigation, competition for a scarce resource, and increased power costs are driving the price we pay higher. San Diego County’s wholesale and retail water agencies recognized the region was highly dependent on imported water during a severe drought that occurred in the late 1980s and early 1990s. The entities have continued to work aggressively to develop a more reliable water supply system ‐ one that would increase water independence, provide for future population and economic needs, and reduce the likelihood of a future water shortage. Since then, major initiatives have been undertaken to develop new supplies and improved reliability. At the regional level, CWA signed a milestone agreement to address decades of water disputes over the allocation of water from the Colorado River. As part of that agreement, San Diego residents paid to have old, leaky earthen canals in Imperial County lined to save water. This “saved water” is now used by customers in San Diego County. This year, the region will receive 80,000 acre‐feet of water from the canal lining projects (enough water to supply approximately 160,000 homes). Through a combination of land fallowing and efficiency‐based water conservation measures with farmers in Imperial County, the region was able to purchase another 100,000 acre‐feet of water in 2012 (enough water to supply 200,000 existing homes). The water we receive from this part of the agreement will ramp up to 200,000 acre‐feet per year by 2021. Since the 1990s, the District embarked on its own efforts to develop new supply and today operates one of the largest recycled water networks in California. As a benefit, when the drought hit our region in 2008, because of your investments in a recycled water system used for landscape irrigation, mandatory water conservation was not imposed on Otay Water District customers. Additionally, the District is actively supporting the development of an ocean water desalination facility in Rosarito Beach, Mexico. When built, the water from this facility could replace up to two‐thirds of the water we receive from Northern California and the Colorado River. A result of these major projects, such as the canal linings, water transfers, and reservoir construction and expansion efforts, is that the wholesale cost of water has gone up dramatically in recent years, and it is an expense being borne by all water users. Rising costs are financially difficult for everyone, but having made these investments in new supply and improved reliability, the region is better able to ensure that families, businesses, and the local economy will always have the water it needs. WHAT CAN I DO TO SAVE MONEY? Customers interested in learning ways in which they can reduce their water usage and therefore minimize the effects of the rising cost of imported water on their family’s budget, can visit the District’s Conservation page at www.otaywater.gov. Additionally, the Water Conservation Garden located on the campus of Cuyamaca Community College in Rancho San Diego is open to the public and offers various conservation exhibits, programs and classes. For more about the Water Conservation Garden, visit www.thegarden.org. For information about the Otay Water District, please visit www.otaywater.gov or contact us via email at info@otaywater.gov. (Continued from page 1) Footnotes 1. This cost varies based on water usage and can be calculated using the consumption block tables. One unit of consumption equals 748 gallons of water. Customers outside the Otay Water District, an Improvement District, or using temporary meters pay two times this rate. 2. Projected rates (2015‐2018) are for information purposes only. The inflator factor used is 7.5 percent for 2014‐2017 and 2.3 percent for 2018. 3. These fees are based on the meter size. The MWD&CWA fee is increasing to match the cost from the District’s water suppliers. The System Fee is increasing to pay for higher water system replacement, maintenance, and operating expenses. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in elevation. This is charged proportionately for every foot of elevation over 450 feet. This increase is due to increased power costs to the District. 5. This charge is a per unit charge and your bill will vary based on water consumption. 6. Fire Service requires a separate meter and is a monthly fee based on meter size. The Fire Service Fee is decreasing based on the Cost of Service study. This information reflects only changes to rates. For a comprehensive listing of rates, please see the Otay Water District’s Code of Ordinances. MWD & CWA Fixed Fees(3) by Meter Size—2014 Proposed and 2015‐2018 Projected(2) Meter Size Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected 3/4" $13.28 $14.45 $15.53 $16.70 $17.95 $18.36 1" $22.12 $26.79 $28.80 $30.96 $33.28 $34.05 1 1/2" $44.31 $60.61 $65.16 $70.04 $75.30 $77.03 2" $70.85 $103.08 $110.81 $119.12 $128.06 $131.00 3" $141.71 $219.23 $235.67 $253.35 $272.35 $278.61 4" $221.43 $351.09 $377.42 $405.73 $436.16 $446.19 6" $442.80 $718.69 $772.59 $830.54 $892.83 $913.36 8" $708.53 $1,160.59 $1,247.63 $1,341.21 $1,441.80 $1,474.96 10" $1,015.06 $1,670.55 $1,795.84 $1,930.53 $2,075.32 $2,123.05 Meter Size Current 2014 Proposed 2015 Projected 2016 Projected 2017 Projected 2018 Projected 3/4" $16.74 $16.19 $17.40 $18.71 $20.11 $20.58 1" $21.26 $22.87 $24.59 $26.43 $28.41 $29.06 1 1/2" $32.57 $39.58 $42.55 $45.74 $49.17 $50.30 2" $46.13 $59.62 $64.09 $68.90 $74.07 $75.77 3" $82.29 $113.08 $121.56 $130.68 $140.48 $143.71 4" $122.99 $173.22 $186.21 $200.18 $215.19 $220.14 6" $236.02 $340.29 $365.81 $393.25 $422.74 $432.46 8" $371.64 $540.76 $581.32 $624.92 $671.78 $687.24 10" $529.88 $774.64 $832.74 $895.19 $962.33 $984.47 System Fee(3) by Meter Size ‐2014 Proposed and 2015‐2018 Projected(2) Other Charges Current 2014 Proposed Energy Charges(4) $0.042 $0.048 Improvement District(5)No. 3 $0.21 $0.21 Improvement District(5)No. 10 $0.27 $0.27 La Presa(5) $0.08 $0.08 Fire Service(6) ≤3” Meter $21.14 ≥4” Meter $28.49 $34.57 2015 Projected $0.051 $0.21 $0.27 $0.08 ≤3” Meter $22.73 ≥4” Meter $30.63 2016 Projected $0.055 $0.21 $0.27 $0.08 ≤3” Meter $24.43 ≥4” Meter $32.92 2017 Projected $0.059 $0.21 $0.27 $0.08 ≤3” Meter $26.26 ≥4” Meter $35.39 2018 Projected $0.061 $0.21 $0.27 $0.08 ≤3” Meter $26.87 ≥4” Meter $36.21 Government Fee $0.29 $0.31 $0.33 $0.36 $0.38 $0.39 Consumption Block(1) Proposed Current 2014 Proposed Projected 2015 Projected 2016 Projected 2017 Projected 2018 0 ‐ 49 0 ‐ 54 $3.87 $4.17 $4.48 $4.81 $5.18 $5.29 50 ‐ 132 55 ‐ 199 $3.95 $4.25 $4.57 $4.91 $5.28 $5.40 133+ 200+ $4.01 $4.32 $4.64 $4.99 $5.36 $5.49 Landscape, Agricultural, and Construction for 3/4” ‐ 1” Meters—2014 Proposed and 2015‐2018 Projected(2) Landscape, Agricultural, and Construction for 3” Meters and larger— 2014 Proposed and 2015‐2018 Projected(2) 0 ‐ 1,044 0 ‐ 550 $3.87 $4.17 $4.48 $4.81 $5.18 $5.29 1,045 ‐ 8,067 551 ‐ 1,200 $3.95 $4.25 $4.57 $4.91 $5.28 $5.40 8,068+ 1,201+ $4.01 $4.32 $4.64 $4.99 $5.36 $5.49 Landscape, Agricultural, and Construction for 1‐1/2 ‐ 2” Meters ‐ 2014 Proposed and 2015‐2018 Projected(2) 0 ‐ 144 0 ‐ 144 $3.87 $4.17 $4.48 $4.81 $5.18 $5.29 145 ‐ 355 145‐355 $3.95 $4.25 $4.57 $4.91 $5.28 $5.40 356+ 356+ $4.01 $4.32 $4.64 $4.99 $5.36 $5.49 Page 3 NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT LANDSCAPE, AGRICULTURAL, AND CONSTRUCTION WATER SERVICE Dedicated to Community Service WWW.OTAYWATER.GOV PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT LANDSCAPE, AGRICULTURAL, AND CONSTRUCTION WATER SERVICE Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978‐2004 www.otaywater.gov NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR COMMERCIAL SEWER SERVICE NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on September 4, 2013, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adoption of rate, fee, and charge increases that apply to sewer service billed beginning January 1, 2014; (2) the authorization for a period of five years of all future pass‐through increases or decreases to cover changes to rates, fees, or charges from the District’s sewer service providers; and, (3) the authorization for a period of five years, overall average rate increases, in addition to the pass through increases, not to exceed 10 percent per year, of all costs other than pass‐through costs. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all written protests against the proposed rates, fees, and charges that, if approved, will be imposed on properties served by the District. The amount of the proposed rate, fee, and charge increases and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE INCREASES An overall average sewer rate increase of 7.9 percent was considered by the District’s Board of Directors as part of the annual budget review process. If adopted after the public hearing noticed above, the sewer rate increase is proposed to take effect with sewer service billed on or after January 1, 2014, and may apply to sewer service used as early as the beginning of December 2013. The District has performed a Cost of Service Study and Rate Study (i.e. reviewed rates, fees, charges, costs, and the usage structure) and determined that increases in the rates, fees, and charges are necessary in order to recover sufficient revenues to operate and maintain the public sewer system. The proposed rate, fee, and charge structure will provide revenue that recovers costs reasonably borne in providing sewer service; are equitable to all customer classes; and are proportionate to the cost of providing the service to each customer class. The District will also consider authorizing, for a period of five years, passing through to customers the increased or decreased costs imposed by the District’s sewer service providers. If adopted, the customer’s sewer rates, fees, and charges will be adjusted annually in relation to all increased or decreased costs and charges from the District’s sewer service providers. The pass‐through costs apply to rates, fees, and charges from the District’s treatment and disposal providers. The providers include but are not limited to the County of San Diego and the City of San Diego. Any changes to rates, fees, and charges subsequently imposed by the District will be subject to a 30‐day prior written notice, but will not be subject to additional hearings or protests. In addition to the pass‐through costs, the District will consider authorizing, for a period of five years, overall average rate increases not to exceed 10 percent per year for all costs related to labor, benefits, materials, energy, maintenance, administrative expenses, as well as other operational costs of providing sewer service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The proposed sewer rate increase will pass‐through increases implemented by the District’s sewer service providers and will allow the District to recover other increases in operational costs. WHY ARE YOU RECEIVING THIS NOTICE? As the record owner or customer of record of a property identified to be subject to the imposition of proposed rate, fees, or charge increases, you may submit a written protest against the proposed actions. Provided, however, if the identified property has more than one record owner and/or customer of record, only one written protest will be counted. Each protest must be in writing; state the specific rate increase 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 record owner or customer of record submitting the protest. Protests submitted by e‐mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or in person at the public hearing, so long as they are received prior to the conclusion of the public hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the Board Secretary, that the enclosed letter is for the Public Hearing on the Proposed Increase to Commercial Sewer Rates, Fees, and Charges. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. If, at the close of the public hearing, written protests against the proposed rate increase, fees, and charges 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 will be authorized to adopt the proposed actions. If adopted, the rates, fees, and charges will apply to sewer service billed on or after January 1, 2014 and may apply to sewer service used as early as the beginning of December 2013. This letter serves as a 45‐day notice of the hearing on the proposed rate increases, and as notice of the increases for sewer service billed on or after January 1, 2014, if adopted. This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to property‐related fees such as sewer service. This letter serves as notice that the District will hold a public hearing to consider changes to its current sewer service rates, fees, and charges. (Continued on page 2) Page 2 WHAT DO SEWER RATES FUND? Each end user of the public sewer system pays his or her fair share of the costs associated with sewage disposal, including energy or pumping costs, labor and benefits, materials, chemicals used in sewage treatment, administrative expenses, operations, construction and repair. Such costs include inspection and preventative maintenance of the public sewer system and facilities and replacement of aging sewer infrastructure. The actions proposed will help protect the public’s investment in the public sewer system, reduce the possibility of pipeline breaks, blockages or spills, and keep rates affordable. WHY ARE SEWER RATE CHANGES NECESSARY? The District is a revenue‐neutral public agency that provides sewer service to your community. “Revenue‐neutral” means that sewer bills reflect only those rates, fees, and charges sufficient to support sewer service. To continue to provide reliable service, the District must implement and pass through to its customers the higher cost of sewer disposal services imposed by service providers. As a non‐profit public agency, the District does not make a profit from providing sewer service, and it cannot operate at a loss. OTHER PROPOSED ACTIONS As a result of the Cost of Service and the Rate Study, the following changes will be made to Commercial Sewer Account rate calculations: • The elimination of the Assigned Service Unit (ASU) calculation • Creation of a system fee by water meter size and using the annual average water consumption for the usage charge • Adjust commercial sewer strengths to match changes to current industry standards • Match water meter equivalencies used for sewer base fees that are consistent with those of the American Water Works Association • Eliminate special formulas for schools and churches and adopt a charge methodology comparable to commercial accounts The District may also reclassify a commercial sewer customer’s Strength Factor classification, at the discretion of the District, from time to time or when made aware of the need to reclassify a business based on a change in that businesses’ operations. WHAT CAN I DO TO SAVE MONEY? Customers interested in learning ways in which they can reduce their sewer bills should look to minimizing their average annual water consumption. For program information and conservation tips, please visit the District’s Conservation page at www.otaywater.gov. Additionally, the Water Conservation Garden located on the campus of Cuyamaca Community College in Rancho San Diego is open to the public and offers various conservation exhibits, programs and classes. For more about the Water Conservation Garden, visit www.thegarden.org. For information about the Otay Water District, please visit www.otaywater.gov or contact us via email at info@otaywater.gov. (Continued from page 1) PROPOSED COMMERCIAL SEWER RATES AND FEES PROPOSED FORMULA FOR SEWER RATES AND FEES – ALL CUSTOMER CATEGORIES To be consistent with industry standard, the District proposes to calculate a monthly bill based on the customer’s water use and the size of the customer’s water meter. The current calculation uses Assigned Service Units or ASUs, which is no longer the industry standard. The new method of calculating sewer bills is more equitable among customer classes. The current and proposed formulas for calculating Commercial Sewer Rates and Fees are as follows: The special formulas used for schools will be eliminated. The proposed method for calculating a school’s sewer bill will be the same as all commercial accounts. Schools and churches will also be categorized as Low Strength Commercial customers. CURRENT COMMERCIAL SEWER BILL CALCULATION Step 1: ASU = ((Flow in Gallons Per Day(1)x .85(2))/250(3)) x Strength Factor(4) Step 2: ASU x Usage Fee(7) = Sewer Billing PROPOSED COMMERCIAL SEWER BILL CALCULATION (((Average Annual Consumption(5)x .85(6)) x Usage Fee(7)) x Strength Factor(4)) + System Fee(8) CURRENT FORMULA FOR SEWER RATES AND FEES FOR SCHOOLS The flow for public schools is based on the average daily attendance for the prior year as reported by schools to meet state requirements. For elementary schools, 50 students equal one ASU; for junior high schools, 40 students equal one ASU; for high schools, 24 students equal one ASU. For colleges, flow is based on the number of certified and classified staff, and students enrolled in each school session. PROPOSED CURRENT FORMULA FOR SEWER RATES AND FEES FOR SCHOOLS (((Average Annual Consumption(5)x .85(6))x Usage Fee(7)) x Strength Factor) + System Fee(8) Footnotes: 1. Flow in Gallons Per Day (Flow) is calculated using monthly readings from the commercial account’s water meter. 2. Flow is reduced by 15 percent to reflect that not all water purchased is disposed of into the public sewer system. 3. Flow is divided by 250 to convert it to a residential equivalence. 4. Strength Factors for business customers are categorized as low, medium or high strength as shown on the Strength Factor table. 5. The Average Annual Consumption is defined as the units of water billed from January through December of the previous year. 6. The Average Annual Consumption is reduced by 15 percent to reflect that not all water used flows into the public sewer system. 7. The Usage Fee is based on the commercial account’s Strength Factor as shown on the Usage Fee table as being either Low, Medium, or High. 8. The System Fee is based on the size of the water meter. 9. Projected rates are for informational purposes only, and are increased annually by 7.9 percent inflator. Page 3 The District is required to determine sewer rates in accordance with the State’s Revenue Program Guidelines. The State Water Resources Control Board (SWRCB) has grouped commercial customers into various categories and has identified Strength Factors for each of these business categories. The standard of measure for Strength Factors is the typical sewer strength of a single‐family residence (SFR). The Strength Factors established by the SWRCB are listed below and are used by the District in the calculation of commercial sewer rates. These factors are in terms of the strength relative to a SRF, with a SFR having a strength factor of 1. The District proposes to adjust Strength Factors to match industry standard. The proposed Strength Factors will be effective for bills January 2014. The following are the current and proposed Strength Factors: STRENGTH FACTOR DESCRIPTION CURRENT PROPOSED Schools Based on attendance 1.000 Churches 1.000 1.000 Low Strength Commercial 1.000 1.000 Medium Strength Commercial 1.238 2.000 High Strength Commercial 2.203 4.000 METER SIZE PROPOSED 2014(8) PROJECTED 2015(8)(9) PROJECTED 2016(8)(9) PROJECTED 2017(8)(9) PROJECTED 2018(8)(9) .75” $25.83 $27.87 $30.07 $32.45 $35.01 1” $38.03 $41.03 $44.28 $47.77 $51.55 1.5” $68.53 $73.94 $79.78 $86.08 $92.89 2” $105.12 $113.43 $122.39 $132.06 $142.49 3” $190.52 $205.57 $221.81 $239.33 $258.24 4” $312.51 $337.20 $363.83 $392.58 $423.59 6” $617.48 $666.27 $718.90 $775.69 $836.97 8” $983.46 $1,061.15 $1,144.98 $1,235.43 $1,333.03 10” $1,410.42 $1,521.85 $1,642.07 $1,771.80 $1,911.77 SYSTEM FEE and 2015 ‐ 2018 PROJECTED CURRENT $13.30 $13.30 $13.30 $13.30 $13.30 $13.30 $13.30 $13.30 $13.30 The following tables show the proposed rate increases for Usage and System Fees effective for all bills January 1, 2014, and the projected rates for 2015 through 2018 inflated by 7.9 percent thereafter. These fees include the impact of any pass‐through increases. Therefore, actual fees in each of the future years below may differ. STRENGTH FACTOR CURRENT PROPOSED 2014(7) PROJECTED 2015(7)(9) PROJECTED 2016(7)(9) PROJECTED 2017(7)(9) PROJECTED 2018(7)(9) Low $45.30 $2.35 $2.54 $2.74 $2.96 $3.19 Medium $45.30 $3.37 $3.64 $3.93 $4.24 $4.57 High $45.30 $5.37 $5.80 $6.26 $6.75 $7.28 USAGE FEE and 2015—2018 PROJECTED This information reflects only rates that are proposed to change. For a comprehensive listing of rates, please see the Otay Water District’s Code of Ordinances at www.otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT YOUR COMMERCIAL SEWER SERVICE Dedicated to Community Service WWW.OTAYWATER.GOV PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978‐2004 www.otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT YOUR COMMERCIAL SEWER SERVICE NOTICE OF PUBLIC HEARING In Connection with Proposed CHANGES TO RATES, FEES, AND CHARGES FOR WATER AND SEWER SERVICE This notice contains important information about water and sewer rates. Otay Water District (the “District”) is notifying all property owners within the District’s service area of a public hearing in connection with changes to rates, fees, and charges for water and sewer service. The District is a public agency that can provide water and, in some areas of the District, sewer service to your property. NOTICE IS HEREBY GIVEN that the District will hold a Public Hearing on September 4, 2013, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adoption of rate, fee, and charge increases that apply to water and sewer service billed beginning January 1, 2014; (2) the authorization for a period of five years of all future pass‐through increases or decreases to cover changes to rates, fees, or charges from the District’s water suppliers and sewer treatment providers; and, (3) the authorization for a period of five years, overall average rate increases, in addition to the pass through increases, not to exceed 10 percent per year, of all costs other than pass‐through costs. These rates, fees, and charges apply to property for which you are shown as the record owner. The purpose of the hearing is to consider all written protests against the proposed rates, fees, and charges that, if approved, will be imposed on properties served by the District. PROPOSED RATE INCREASES An overall average rate increase of 7.5 percent for water service and a 7.9 percent increase for sewer service were considered by the District’s Board of Directors as part of the annual budget review process. If adopted after the public hearing noticed above, the rate increases are proposed to take effect with service billed on or after January 1, 2014, and may apply to service used as early as the beginning of December 2013. The District has performed a Cost of Service Study and Rate Study (i.e. reviewed rates, fees, charges, costs, water consumption, and the sewer system usage structure) and determined that increases in the rates, fees, and charges are necessary in order to recover sufficient revenues to operate and maintain the public water and sewer system. The proposed rate, fee, and charge structure will provide revenue that recovers costs reasonably borne in providing water and sewer service; are equitable to all customer classes; and are proportionate to the cost of providing the service to each customer class. The District will also consider authorizing, for a period of five years, passing through to customers the increased or decreased costs imposed by the District’s water suppliers and sewer treatment providers. If adopted, the average customer’s water and/or sewer rates, fees, and charges will be adjusted annually for all increased or decreased costs and charges from the District’s water suppliers and its sewage treatment and disposal providers. Water suppliers include but are not limited to the Metropolitan Water District of Southern California, San Diego County Water Authority, and the City of San Diego. Sewage treatment and disposal providers include but are not limited to the County of San Diego and the City of San Diego. Any changes to rates, fees, and charges subsequently imposed by the District will be subject to a 30‐day prior written notice, but will not be subject to additional hearings or protests. In addition to the wholesale pass‐through costs, the District will consider authorizing, for a period of five years, average rate increases not to exceed 10 percent per year for all costs related to labor, benefits, materials, energy, maintenance, administrative expenses, as well as other operational costs of providing water and sewer service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. The proposed water rate increase in the average amount of 7.5 percent and the sewer rate increase of 7.9 percent will pass‐ through increases implemented by the District’s water suppliers and sewage providers and will allow the District to recover other increases in operational costs. WHY ARE YOU RECEIVING THIS NOTICE? As the record owner of a property identified to be subject to the imposition of proposed rate, fee, or charge increases, you may submit a written protest against the proposed actions. Provided, however, if the identified property has more than one record owner, only one written protest will be counted. Each protest must be in writing; state the specific rate increase 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 record owner submitting the protest. Protests submitted by e‐mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or in person at the public hearing, so long as they are received prior to the conclusion of the public hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the Board Secretary, that the enclosed letter is for the Public Hearing on the Proposed Increases to Water and Sewer Rates, Fees, and Charges. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. If, at the close of the public hearing, written protests against the proposed rate increase, fees, and charges are not presented by a majority of the record owners of the identified properties upon which they are to be imposed, the Board of Directors will be authorized to adopt the proposed actions. If adopted, the rates, fees, and charges will apply to water and sewer service billed on or after January 1, 2014 and may apply to water and sewer service used as early as the beginning of December 2013. This letter serves as a 45‐day notice of the hearing on the proposed rate increases, and as notice of the increases for water and sewer service billed on or after January 1, 2014, if adopted. This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner of proposed changes to property‐related fees such as water and sewer service. This letter serves as notice that the District will hold a public hearing to consider changes to its current water and sewer rates, fees, and charges. NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT WATER AND SEWER SERVICE Dedicated to Community Service WWW.OTAYWATER.GOV PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978‐2004 www.otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT WATER AND SEWER SERVICE PUBLIC HEARING ON THE PROPOSED EXCLUSION OF TERRITORY FROM IMPROVEMENT DISTRICT 19 AND ANNEXATION TO IMPROVEMENT DISTRICT 22 AND THE RESULTING IMPACT ON FEES NOTICE IS HEREBY GIVEN the Otay Water District (the “District”) will hold a Public Hearing on September 4, 2013 at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider the exclusion of territory from Improvement District 19 (ID‐19) and annexation to Improvement District 22 (ID‐22), and the resulting impact of fees. Fees for the two improvement districts are identical and are show below. Annexing ID‐19 to ID‐22 would improve the efficiency of accounting and administration currently required by the two districts. The exclusion of territory from ID‐19 and annexation to ID‐22 will not affect water rates or fees. As the record owner or customer of record of a property identified to be subject to the exclusion of territory from ID‐19 and annexation to ID‐22, you may submit a written protest against the proposed action. Provided, however, if the identified property has more than one record owner and/or customer of record, only one written protest will be counted. Each protest must be in writing; state that the specific action (exclusion of territory from ID‐19 and annexation to ID‐22) 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 record owner or customer of record submitting the protest. Protests submitted by e‐mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail to the Board Secretary, Otay Water District, at 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or in person at the public hearing, so long as they are received prior to the conclusion of the public hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the Board Secretary, that the enclosed letter is for the Public Hearing on the Exclusion of Territory from of Improvement District 19 and annexation to Improvement District 22. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed exclusion and annexation. If adopted, the property annexed to ID‐22 shall be subject to a fee as shown in the table above, identical to the fee previously charged for ID‐19. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. If, at the close of the public hearing, written protests against the proposed exclusion and annexation are not presented by a majority of the record owners or customers of record of the identified properties affected by the proposed action, the Board of Directors will be authorized to adopt the proposed exclusion and annexation. This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively know as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to property‐related services. This letter serves as a 45‐day notice that the District will hold a public hearing to consider exclusion of territory from ID‐19 and annexation to ID‐22. Improvement District Charge per year per acre for parcels one acre or more Charge per year for a parcel less than one acre 19 $30.00 $10.00 $30.00 $10.00 Land outside an Improvement District $10.00 $10.00 Land outside an Improvement District and greater than one mile from District facilities $3.00 $3.00 22 PUBLIC HEARING ON THE PROPOSED EXCLUSION OF TERRITORY FROM IMPROVEMENT DISTRICT 25 AND ANNEXATION TO IMPROVEMENT DISTRICT 20 AND THE RESULTING IMPACT ON FEES NOTICE IS HEREBY GIVEN the Otay Water District (the “District”) will hold a Public Hearing on September 4, 2013, at 3:30 p.m. in the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider the exclusion of territory from Improvement District 25 (ID‐25) and annexation to Improvement District 20 (ID‐20), and the resulting impact on fees. Fees for the two improvement districts are identical as show below. Annexing ID 25 to ID 20 would improve the efficiency of accounting and administration currently required by the two districts. The exclusion of territory from ID‐25 and annexation to ID‐20 will not affect water rates or fees. As the record owner or customer of record of a property identified to be subject to the exclusion of territory from ID‐25 and annexation to ID‐20, you may submit a written protest against the proposed action. Provided, however, if the identified property has more than one record owner and/or customer of record, only one written protest will be counted. Each protest must be in writing; state that the specific action (exclusion of territory from ID‐25 and annexation to ID‐20) 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 record owner or customer of record submitting the protest. Protests submitted by e‐mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail to the Board Secretary, Otay Water District, at 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or in person at the public hearing, so long as they are received prior to the conclusion of the public hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the Board Secretary, that the enclosed letter is for the Public Hearing on the Exclusion of Territory from Improvement District 25 and Annexation to Improvement District 20. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed exclusion and annexation. If adopted, the property annexed to ID‐20 shall be subject to a fee as shown in the table above, identical to the fee previously charged for ID‐25. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. If, at the close of the public hearing, written protests against the proposed exclusion and annexation are not presented by a majority of the record owners or customers of record of the identified properties affected by the proposed action, the Board of Directors will be authorized to adopt the proposed exclusion and annexation. This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively know as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to property‐related services. This letter serves as a 45‐day notice that the District will hold a public hearing to consider exclusion of territory from ID‐25 and annexation to ID‐20. Improvement District Charge per year per acre for parcels one acre or more Charge per year for a parcel less than one acre 25 $30.00 $10.00 $30.00 $10.00 Land outside an Improvement District $10.00 $10.00 Land outside an Improvement District and greater than one mile from District facilities $3.00 $3.00 20