HomeMy WebLinkAbout05-17-10 Board PacketOTAYWATER DISTRICT
SPECIAL MEETING OF THE BOARD OF DIRECTORS
DISTRICT BOARDROOM
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY,CALIFORNIA
MONDAY
May 17,2010
3:30 P.M.
AGENDA
1.ROLL CALL
2.PLEDGE OF ALLEGIANCE
3.APPROVAL OF AGENDA
4.PUBLIC PARTICIPATION -OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
WORKSHOP
5.ADOPT RESOLUTION NO.4159,APPROVING THE FISCAL YEAR 2010-2011
OPERATING AND CAPITAL BUDGETS AND ADOPT WATER AND SEWER RATE
INCREASES;APPROVE FUND TRANSFERS FOR POTABLE,RECYCLED,AND
SEWER;ADOPT ORDINANCE NO.525 TO AMEND APPENDIX A OF THE CODE
OF ORDINANCES WITH THE PROPOSED WATER AND SEWER RATE IN-
CREASES AS PRESENTED IN THE FY 2010-2011 OPERATING AND CAPITAL
BUDGET;AND DIRECT STAFF TO SEND CUSTOMERS NOTICE OF THE RATE
INCREASES (BEACHEM)
6.ADJOURNMENT
1
STAFF REPORT
AGENDA ITEM 5
Chief Financial Officer
TYPE MEETING:
SUBMITTED BY:
APPROVED BY:Joseph
(Chief)
APPROVED BY:German
(Asst.GM):
~~~~7Manager
MEETING DATE:
W.O./G.F.NO:
General Manager
May 17,2010
DIV.NO.All
SUBJECT:Adopt Resolution No.4159 to Approve the FY 2010-2011
Operating and Capital Budget;Approve Fund Transfers for
Potable,Recycled,and Sewer;Approve Water and Sewer Rate
Increases to be Effective for Water and Sewer Services Billed
Beginning January 1,2011;Adopt Ordinance No.525 Amending
Appendix A of the Code of Ordinances with the Proposed Water
and Sewer Rate Increases;and Obtain Approval of the Rate
Increase Notices and Timing of Delivery
GENERAL MANAGER'S RECOMMENDATION:
That the Board:
a)Adopt Resolution No.4159 of the Board of Directors of
Otay Water District to approve the Fiscal Year 2010-
2011 Operating and Capital Budget and adopt a water
rate increase of 10.9%and a sewer rate increase of
6.8%as proposed in the budget.
b)Approve the following fund transfers:
Potable:
Designated Expansion to Replacement
General Fund to Replacement
General Fund to Sewer Replacement
General Fund to Sewer General Fund
Recycled:
General Fund to Designated Expansion
General Fund to Designated Betterment
General Fund to Replacement
Sewer:
General Fund to Designated Betterment
$1,410,000
$6,245,000
$1,750,000
$595,000
$2,775,000
$315,000
$720,000
$1,120,000
c)Adopt Ordinance No.525 to amend Appendix A of the
Code of Ordinances with the proposed water and sewer
rate increases as presented in the FY 2010-2011
Operating and Capital Budget.
d)Direct staff to send customers notices of rate
increases.
PURPOSE:
To obtain approval of the Fiscal Year 2010-2011 Operating and
Capital Budget;various fund transfers;adopt Resolution No.
4159 to approve a 10.9%water rate increase and a 6.8%sewer
rate increase;and direct staff to send customers notices of the
rate increases.
BACKGROUND:
Each year the District goes through a rate setting process with
new challenges.The process typically begins in January and
ends with the implementation of rates the following January.
This year,CWA is raising rates by 11.3%,and water sales are
projected to be 10.3%less than last year's budget.Staff has
prepared the proposed Operating and Capital Budget with the
recommended water and sewer rates for adoption by the Board.
Staff has attempted to present the most realistic set of factors
and assumptions based on information received from various
sources including:the Metropolitan Water District of Southern
California (MWD),the San Diego County Water Authority (CWA),
wholesale water suppliers,and vendors such as SDG&E,while also
taking into account other economic indicators affecting revenues
such as property taxes and lease agreements.
DISCUSSION:
This year,the challenges for deciding to increase water rates
are the ongoing water cost increases by CWA &MWD,reduced water
sales,maintaining the District's debt coverage ratios,and the
need to fund capital projects.The focus on the sewer side is
on higher costs due to the Public Utilities Department -
Wastewater Branch and the Spring Valley Sanitation District
costs to transport and treat sewer.Another aspect of the
recommended sewer rates,consistent with the prior year's Board
direction,is the gradual draw down of the general fund reserves
while revenues are increased over the next five years.The
2
following discussion and the attached presentation review these
significant issues.
Water Costs
Fiscal year 2011 has a number of challenges that have an impact
on water rates.The most significant challenge is that the
potable water suppliers,CWA and MWD,have rate increases of
11.3%and 12.2%,respectively.This is primarily a result of
the ongoing water supply problems that face the State of
California.The cost of obtaining a secure water supply in the
existing environment is driving up the cost of water.In
addition,the repair and maintenance of MWD's aging facilities,
CWA's emergency water storage facilities and the San Vicente Dam
Raise Project costs are adding to this cost pressure.Finally,
with lower water sales due to conservation messages and economic
challenges,the fixed costs are being spread over a smaller
sales base.All of these factors playa significant role in the
higher cost of water to the District.
With water costs representing 55%of the District's operating
budget,it is understandable that nearly two-thirds of the rate
increase is providing the $1.6 million needed to purchase
approximately 12.6%less water than was planned to be purchased
in the prior year.As these difficult times continue,the
District is in the same position that some customers will
realize,that they will pay more for less water.
Debt Coverage and Credit Ratings
In September of 2008,the District was able to obtain a rating
upgrade from Standard &Poor's to AA.On April 30,2010,Fitch
Ratings upgraded Otay Water District's credit rating to AA from
AA-,as a part of their global ratings recalibration for
municipal agencies.While the credit rating is an overall
rating and many factors are considered when these ratings are
determined,one of the main financial ratios considered is the
Debt Coverage Ratio.This ratio is the measure of net revenues
compared to debt service.The District has historically held
the "no growth"version of the debt coverage ratio over 125%
with a target of 150%.With the economic difficulties
experienced over the past several years,it is now expected that
for the District to maintain a strong credit rating it should
maintain a debt coverage ratio of 150%.With a 10.9%rate
increase,the District will maintain this ratio at a strong
level of 151%in 2011.In 2012 through 2016,the District is
expected to maintain a stable and strong debt coverage ratio
close to 150%.In later years,growth revenues are expected to
boost the true debt coverage ratio well above 300%.Water sales
3
are a significant variable affecting the District's financial
standing.Daily monitoring of sales is a focus of the District
to provide timely information that enables the District to react
as needed.
Financing Plan
The District uses a comprehensive approach to financing.The
Finance Policy provides guidance on debt issuances and
refinancing and the Reserve Policy provides guidance on both
fund transfers and reserve balances.With these policies,a
six-year financing plan is formulated that identifies the timing
and amounts of debt issuances,the level of rate increases,debt
coverage ratios,reserve balances,and necessary transfers.At
the current level of CIP expenditures,it is expected the
District will not issue debt in the corning fiscal year however;
it is likely that another debt issuance will be needed in FY
2012 in the amount of $51.8 million.This level of debt along
with the timing of the debt is highly dependent on the rate at
which growth returns to the District and how management responds
to these variables.No additional debt is anticipated in the
years 2013 through 2016 due to the expectation that growth will
return and provide funding for CIPs through higher capacity
fees.The CIP is also supported by $14.9 million of the
transfers requested above.
With the proposed transfers and rate increases,the District
will be able to maintain all reserve levels at or above target
levels in the corning fiscal year.These actions are consistent
with the debt and reserve policies of the District and will
provide sufficient funds to finance the capital improvements for
fiscal year 2011.
Water Sales
In the 2010 budget process,the District anticipated that water
sales would decline 4.8%from the 2009 levels as a result of the
drought and the conservation messages.The 2010 projected water
sales are now projected to be 10.3%less than that reduced
budget level.With last year's unprecedented rate increase of
19.9%,the greater than expected rainfall,the slow economic
recovery,and ongoing conservation messages,the water sales
have been impacted more than anticipated.
In the proposed FY 2011 Budget,water sales are being set at
levels equal to the FY 2010 projected water sales with a slight
increase for the anticipated growth.This is a fairly
conservative expectation that is sensitive to the additional
rate increases,the sluggish economy,and the continued
4
conservation messages.This is also consistent with the CWA
projection that water sales will remain relatively flat in the
next year.
Due to the substantial investment in recycled water and the
conservation already being achieved by Otay customers,the CWA
water allocation for the District is well above the anticipated
purchases in 2011.The allocation level is set at 39,832 acre-
feet while the projected purchases for 2011 are only 31,088
acre-feet,leaving a 22%cushion before the District is at risk
of incurring penalty pricing.
With these two pieces of information,projected sales and the
allocation,the District has determined that even with the
uncertainty of projecting sales,there is a very small chance of
exceeding the allocation level.This leaves a positive
financial impact of selling more water than budget and the
standard negative impact of selling less water than budget.
Variable revenues from water sales represent 62%of the
District's budgeted revenues with variable costs representing
45%of budgeted expenses.The District will monitor sales
closely in order to determine the financial impact of lower than
expected sales.While reserves are sufficient to cover even a
dramatic cut in sales,the debt coverage ratios need to be
maintained to insure that the District can retain its ability to
issue additional low cost debt.
Relative Position to Other Districts
Annually,the District performs a survey of how Otay's rates
compare to other water providers in the county.For many years
the District has remained in the lower half of this comparison.
It is expected that all water providers in the county are facing
the same rate pressures purchasing water from CWA and MWD,some
to a greater extent than others,depending on the relative
dependence on CWA water.Many water districts are looking at
implementing rate increases close to 12%.The District's
survey,shown in the attached presentation,illustrates that a
conserving customer,10 units;or an average customer,15 units;
will be charged the seventh lowest rates if they are an Otay
customer as compared to other agencies in the county.
The 10.9%water rate increase generates an additional $2.6
million in revenue of which 7.1%of the increase is pass-through
cost.This is required to offset the $1.7 million of higher
water cost due to rate increases from our suppliers.The
remaining 3.8%or $922,900 is due to internal factors necessary
5
to fund capital projects and the related debt payments and
reserve requirements.The District was successful in managing
its own internal cost,reducing operating expenses by $349,500,
in turn reducing the overall necessary rate increase by 1.8%.
The 3.8%portion of the overall 10.9%rate increase is well
within the 10%allowed by the District's Proposition 218 notice.
Sewer Rates
The main reasons for increases in the sewer rate are the
increased costs to transport and treat sewer by the Spring
Valley Sanitation District and the Public Utilities Department -
Wastewater Branch,respectively.These increases totaled
$91,500,which exceeds the overall revenue collected by the
proposed 6.8%rate increase.The rate model shows that with
this proposed increase the expenses will exceed revenues.Over
time,with the projected future rate increases,the operating
revenues will increase to be on par with operating expenses.
This would draw down the sewer general fund reserves by
$994,600.This draw down is consistent with the Reserve Policy,
as the general fund is over the target level and will exceed the
maximum as the potable general fund repays the transfer that was
made last year.This is a continuation of the action taken by
the Board with last year's budget approval to bring the sewer
reserves closer to their target levels.
Efficiencies Throu2h Strate2ic Mana2ement
In addition to the budget and rate setting process,the
District's focus on strategic planning has played a positive
role in the financial strength of the District.By managing
staffing,automating processes,and implementing best management
practices,the District has become more efficient,therefore
more cost effective,as demonstrated by its relative rate
position among other agencies in the region.
Operatin2Budget
The proposed Fiscal Year 2010-2011 Budget supports the pass-
through of CWA's increases in water costs,effects of reduced
water sales,funds the Capital Budget,and maintains the
District's financial position.The proposed budget includes a
recommended 10.9%rate increase for water,and a recommended
6.8%rate increase for sewer.The rate model projects a 10.9%
increase for each of the next three years followed by 2.2%
increases in the following three years.
Rate Implementation -Water
The 10.9%rate increase is being recommended for both potable
and recycled customers.A 10.0%increase in the variable water
6
rate is recommended to all classes of potable customers.The
MWD/CWA pass-through fee is proposed to increase 21.0%to
collect the fixed costs charged to the District by our water
providers.The total of these fixed charges are shown below:
Customer Service Charge $1,315,200
Emergency Storage Charge $2,875,200
Infrastructure Access Charge $1,550,700
Capacity Reservation Charge $665,100
Readiness-to-Serve Charge $1,232,400
Total MWD/CWA Fixed Charges $7,638,600
No increase is recommended for the District's system fee of
$14.58 for a single-family residence.The system fee is to
cover a portion of the District's fixed cost to operate and
maintain the system.The District has been diligent in reducing
cost and increasing efficiency,enabling the District to keep
this fee at the same level as last fiscal year.The combination
of a significant increase in the MWD/CWA fee and no increase in
the District's system fees brings the District's overall fixed
revenues close to the 30%maximum recommended by the Best
Management Practices (BMP)11.This maximum is recommended in
order to promote conservation.It is important for the District
to remain close to this maximum of fixed fees to maintain
revenue stability while at the same time promoting conservation
with close to 70%variable revenues.
The same percentage increase of 10.0%is recommended for the
variable recycled water rates,with no increase on the system
fee.Recycled water rates are set at 85%of the potable
irrigation rate in accordance with our recycled rebate agreement
with CWA.
Rate Implementation -Sewer
In Fiscal Year 2010,a 7.2%rate increase was projected based on
cost estimates at the time.Now,despite the increase by our
sewer providers,there have been reductions in District costs
that offset some of the anticipated increases reducing the
necessary increase to 6.8%.Since sewer costs only represent
3.0%of the total Operating Budget,even relatively small
changes in the budget can cause significant fluctuations in the
sewer rate.
Budgeted Revenues
The water revenues,as compared to last year's budget,include a
slight decrease in potable water revenues of 0.2%and a modest
increase in recycled water revenues of 0.2%.The relatively
7
flat sales dollars are directly related to the projected reduced
water sales volumes of 10.3%for potable and 5.7%for recycled.
These low levels of sales are offset by the prior 19.9%rate
increase and the proposed 10.9%rate increase.
The sewer revenues increased 1.1%over last year's budget,again
showing the combined effect of lower water consumption and a
rate increase of 6.8%.This relatively low rate partially
results from the proposed general fund draw down that will
continue for five years until the revenue and expenditures are
equal.
Other changes in the Operating Revenues include the following:
•Capacity Fee Revenues are expected to decrease by 21.6%due
to less work in the planning area.
•Betterment Fees for maintenance are expected to increase
15.0%due to more maintenance on facilities within the
Betterment IDs.
•Annexation Fees are expected to be reduced to zero due to
the change in the methodology and no parcels are
anticipated to annex into District boundaries in FY 2011.
•Property Tax Revenues are expected to decrease 1.0%due to
an anticipated reduction in assessed values.
•Property Rentals are expected to increase 15.5%due to two
new cell-site leases and agreed upon inflators in
contracts.
•Miscellaneous Revenues are expected to increase by 73.4%
mainly due to increase in billable work orders.
Expenses
In the proposed budget,water costs are projected to decrease
2.2%,despite the MWD and CWA rate increases.This is because
of the large reductions in volume.The total decrease in the
variable potable water costs is expected to be $1,795,000.This
is despite the increase in the price component,$73 per acre-
foot.The fixed costs paid to CWA and MWD are projected to
increase by $1,128,800.Recycled water costs are expected to
decrease by $132,100.This is mainly due to a purchases volume
decrease of 10.2%combined with an estimated reasonable price
inflator by the City of San Diego.The estimated increase was
based on a 4.5%annual inflator from when the District began
taking water,accumulating to a 19.1%increase estimated to be
effective on January 1,2011.
8
Sewer costs are expected to increase by $91,500 due to increased
charges from our service providers,the Public Utilities
Department -Wastewater Branch and the Spring Valley Sanitation
District.
Power costs are budgeted to decrease by $116,400 or 4.4%due to
volume decreases resulting in reduced pumping,partially offset
by an anticipated SDG&E rate increase of 3.5%on January 1,
2011.
Labor and benefits costs are expected to decrease by 2.7%or
$463,400.These changes are due to the following:
•Reduction of FTEs by 7 resulting in a decrease of $521,300.
•Cost of living increase of 3%and merit increases,pursuant
to current MOU increase of $579,700.
•Changes in the vacancy factor along with vacation and sick
leave increase of $11,500.
•Reduction in overtime of $12,400.
•Benefit cost increases of $37,000.
•Increase of charges to CIP projects shifting costs away
from the Operating Budget decreases cost by $557,900 for
labor and benefits and associated overhead allocation.
The administrative expenses increased by 4.9%or $262,400 of
which $120,000 is offset by conservation grant revenue.This is
due to three main factors:
•An increase in temporary help of $184,000 for work that is
temporary in nature.
•Increases in outside services due to necessary studies such
as a Classification Study,Waste Water Master Plan,
laboratory outsourcing,and increased workload in the
Closed Circuit Television (CCTV)program.
•Decreases in departmental expenses,including the
elimination of a $100,000 paving project,reductions in
general office expense and contracts,and reductions in the
overhead allocation of $97,400 due to the shifting of cost
between Operating and CIP Budgets.
The materials and maintenance budget experienced an overall
decrease of 0.8%or $32,100.Four major factors are:
9
•Higher meter cost of $51,500.
•Increases in the Public Utilities Department -Wastewater
Branch charge of $57,600.
•Increase in the Spring Valley Sanitation District costs of
$33,900.
•Decreases in chemicals,safety equipment,and contracted
services totaling $174,000.
Funding to reserves is increasing by $1.8 million as compared to
last year.This year,the funding is needed to keep the
Replacement,Expansion,and Betterment Reserves on target and to
fund eIP projects.This funding will keep reserve levels in
compliance with the Reserve Policy.Additionally,the potable
general fund is repaying Sewer Reserve in the amount of $2.3
million for funds borrowed in 2009.
Capital Improvement Program (CIP)Budget
As a component of the annual budget development process,the
Engineering Department updates the eIP budget.This year,the
total six-year eIP budget decreased by $41 million from last
year's eIP.This decrease is a result of completing many eIP
projects,delaying projects that are developer driven,planning
efforts enhancing project definition,and increasing emphasis
upon water supply projects.The impact upon the eIP resulted in
new projects and cost revisions to existing projects.The
following process is used to prepare the eIP Budget:
•eIP projects selected are based on the Water Resources
Master Plan (WRMP),the Urban Water Management Plan (UWMP),
Integrated Water Resources Plan (IRP),Sewer System
Management Plan (SSMP),and other focused or specific
planning documents and reports.
•The eIP goes through an iterative process to meet the
criteria of growth,service levels,supply targets,and
system requirements.
•eIP target expenditures for the next six years are refined
and used in the rate model.
The following general criteria are used to determine the
reasonableness of a project before it is considered for
inclusion within the eIP Budget:
•Existing facility conditions
•Operating system conditions
•Water and sewer system deficiencies
10
•Regulatory and permitting requirements
•Developer driven requirements
•Economic outlook
•Growth projections
•Water supply diversification goals
•Board and management directives
This year,the ClP Budget includes the following amounts by
project category.Project details within each of the categories
are located in Attachment 0 under the Capital Budget tab.
Capital Backbone
Developer Reimbursement
Replacement and Renewal
Capital Purchases
Total (millions)
$16.2
0.0
10.0
2.3
$28.5
There are a total of 94 projects in the current six-year ClP
plan.Each project is listed in the FY 2010-2011 Preliminary
Operating and Capital Budget (Attachment OJ.The total six-year
cost of the 94 projects is $181.4 million.
~.-.~~FISCAL IMPACT:~
A six year rate modeling effort is one of the ways the District
can better educate its customers,manage risk to ensure it is
minimized,reduce rate impacts,and establish fiscal strength as
the District and its customers experience these difficult
economic times.
The recommended balanced budget totals $77 0 million for
Operating and $28.5 for ClP.With budget approval,the District
will move forward into the 2011 fiscal year with clear financial
direction and strength.An average increase of 10.9%is
recommended for water rates and a 6.8%average rate increase is
recommended for sewer rates.These increases are recommended
for all water and sewer services billed beginning January 1,
2011.This budget,with the recommended transfers,provides
sufficient funding to pay increased water costs;continues
funding for the District's administration,maintenance,and
operations;strengthens our financial position;and is
consistent with the Strategic Plan and Reserve Policy.
11
STRATEGIC OUTLOOK:
The District ensures its continued financial health through
long-term financial planning and debt planning.
LEGAL IMPACT:
None.
General Manager
Attachments:
Fiscal Year 2010-
Increase Notice
Increase Notice
Increase Notice
-Residential Water Rates
-Residential Sewer Rates
-Commercial,Landscape,Agricultural &
Construction Water Rates
H)Rate Increase Notice -Recycled Water Rates
I)Rate Increase Notice -Commercial Sewer Rates
J)Rate Increase Notice -Master Metered
A)Resolution No.4159
B)Ordinance No.525 to Amend Appendix A
C)Fiscal Year 2010-2011 Budget Presentation
D)Preliminary Operating and Capital Budget
2011
E)Rate
F)Rate
G)Rate
12
Attachment A
RESOLUTION NO.4159
A RESOLUTION OF THE BOARD OF DIRECTORS OF
OTAY WATER DISTRICT ADOPTING THE
FISCAL YEAR 2010-2011
OPERATING AND CAPITAL BUDGET AND THE PROPOSED
WATER AND SEWER INCREASES AS AMENDED IN
APPENDIX A
WHEREAS,the Otay Water District Board of Directors have
been presented with a budget for the operation of the Otay Water
District for Fiscal Year 2010-2011;and
WHEREAS,the Operating and Capital Budget has been reviewed
and considered by the Board,
WHEREAS,the amended Appendix A with the proposed water and
sewer rate increases,as presented in the Fiscal Year 2010-2011
Operating and Capital Budget,have been reviewed and considered
by the Board,
WHEREAS,it is in the interest of the District to adopt a
budget for said year;and to adopt the water and sewer rate
increases effective January I,2011.
NOW,THEREFORE,BE IT RESOLVED,DETERMINED AND ORDERED by
the Board of Directors of the Otay Water District that the
Operating and Capital Budget for the operation of the District,
incorporated herein by reference,is hereby adopted as the
District's budget for Fiscal Year 2010-2011.
PASSED,APPROVED AND ADOPTED by the Board of Directors of
Otay Water District at a special board meeting held this 17th day
of May 2010,by the following vote:
Page 1 of 2
Ayes:
Noes:
Abstain:
Absent:
ATTEST:
District Secretary
Page 2 of 2
President
Attachment B
ORDINANCE NO.525
AN ORDINANCE OF THE BOARD OF DIRECTORS
OF THE OTAY WATER DISTRICT AMENDING THE
CODE OF ORDINANCES APPENDIX A,SCHEDULE OF FEES
AND CHARGES
BE IT ORDAINED by the Board of Directors of Otay Water
District that Appendix A,Schedule of Fees and Charges be
amended as per the attached Documents A-I and A-2.
NOW,THEREFORE,BE IT RESOLVED that the amendments to the
District's Code of Ordinances,Appendix A,Schedule of Fees and
Charges,increasing water and sewer rates shall become effective
January 1,2011.
PASSED,APPROVED AND ADOPTED by the Board of Directors of
the Otay Water District at a regular meeting duly held this 17th
day of May 2010,by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
President
ATTEST:
District Secretary
Page 1 of 1
I !i..I
--Otay Water District .-
-fl----·Appendix A -T ------r ._---------j-r-------I II
I I I IIIIII
Section #I Code #I Fee Description Meter Size!Charges!I
9 9.04 A.1.I District Processinq Fee I $692.00I
I I IAnnexation Fees for Annexations into iI District-wide
I i
9.04 B.i Otay Water District Boundaries Meter Size Annexation Fee
,3/4"$1,477
I 1"!$3,693
!1 1/2"i $7,385
2"$11,816
!3"I $23,632
i i i 4 i $36,925!
I 6"$73,850
!i 8"$118,160
i !10",I $169,855!i
I
!,Annexation Fees for Annexations to I I9.04 CA.ISewer Improvement Districts $5,445.00Ii
I
10 !10.01 Filing of Petitiion $50.00
!
23 23.04 ,Backflow Certification I ,IIII !
-Second Notification I $10.00
-Third Notification $25.00
i -Reconnection (service resumed)I ,$50.00!
!-Initial Filing Fee (New applicants for
I
!addition to the list of approved backflow
!prevention device testers)!!I $25.00
-Renewal Filing Fee (to remain on iI
,list of approved backflow prevention
device testers)Annually $10.00
I Ii ,
25 25.03 A.Set-up Fees for Accounts $10.00
I i
Appendix A
1 of 12
I
!I Monthly Fixed System Charges,MWD MWD&CWA Total FixedI
25 25.03 C.&CWA Charges Meter Size System Charge Fixed Charge Charge
3/4"I $14.58 ~$24.35I
!1"I $18.52 ~$M:WI
I i 1-112"$28.37 ~~I
!i I 2"$40.18 ~~I
I i 3"I $71.68 $104.30 $175.98I
I 4"$107.13 $162.98 $270.11
!i i 6"I $205.59 $325.92 $531.51
i I
I !8"i $323.73 $521.51 $845.24I
I I i 10"$461.57 $749.61 $1,211.18
I II
25 25.03 E.1 .(b)Domestic Residential Water Rates !I I Unit Charqe
i !i I I 1 - 5 ~i
I I 6-10 $2-:-W
I i I 11-22 ~
I I ,i 23 &over $441-
1 i I !I I
II Multiple Residential Water Rates -Per I
II2525.03 E.2.(b)!Dwelling Unit I 1-4 ~
i i 1 !5-8 ~
I I 9 &over $4,-1-§
j I I
i i
I !
Business and Publicly-Owned Water
25 !25.03 E.3.(b)Rates under 10"i 1-173 ~
I 174-831 ~,832 &over ~
I i II
I I I 10"&larger I !1-7426 ~I
,7427-14616 ~
I 14617 &over ~
I I
IIrrigation and Commercial Agricultural I I
25 I 25.03 EA.(c)IUsing Potable Water Rates 1"&smaller I I 1-49 ~I
!50-132 $3-,00
!I I 133 &over ~I
I i !II
!I i 1.5 &2"I 1-144 ~I I
Appendix A
2 of 12
i I 145-355 ~I
I !I !356 &over ~I
I !
I I 3"&larger I 1-1044 ~
I I 1045-8067 ~
I i 8068 &over ~I
I
25 25.03 E.5.(c)IRecycled Water Rates I i 1"&smaller 1-42 ~
i I i I 43-97 ~
i 98 &over $2:£.7
i !i iI
I !1.5 &2"!1-168 ~
I I I 169-402 ~i
I 403 &over $2:£.7,
,
!3&4"i 1-403 ~
i i 404-820 ~
I 821 &over $2:£.7I
I
I 6"&larger 1-7916 ~I I
I I i 7917-16357 ~
I 16358 &over $2:£.7
!I I I
i
I
Temporary and Construction Water
25 i I 25.03 E.6.(b)Service Rates I 1"&smaller !1-49 $&:G4
I 50-132 $&.4@
I I 133 &over ~
II
I i !1.5 &2"!1-144 $&:G4I,
I i 145-355 $&.4@
I 356 &over ~,
II
i I 3"&larger 1-1044 $&:G4
I
;i 1045-8067 $&.4@II
I 8068 &over ~
25 25.03 E.8.(b)Tank Trucks Water Rates !1"&smaller 1-49 $&:G4
I I 50-132 $&.4@I
133 &over ~
Appendix A
3 of 12
I i [i 1.5 &2"!1-144 ~I
I 1 145-355 ~I ,
I ,I 356 &over ~II
i
i j !3"&larger 1-1044 $9-:Q4
J I I I 1045-8067 ~
i ,8068 &over ~
i !!i IiI
I i i
Application Fee for Water Service [I
25 25.03 E.9.(c)Outside District Boundaries $500.00
I ,
I I
I Water Rate for Service Outside District i ;IIii
25 I 25.03 E.9.(d)I iBoundaries 1"&smaller 1-49 ~
:,50-132 ~!,
I ,
!133 &over ~i ,
I I i I iI
I I I 1.5 &2"1-144 ~I
i i 145-355 ~I
I 1
I i I !356 &over ~I ~
r I [I I
!I 3"&larger 1-1044 ~
I i i 1 1045-8067 ~,
I I i i 8068 &over ~I
i !I i,
I Application Fee for Water Service i
i I I2525.03 E.10.(b)Outside an Improvement District I $275.00
!!,!I
II [Water Rate for Service Outside I
I i !
25 25.03 E.1 O.(c)Improvement District 1"&smaller i i 1-49 $9-:Q4
I 50-132 ~
I ,!i ;133 &over ~t
!
I 1.5 &2"!1-144 ~I I
I !I !,i 145-355 ~,
i I I I
I 356 &over ~I
I I i
I I 3"&lamer 1-1044 $9-:Q4,
I l i I 1045-8067 ~i
i \I i I 8068 &over ~
i i t
Appendix A
4 of 12
25 ,25.03 E.11.(c)Fire Service Monthly Charge I $30.11i
!,
I
I
!Additional Water Service for Property ii
25 25.03 E.12.(b)Not Subject to District Taxes I per unit $0.29iI
i
I!
Interim Service Water Rate in I I
25 25.03 E.13.(b)Improvement District 7 I 1"&smaller 1-49 $-6.,G4
!:i 50-132 ~
i !I i 133 &over ~I,
i i I!
1.5 &2"1-144 $-6.,G4
I 145-355 ~I I
,i I I 356 &over ~
I i i )
i I I I 3"&larger i I 1-1044 $-6.,G4!I I,1045-8067 ~
:,i 8068 &over ~
i i Iii
I
Per 100 ft of list
over 450 ft per
25 25.03 F.Energy Charges for Pumping Water unit ~
i i
I
Per unit charge
except for the
I Additional Water Charge for Service in first 5 units ofI!I
i2525.03 G.1.the North District residential $0.08
i iI
I
Per unit charge
Additional Water Charges for Service in!I except for theI
I
I
the Improvement District 9 Water i first 5 units of
25 I 25.03 H.1.Service Zone residential $0.27
i !
I
I
Additional Monthly System Fee for
25 25.03 H.2.Improvement District 9 I $2.00
!
Appendix A
5 of 12
[I i 1Per unit charge
except for the
Additional Water Charges for Services !first 5 units of Effective Jan
25 25.03 1.1.(a).in Improvement District 3 I residential $0.17 per HCF 1,2009
I i !I I I !"Effective Jan
I j !$0.18 per HCF 1,2010
I II I T I
i Effective Jan
I ",I I $0.19 per HCF 1,2011
II I !
I
r "Effective Jan
i I i $0.20 per HCF 1,2012!I
I I I I !Effective Jan
i "i I $0.21 per HCF 1,2013i1
I i!!
!Per unit charge
i except for the
[Additional Water Chargges for Services first 5 units 0 Effective Jan
25 I 25.03 1.1.(b)in Improvement District 10 ,residential $0.25 per HCF 1,2009
I
I
I
I
Effective Jani!
I "$0.26 per HCF 1,2010!i
!
!Effective Jan
I
II
I r "1,2011-I
I $0.27 per HCF 2018
j !!
i
I
I !
IAdditional Water Charges for Services
!Per unit chargeI
I I except for the Effective Jan
I i !I first 5 units of 1,2008-
25 25.03 1.1.(c)lin La Presa I residential $0.07 per HCF 2010
I I !Effective Jan
I I "I 1,2011-
I I I I $0.08 per HCF 2013
!
25 i 25.04 A.IDeposits for Non-ProDertv Owners ,i 3/4",$75.00iiI
!1"I i $150.00
i 1-1/2"$200.00
I I 2"i $360.00;
i i 3"I i $800.00i!
!!4"$1,350.00
!6"I $3,300.00,i !!
Appendix A
6 of 12
I I 8"!I $4,400.00!
I i 10"$5,500.00
i i I
I ,
I I I
I
IICapacityFeesandZoneCharge
!I District-wide
i
,
28 I 28.01 B.1.!Meter Size !!Capacity FeeII,i I
!i I $7,499.00II-All IDs except Triad 3/4"
i i I 1"$18,748.00
!!i I 1 1/2",$37,495.00jI
i I ,2"!i $59,992.00II
,I 3"i $119,984.00
I 4 $187,475.00
i i I 6"$374,950.00I
i I i !8"!$599,920.00i;
I i 10"i $862,385.00
;i IIi
i -22/27 TRIAD !3/4"!$5,612.00ii!
i ,I 1"i $14,030.00II
:1 1/2"I $28,060.00
I I ,2"!$44,896.00I,
j i 3"i i $89,792.00,I
i ,I 4 I $140,300.00
I i I !6"I I $280,600.00I,
!!I 8"I i $448,960.00
I !i I 10"$645,380.00j;
J
,I,I
28 I 28.01 B.2.Supply Fees I Meter Size i Supply FeeIj
-All IDs inciudinQ Triad 3/4"$864.00
!!I 1"I $2,160.00!
i I [I 1 1/2"i $4,320.00
2"I i $6,912.00
!I 3"i $13,824.00
j ;I 4 I i $21,600.00,,
I i 6"$43,200.00
i 8"$69,120.00
10"!$99,360.00II
i ;!,
I i
Appendix A
7 of 12
I
I i
IInstallation Charges for WaterMeter I i
28 28.02 .and Water Service Laterals Meter Size I [Meter Fee Meter Box Installation Total Fee,!I 3/4"$59.00 $47.00 $60.00 $166.00,,;
I I 1"!$117.00 $47.00 $60.00 $224.00
!1 1/2",!$250.00 $61.00 $103.00 $414.00,i I 2"i ;$475.00 $61.00 $240.00 $776.00,!I
!I i 3"I $653.00 $1,770.00 $300.00 $2,723.00I
I I 4"$1,370.00 $1,770.00 $300.00 $3,440.00,!6"$2,500.00 $1,770.00 $300.00 $4,570.00,
j ;I I I 8"i $3,737.00 $2,760.00 $300.00 $6,797.00
I i 10"i !$5,060.00 $2,760.00 $300.00 $8,120.00II
!I
I !Requirement of Temporary Meter for
I !
I minimum/per
31 31.02 D.1.Service I day $25.00,
I i I !I !1
31 31.03 A.1.I 'Reauirement of Deposit -Temporary Meters i
i 3/4"$150.00
1 I i 1",$180.001i
i I 1~1/2"!!$330.00!I,,2",$445.00i!
3"$850.00
i i 4";$850.00
!I 6"I I $2,075.00!
I
,
31 I 31.03 A.4.i Temporary Meter Install &Removal !$128.00
I ,!i ,,I iTemporary Meter Move Fee (includes
I I I31i31.03 A.5.ibackflow certification)3/4"-2"$64.00
i !,3"and larger I No backflow test $64.00
!I i [!
1 Customer Request for Meter Test
5/8,314 &1"I3333.07 A.(Deposit)$25.00
i 1 1/2 & 2 "I $50.00I
I i i,
I
,
,
3"&Larqer $125.00
I I !
34 I l 34.01 D.2.!Returned Check Charqes ~!I $25.00
i I!
Appendix A
8 of 12
I
IILate Payment Charge
I
I i 5%of DelinquentI
I34I34.02 B.!
i Balance
I
Ii
34 34.02 G.1.(d)iDelinquency Tag I $10.00
!II
f I I I
I
During regular
34 34.02 G.3.(a)Meter "Turn-On"Charge business hours $35.00
i I
I I I
I i After regular
34.02 G.3.(b)I I business hours34iMeter"Turn-On"Charge $65.00
I
53 i 53.04 C.1.I Sewer Connection Fee -Russell Square $7,500.00
i i i
53 i 53.04 C.2.i I Monthly Sewer Service Charge -Russell Square I $200.00
i i
53 I 53.11 A.Set-up Fees for Accounts i i !$10.00
I I Rate multipled
i by winterI
53 !53.11 8.2.I Residential Sewer Charges average units)$+:WI
I i !I
I I
53 !53.11 B.3.IResidential Sewer Charges Base Fee 5/8"&3/4"i i $-W-:OO
I i 1"&larqer ~
I I jI
I
I IMonthly Residential Sewer Rate
I
I I
53 53.11 B.4.i Without Consumption History 5/8"&3/4"I I ~I
j 1"&larqer !$44-,SdI
i I Ii
53 I 53.11.C.4.iWinter Averaging -Sewer i i
I
j 19.68 -15%
I discount =16.73
-Single Residential I units
I
8 units -15%
I discount =6.8II-Multi-Residential I I unitsI
I i
I I
Rate multipled
IMulti-Residential Rate Charges -Sewer I
by winter
53 53.11 D.2.I average units $+:Wi
Appendix A
9 of 12
II IPer ASU (Based
!on Student
53 I 53.11 E.6.Public Schools Sewer Rate Count)~I
I !
I
Per ASUs &
I !Charged on
53 53.11F.Sewer State Loan Annual Charge !I I annual tax bills $54.00
Monthly Service Charge for
53 53.11 G.1.I Commercial and Institutional Sewer Per ASU ~
I
Issuance ofAvailability Letters for
I6060.03 Water and/or Sewer Service $75.00
I I
Locking or Removing Damaged or I!
I72I72.04 A.1.Tampered Meters
I i -To Pull and Reset Meter 3/4"-1"$170.00
-Broken Curbstop or Tabs I 3/4"-1"$192.00
-If Customer uses Jumper !3/4"-1"I $149.00
I -Broken Lock/LockinQ Device 3/4"-1"I $56.00I
-Cap Lock (Welded)3/4"-1"$158.00
I -Broken Curbstop or Tabs i 1.5"-2"$265.00
I -To Pull and Reset Meter I 3"I $351.00
-To Pull and Reset Meter 4"$454.00
-To Pull and Reset Meter I 6"$454.00
-To Pull and Reset Meter I
,8"i I $600.00I
I -To Pull and Reset Meter 10"$600.00I
I I I
72 I 72.05 D.A.I Type I Fine !I
-First Violation $100.00
!-Second Violations $200.00
I
I -Third or each additional violation of that same
ordinance or requirement within a twelve-month period I I $500.00I
i I I
Will not exceed
per each day the
I
violation is
identified or
Type II Fine continues.$5,000.00
Appendix A
10 of 12
1
Fine up to
amount
specified per
each day the
violation is
identified or
Type III Fine continues.$500.00
Fine up to
amount
specified per
each day the
violation is
identified or
IType IV Fine continues.$500.00
I
State Water i#71630 &Annual Board i Water Availability/Standby Annual
I Less Than One
Code i Resolution #4142 Special Assessment Charge i ,i Acre aUI.D.s &$10.00
I i i,I
I
Per Acre in J.D.
i
1,5,&Outside
i I an 1.0.$10.00
Ii
I Per Acre in 1.0.
i i 2,3,7,9,10,19,20,
I 22,25,&27 $30.00I
I
Less Than One
one acre
Outside J.D.and
greater than one
I
mile from District
facilities.$3.00
I
Appendix A
11 of 12
Per Acre for
Outside 1.0.&
greater than one
mile from District
facilities.$3.00
I !i i
1#71630 &Annual Board
I Less Than One
State Water ISewerAvailability/Standby Annual
I
Acre 1.0.4,14,
Code Resolution #4142 iSpecial Assessment Charge -&18 $10.00
I ,j
I Per Acre 1.0.4,
!i 14,&18 $30.00II
I I
Annual I I
Per $1000 of
Board i IGeneral Obligation Bond Annual Tax
I
assessed valueIResolutionAssessmentIfor1.0.27 $0.005
I
Policies I
5 Copies of Identifiable Public Records I i $0.10/paqeI
I iCassette Tape Duplication I $2.00/tape
I I :jYearlY Subscription Service for Agendas I $20.00/year or
I I and Ratified Minutes $0.50/meeting
$100.00/year for
first copy and
:$200.00/year for
IYearly Subscription Service for Board each copy
!Packet and Ratified Minutes thereafter
Appendix A
12 of 12
I ~_.--~---
Otay Water District
r-
Appendix A --
I i I
I
Section #Code #Fee Description Meter Size Charges
9 9.04A.1.District Processinq Fee I I I $692.00
I
Annexation Fees for Annexations into District-wide
9.04 B.Otay Water District Boundaries MeterSize Annexation Fee
I I 3/4"I $1,477
1"$3,693
I 1 1/2"$7,385
i 2"$11,816
3"$23,632
4 I $36,925,6"$73,850
8"I $118,160
I 10"$169,855
Annexation Fees for Annexations to
9.04 CA.Sewer Improvement Districts I $5,445.00
10 10.01 Filing of Petitiion $50.00
I
23 23.04 Backflow Certification I
-Second Notification $10.00
,-Third Notification $25.00
-Reconnection (service resumed)I I $50.00
-Initial Filing Fee (New applicants for,
addition to the list ofapproved backflow
I prevention device testers)I $25.00
-Renewal Filing Fee (to remain on
list of approved backflow prevention
device testers)Annually $10.00
I
25 25.03 A.Set-up Fees for Accounts $10.00
I
Appendix A
1 of 12
-~~.~_.~--------
Monthly Fixed System Cha'1les.MWD i MWD&CWA Total Fixed
25 25.03 C.&CWA Charges Meter Size System Charqe Fixed Charqe Charge
I I I 3/4"I $14.58 $11.82 $26.40
I I I I
1"I I
$18.52 $19.69 $38.21
I I I I I 1-1/2"I $28.37 $39.44 $67.81
I I I
2"I I $40.18 $63.07 $103.25
3"$71,68 $126.14 $197.82
I ,4"$107.13 $197.11 $304.24
I I 6"$205.59 $394.17 $599.76
8"$323.73 $630.71 $954.44
I I I 10"I I $461.57 $906.58 $1,368.15
I I I I I I I
25 25.03 E.1.(b)Domestic Residential Water Rates I I I I Unit Charge
I 1 - 5 $1.49
I 6-10 $2.31
I I I 11-22 $3.00
I I I I I I I 23 &over $4.63
I I I I
I
Multiple Residential Water Rates -Per I
I I I2525.03 E.2.(b)DwellinQ Unit 1-4 $2.29
I I I I I I 5-8 $2.97
I I I I I 9 &over $4.57
I I I
II
I IBusiness and Publicly-Owned Water
25 25.03 E.3.(b)Rates under 10"1-173 $2.44
I I I I I I
174-831 $2.50
I I I I I I
832 &over $2.54
I I I
I I 10"&larQer I 1-7426 $2.44,I I I I I 7427-14616 $2.50
14617 &over $2.54
I
I I IIrrigation and Commercial Agricultural
25 25.03 E.4.(c)Using Potable Water Rates 1"&smaller 1-49 $3.32
I I I I I 50-132 $3.39
I I 133 &over $3.45
I
I I
1.5&2"I I
1-144 $3.32
Appendix A
2 of 12
I I I I 145-355 $3.39
I I I 356 &over $3.45
I I I IIII I
3"&larQer I 1-1044 $3.32
I I I 1045-8067 $3.39
I I 8068 &over $3.45
I I I I I I I
25 I 25.03 E.5.(c)I IRecycled Water Rates I 1"&smaller 1-42 $2.84
I I I 43-97 $2.88.
I I I I I 98 &over $2.94
I I I I I
I I 1.5&2"I I 1-168 $2.84
I I I I 169-402 $2.88
I I 403 &over $2.94
I I I I
I I I 3&4"I 1-403 $2.84
I 404-820 $2.88
I 821 &over $2.94
I I I I I
I I I 6"&larger I 1-7916 $2.84
I I I I I 7917-16357 $2.88
I I I I 16358 &over $2.94
I I I I I I
Temporary and Construction Water
I 1"&smaller I2525.03 E.6.(bl Service Rates 1-49 $6.64
I 50-132 $6.78
I I I 133 &over $6.90
I I I I
I I
J 1.5 &2"1-144 $6.64
I I I I I I I 145-355 $6.78
I I I I 356 &over $6.90
I I
I I I 3"&larQer I 1-1044 $6.64
I I I 1045-8067 $6.78
I I I I I I 8068 &over $6.90
I I I
25 25.03 E.8.(bl Tank Trucks Water Rates I 1"&smaller I 1-49 $6.64
I ,I 50-132 $6.78
I I I I
133 &over $6.90
I I I I
Appendix A
3 of 12
I I I I I 1.5 &2"I I 1-144 $6.64
I I I I
I 145-355 $6.78
I I I I I I
356 &over $6.90
I I I I I I II I I I I 3"&larger I I 1-1044 $6.64
I I I I I I I I
1045-8067 $6.78
I I I 8068 &over $6.90
I I I
II I
IAPPlication Fee for Water Service
I I
I
25 25.03 E.9'(c)Outside District Boundaries I $500.00
I I
II
Water Rate for Service Outside District I
1"&smaller I2525.03 E.9.(d)Boundaries I 1-49 $6.64
I I I I I 50-132 $6.78
I I I I 133 &over $6.90
I I
I I I I
1.5 &2"I 1-144 $6.64
I I I
I I 145-355 $6.78
I I I I 356 &over $6.90
I I I I I
I I 3"&larqer 1-1044 $6.64
I I I I I 1045-8067 $6.78
I I 8068 &over $6.90
I I I I
II
IAPPlication Fee for Water Service
I I I I
25 25.03 E.10.(b)Outside an Improvement District $275.00,J
II I jwater Rate for Service Outside
11"&smaller2525.03 E.10.(cl Imorovement District I 1-49 $6.64
I I I I I I 50-132 $6.78
I I I I I I 133 &over $6.90
I I I
I I I I I 1.5 &2"1-144 $6.64
I I I 145-355 $6.78
I I I 356 &over $6.90
I I
I I I I I 3"&larQer 1-1044 $6.64
I ,I I 1045-8067 $6.78
I I I I I 8068 &over $6.90
I I I I I I I
Appendix A
4 of 12
25 I I 25.03 E.11.(cl IFire Service Monthlv Chame ,I I $30.11
I I I I I I
I Additional Water Service for Property I
I I I
I
25 25.03 E.12.(b)Not Subject to District Taxes I oer unit $0.29
I I I I
1 I
1Interim Service Water Rate in
1 11"&smaller 1 12525.03 E.13.(b)Improvement District 7 1-49 $6.64,I I I I I I 50-132 $6.78
I I I I I I 133 &over $6.90
I
I I I 1.5&2"I I
1-144 $6.64
I I I I 145-355 $6.78
I I 356 &over $6.90
I i I I I
I I
3"&larger I I
1-1044 $6.64
I I I 1045-8067 $6.78
I I I I I 8068 &over $6.90
I I ,I I
I Per 100 ft of list
I over 450 ft per
25 25.03 F.Enenw Charges for Pumping Water unit $0.044
I I I I I
Per unit charge
except for the
Additional Water Charge for Service in first 5 units of
25 25.03 G.1_the North District I residential $0.08
I I I I I
Per unit charge
Additional Water Charges for Service in except forthe
the Improvement District 9 Water first 5 units of
25 25.03 H.1.Service Zone residential $0.27
I I I I I I I
I I I
Additional Monthly System Fee for
I I2525.03 H.2.Improvement District 9 $2.00
I I I I I
Appendix A
5 of 12
I Per unit charge
[Additional Water Charges for Services
except for the
first 5 units of Effective Jan
25 25.03 1.1.(a)lin Improvement District 3 residential $0.17 per HCF 1,2009
I I
"Effective Jan
I $0.18 perHCF 1,2010
I
I i I Effective Jan
I
i "
I I i $0.19 per HCF 1,2011
I I
I I
I
Effective Jan
I
"
I $0.20 per HCF 1,2012
i I
i I Effective Jan"
!$0.21 per HCF 1,2013
I !i I
I i
I
Per unit chargeIexceptfortheI
Additional Water Chargges for Servicesi first 5 units of Effective Jan
25 25.031.1.(b),in Improvement District 10 I residential $0.25 per HCF 1,2009
I
I I
I
Effective JanIIiII"$0.26 per HCF 1,2010IIII
Effective Jan
"1,2011-
$0.27 per HCF 2018
::II
I Per unit charge
1 except for the Effective Jan
i IAdditional Water Charges for Services ;
I
first 5 units of 1,2008-
25 25.031.1.(c)in La Presa !residential $0.07 per HCF 2010
I
II Effective JanI
I I
"1,2011-
i I $0.08 per HCF 2013
i I I I !
25 I 25.04 A.I Deposits for Non-Propertv Owners i 3/4",$75.00
I I 1"i $150.00
I I 1-1/2"$200.00
I 2"I $360.00
i 3"!$800.00
j I 4"!$1,350.00,
i !6"I $3,300.00
I 8"$4,400.00
i I 10"I $5,500.00
I !
Appendix A
6 of 12
pp
7 of 12
I
I I !
I I
I District-wide
28 28.01 B.1.Capacity Fees and Zone Charge Meter Size Capacity Fee
i -All IDs except Triad I 3/4"$7,499.00
1"$18,748.00
I I 1 1/2"i I $37,495.00
I 2"I $59,992.00
3"$119,984.00
I i 4 $187,475.00
I 6"$374,950.00
I 8"$599,920.00I
10"i $862,385.00
I I I I
,-22/27 TRIAD 3/4"$5,612.00
I 1"$14,030.00t
1 1/2"$28,060.00
!2"$44,896.00
3"$89,792.00
4 $140,300.00
I 6"$280,600.00
i 8"I $448,960.00
I 10"$645,380.00I
i
28 28.01 B.2.Supplv Fees I Meter Size Supplv Fee
I I -All IDs includinq Triad I 3/4"I $864.00
:1"I $2,160.00it
!1 1/2"$4,320.00
2"$6,912.00
I 3"!I $13,824.00
i 4 $21,600.00
6"$43,200,00
8"$69,120.00
10"i $99,360.00
I I I
Installation Charges for Water Meter
I2828.02 and Water Service Laterals Meter Size Meter Fee Meter Box Installation Total Fee
3/4"I $59.00 $47.00 $60.00 $166.00I
I 1"$117.00 $47.00 $60.00 $224.00I
!I 1 1/2"$250.00 $61.00 $103.00 $414.00
2"$475.00 $61.00 $240.00 $776.00
3"$653.00 $1,770.00 $300.00 $2,723.00
i 4")$1,370.00 $1,770.00 $300.00 $3,440.00
I ,6"$2,500.00 $1,770.00 $300.00 $4,570.00
8"$3,737.00 $2,760.00 $300.00 $6,797.00
I 10"t $5,060.00 $2,760.00 $300.00 $8,120.00
Al en IXA
I
I I Requirement of Temporary Meterfor
I
I !
minimum/per
31 I 31.020.1.Service , I day $25.00
i I I I
31 31.03 A.1.Requirement of Deposit -Temporary Meters I
I 3/4"i $150.00
I 1"i $180.00
!1-1/2"I
I $330.00I
I I 2"I $445.00
I I 3"I $850.00
I i 4"i $850.00
i i I i 6"i $2,075.00
I I I iII
31 31.03 A.4.Temporary Meter Install &Removal i I $128.00
J I
I I
ITemporary Meter Move Fee (includes
i3131.03 A.5.Ibackflow certification)3/4"-2"!$64.00
i I 3"and larger No backflow test $64.00
Ii
I
I Customer Request for Meter Test I
33 33.07 A.(Deposit)I 5/8,3/4&1",$25.00
i 11/2&2"$50.00
i I
I i
I I,!3"&Larqer $125.00
!I I i i
34 I 34.01 0.2.I Returned Check Charqes ,
I I $25.00
I I iI
i I i I
I
I 5%0
Delinquen
34 34.02 B.I Late Pavment Charge BalanceII
34 I I 34.02 G.1.(d)Delinauency Taq I $10.00
I I
I !I
I
I During regular
34 34.02 G.3.(a)Meter "Turn-On"Charqe I business hours $35.00
i
I I !i I
!i
I
I After regular
34 i 34.02 G.3.(b).Meter "Turn-On"Charqe business hours $65.00,Ii I
53 I 53.04 C.1.Sewer Connection Fee -Russell Square $7,500.00
I !
53 53.04 C.2.I Monthly Sewer Service Charqe -Russell Square $200.00
I !
Appendix A
8 of 12
53 I I
53.11 A.I ISet-up Fees for Accounts I I I $10.00
I I
Rate multipled
by winter
53 53.11 B.2.Residential Sewer Charqes average units)$1.67,
53 53.11 B.3.I IResidential Sewer Charges Base Fee 5/8"&3/4"I $11.57
I I
I I 1"&larger I I $16.87,I I I
,I
I I
IMonthly Residential Sewer Rate
I5353.11 BA.Without Consumption History 5/8"&3/4"$39.39
I I I I I
1"&larger I $44.69
I I I I
53 I 53.11.CA.I Winter Averaging -Sewer I I
I
119.68-15%
discount =16.73
-Single Residential units
8 units -15%
I discount =6.8
-Multi-Residential units
I I I I I
Rate multipled
by winter
53 53.11 0.2.Multi-Residential Rate Charqes -Sewer averaqe units $1.67
I
I
I IPer ASU (Based
I I I
on Student
53 53.11 E.6.Public Schools Sewer Rate Count)$39.39
I I I
PerASUs &
Charged on
53 53.11 F.Sewer State Loan Annual Charge annual tax bills $54.00
I
I I I
IMonthly Service Charge for
I I I I
53 53.11 G.1.Commercial and Institutional Sewer Per ASU $39.39
I I I I I I I
I I
Issuance ofAvailability Letters for I I I6060.03 Water and/or Sewer Service $75.00
I I I I
Appendix A
9 of 12
I
Locking or Removing Damaged or I I I
I7272.04 A.1.Tampered Meters
i I -To Pull and Reset Meter 3/4"-1"$170.00I
-Broken Curbstop orTabs 3/4"-1"!$192.00
!-If Customer uses Jumper 3/4"-1"$149.00
I -Broken Lock/Lockinq Device ,3/4"-1"i $56.00I
i -Cap Lock (Welded)3/4"-1"!$158.00
I -Broken Curbstop or Tabs 1.5"-2"I
,$265.00
I -To Pull and Reset Meter I 3"$351.00I
I i -To Pull and Reset Meter I 4"I $454.00
I -To Pull and Reset Meter I 6"I $454.00
I -To Pull and Reset Meter !8"!I $600.00
I -To Pull and Reset Meter 10"i $600.00I
i !
72 72.05 D.A.Type I Fine
I !-First Violation I $100.00
I I -Second Violations i ,$200.00I
I
-Third or each additional violation of that same
I Iordinanceorrequirementwithinatwelve-month period $500.00
I I
I
Will not exceed
per each day the
violation is
I identified or
IType II Fine continues.$5,000.00
I !
Fine up to
amount
specified per
each day the
violation is
identified or
!Type III Fine continues.$500.00
I !I I i
I I
Fine up to
I amount
specified per
each day the
violation is
identified or
Type IV Fine continues.$500.00
I !!I
I
Appendix A
10 of 12
State Water!1#71630 &Annual Board I !Water Availability/Standby Annual I Less Than One
Code i iResolution #4142 I Special Assessment Charge i Acre alll.D.s &$10.00i
I f
I
I II
i Per Acre in 1.0.
I
i 1,5,&Outside
I an 1.0.$10.00
!,
i
I II ,
I
I Per Acre in 1.0.
I
12,3,7,9,10,19,20,
I .I i !$30.00i22,25,&27II!,
I I
f I
!
I Less Than One
I one acre
Outside J.D.and
I
greater than one
mile from District
!facilities.$3.00I
~!I II
I I Per Acre for
I Outside 1.0.&
I
I
greaterthan one
mile from District
facilities.$3.00
l
Less Than One
State Water #71630 &Annual Board Sewer Availability/Standby Annual ;Acre 1.0.4,14,
I ,
Code ,Resolution #4142 i Special Assessment Charge &18 $10.00
I J I I I I Per Acre 1.0.4,
I 1
,14,&18 $30.00!1
I
Annual !Per $1000 of
Board General Obligation Bond Annual Tax i Iassessed value
Resolution iAssessment for 1.0.27 $0.005
I i I;
Policies I I i I !iI;I
5 I i Copies of Identifiable Public Records I $0.10!paqe
I Cassette Tape Duplication $2.00/tape
I I Yearly Subscription Service forAgendas I $20.00/year orI
i ,and Ratified Minutes I i $0.50/meeting
Appendix A
11 of 12
I
i $1 OO.OO/year forII
first copy and
$200.00/yearfor
Yearly Subscription Service for Board each copy
Packet and Ratified Minutes thereafter
Appendix A
12 of 12
Otay Water DistrictOtay Water District
FY 2011 Budget WorkshopFY 2011 Budget Workshop
May 17, 2010May 17, 2010
11
Attachment C
22
Rate Model Review (Joe Beachem)Rate Model Review (Joe Beachem)
Strategic ManagementStrategic Management (Department Chiefs) (Department Chiefs)
Capital Improvement Budget (Rod Posada) Capital Improvement Budget (Rod Posada)
Balanced Operating Budget (Rita Bell)Balanced Operating Budget (Rita Bell)
Summary of Recommendations (Joe Beachem)Summary of Recommendations (Joe Beachem)
Workshop AgendaWorkshop Agenda
33
Workshop ObjectivesWorkshop Objectives
Present for approval a $77.0M Operating BudgetPresent for approval a $77.0M Operating Budget
Present for approval a $28.5M CIP BudgetPresent for approval a $28.5M CIP Budget
Request approval of the rate increasesRequest approval of the rate increases
Average potable and recycled rate increase of 10.9% for Average potable and recycled rate increase of 10.9% for
all water billed after January 1, 2011all water billed after January 1, 2011
Average sewer rate increase of 6.8% for all sewer Average sewer rate increase of 6.8% for all sewer
services billed after January 1, 2011services billed after January 1, 2011
Request approval of associated fund transfersRequest approval of associated fund transfers
44
Next StepsNext Steps
30 day notice of water and sewer rate increases 30 day notice of water and sewer rate increases
to be sent in October 2010to be sent in October 2010
Implementation of water and sewer rate Implementation of water and sewer rate
increases for all water and sewer service increases for all water and sewer service billed billed
beginning January 1, 2011beginning January 1, 2011
55
RATE RATE
MODEL MODEL
REVIEWREVIEW
Water RatesWater Rates
(Joe Beachem)(Joe Beachem)
66
Rate Model and Budget ProcessRate Model and Budget Process
Rate Model
Year End
Balances
Operating
Budget Input
CIP
Budget Input
MWD/CWA &
Sewer Rates
Strategic
Plan
Assumptions
Interest Rates
Inflation
Growth
Sales
Targets
Debt Coverage
Reserve Levels
Operating
Budget
CIP
Budget
Water
&
Sewer
Rates
77
Significant Factors Affecting Significant Factors Affecting
Water RatesWater Rates
Factors Pushing Rates UpFactors Pushing Rates Up
MWD/CWA MWD/CWA ––potable rate increasespotable rate increases
City of San Diego City of San Diego ––recycled rate increasesrecycled rate increases
Financing of CIP projectsFinancing of CIP projects
Continued reduced water salesContinued reduced water sales
Factors Holding Rates DownFactors Holding Rates Down
Efficiencies via Efficiencies via OtayOtay’’ss strategic managementstrategic management
88
EXTERNAL FACTORS: 65%
CWAMWD
CITY OF SD
INTERNAL FACTORS: 35%
FUNDING CIP
OTAY WATER DISTRICT
Rate Increase Necessary Primarily Due to External Factors
Reductions in O&M costs, an internally controlled factor, lowered the
necessary rate increase from what would have been 12.7% down to 10.9%.
99
External FactorsExternal Factors
Supplier Cost IncreasesSupplier Cost Increases
PotablePotable
CWA & MWD increase of $1,624,300CWA & MWD increase of $1,624,300
MWD increased MWD increased CWACWA’’ss water costs by 12.2%water costs by 12.2%
CWA increased CWA increased OtayOtay’’ss water costs by 11.3%water costs by 11.3%
City of San Diego City of San Diego
Study is in progress Study is in progress
Wholesale rate expectedWholesale rate expected
Budgeted a 4.5% inflator since the District began taking water iBudgeted a 4.5% inflator since the District began taking water in n
20072007
SewerSewer
Public Utilities Department Public Utilities Department ––Wastewater Branch increase Wastewater Branch increase
$57,600 or 5.9%$57,600 or 5.9%
Spring Valley Sanitation District increase $33,900 or 14.7%Spring Valley Sanitation District increase $33,900 or 14.7%
1010
Internal FactorsInternal Factors
Funding CIP and EfficienciesFunding CIP and Efficiencies
CIP Funding CIP Funding ––Meeting needs of customers Meeting needs of customers
through betterment, replacement, and expansion through betterment, replacement, and expansion
of District facilitiesof District facilities
Strategic Management Strategic Management --O&M changes for O&M changes for
internal costs decrease ($349,500)internal costs decrease ($349,500)
Labor & Benefits decrease ($463,400)Labor & Benefits decrease ($463,400)
Admin Expenses increase $262,400Admin Expenses increase $262,400
Offset by $120,000 in grant revenueOffset by $120,000 in grant revenue
Materials & Maintenance decrease ($32,100)Materials & Maintenance decrease ($32,100)
Power decreases ($116,400)Power decreases ($116,400)
1111
Reduced Water SalesReduced Water Sales
FY 2010 estimated sales are 10.3% below budgetFY 2010 estimated sales are 10.3% below budget
Rainfall Rainfall ––normal rainfall that has been spread over more normal rainfall that has been spread over more
monthsmonths
Ongoing pricing pressuresOngoing pricing pressures
Conservation messageConservation message
Economic difficultiesEconomic difficulties
FY 2011 and FY 2012 include only minimal growth FY 2011 and FY 2012 include only minimal growth
numbers and continued reduced sales due to the above numbers and continued reduced sales due to the above
factorsfactors
Projected increases for 2013 through 2016 include Projected increases for 2013 through 2016 include
increasing meter salesincreasing meter sales
1212
Historic and Projected Potable Water Purchases from CWA and
the CWA Allocation
35,394
31,722
3,073
37,896 38,836 38,045
31,098 31,088
34,971
3,050
2,284
20,000
25,000
30,000
35,000
40,000
45,000
FY05 FY06 FY07 FY08 FY09 Projected
2010
Budget 2011 Projected
2012
Ac
r
e
F
e
e
t
Otay Purchases Supplement to Recycled System CWA Allocation
CWA Base Otay High Demand
CWA Allocation - 39,832 AF
CWA Base - 43,162 AF
CWA 8% Cutback
Same
9.2%
Less 25.8%
22%
Otay High Demand - 41, 909 AF
8.1%
Less
11.1%
Less 2.0%
More
37,678
40,946 41,909
$53.8 M $57.5 M
$97.2 M
$91.7 M
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
2011 2012 2013 2014 2015 2016
Overall Reserve Target Overall Reserve Balance1313
Projected Beginning Reserve and Target BalancesProjected Beginning Reserve and Target Balances
1414
Proposed Fund Transfers Proposed Fund Transfers --$14.9M$14.9M
Adheres to the Reserve Policy guidelinesAdheres to the Reserve Policy guidelines
To maintain target reserve levelsTo maintain target reserve levels
PotablePotable
Designated Expansion to Replacement Designated Expansion to Replacement $1,410,000 $1,410,000
General Fund to Replacement General Fund to Replacement $6,245,000$6,245,000
General Fund to Sewer ReplacementGeneral Fund to Sewer Replacement $1,750,000$1,750,000
General Fund to Sewer General FundGeneral Fund to Sewer General Fund $595,000$595,000
RecycledRecycled
General Fund to Designated Expansion General Fund to Designated Expansion $2,775,000 $2,775,000
General Fund to Designated BettermentGeneral Fund to Designated Betterment $315,000$315,000
General Fund to Replacement General Fund to Replacement $720,000 $720,000
SewerSewer
General Fund to Designated Betterment General Fund to Designated Betterment $1,120,000$1,120,000
378%392%
337%
275%
225%
185%
153%151%153%150%157%151%
125%
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
500%
2011 2012 2013 2014 2015 2016
Debt Ratio Operational Debt Ratio Minimum Debt Ratio 1515
Debt Coverage RatiosDebt Coverage Ratios
1616
Other Post Employment BenefitsOther Post Employment Benefits
BiBi--annual actuarial evaluation is complete and is being annual actuarial evaluation is complete and is being
used to set the Annual Required Contribution (ARC)used to set the Annual Required Contribution (ARC)
2011 OPEB payments are budgeted to be consistent 2011 OPEB payments are budgeted to be consistent
with prior years, with accounting rules, and with with prior years, with accounting rules, and with
priorprior Board directionBoard direction
With the recovery of the markets the OPEB funds are With the recovery of the markets the OPEB funds are
expected to fully fund the liabilityexpected to fully fund the liability
1717
AA Credit RatingAA Credit Rating
In September of 2008, the District was able to In September of 2008, the District was able to
obtain a rating upgrade from S&P to an AA obtain a rating upgrade from S&P to an AA
On April 30, 2010, Fitch Ratings upgraded Otay On April 30, 2010, Fitch Ratings upgraded Otay
Water DistrictWater District’’s credit rating to AA from AAs credit rating to AA from AA --as a as a
part of their global ratings recalibration for part of their global ratings recalibration for
municipal agenciesmunicipal agencies
1818
Water Survey Results Water Survey Results ––15 Units15 Units
$5
9
.
4
8
$5
9
.
8
6
$6
6
.
7
6
$6
7
.
0
7
$6
8
.
9
9
$6
9
.
0
7
$6
9
.
2
2
$7
1
.
6
6
$7
3
.
3
6
$7
4
.
7
0
$7
4
.
8
1
$7
5
.
0
6
$7
7
.
3
2
$7
9
.
8
3
$8
0
.
6
8
$8
1
.
9
3
$8
3
.
2
8
$8
4
.
3
5
$8
4
.
6
9
$8
5
.
5
0
$8
8
.
6
8
$9
4
.
2
4
$9
5
.
0
5
$-
$20
$40
$60
$80
$100
$120 Lakeside Oceanside Vallecitos OlivenhainSan Dieguito Poway Otay Yuima Padre Dam WValley Center Helix CarlsbadSanta FeSan Diego Padre Dam ESweetwaterVista Ramona Rainbow EscondidoRincon Fallbrook Del MarSURVEY OF MEMBER AGENCY WATER RATES
Rates effective January 1, 2011 for residential
customer with 15 HCF water use and 3/4 inch meter
Otay is the 7th of 23
agencies
Agencies that did not provide their
rate increases were assigned the
average of 12%
18
$4
3
.
1
4
$4
5
.
1
8
$4
7
.
7
4
$5
0
.
3
6
$5
0
.
8
7
$5
1
.
1
6
$5
2
.
9
2
$5
3
.
1
8
$5
4
.
2
9
$5
6
.
7
2
$5
7
.
5
4
$5
8
.
4
8
$5
8
.
5
5
$5
8
.
9
1
$6
0
.
2
2
$6
0
.
6
5
$6
2
.
4
0
$6
3
.
1
0
$6
5
.
1
8
$6
5
.
8
8
$7
0
.
3
9
$7
4
.
8
2
$7
7
.
0
7
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100 Lakeside OceansideSan Dieguito Vallecitos Poway Carlsbad Otay Olivenhain Padre Dam WSan Diego YuimaValley Center Padre Dam E HelixSanta FeSweetwater Ramona EscondidoVistaRincon Rainbow Del Mar FallbrookSURVEY OF MEMBER AGENCY WATER RATES
Rates effective January 1, 2011 for residential
customer with 10 HCF water use and 3/4 inch meter
Otay is the 7th of 23
agencies
Agencies that did not provide their
rate increases were assigned the
average of 12%
Water Survey Results Water Survey Results ––10 Units10 Units
19
2020
RATE RATE
MODEL MODEL
REVIEWREVIEW
Sewer RatesSewer Rates
2121
Sewer Sewer ––Increased CostIncreased Cost
Cost Increases $26,000 or 0.9%Cost Increases $26,000 or 0.9%
Increase in Public Utilities Department Increase in Public Utilities Department ––Wastewater Branch Wastewater Branch
cost of $57,600cost of $57,600
Increase in Spring Valley Sanitation District cost of $33,900Increase in Spring Valley Sanitation District cost of $33,900
Decrease in labor & benefits cost of ($213,000)Decrease in labor & benefits cost of ($213,000)
Increase in temporary reclamation plant operator $95,700 & lab Increase in temporary reclamation plant operator $95,700 & lab
outsource $30,000 outsource $30,000
Increase $150,000 Waste Water Master Plan and CCTVIncrease $150,000 Waste Water Master Plan and CCTV
Sewer Rate IncreaseSewer Rate Increase
6.8% for two years6.8% for two years
6.5% for next three years6.5% for next three years
2222
Sewer Survey ResultsSewer Survey Results
18
.
0
0
20
.
9
3
22
.
4
0
28
.
0
0
31
.
6
7
32
.
2
2
34
.
3
3
34
.
8
3
41
.
8
4
41
.
9
5
43
.
0
9
43
.
3
4
47
.
1
6
47
.
5
3
49
.
1
6
49
.
5
4
49
.
9
3
53
.
0
0
55
.
3
7
56
.
9
3
58
.
7
5
61
.
5
1
71
.
3
3
73
.
3
4
73
.
9
7
76
.
2
0
77
.
3
1
78
.
0
7
79
.
1
8
80
.
5
9
98
.
6
0
11
7
.
1
0
$-
$20
$40
$60
$80
$100
$120
W inter G ard en s - C o u nty
L eucadia
C arlsb ad
S p rin g V alle y - C o u nty
L ak esid e - C o u nty
V allecito s
N atio n al C ity
Alpin e - C o u nty
El C ajo n O tay
E sc o n did o
V alley C e nter - M G
L a M e sa Vista
R am o n a
P o w ay
S ola n a B e ach
Pin e V alley - C o u nty
B u en a
C h ula Vista
Julian - C o u nty
S an Dieg o
R an c h o S a nta F e
R ain b o w
O cean sid e
E n cinitas
O live n h ain
P adre D am
V alley C e nter - M P
F allbro o k
V alley C e nter - W V
D el M ar
Sewer Rate Comparison in San Diego County
Proposed Rates effective Fiscal Year 2011 (with Special Assessment)
for residential customers with 15 HCF water usage
Water-consumption based sewer rate
Flat sewer rate
Otay Water District
Otay is the 10th
of 32 Agencies
Agencies that did not
provide their rate increases
were assigned the average
of 7%
2323
Efficiencies Efficiencies
Through Through
Strategic Strategic
ManagementManagement
(Geoff Stevens)(Geoff Stevens)
2424
Strategic PlanningStrategic Planning
Planning, Action, EfficiencyPlanning, Action, Efficiency
2525
A Purpose Driven PlanA Purpose Driven Plan
The Strategic Plan determines the The Strategic Plan determines the
direction of the Districtdirection of the District
The Board approves the direction of the The Board approves the direction of the
District through the Strategic PlanDistrict through the Strategic Plan
Our functioning plan creates more Our functioning plan creates more
efficiency Districtefficiency District--widewide
2626
Where WeWhere We’’ve Beenve Been
This is the DistrictThis is the District’’s 3rd Strategic Plans 3rd Strategic Plan
20092009--20112011
In 2009, the current plan defines 73 objectivesIn 2009, the current plan defines 73 objectives
These objectives were developed by the These objectives were developed by the
Senior Management Team and approved by Senior Management Team and approved by
the Boardthe Board
2003-2005 2006-2008 2009-2011
Current Position
2727
Staffing ReductionsStaffing Reductions
17
0
17
1 17
5
17
5
17
3
16
9
16
6
15
9
15
7
15
4
15
3
15
3
15
3
120
130
140
150
160
170
180
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
9.1% Reduction
2828
EfficienciesEfficiencies
Customers per FTE
29
4
29
8
29
7
30
1
30
6
31
4
32
1
33
6
270
280
290
300
310
320
330
340
2004 2005 2006 2007 2008 2009 2010 2011
12% Increase
2929
Efficiency SavingsEfficiency Savings
Efficiency Savings
$458,214
$811,938
$1,366,814
$358,500
$389,505
$358,410
$500,300
$3,178$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
FY 08 FY 09 FY 10 FY 11
Outsourcing Cost
Net Labor Savings
$361,678
$847,719
$1,170,348
$1,867,114
3030
Efficiencies Efficiencies --IT and Strategic PlanningIT and Strategic Planning
Asset Management Asset Management
Total lifecycle costs of maintaining Total lifecycle costs of maintaining
$600 million in fixed assets $600 million in fixed assets
Report Manager Report Manager ––SharePoint SharePoint
Right information Right information ––easily availableeasily available
Numerous reports Numerous reports ––instantly available instantly available
Lessens manual workLessens manual work
3131
Efficiencies Efficiencies ––Administrative ServicesAdministrative Services
Automated personnel requisition and applicationAutomated personnel requisition and application
Eliminated warehouse/delivery worker and Eliminated warehouse/delivery worker and
facilities maintenance technician positionsfacilities maintenance technician positions
Landscape redesignLandscape redesign
Security standards establishedSecurity standards established
Mobile drug testingMobile drug testing
3232
Efficiencies Efficiencies --FinanceFinance
AMR and outsourcing of meter box cleanAMR and outsourcing of meter box clean--out allows out allows
for more productive field stafffor more productive field staff
Meters
Meter
Readers
2010 48,635 7 to 9
2011 48,761 5
Accounting staff reduced by 1 FTEAccounting staff reduced by 1 FTE
EE--billing will reduce printing and mailing costs by billing will reduce printing and mailing costs by
$144,000$144,000
Bill warehousing reduces postageBill warehousing reduces postage
Improved collection processImproved collection process
3333
Efficiencies Efficiencies --OperationsOperations
Outsource laboratory analysis due to a vacancy, Outsource laboratory analysis due to a vacancy,
with a savings of $71,000with a savings of $71,000 per year and per year and
eliminated one vehicleeliminated one vehicle
Reduced chlorine cost by $29,000 due to Reduced chlorine cost by $29,000 due to
increased competitive biddingincreased competitive bidding
Reallocation of operations staff enabled us to Reallocation of operations staff enabled us to
reduce one crew leader positionreduce one crew leader position
Management fleet program resulted in $46,300 Management fleet program resulted in $46,300
savings or a 20% reduction in fuel usagesavings or a 20% reduction in fuel usage
3434
Efficiencies Efficiencies --EngineeringEngineering
IMS Integration of Inspection and Survey
Divisions
Electronic daily reporting
Report consistency/accuracy enhanced
Reduced inspection FTE from 5 to 3
Construction Division CIP Documents
Project managers and technicians relieved of CIP
document reports/controls
Public services technician’s duties increased for CIP
documents reports/controls
3535
CAPITAL CAPITAL
IMPROVEMENTIMPROVEMENT
PROGRAMPROGRAM
(Rod Posada)(Rod Posada)
3636
DevelopmentDevelopment remains remains
down and the District down and the District
has experienced a has experienced a
significant slowing of significant slowing of
growth in the last three growth in the last three
years.years.
The The housing markethousing market in in
the region and within the region and within
the City of Chula Vista the City of Chula Vista
is projected to remain is projected to remain
slow for at least another slow for at least another
year, with an upturn in year, with an upturn in
the years ahead. the years ahead.
42% of new industrial 42% of new industrial
land and 20% of new land and 20% of new
residential land is residential land is
located in the located in the Otay Otay
Water DistrictWater District..
Jamacha 36-Inch Pipeline (P2009)
850-4 Reservoir (P2191)
1296-3 Reservoir (P2143)
1485-1 Pump Station (P2172)
Growth ProjectionsGrowth Projections
3737
Meter Sales and GrowthMeter Sales and Growth
Projected to sell 223 Potable and 89 RecycledProjected to sell 223 Potable and 89 Recycled
EDUsEDUs in FY 2011in FY 2011
EDU Sales
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 FY14/15
CIP Budget AssumptionsCIP Budget Assumptions
Growth to remain flat for FY 2011
Projects for expansion, betterment, and replacement are
included within the CIP
Six-year CIP expenditure plan to be as level as possible. However, there would be an increase in expenditures in FY 2012 and FY 2013 due to the Rosarito Desalination, the North District-South District Interconnection, and Otay Mesa Recycled Water Link projects
The Engineering News-Record Construction Cost Index
projects increases to 7.3% from January 2010 to
December 2011
SDCWA Construction Index for the same period projects an increase of 9.6%
CIP Planning DocumentsCIP Planning Documents
Integrated Water Resources Plan (IRP)
Water Resources Master Plan (WRMP)
Sewer System Management Plan (SSMP)
Sub-Area Master Plan (SAMP)
Urban Water Management Plan (UWMP)
Strategic Plan
Asset Management Plan (In-Progress)
Waste Water Master Plan (WWMP) (In-Progress)
CIP Project CriteriaCIP Project Criteria
Condition of existing facilities
Operating system requirements
Improvements in potable, recycled, and sewer systems
Regulatory and permitting requirements
Agreement commitments
Developer driven facilities
Economic outlook and growth projections
Board of Directors and management directives
4141
FY 2010
FY FY
20102010
FY FY
20112011
FY FY
20122012
FY FY
20132013
FY FY
20142014
FY FY
20152015
TotalsTotals $37.3$37.3 $30.0$30.0 $42.4$42.4 $43.8$43.8 $35.0$35.0 $33.9$33.9
SixSix--Year Total:Year Total:$222.4$222.4
FY 2011
FY FY
20112011
FY FY
20122012
FY FY
20132013
FY FY
20142014
FY FY
20152015
FY FY
20162016
TotalsTotals $28.5$28.5 $42.3$42.3 $47.9$47.9 $36.9$36.9 $18.8$18.8 $7.0$7.0
SixSix--Year Total:Year Total:$181.4$181.4
CIP 6CIP 6 --Year Budget Look ForwardYear Budget Look Forward
($ Millions)($ Millions)
Integrated Water Resources Plan Supply ProjectsIntegrated Water Resources Plan Supply Projects $97.8$97.8
Recycled Water ProjectsRecycled Water Projects 34.8 34.8
Renewal & Replacement ProjectsRenewal & Replacement Projects 28.028.0
Sewer/Wastewater ProjectsSewer/Wastewater Projects 7.77.7
Capital PurchasesCapital Purchases 7.57.5
Environmental ProjectsEnvironmental Projects 1.71.7
OthersOthers 3.93.9
Total Expenditure ProjectionTotal Expenditure Projection $181.4$181.4
4242
Otay Water District InitiativesOtay Water District Initiatives
SixSix--Year CIP Expenditure ProjectionYear CIP Expenditure Projection
($ Millions)($ Millions)
4343
Otay Mesa Recycled Water Supply LinkOtay Mesa Recycled Water Supply Link $ 8.1 $ 8.1
CIP Projects Currently and Planned to beCIP Projects Currently and Planned to be
in Constructionin Construction $ 7.8$ 7.8
AMR Manual Meter ReplacementAMR Manual Meter Replacement $ 1.5$ 1.5
RWCWRF Upgrades and ModificationsRWCWRF Upgrades and Modifications $ 1.2 $ 1.2
Rancho del Rey WellRancho del Rey Well $ 1.0$ 1.0
RosaritoRosarito DesalinationDesalination $ 1.0$ 1.0
North DistrictNorth District--South District InterconnectionSouth District Interconnection $ 0.8$ 0.8
Other ProjectsOther Projects $ 7.1$ 7.1
Total Expenditure ProjectionTotal Expenditure Projection $28.5$28.5
High Profile CIP ProjectsHigh Profile CIP Projects
FY 2011 ProjectionFY 2011 Projection
($ Millions)($ Millions)
4444
BALANCED BALANCED
OPERATING OPERATING
BUDGETBUDGET
(Rita Bell)(Rita Bell)
4545
FY 2011 Operating BudgetFY 2011 Operating Budget
Budget ProcessBudget Process
Budget HighlightsBudget Highlights
Budget DetailsBudget Details
ConclusionConclusion
4646
Budget ProcessBudget Process
Aligning the rate model, Operating and CIP Aligning the rate model, Operating and CIP
Budgets Budgets
Examined growth and cost changes Examined growth and cost changes
Analyzed budget methodology and past Analyzed budget methodology and past
projections projections
Review of all Operating and CIP Budget requestsReview of all Operating and CIP Budget requests
Finance staff, General Manager, and Assistant Finance staff, General Manager, and Assistant
General Managers met with departments to General Managers met with departments to
determine reasonableness of budget requests determine reasonableness of budget requests
and made adjustments where necessaryand made adjustments where necessary
4747
Budget ChallengesBudget Challenges
CWA water cost increases CWA water cost increases
Reduced sales projection Reduced sales projection
Focused CIP on new supplies of water Focused CIP on new supplies of water
Revised capacity and annexation feesRevised capacity and annexation fees
Maintain reserve and debt coverage levelsMaintain reserve and debt coverage levels
Maintaining water and sewer rate position relative Maintaining water and sewer rate position relative
to other agencies in the regionto other agencies in the region
4848
GrowthGrowth
The District is projected to serve approximately 48,761
individual water customer accounts. We anticipate
continued increases in the number of water customers but
at a slower rate.
Actual Projected
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Potable 47,591 47,608 47,804 48,060 48,473 49,462
Recycled 567 671 695 701 719 743
Total 48,158 48,279 48,499 48,761 49,191 50,205
4949
Water SalesWater Sales
UNIT SALES AND METER TRENDS
6,000
8,000
10,000
12,000
14,000
16,000
18,000
FY06
Actual
FY07
Actual
FY08
Actual
FY09
Actual
FY10
Budget
FY11
Budget
Un
i
t
s
(
t
h
o
u
s
a
n
d
s
)
25,000
30,000
35,000
40,000
45,000
50,000
Me
t
e
r
s
Unit Sales Meters
5050
Budget Details Budget Details ––Potable Potable
RevenuesRevenues
Potable water volume decrease of (3,426 AF) or (10.3%)Potable water volume decrease of (3,426 AF) or (10.3%)
Sales dollar decrease of ($140,600) or (0.2%)Sales dollar decrease of ($140,600) or (0.2%)
Fixed fees set at 28% of total water revenue per Best Fixed fees set at 28% of total water revenue per Best
Management Practices 11Management Practices 11
Water Sales (Variable)Water Sales (Variable)($1,309,90000)($1,309,90000)(3.5%)(3.5%)
System FeesSystem Fees $124,200$124,200 1.3%1.3%
Energy FeesEnergy Fees ($126,600)($126,600)(6.4%)(6.4%)
MWD & CWA Fixed FeesMWD & CWA Fixed Fees $1,128,200$1,128,200 17.3%17.3%
PenaltiesPenalties $43,500$43,500 6.2%6.2%
5151
Budget Details Budget Details ––Recycled Recycled
RevenuesRevenues
Recycled water volume decrease of (262 AF) or (5.7%)Recycled water volume decrease of (262 AF) or (5.7%)
Recycled water sales increase $18,100 or 0.2%Recycled water sales increase $18,100 or 0.2%
MWD & CWA Incentive CreditsMWD & CWA Incentive Credits ($99,400)($99,400)(5.7%)(5.7%)
Water Sales (Variable)Water Sales (Variable)$102,900$102,900 2.0%2.0%
System FeesSystem Fees $10,900$10,900 4.3%4.3%
Energy FeesEnergy Fees ($1,900)($1,900)(0.5%)(0.5%)
PenaltiesPenalties $800$800 1.2%1.2%
5252
Budget Details Budget Details --Sewer RevenuesSewer Revenues
Rate increase of 6.8% Rate increase of 6.8%
Sewer increases to be determined with winter averages of Sewer increases to be determined with winter averages of
single & multisingle & multi--family residential customersfamily residential customers
Increases for all other customers based on annual usageIncreases for all other customers based on annual usage
Usage overall is down due to conservation and weatherUsage overall is down due to conservation and weather
SingleSingle--FamilyFamily ($14,400)($14,400)(0.9%)(0.9%)
MultiMulti--FamilyFamily $10,800$10,800 3.7%3.7%
SchoolsSchools $9,800$9,800 7.7%7.7%
ChurchesChurches ($5,700)($5,700)(15.1%)(15.1%)
CommercialCommercial $23,100$23,100 11.9%11.9%
PenaltiesPenalties $2,100$2,100 7.5%7.5%
5353
Budget Details Budget Details ––Other RevenuesOther Revenues
Capacity Fee Revenues: Decrease 21.6% ($301,700)Capacity Fee Revenues: Decrease 21.6% ($301,700)
Due to workload of operating projects funded by capacity feesDue to workload of operating projects funded by capacity fees
Tax Revenues: Decrease 1.0% ($32,200) Tax Revenues: Decrease 1.0% ($32,200)
3.4% reduction in assessed values for Chula Vista3.4% reduction in assessed values for Chula Vista
Betterment Fees for Maintenance: Increase 15.0% $86,000Betterment Fees for Maintenance: Increase 15.0% $86,000
Based on more maintenance work being performedBased on more maintenance work being performed
Annexation Fees: Decrease of ($120,500)Annexation Fees: Decrease of ($120,500)
Due to change in annexation fee methodologyDue to change in annexation fee methodology
Property Rentals: Increase 15.5% $120,500 Property Rentals: Increase 15.5% $120,500
Due to two new leases and inflators in agreementsDue to two new leases and inflators in agreements
Miscellaneous Revenue: Increase 73.4% $112,500 Miscellaneous Revenue: Increase 73.4% $112,500
Due to increases in billable work ordersDue to increases in billable work orders
5454
Water Costs Decrease ($798,300) (2.2%) Water Costs Decrease ($798,300) (2.2%)
Variable Costs Decrease Variable Costs Decrease
Potable costs decrease ($1,795,000) (6.4%) Potable costs decrease ($1,795,000) (6.4%)
Volume (12.6%) Volume (12.6%)
Reductions in District usage and water lossReductions in District usage and water loss
Recycled costs decrease ($132,100) (10.2%) Recycled costs decrease ($132,100) (10.2%)
(Volume (Volume --7.7%) 7.7%)
Fixed Cost IncreaseFixed Cost Increase
Potable costs increase $1,128,800 17.3% Potable costs increase $1,128,800 17.3%
Recycled costs no change $0Recycled costs no change $0
Water CostWater Cost
5555
PowerPower
Power Cost Decrease ($116,100) (4.4%)Power Cost Decrease ($116,100) (4.4%)
Water demand decrease (12.1%)Water demand decrease (12.1%)
SDG&E rates increase 3.5% on January 1, 2011SDG&E rates increase 3.5% on January 1, 2011
5656
Staffing HighlightsStaffing Highlights
ProcessProcess
Departments identified specific personnel actions for Departments identified specific personnel actions for
HR reviewHR review
Each year Senior Team conducts an analysis of:Each year Senior Team conducts an analysis of:
Work load requirementsWork load requirements
Existing vacanciesExisting vacancies
ResultsResults
Seven vacant positions were deleted, reducing FTE Seven vacant positions were deleted, reducing FTE
from 166 to 159from 166 to 159
5757
Labor and BenefitsLabor and Benefits
Salaries and Benefits Decrease of Salaries and Benefits Decrease of
($463,400) or (2.7%)($463,400) or (2.7%)
Staff reduction and position changes decrease of Staff reduction and position changes decrease of
($521,300)($521,300)
Salary and BenefitsSalary and Benefits
COLA and merit increases $579,700COLA and merit increases $579,700
Net change to vacancy factor and vacation and sick Net change to vacancy factor and vacation and sick
leave taken $11,500leave taken $11,500
Reduced overtime ($12,400)Reduced overtime ($12,400)
Benefit cost increases $37,000Benefit cost increases $37,000
Charges to CIP increase causes decrease to Charges to CIP increase causes decrease to
operating by ($557,900) foroperating by ($557,900) for
Labor and benefits ($391,000)Labor and benefits ($391,000)
Overhead allocation ($166,900)Overhead allocation ($166,900)
5858
Administrative ExpenseAdministrative Expense
Administrative Expense Budget Increase of Administrative Expense Budget Increase of
$262,400 or 4.9%$262,400 or 4.9%
Increase in temporary help $184,100Increase in temporary help $184,100
Increase in services by $323,400Increase in services by $323,400
HR Classification Study, safety consultant, lab outsourcing, HR Classification Study, safety consultant, lab outsourcing,
Waste Water Master Plan, CCTV workload increase, and Waste Water Master Plan, CCTV workload increase, and
Urban Water Management PlanUrban Water Management Plan
Increase in conservation $20,000Increase in conservation $20,000
$97,200 in residential and $50,000 in commercial $97,200 in residential and $50,000 in commercial
conservation programs, offset by $120,000 in grant revenueconservation programs, offset by $120,000 in grant revenue
Offset by decreases due to the following items:Offset by decreases due to the following items:
Reduced paving program ($100,000)Reduced paving program ($100,000)
General office expense ($65,900)General office expense ($65,900)
Customer service and accounting ($71,500)Customer service and accounting ($71,500)
Decrease in the overhead allocation of ($97,400)Decrease in the overhead allocation of ($97,400)
5959
Materials & Maintenance Materials & Maintenance
Overall Decrease of ($32,100) or (0.8%)Overall Decrease of ($32,100) or (0.8%)
Increases of:Increases of:
Meters & materials of $51,500Meters & materials of $51,500
Sewer Sewer ––Public Utilities Department Public Utilities Department ––Wastewater Branch Wastewater Branch costs of $57,600costs of $57,600
Sewer Sewer --Spring Valley Sanitation District costs of $33,900Spring Valley Sanitation District costs of $33,900
Offset by decreases of:Offset by decreases of:
Chemicals ($56,500)Chemicals ($56,500)
Safety equipment ($100,800)Safety equipment ($100,800)
Contracted services ($16,700)Contracted services ($16,700)
6060
Budget SummaryBudget Summary
POTABLE RECYCLED SEWER TOTAL
REVENUES:
Water Sales $56,333,900 -- $56,333,900
Recycled Water Sales - $7,620,600 7,620,600
Sewer Charges -- $2,270,500 2,270,500
Other Revenues 9,654,100 22,500 1,102,300 10,778,900
TOTAL REVENUES $65,988,000 $7,643,100 $3,372,800 $77,003,900
EXPENDITURES & TRANSFERS:
Water Purchases $33,877,300 $1,179,900 - $35,057,200
Power 1,915,900 529,800 $75,000 2,520,700
Labor and Benefits 14,951,000 1,086,800 711,600 16,749,400
Administrative Expenses 4,607,200 343,100 641,300 5,591,600
Material & Maintenance 2,046,600 303,000 1,419,900 3,769,500
Subtotal Expenditures 57,398,000 3,442,600 2,847,800 63,688,400
Expansion Reserve 2,775,000 - 2,775,000
Betterment Reserve - 315,000 1,120,000 1,435,000
Replacement Reserve 6,245,000 720,000 - 6,965,000
Transfer to GF Reserve 390,500 -390,500
Transfer to Sewer GF 595,000 - (595,000) -
Transfer to Sewer Rep 1,750,000 -- 1,750,000
Subtotal Transfers 8,590,000 4,200,500 525,000 13,315,500
TOTAL EXPENDITURES & TRANSFERS $65,988,000 $7,643,100 $3,372,800 $77,003,900
6161
ConclusionConclusion
Balanced budget which meets the needs Balanced budget which meets the needs
of our customersof our customers
Supported by a 10.9% potable and Supported by a 10.9% potable and
recycled water rate increaserecycled water rate increase
Supported by a 6.8% rate increase in sewer Supported by a 6.8% rate increase in sewer
chargescharges
6262
SUMMARY OF SUMMARY OF
RECOMMENDATIONSRECOMMENDATIONS
6363
Summary of RecommendationsSummary of Recommendations
1.1.Adopt Resolution No. 4159 to approve the Adopt Resolution No. 4159 to approve the
FY 2010FY 2010--2011 Operating and CIP Budget2011 Operating and CIP Budget
2.2.Approve the fund transfersApprove the fund transfers
3.3.Approve Ordinance No. 525 to amend Approve Ordinance No. 525 to amend
Appendix A of the Code of Ordinances with Appendix A of the Code of Ordinances with
the proposed water and sewer rate increasesthe proposed water and sewer rate increases
4.4.Direct staff to send notices of rate increases Direct staff to send notices of rate increases
to customersto customers
6464
QUESTIONS?QUESTIONS?
Residential Water Rate Increase Effective
January 1, 2011
Dear Customer,
Effective January 1, 2011 you will notice changes in your bill.
An overall rate increase of 10.9% was approved by the Otay Water District’s (the
“District”) Board of Directors as part of the annual budget adoption process completed
in May, 2010. For a typical residential water customer using 15 units of water per month, your residential water bill will increase by $5.63. The new water rates and
charges will appear on bills issued beginning January 1, 2011 and will apply to all
water used beginning in the month of December 2010.
To continue providing reliable, high-quality water services, the District must have
the ability to implement certain rate increases and pass-through higher costs imposed
by water wholesalers, the Metropolitan Water District of Southern California (MWD)
and the San Diego County Water Authority (CWA).
Water wholesalers are raising their water rates to obtain new and reliable supplies
of water. The new supplies include seawater desalination, more reliable emergency
resources, canal lining projects, and agricultural to urban water transfers. Rate in-
creases cover the cost of acquiring imported water from the Colorado River and North-
ern California, in addition to ongoing efforts to develop new and more reliable water supplies.
For its part, the District has worked diligently to reduce internal costs, including reducing the number of full-time employees and corresponding salaries and benefits,
and instituted efficiency programs, such as automated meter reading and online bill
pay services, to minimize the impact of higher water costs from wholesalers.
This letter serves as a 30-day notice of rate increases. For more information,
please visit www.otaywater.gov or by email to info@otaywater.gov.
Dedicated To Community Service
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978
619-670-2272
www.otaywater.gov
Attachment E
Typical Bill at 15 Units per Month
Consumption Blocks and System Fees by Meter Size
Other Charges
MWD/CWA1 System Fee1 Water Rate2 Energy Charge4 Water Charge by
Improvement District5 Total
Current $9.77 $14.58 $34.65 $2.24 $0.85 $62.09
New $11.82 $14.58 $38.10 $2.34 $0.88 $67.72
Increase in monthly water bill $5.63
Single Family Consumption Blocks (units)2 Current January 1, 2011
Conservation Tier 3 $1.35 $1.49
6 10 $2.10 $2.31
11 22 $2.73 $3.00
23+ $4.21 $4.63
Current January 1, 2011
Meter Size System Fee MWD/CWA Total System Fee MWD/CWA Total
0.75” $14.58 $9.77 $24.35 $14.58 $11.82 $26.40
1” $18.52 $16.28 $34.80 $18.52 $19.69 $38.21
1.5” $28.37 $32.61 $60.98 $28.37 $39.44 $67.81
2” $40.18 $52.15 $92.33 $40.18 $63.07 $103.25
Footnotes
For a typical single-family residential customers, as of January 1, 2011, your bill will increase
by $5.63. Your bill will vary based on meter size, water consumption and geographic location.
Current January 1, 2011
Energy Charges4 $0.038 $0.044
Improvement District5 No. 3 $0.18 $0.19
Improvement District5 No. 10 $0.26 $0.27
La Presa5 $0.07 $0.08
1. These fees are based on the meter size. The MWD/CWA fee is increasing to reflect the full
pass-through of this cost by the District’s water suppliers.
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 wa-ter.
3. The Conservation Tier discount applies toward the first five units when overall consumption is ten units or less.
4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in
elevation. This only applies to elevations above 450 feet. This increase is necessary due to in-
creased power costs to the District. 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.
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.
Residential and Multi-Residential Sewer Rate Increase
Effective January 1, 2011
Dear Customer,
Effective January 1, 2011 you will notice changes in your bill.
An overall rate increase of 6.8% was approved by the Otay Water District’s (the
“District”) Board of Directors as part of the annual budget adoption process completed in May, 2010.
The new sewer rates and charges will appear on bills issued beginning January 1,
2011 and will apply to sewage flows for the months beginning December 2010. For a
typical residential sewer customer whose water usage is approximately 15 units per
month, your sewer bill will increase by $2.18 per month.
The District is a revenue neutral public agency. Your sewer bill reflects only those charges sufficient to support your sewer service.
To continue providing sewer services, the District must have the ability to imple-
ment certain rate increases and pass-through higher costs from the District’s public
sewage treatment and disposal agency providers, including the City of San Diego
and the County of San Diego.
For its part, the District has worked diligently to reduce internal costs to minimize
the impact of higher costs from public sewage treatment and disposal agencies .
This letter serves as a 30-day notice of rate increases. For more information,
please visit www.otaywater.gov.
Dedicated To Community Service
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978
619-670-2272
www.otaywater.gov
Attachment F
A typical bill is based on 12.75 units (15 units - 2.25 units). This 15% discount
is an acknowledgement that all water purchased does not go to the sewer
system. The maximum bill for a .75” meter is $61.70. The maximum bill for a
1.0” meter (based on 30 units per month, after the 15% discount) would be
$67.00.
New customers will have a Winter Average assigned of 15 units and pay
$32.87 per month.
Rate Increase Effective January 1, 2011
Multi-Residential
Current Base Fee January 1, 2011
.75" $10.80 $11.57
1.00" $15.75 $16.87
Typical Customer
at 15 Units per $1.56 $1.67
Usage Fee Base Fee Total
Current $19.89 $10.80 $30.69
New $21.30 $11.57 $32.87
The total sewer bill for multiple residential customers is calculated just
like a residential customer with the exception that the base fee is multi-
plied by the number of dwelling units, and the Winter Average, after
being reduced by 15%, has no maximum. Multi-Residential accounts
are charged $54 per dwelling unit for sewer debt.
As of January 1, 2011, the monthly sewer service charge for a typical single-family
residential customer will be calculated as follows:
Usage Fee Rate x Winter Average + a Monthly Base Fee
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.
Public and Commercial Water Rate Increase Effective
January 1, 2011
Dear Customer,
Effective January 1, 2011 you will notice changes in your bill.
An overall rate increase of 10.9% was approved by the Otay Water District’s (the
“District”) Board of Directors as part of the annual budget adoption process completed
in May, 2010. The new water rates and charges will appear on bills issued beginning January 1, 2011 and will apply to all water used beginning in the month of December
2010.
To continue providing reliable, high-quality water services, the District must have
the ability to implement certain rate increases and pass-through higher costs imposed
by water wholesalers, the Metropolitan Water District of Southern California (MWD) and the San Diego County Water Authority (CWA).
Water wholesalers are raising their water rates to obtain new and reliable supplies of water. The new supplies include seawater desalination, more reliable emergency
resources, canal lining projects, and agricultural to urban water transfers. Rate in-
creases cover the cost of acquiring imported water from the Colorado River and North-
ern California, in addition to ongoing efforts to develop new and more reliable water
supplies.
For its part, the District has worked diligently to reduce internal costs, including
reducing the number of full-time employees and corresponding salaries and benefits,
and instituted efficiency programs, such as automated meter reading and online bill pay services, to minimize the impact of higher water costs from wholesalers.
This letter serves as a 30-day notice of rate increases. For more information,
please visit www.otaywater.gov or by email to info@otaywater.gov.
Dedicated To Community Service
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978
619-670-2272
www.otaywater.gov
Attachment G
Current January 1, 2011
Meter Size System
Fee2 MWD/CWA2 Total System
Fee2 MWD/CWA2 Total
3/4" $14.58 $9.77 $24.35 $14.58 $11.82 $26.40
1" $18.52 $16.28 $34.80 $18.52 $19.69 $38.21
1 1/2" $28.37 $32.61 $60.98 $28.37 $39.44 $67.81
2" $40.18 $52.15 $92.33 $40.18 $63.07 $103.25
3" $71.68 $104.30 $175.98 $71.68 $126.14 $197.82
4" $107.13 $162.98 $270.11 $107.13 $197.11 $304.24
6" $205.59 $325.92 $531.51 $205.59 $394.17 $599.76
8" $323.73 $521.51 $845.24 $323.73 $630.71 $954.44
10" $461.57 $749.61 $1,211.18 $461.57 $903.58 $1,368.15
Consumption Blocks and System Fees by Meter Size
Other Charges
Current January 1, 2011
Energy Charges3 $0.038 $0.044
Improvement District4 No. 3 $0.18 $0.19
Improvement District4 No. 10 $0.26 $0.27
La Presa4 $0.07 $0.08
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. These Fixed Charges are based on the meter
size. The MWD/CWA fee is increasing to reflect the full pass-through of this cost by the District’s
water suppliers.
3. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in elevation. This only applies to elevations above 450 feet. This increase is necessary due to in-
creased power costs to the District.
4. This charge is a per unit charge and your bill will
vary based on water consumption.
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.
Public and Commercial Water Usage Fee (<10” meter)
Consumption Blocks (units)1 Current Rates January 1, 2011
0 - 173 $2.22 $2.44
174 - 831 $2.27 $2.50
832 or more $2.31 $2.54
Public and Commercial Water Usage Fee (>10” meter)
Consumption Blocks (units)1 Current Rates January 1, 2011
0 - 7,426 $2.22 $2.44
7,427 - 14,616 $2.27 $2.50
14,617 or more $2.31 $2.54
Recycled Water Rate Increase Effective
January 1, 2011
Dear Customer,
Effective January 1, 2011 you will notice changes in your bill.
An overall rate increase of 10.9% was approved by the Otay Water District’s
(the “District”) Board of Directors as part of the annual budget adoption process completed in May, 2010. The new water rates and charges will appear on bills
issued beginning January 1, 2011 and will apply to all water used beginning in the
month of December 2010.
To continue providing reliable, quality recycled water services, the District
must have the ability to implement certain rate increases and pass-through higher
costs for recycled water.
For its part, the District has worked diligently to reduce internal costs, including
reducing the number of full-time employees and corresponding salaries and bene-
fits, and instituted efficiency programs, such as automated meter reading and online bill pay services, to minimize the impact of higher recycled water costs from
its wholesaler.
This letter serves as a 30-day notice of rate increases. For more information,
please visit www.otaywater.gov or by email to info@otaywater.gov.
Dedicated To Community Service
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978
619-670-2272
www.otaywater.gov
Attachment H
1. Recycled water rates are based on meter size and the number of recycled
water units used each month. A unit of recycled water equals 748 gallons.
2. Energy Charges represent the cost of energy required to pump each unit of
recycled water 100 feet in elevation. This only applies to elevations above
450 feet. This increase is necessary due to increased power costs to the
District.
Consumption Blocks and System Fees by Meter Size
Other Charges
Footnotes
Recycled Water Usage Fee1
( .75" to 1.0" meter) Recycled Water Usage Fee1
(1.5" to 2.0" meter)
Consumption
Blocks (units)1 Current January 1, 2011 Consumption
Blocks (units)1 Current January 1, 2011
0-42 $2.58 $2.84 0-168 $2.58 $2.84
43-97 $2.62 $2.88 169-402 $2.62 $2.88
98 or more $2.67 $2.94 403 or more $2.67 $2.94
Recycled Water Usage Fee1
(3" & 4" meter) Recycled Water Usage Fee1
( > 6" meter)
Consumption
Blocks (units)1 Current January 1, 2011 Consumption
Blocks (units)1 Current January 1, 2011
0-403 $2.58 $2.84 0-7,916 $2.58 $2.84
404-820 $2.62 $2.88 7,917-16,357 $2.62 $2.88
821 or more $2.67 $2.94 16,358 or more $2.67 $2.94
The following tables show the rate increase effective January 1, 2011:
Current January 1, 2011
Energy Charges2 $0.038 $0.044
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.
Commercial Sewer Rate Increase
Effective January 1, 2011
Dear Customer,
Effective January 1, 2011 you will notice changes in your sewer bill.
An overall rate increase of 6.8% was approved by the Otay Water District’s
(the “District”) Board of Directors as part of the annual budget adoption process
completed in May, 2010.
The new sewer rates and charges will appear on bills issued beginning
January 1, 2011 and will apply to sewage flows for the months beginning December 2010.
The District is a revenue neutral public agency. Your sewer bill reflects only those charges sufficient to support your sewer service.
To continue providing sewer services, the District must have the ability to
implement certain rate increases and pass-through higher costs from the
District’s public sewage treatment and disposal agency providers, including the
City of San Diego and the County of San Diego.
For its part, the District has worked diligently to reduce internal costs to
minimize the impact of higher costs from public sewage treatment and disposal
agencies.
This letter serves as a 30-day notice of rate increases. For more information,
please visit www.otaywater.gov.
Dedicated To Community Service
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978
619-670-2272
www.otaywater.gov
Attachment I
To Calculate Non-Residential Sewer Rates
To meet State of California requirements, customers must pay their fair
share of sewer costs. The Otay Water District is required to determine sewer
rates in accordance with the State’s Revenue Program Guidelines. The for-
mula takes into consideration the cost associated with daily flow, chemical
oxygen demand (COD) and the removal of suspended solids (SS). The COD
and SS determine whether the strength factor is high, medium, or low, consis-
tent with the State Water Resources Control Board guidelines.
Monthly bills are calculated based on Assigned Service Units (ASU). One
ASU is equal to the demand placed on the system by a residential unit. ASUs
are calculated by multiplying the daily flow by the strength factor.
Daily Flow x Strength Factor = Assigned Service Unit
Strength Factors
1.0 Churches
1.0 Low Strength Commercial
1.238 Medium Strength Commercial
2.203 High Strength Commercial
The sewer bill is then calculated by multiplying the ASUs by the rate per
ASU. This charge is increasing by $2.51 per ASU from $36.88 to $39.39. The
rate increase will become effective January 1, 2011.
A $54 per ASU assessment is collected on the property tax bill for sewer
debt. The state sewer loan will be paid in full by 2012.
Rate Increase Effective January 1, 2011
Current January 1, 2011
Rate per ASU $ 36.88 $39.39
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.
Master Meter Water Rate Increase Effective
January 1, 2011
Dear Customer,
This letter serves as a 30-day notice of rate increases. Effective January 1, 2011
you will notice changes in your bill.
An overall rate increase of 10.9% was approved by the Otay Water District’s (the
“District”) Board of Directors as part of the annual budget adoption process completed in May, 2010. The new water rates and charges will appear on bills issued beginning
January 1, 2011 and will apply to all water used beginning in the month of December
2010.
To continue providing reliable, high-quality water services, the District must have
the ability to implement certain rate increases and pass-through higher costs imposed
by water wholesalers, the Metropolitan Water District of Southern California (MWD)
and the San Diego County Water Authority (CWA).
Water wholesalers are raising their water rates to obtain new and reliable supplies
of water. The new supplies include seawater desalination, more reliable emergency resources, canal lining projects, and agricultural to urban water transfers. Rate in-
creases cover the cost of acquiring imported water from the Colorado River and North-
ern California, in addition to ongoing efforts to develop new and more reliable water supplies.
For its part, the District has worked diligently to reduce internal costs, including reducing the number of full-time employees and corresponding salaries and benefits,
and instituted efficiency programs, such as automated meter reading and online bill
pay services, to minimize the impact of higher water costs from wholesalers.
For more information, please visit www.otaywater.gov or by email to
info@otaywater.gov.
Dedicated To Community Service
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978
619-670-2272
www.otaywater.gov
Attachment J
1. Consumption is the water usage divided by
the number of dwellings served. This charge is a per unit charge based on water consump-tion. A unit of consumption is equal to 748
gallons of water.
2. These fees are based on the meter size. The MWD/CWA fee is increasing to reflect the full
pass-through of this cost by the District’s water suppliers.
3. The Energy Charge represents the cost of
energy required to pump each unit of water 100 feet in elevation. This only applies to elevations above 450 feet. This increase is
necessary due to increased power cost to the District.
4. This charge is a per unit charge and your bill
will vary based on water consumption.
Consumption Blocks and System Fees by Meter Size
Other Charges
Current January 1, 2011
Energy Charges3 $0.038 $.044
Improvement District4 No. 3 $0.18 $.019
Improvement District4 No. 10 $0.26 $0.27
La Presa4 $0.07 $0.08
Footnotes
Current January 1, 2011
Meter Size System
Fee2 MWD/CWA2 Total System
Fee2 MWD/
CWA2 Total
3/4" $14.58 $9.77 $24.35 $14.58 $11.82 $26.40
1" $18.52 $16.28 $34.80 $18.52 $19.69 $38.21
1 1/2" $28.37 $32.61 $60.98 $28.37 $39.44 $67.81
2" $40.18 $52.15 $92.33 $40.18 $63.07 $103.25
3" $71.68 $104.30 $175.98 $71.68 $126.14 $197.82
4" $107.13 $162.98 $270.11 $107.13 $197.11 $304.24
6" $205.59 $325.92 $531.51 $205.59 $394.17 $599.76
8" $323.73 $521.51 $845.24 $323.73 $630.71 $954.44
10" $461.57 $749.61 $1,211.18 $461.57 $903.58 $1,368.15
Master Metered
Consumption Blocks (units)1 Current Rates January 1, 2011
0 - 4 $2.08 $2.29
5 - 9 $2.70 $2.97
10 or more $4.15 $4.57
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.
Landscape, Agricultural and Construction
Water Rate Increase Effective
January 1, 2011
Dear Customer,
Effective January 1, 2011 you will notice changes in your bill.
An overall rate increase of 10.9% was approved by the Otay Water District’s (the
“District”) Board of Directors as part of the annual budget adoption process completed
in May, 2010. The new water rates and charges will appear on bills issued beginning January 1, 2011 and will apply to all water used beginning in the month of December
2010.
To continue providing reliable, high-quality water services, the District must have
the ability to implement certain rate increases and pass-through higher costs imposed
by water wholesalers, the Metropolitan Water District of Southern California (MWD) and the San Diego County Water Authority (CWA).
Water wholesalers are raising their water rates to obtain new and reliable supplies
of water. The new supplies include seawater desalination, more reliable emergency
resources, canal lining projects, and agricultural to urban water transfers. Rate in-
creases cover the cost of acquiring imported water from the Colorado River and North-
ern California, in addition to ongoing efforts to develop new and more reliable water
supplies.
For its part, the District has worked diligently to reduce internal costs, including re-
ducing the number of full-time employees and corresponding salaries and benefits, and instituted efficiency programs, such as automated meter reading and online bill
pay services, to minimize the impact of higher water costs from wholesalers.
This letter serves as a 30-day notice of rate increases. For more information,
please visit www.otaywater.gov or by email to info@otaywater.gov.
Dedicated To Community Service
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978
619-670-2272
www.otaywater.gov
Attachment K
1. This rate is a per unit charge. Customers using
temporary meters pay two times this rate. One unit
of consumption equals 748 gallons of water.
2. These Fixed Charges are based on the meter size.
The MWD/CWA fee is increasing to reflect the full
pass-through of this cost by the District’s water
suppliers.
3. The Energy Charge represents the cost of energy
required to pump each unit of water 100 feet in
elevation. This only applies to elevations above
450 feet. This increase is necessary due to in-
creased power costs to the District.
4. This charge is a per unit charge and your bill will
vary based on water consumption.
Consumption Blocks, System Fees by Meter Size
Footnotes
Water Usage Fee1 - Landscape, Agricultural, and Construction Water (.75" to 1" meter)
Consumption Blocks (units)1 Current January 1, 2011
0 - 49 $3.02 $3.32
50 - 132 $3.08 $3.39
133 or more $3.14 $3.45
Water Usage Fee1 - Landscape, Agricultural, and Construction Water (1.5" to 2" meter)
Consumption Blocks (units)1 Current January 1, 2011
0 - 144 $3.02 $3.32
145 - 355 $3.08 $3.39
356 or more $3.14 $3.45
Water Usage Fee1 - Landscape, Agricultural, and Construction Water (3"+ meter)
Consumption Blocks (units)1 Current January 1, 2011
0 - 1,044 $3.02 $3.32
1,045 - 8,067 $3.08 $3.39
8,068 or more $3.14 $3.45
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.
Other Charges
Current January 1, 2011
Meter Size System Fee2 MWD/CWA2 Total System Fee2 MWD/CWA2 Total
3/4" $14.58 $9.77 $24.35 $14.58 $11.82 $26.40
1" $18.52 $16.28 $34.80 $18.52 $19.69 $38.21
1 1/2" $28.37 $32.61 $60.98 $28.37 $39.44 $67.81
2" $40.18 $52.15 $92.33 $40.18 $63.07 $103.25
3" $71.68 $104.30 $175.98 $71.68 $126.14 $197.82
4" $107.13 $162.98 $270.11 $107.13 $197.11 $304.24
6" $205.59 $325.92 $531.51 $205.59 $394.17 $599.76
8" $323.73 $521.51 $845.24 $323.73 $630.71 $954.44
10" $461.57 $749.61 $1,211.18 $461.57 $903.58 $1,368.15
Current January 1, 2011
Energy Charges3 $0.038 $0.044
Improvement District4 No. 3 $0.18 $0.19
Improvement District4 No. 10 $0.26 $0.27
La Presa4 $0.07 $0.08