HomeMy WebLinkAbout2021 Rate Increase Notice - Land Only Sewer Service
NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 7, 2020, at 3:30 p.m. in
the Board of Directors Meeting Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adoption of rate,
fee, and charge changes that apply to sewer service billed beginning January 1, 2021; (2) the authorization for a period of five years of
all future pass-through costs and cost increases or decreases to cover changes to rates, fees, and charges from the District’s power
and sewer service providers; and, (3) the authorization for a period of five years of overall average rate increases, in addition to the
pass-through increases, not to exceed 10.0 percent per year for all costs other than pass-through costs. These rates, fees, and charges
apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all
protests against the proposed rates, fees, and charges that, if approved, will be imposed on properties served by the District. The
amount of the proposed rate, fee, and charge increases and the basis upon which they were determined is described in more detail
as follows.
PROPOSED RATE CHANGES AND ACTIONS
An overall average sewer rate increase of 2.8 percent will be considered by the Board of Directors at the public hearing noticed
above. The rate increase is proposed to take effect with sewer service billed on or after January 1, 2021 and may apply to sewer
service used as early as the beginning of December 2020.
In May 2020, the District performed a Sewer Cost of Service Study, which reviewed sewer rates, fees, charges, costs, and the sewer
usage structure and determined that changes in rates, fees, and charges are necessary in order to recover revenues based on the cost
of servicing each class of customer. In addition, the District is proposing changes to the sewer rate structure based on the
comprehensive cost of service study. The sewer customer rate changes were considered by the District’s Board of Directors as part of
the annual budget review process. The District will also consider authorizing, for a period of five years, passing through to customers
the costs and increases or decreases in costs imposed by the District’s power and sewer service providers. If adopted, the customers’
sewer rates, fees, and charges will be adjusted annually for costs and charges from the District’s power and sewer service providers.
The pass-through costs include rates, fees, and charges for power and from the District’s treatment and disposal providers. The
providers include, but are not limited to, San Diego Gas and Electric, the County of San Diego, and the City of San Diego.
In addition to the pass-through costs, the District will consider authorizing, for a period of five years, overall average rate increases
not to exceed 10.0 percent per year for all costs related to labor, benefits, materials, maintenance, administrative expenses, as well
as other operational costs of providing sewer service, including amounts required to meet bond covenants and to maintain adequate
reserves and rate stability.
Any changes to rates, fees, and charges subsequently imposed by the District will be subject to a 30-day prior written notice but will
not be subject to additional hearings or protests.
These proposed actions, if adopted, would implement the Cost of Service Study’s recommended findings for a period of five years,
pass-through to customers increased or decreased costs from power and sewer service providers, and allow the District to recover
the full cost of delivering sewer service. The proposed rates, fees, and charges will provide revenue that recovers all costs reasonably
borne in providing sewer service; are equitable to all customer classes; and are proportionate to the cost of providing the service to
each customer class.
WHY ARE YOU RECEIVING THIS NOTICE?
This noƟce is being provided to you by the District pursuant to the California ConsƟtuƟon ArƟcle XIIID (collecƟvely known as
“ProposiƟon 218”). Under terms of ProposiƟon 218, the District is required to noƟfy the record owner or customer of record of
proposed changes to property-related fees such as sewer service. This leƩer serves as noƟce that the District will hold a Public Hearing
on October 7, 2020, at 3:30 p.m. in the Board of Directors MeeƟng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978
to consider changes to its current sewer service rates, fees, and charges. However, if due to COVID-19 the State or County Shelter
in Place Orders have not been liŌed by October 7, 2020 the Public Hearing will be live streamed (audio and video) via Zoom live
streaming on October 7, 2020, at 3:30 p.m. and conference call-in informaƟon will be posted on the District’s website.
PROTEST PROCEDURE
As the owner of record or customer of record of a property idenƟfied to be subject to the imposiƟon of proposed rate, fee, and
charge changes, you may submit a wriƩen protest against the proposed acƟons. Please note that if the idenƟfied property has more
than one record owner or customer of record, only one wriƩen protest will be counted for the property. By law, each protest must be
in wriƟng; state the specific rate change for which the protest is being submiƩed in opposiƟon; provide the locaƟon of the idenƟfied
property (by assessor’s parcel number or street address); and include the original signature of the owner of record or customer of
record submiƫng the protest. Protests submiƩed by e-mail, facsimile, or other electronic means will not be accepted. WriƩen protests
may be submiƩed by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley,
CA 91978. WriƩen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion
of the public hearing. Please note that if, due to COVID-19, the State or County Shelter in Place Orders have not been liŌed by
October 7, 2020, the Public Hearing will be live streamed via Zoom and, if the District’s Lobby is closed, then wriƩen protests will
be accepted if they are submiƩed by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley,
NOTICE OF PUBLIC HEARING
In Connection with Proposed
INCREASES TO RATES, FEES, AND CHARGES FOR
SEWER SERVICE
Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.
CA 91978, or delivered to the District’s Drop Box located at the entrance of the previously listed address. Please idenƟfy on the
front of the envelope for any protest, whether mailed, submiƩed in person to the Board Secretary, or delivered to the District’s
Drop Box, that the enclosed is a protest leƩer.
At the conclusion of the public hearing, the Board of Directors will consider adopƟng the proposed acƟons as described above. By
law, oral comments at the public hearing will not qualify as formal protests unless a wriƩen protest has been received by the District
prior to the conclusion of the public hearing as instructed above. If, at the close of the public hearing, wriƩen protests against the
proposed rate, fee, and charge changes are not presented by a majority of the record owners or customers of record of the idenƟfied
properƟes upon which they are to be imposed, the Board of Directors will be authorized to adopt the proposed acƟons. If adopted, the rates, fees, and charges will apply to sewer service billed on or aŌer January 1, 2021 and may apply to sewer service used as early
as the beginning of December 2020. This leƩer serves as a 45-day noƟce of the hearing on the proposed rate changes, and as noƟce
of the changes for sewer service billed on or aŌer January 1, 2021, if adopted.
WHY ARE SEWER RATE CHANGES NECESSARY?
The District is a revenue-neutral public agency that provides sewer service to your community. “Revenue-neutral” means that sewer
bills reflect only those rates, fees, and charges sufficient to support sewer service. To continue to provide reliable service, the District
must implement and pass-through to its customers the full and actual cost of providing sewer service, including higher costs imposed
by service providers. The actions proposed will help protect the public’s investment in the public sewer system, reduce the possibility
of pipeline breaks, blockages or spills, and keep rates affordable. As a non-profit public agency, the District does not make a profit
from providing sewer service, and it cannot operate at a loss.
Over the next five-year period, the pass-through costs from the County of San Diego and City of San Diego are anticipated to increase
the District’s sewer costs. The increase is primarily due to the following: 1) Anticipated capital improvement program cost increases
related to the City’s Pure Water (recycled water) program. 2) Increasing costs of sewage treatment and transportation from the City
of San Diego. 3) Ongoing shared operation, maintenance and capital improvement cost increases by the County of San Diego and the
City of San Diego.
WHAT DO SEWER RATES FUND?
Each end user pays his or her fair share of the cost of sewage treatment and disposal; energy or pumping costs; labor and benefits;
materials; chemicals used in sewage treatment; administrative expenses; and operations, construction, and maintenance of the public
sewer system and facilities. This also includes amounts required to meet bond covenants and to maintain adequate reserves and rate
stability. The District always works to keep its expenses to a minimum and, as a result, has rates for sewer service that are among the
lowest in San Diego County.
Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.
This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates,
fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov.
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978-2004
otaywater.gov
NOTICE OF PUBLIC HEARING
IMPORTANT INFORMATION ABOUT
SEWER SERVICE
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OTAYWATER.GOV
NOTICE OF PUBLIC HEARING
IMPORTANT INFORMATION ABOUT
SEWER SERVICE