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Home My WebLink About2021 Rate Increase Notice - Residential and Multi-Residential Sewer ServiceBNy 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, or 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 CHANGE 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 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. These 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, 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, and 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 Sewer 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. HOW IS MY SEWER BILL CALCULATED? To estimate sewer use, the District averages metered water use for the winter months of January through April of the previous three years. The “three‐year winter average” is the basis of the sewer charges for the entire year. The winter months are used to measure average water use because less water is typically used outdoors during this time and therefore this average water use will more accurately measure the typical water that flows into the sewer system. The District gives customers a 15.0 percent usage discount to acknowledge that not all water purchased goes to the sewer system. The maximum consumption charge is based on a winter average of 35 units. The following is the sewer bill formula for residential and multi‐residential customers: (3‐Year Winter Average x 85% x Sewer Rate) + System Charges = Total Monthly Bill The usage charge for new customers with less than one year of winter average history will be based on the overall residential District three‐year winter average. Effective January 1, 2021, the usage charge for these customers will be based on a three‐year winter average of 10.3 HCF. The usage charge for customers with usage history equal to or greater than one year, but less than three years, will be based on actual winter average usage history for the number of years they have been customers of record. NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR RESIDENTIAL AND MULTI-RESIDENTIAL SEWER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. WHY ARE YOU RECEIVING THIS NOTICE? This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as “Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of proposed changes to property‐related fees such as sewer service. This letter serves as notice that the District will hold a Public Hearing 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 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 lifted 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 information will be posted on the District’s website. PROTEST PROCEDURE As the owner of record or customer of record of a property identified to be subject to the imposition of proposed rate, fee, and charge changes, you may submit a written protest against the proposed actions. Please note that if the identified property has more than one record owner or customer of record, only one written protest will be counted for the property. By law, each protest must be in writing; state the specific rate change for which the protest is being submitted in opposition; provide the location of the identified property (by assessor’s parcel number or street address); and include the original signature of the owner of record or customer of record submitting the protest. Protests submitted by e‐mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Written protests may also be delivered in person at the public hearing, as long as they are received prior to 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 lifted by October 7, 2020, the Public Hearing will be live streamed via Zoom and, if the District’s Lobby is closed, then written protests will be accepted if they are submitted by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or delivered to the District’s Drop Box located at the entrance of the previously listed address. Please identify on the front of the envelope for any protest, whether mailed, submitted in person to the Board Secretary, or delivered to the District’s Drop Box, that the enclosed is a protest letter. At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. By law, oral comments at the public hearing will not qualify as formal protests unless a written 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, written 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 identified properties upon which they are to be imposed, the Board of Directors will be authorized to adopt the proposed actions. If adopted, the rates, fees, and charges will apply to sewer service billed on or after January 1, 2021 and may apply to sewer service used as early as the beginning of December 2020. This letter serves as a 45‐day notice of the hearing on the proposed rate changes, and as notice of the changes for sewer service billed on or after 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 nonprofit 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, and 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. WHAT CAN I DO TO SAVE MONEY ON MY SEWER BILL? Customers interested in reducing their sewer bills should minimize their winter average water consumption by conserving water during the winter months (January through April). For information and conservation tips, visit the District’s conservation page at otaywater.gov. Additionally, the Water Conservation Garden located on the campus of Cuyamaca Community College in Rancho San Diego is open to the public and offers various conservation exhibits, programs and classes in person and online. For more about the Water Conservation Garden, visit thegarden.org. For information about the Otay Water District, visit otaywater.gov or email the District at info@otaywater.gov. PROJECTED AVERAGE SEWER BILLS (BASED ON 10.3 UNITS OF WATER) BY AGENCY EFFECTIVE FY 2021 Otay’s estimated average bill * At the time of the survey, the agency’s FY 2021 rate was not available, and an assumption was made that no rate increase will be implemented in FY 2021. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The following is the sewer bill formula for residential and multi‐residential customers: (Sewer Rate x 3‐Year Winter Average2,3 x 85%1) + System Charges = Total Monthly Bill On average, a single‐family residential sewer customer’s1 monthly bill will increase by $4.66 per month due to an increase in usage and rates. The sewer rate and system charges for single‐family residential customers is increasing based on the findings of the Cost of Service Study, which was completed in May 2020. The tables below show the itemized charges, referenced in the table above, that are used to determine a monthly sewer bill. The following tables show the proposed rate changes in the sewer rate and system charges for residential and multi‐residential sewer customers billed beginning January 1, 2021. These tables also show the projected 2022 through 2025 rate increases based on the proposed 6.4 percent inflator. Projections are for informational purposes only. Actual sewer rate and system charges in each of the projected years may differ. 1. A typical single‐family residential sewer customer’s bill is based on 8.8 HCF of water (10.3 HCF x 85%), where one HCF equals 748 gallons or one unit of water. The 15.0 percent discount is an acknowledgement that not all water purchased goes to the sewer system. 2. The maximum bill for a single‐family residential sewer customer is based on 30 HCF (35 HCF x 85%). 3. The 3‐Year Winter Average is defined as the sum of prior three years annual winter average divided by three. The annual winter average is defined as the units of water billed from January through April divided by four. 4. Projections are for informational purposes only. Sewer rate and fixed charges increases are based on the proposed 6.4 percent inflator. Actual sewer rate and fixed sewer system charges in each of the projected years may differ. Sewer Rates Average Bill using 10.3HCF (or Units)1 of Water per Month Footnotes This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Meter Current Proposed Projected Projected Projected Projected Size 2020 2021 2022 2023 2024 2025 0.75" $16.38 $16.55 $17.61 $18.74 $19.94 $21.22 1" $40.94 $41.36 $44.01 $46.83 $49.83 $53.02 1 1/2 " $81.88 $82.71 $88.00 $93.63 $99.62 $106.00 2 " $131.00 $132.33 $140.80 $149.81 $159.40 $169.60 3 " $245.64 $248.13 $264.01 $280.91 $298.89 $318.02 4 " $409.40 $413.55 $440.02 $468.18 $498.14 $530.02 6 " $818.79 $827.09 $880.02 $936.34 $996.27 $1,060.03 8 " $1,310.08 $1,323.36 $1,408.06 $1,498.18 $1,594.06 $1,696.08 10 " $1,883.23 $1,902.34 $2,024.09 $2,153.63 $2,291.46 $2,438.11 Multi-Residential Monthly Fixed Sewer System Charges by Meter Size- 2021 Proposed and 2022 - 2025 Projected4 Current Proposed Projected Projected Projected Projected 2020 2021 2022 2023 2024 2025 $2.93 $2.96 $3.15 $3.35 $3.56 $3.79 Residential and Multi-Residential Sewer Rate - 2021 Proposed and 2022 - 2025 Projected4 Fixed Sewer System Charges 3-Year Winter Average2,3 Sewer Rate System Charges Total Current 8.6 $2.93 $16.38 $37.80 Proposed 10.3 $2.96 $16.55 $42.46 Increase/(Decrease) $4.66 Current Proposed Projected Projected Projected Projected 2020 2021 2022 2023 2024 2025 $16.38 $16.55 $17.61 $18.74 $19.94 $21.22 Residential Monthly Fixed Sewer System Charges - 2021 Proposed and 2022 - 2025 Projected4 Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978‐2004 otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RESIDENTIAL AND MULTI‐RESIDENTIAL SEWER SERVICE PRESORT STD U.S. POSTAGE Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT RESIDENTIAL AND MULTI‐RESIDENTIAL SEWER SERVICE