HomeMy WebLinkAbout2019 Rate Increase Notice - Residential and Mutli-Residential Sewer Service
NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 3, 2018, 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, 2019; (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 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 decrease of 7.0 percent will be considered by the Board of Directors at the public hearing noticed
above. The rate decrease is proposed to take effect with sewer service billed on or after January 1, 2019, and may apply to sewer
service used as early as the beginning of December 2018.
In January 2018, 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. 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 sewer service providers. If adopted, the customer’s sewer rates, fees,
and charges will be adjusted annually for costs and charges from the District’s 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. Any changes to rates, fees, and charges subsequently
imposed by the District will be subject to a 30‐day prior written notice, but will not be subject to additional hearings or protests.
In addition to the pass‐through costs, the District will consider authorizing, for a period of five years, overall average rate increases
not to exceed 10.0 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.
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 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. The “winter
average” is the basis of the sewer charges for the entire year. The winter months are the best time to average water use because less
water is used outdoors and most of the water used flows to the sewer system. 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:
(Winter Average x 85% x Sewer Rate) + System Charges = Total Monthly Bill
WHY ARE YOU RECEIVING THIS NOTICE?
As the record owner or customer of record of a property identified to be subject to the imposition of proposed rate, 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. 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 record owner or customer of record submitting
the protest. Protests submitted by e‐mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted
by mail to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, or in person at the public
hearing, so long as they are received prior to the conclusion of the public hearing. Please identify on the front of the envelope for
any protest, whether mailed or submitted in person to the Board Secretary, that the enclosed letter is for the Public Hearing on the
Proposed Changes to Rates, Fees, and Charges for Residential Sewer Service.
At the conclusion of the public hearing, the Board of Directors will consider adopting the proposed actions as described above. Oral
comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. If, at the close of the
public hearing, written protests against the proposed rate, fee, and 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
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.
1, 2019 and may apply to sewer service used as early as the beginning of December 2018. 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, 2019, if adopted.
This notice is being provided to you by the District pursuant to the California Constitution Article XIIID (collectively known as
“Proposition 218”). Under terms of Proposition 218, the District is required to notify the record owner or customer of record of
proposed changes to property‐related fees such as sewer service. This letter serves as notice that the District will hold a public hearing
to consider changes to its current sewer service rates, fees, and charges.
WHY ARE SEWER RATE CHANGES NECESSARY?
The District is a revenue‐neutral public agency that provides sewer service to your community. “Revenue‐neutral” means that sewer
bills reflect only those rates, fees, and charges sufficient to support sewer service. To continue to provide reliable service, the District
must implement and pass‐through to its customers the full and actual cost of providing sewer service, including higher costs imposed
by service providers. While these are cost increases, customer average use has increased to the point where a decrease in the average
sewer rate provides the required revenues. 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: 1) Unanticipated 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, 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.
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,
please 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. For more about the
Water Conservation Garden, visit
thegarden.org.
For information about the Otay Water
District, please visit otaywater.gov or email
the District at info@otaywater.gov.
Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.
PROJECTED AVERAGE SEWER BILLS (BASED ON 12.6 UNITS OF WATER)
BY AGENCY EFFECTIVE FY 2019
Otay ranks 6th of the 28
sewer service providers.
* At the time of the survey,
the agency’s FY 2019 rate
was not available. The
estimated increase is equal
to the average of all
confirmed FY 2019 rate
increases.
The following is the sewer bill formula for residential and multi‐residential customers:
(Sewer Rate x Winter Average2 x 85%1) + System Charges = Total Monthly Bill
For a single family residential sewer customer1, your bill will decrease by ($3.24) per month. The sewer rate and system charges for
single family residential customers is decreasing based on the Cost of Service Study’s findings completed in January 2018.
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, 2019. These tables also show the projected 2020 through 2023 rate increases based on
the proposed 4.6 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 10.71 HCF of water (12.6 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 Winter Average is defined as the units of water billed from January through April of the previous year divided by four.
4. Projections are for informational purposes only, Sewer rate and fixed charges increases are based on the proposed 4.6 percent
inflator. Actual sewer rate and fixed sewer system charges in each of the projected years may differ.
Sewer Rates
Average Bill using 12.6 HCF (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 please 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 2018 2019 2020 2021 2022 2023
0.75" $30.50 $14.91 $15.60 $16.32 $17.07 $17.86
1" $44.94 $37.27 $38.98 $40.77 $42.65 $44.61
1 1/2 " $80.92 $74.55 $77.98 $81.57 $85.32 $89.24
2 " $124.12 $119.27 $124.76 $130.50 $136.50 $142.78
3 " $224.93 $223.64 $233.93 $244.69 $255.95 $267.72
4 " $368.97 $372.73 $389.88 $407.81 $426.57 $446.19
6 " $729.04 $745.45 $779.74 $815.61 $853.13 $892.37
8 " $1,161.15 $1,192.73 $1,247.60 $1,304.99 $1,365.02 $1,427.81
10 " $1,665.25 $1,714.54 $1,793.41 $1,875.91 $1,962.20 $2,052.46
Multi-Residential Monthly Fixed Sewer System Charges by Meter Size- 2019 Proposed and 2020 - 2023 Projected3
Current Proposed Projected Projected Projected Projected
2018 2019 2020 2021 2022 2023
$2.77 $2.67 $2.79 $2.92 $3.05 $3.19
Residential and Multi-Residential Sewer Rate - 2019 Proposed and 2020 - 2023 Projected3
Fixed Sewer System Charges
Winter Average2 Sewer Rate System Charges Total
Current 12.6 $2.77 $17.08 $46.75
Proposed 12.6 $2.67 $14.91 $43.51
Increase/(Decrease) ($3.24)
Current Proposed Projected Projected Projected Projected
2018 2019 2020 2021 2022 2023
$17.08 $14.91 $15.60 $16.32 $17.07 $17.86
Residential Monthly Fixed Sewer System Charges - 2019 Proposed and 2020 - 2023 Projected3