HomeMy WebLinkAbout2018 Rate Increase Notice - Land Only ServiceNOTICE OF PUBLIC HEARING
In Connection with Proposed
CHANGES TO RATES, FEES, AND CHARGES FOR WATER SERVICE
This noƟce contains important informaƟon about water rates.
Otay Water District (the “District”) is noƟfying all property owners
within the District’s service area of a public hearing in connecƟon
with changes to rates, fees, and charges for water service. The
District is a public agency that can provide water service to your
property.
NOTICE IS HEREBY GIVEN that the Otay Water District (the
“District”) will hold a Public Hearing on October 4, 2017, at 3:30
p.m. in the Board of Directors MeeƟng Room located at 2554
Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1)
the adopƟon of rates, fees, and charges that apply to water billed
beginning January 1, 2018; (2) the authorizaƟon, for a period of five
years, for all future pass‐through increases or decreases to cover
changes to rates, fees, and charges from the District’s water
suppliers; and, (3) the authorizaƟon, for a period of five years,
overall average increases to rates, fees, and charges, in addiƟon to
the pass‐through increases, not to exceed 10 percent per year, for
all costs other than pass‐through costs. These rates, fees, and
charges apply to property for which you are shown as the record
owner or customer of record. The purpose of the hearing is to
consider all wriƩen protests against the proposed rates, fees, and
charges that, if approved, will be imposed on properƟes served by
the District. The changes in the proposed rates, fees, and charges
and the basis upon which they were determined is described in
more detail as follows.
PROPOSED RATE CHANGES
As part of the annual budget review process, the District’s Board
of Directors typically proposes an overall rate increase to be
implemented for January. This year the Board of Directors is
proposing no overall rate increase on January 1, 2018.
Even though there is no proposed overall rate increase for
January 1, 2018, the District is proposing changes to the rate
structure, rates, fees, and charges based on a comprehensive cost
of service study completed in April 2017. The study was conducted
by an independent firm and proposes changes that reflect the
District’s esƟmated cost of providing water service. If adopted, the
proposed changes to rates, fees, and charges would take effect for
water billed on or aŌer January 1, 2018, and may apply to water
used as early as the beginning of December 2017.
The rate structure has two basic components: (1) fixed monthly
charges and (2) variable monthly rates, fees, and charges, which are
based on water consumpƟon. The fixed fees and charges are
calculated to recover the cost of operaƟng and maintaining the
public water system and are based on the customer class and size of
the water meter serving the record owner or customer of record.
Fixed charges include the Metropolitan Water District of Southern
California (MWD) and San Diego County Water Authority (CWA) fee,
and the District’s System Charge. The variable rates, fees, and
charges are consumpƟon based and include, but are not limited to,
supply, treatment, and transportaƟon costs. Variable rates, fees,
and charges generally impose greater charges as the level of
consumpƟon increases. Variable components of the bill include the
Water Rate and Energy Charge. The fixed and variable components
are calculated to recover the proporƟonate cost of providing the
service aƩributable to each class of customer.
The District will also consider authorizing, for a period of five
years, passing through to customers the increased or decreased
costs imposed by the District’s water suppliers including, but not
limited to MWD, CWA, and the City of San Diego. If adopted, the
average customer’s water rates, fees, and charges will be adjusted
annually for all increased or decreased costs and charges from the
District’s wholesale water suppliers. The purpose of the hearing is
to consider all wriƩen protests against the proposed rates, fees, and
charges that, if approved, will be imposed on properƟes served by
the District. Any changes to rates, fees, and charges subsequently
imposed by the District will be subject to a 30‐day prior wriƩen
noƟce, but will not be subject to addiƟonal hearings or protests.
In addiƟon to the wholesale pass‐through costs, the District will
consider authorizing, for a period of five years, average increases in
rates, fees, and charges not to exceed 10 percent per year, for all
costs related to labor, benefits, materials, energy, maintenance,
administraƟve expenses, and other operaƟonal costs of providing
water service including, but not limited to, amounts required to
meet bond covenants and to maintain adequate reserves and rate
stability.
WHY ARE YOU RECEIVING THIS NOTICE?
As the record owner of a property idenƟfied to be subject to the
imposiƟon of proposed rate, fee, or charge increases, you may
submit a wriƩen protest against the proposed acƟons. Provided,
however, if the idenƟfied property has more than one record
owner, only one wriƩen protest for the property will be counted.
Each protest must be in wriƟng and include: (1) the specific rate,
fee, and/or charge for which the protest is being submiƩed in
opposiƟon; (2) the locaƟon of the idenƟfied property (by assessor’s
parcel number or street address); and, (3) the original signature of
the record owner submiƫng the protest. Protests submiƩed by
email, facsimile, or other electronic means will not be accepted.
WriƩen protests may be submiƩed by mail to the Board Secretary,
Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley,
CA 91978, or in person at the public hearing, as long as they are
received prior to the conclusion of the public hearing. Please
idenƟfy on the front of the envelope for any protest, whether
mailed or submiƩed in person to the Board Secretary, that the
enclosed leƩer is for the Public Hearing on the Proposed Rates,
Fees, and Charges for Water Service.
At the conclusion of the public hearing, the Board of Directors will
consider adopƟng the proposed acƟons as described in this noƟce.
Oral comments at the public hearing will not qualify as formal
protests unless accompanied by a wriƩen protest. If, at the close of
the public hearing, wriƩen protests against the proposed rate
increase, fees, and charges are not presented by a majority of the
record owners 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 water service billed on or aŌer January 1, 2018 and may apply to
water service used as early as the beginning of December 2017. This
leƩer serves as a 45‐day noƟce of the hearing on the proposed
rate changes, and as noƟce of the changes for water service billed
on or aŌer January 1, 2018, if adopted.
This noƟce is being provided to you by the District pursuant to
the California ConsƟtuƟon ArƟcle XIII D (known as “ProposiƟon
218”). Under terms of ProposiƟon 218, the District is required to
noƟfy the record owner of proposed changes to property‐related
rates, fees, and charges such as water service. This leƩer serves as
noƟce that the District will hold a public hearing to consider
changes to its current water rates, fees, and charges.
Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.