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HomeMy WebLinkAbout2018 Rate Increase Notice - Residential Sewer ServiceNOTICE OF SEWER RATES, FEES, AND CHARGES EFFECTIVE FOR SEWER SERVICE BILLED IN JANUARY 2018 Dear Customer, A rate increase of 7.5 percent was approved by the Otay Water District (the “District”) as part of the annual budget adoption process completed in May 2017. Even with this rate increase the typical District residential sewer customer will see their bill decrease by $0.56 due to the reduction in winter average water usage (see the average bill calculation on the reverse side). The new sewer rates, fees, and charges will apply to service billed beginning January 1, 2018 and, depending on your billing cycle, will apply to service as early as the beginning of December 2017. This letter provides a 30-day notice of rate increases. 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 service, the District must adjust its rates, fees, and charges for service, and pass-through costs from the District’s treatment and disposal providers to its customers that reflect the full cost of providing the service. Treatment and disposal providers include, but are not limited to, the County of San Diego and the City of San Diego (the “City”). This year, the increase is a direct result of higher treatment fees from the City. The increase in the City’s fee is due to its plan to develop a Pure Water treatment facility to satisfy state and federal law. The District’s costs include inspection and preventative maintenance of the public sewer system and replacement of aging sewer infrastructure. These actions protect the public’s investment in the public sewer system, minimize maintenance costs, reduce the possibility of pipeline breaks, blockages or spills, and keep sewer rates affordable. On September 4, 2013, the District adopted a five-year schedule of rates in compliance with applicable provisions of law. This sewer rate increase is within the limits of the approved five-year schedule of rates, fees, and charges. The District works diligently to reduce internal costs and continues to be one of the lowest cost sewer service providers in San Diego County. For more information about the District, please visit otaywater.gov, contact us via email at info@otaywater.gov, or call us at 619-670-2222. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 619-670-2222 otaywater.gov Notice of Residential Sewer Rate Increase Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Dedicated to Community Service Otay’s estimated average bill * At the time of the survey in May 2017, the member agency’s FY 2018 rate was unavailable. The estimated increase is an average of the agencies FY 2018 rate increases. PROJECTED AVERAGE SEWER BILLS BY AGENCY EFFECTIVE FY 2018 The District uses the customer’s winter average consumption (winter average) in determining the Sewer Service bill. The winter average is defined as the units1 of water billed from January through April of the previous year divided by four. New customers will have a winter average of 9.50 HCF1 until a winter average can be established. A 15 percent usage discount is applied to all sewer customers to acknowledge that not all water purchased goes to the sewer system. Residential Sewer Service Bill Calculation The monthly sewer service charge for the average residential customer based on 85% of the applicable year’s winter average is as follows: The maximum sewer bill is $100.17. This is calculated using the maximum winter average consumption of 35.29 HCF. Usage Fee Winter Average System Fee Total Current $2.58 11.0 $15.89 $40.01 New $2.77 9.50 $17.08 $39.45 (Winter Average x 85% x Usage Fee) + System Fee = Sewer Service bill This information reflects only changes to rates. For a comprehensive listing of rates, 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. Rates and Fees Current New Usage Fee 2.58 2.77 System Fee 15.89 17.08 Footnotes Average Bill using 9.5 HCF (or Units)1 of Water per Month 1. One hundred cubic feet (HFC) equals 748 gallons or one “unit” of water.