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HomeMy WebLinkAbout2017 Rate Increase Notice - Multi-Residential and Commercial Sewer ServiceNOTICE OF SEWER RATES AND CHARGES EFFECTIVE FOR SEWER SERVICE BILLED IN JANUARY 2017 Dear Customer, As part of the annual budget adoption process completed in May 2016, the Otay Water District (the “District”) approved an overall rate increase of 3.0 percent for calendar year 2017. The new sewer rates and charges will apply to service billed beginning January 1, 2017 and, depending on your billing cycle, will apply to service as early as the beginning of December 2016. 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 for service, implement certain rate increases, and pass- through costs from the District’s treatment and disposal providers (including but not limited to the County of San Diego and the City of San Diego) to its customers that reflect the full cost of providing the service. Such 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 approved in the five-year schedule of rates. For its part, 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 Otay Water District, please visit www.otaywater.gov or contact us via email at info@otaywater.gov. Dedicated to Community Service Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978 619-670-2222 www.otaywater.gov Notice of Multi-Residential and Commercial Sewer Rate Increase Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. (Winter Average Consumption(1) x .85(3) x Usage Fee(4)) + System Fee(6) Multi-Residential and Commercial Sewer Service Bill Calculation Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The District is required to determine sewer rates in accordance with the State’s Revenue Program Guidelines. The State Water Resources Control Board (SWRCB) has grouped commercial customers into various categories and has identified Strength Factors for each of these business categories. The standard of measure for Strength Factors is the typical sewer strength of a single-family residence (SFR). The Strength Factors established by the SWRCB are listed below and are used by the District in the calculation of commercial sewer rates. These factors are in terms of the strength relative to a SFR, with a SFR having a strength factor of one. Rates and Fees System Fees Meter Size Current New .75” $27.07 $28.37 1” $39.86 $41.80 1.5” $71.82 $75.27 2” $110.17 $115.46 3” $199.66 $209.24 4” $327.51 $343.23 6” $647.12 $678.18 8” $1,030.67 $1,080.14 10” $1,478.12 $1,549.07 Usage Fees Current New Multi-Residential $2.46 $2.58 Commercial Low Strength $2.46 $2.58 Medium Strength $3.53 $3.70 High Strength $5.63 $5.90 Multi-Residential Sewer Service Bill Calculation (Average Annual Consumption(2)x .85(3) x Usage Fee(4) x Strength Factor(5)) + System Fee(6) Commercial Sewer Service Bill Calculation This information reflects only changes to rates. For a comprehensive listing of rates, please see the Otay Water District’s Code of Ordinances at www.otaywater.gov. Commercial Strength Factors Current New Low Strength 1.000 1.000 Medium Strength 2.000 2.000 High Strength 4.000 4.000 Footnotes (1) The winter average is defined as the units of water billed from January through April of the previous year divided by four. (2) The average annual consumption is defined as the units of water billed from January 2015 through December 2015 divided by twelve. (3) A 15 percent usage discount is applied to all sewer customers to acknowledge that not all water purchased goes to the sewer system. (4) Based on the account’s Strength Factor as shown on the Usage Fee table as being either Multi-Residential, Low, Medium, or High.