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HomeMy WebLinkAbout2016 (March) Rate Increase Notice - Public and Commercial Water ServiceDedicated to Community Service Notice of Public and Commercial Water Rate Increase NOTICE OF INCREASED WATER RATES AND CHARGES EFFECTIVE FOR WATER BILLED IN MARCH 2016 Dear Public and Commercial Water Customer, The City of San Diego recently increased the rate they charge for recycled water 116 percent effective January 1, 2016. The City of San Diego is a supplier of recycled water to the Otay Water District (the “District”). District officials, as well as many South Bay and East County leaders, vigorously fought this rate increase. As a revenue-neutral public agency, the District is now increasing its rates and passing through to its customers the higher costs imposed by the City of San Diego. An overall average rate increase of 4.1 percent will be passed through to customers beginning March 1, 2016. Depending on your billing cycle, the new rates and charges will apply to water used as early as February 1, 2016. More than two-thirds of this rate increase is due to the City of San Diego’s action. The remaining third is due to reduced water sales as a result of the drought and the high level of conservation in response to the Governor’s call to reduce water use by 20 percent. This letter serves as a 30-day notice of rate increases. Because recycled water diversifies local water supplies and provides an alternative to using potable water, particularly in times of drought, everyone benefits from the use of recycled water including potable water customers. As a result, potable and recycled water rates are calculated in a combined manner and potable water rates are impacted by higher recycled water rates from suppliers. On September 4, 2013, the District adopted a five-year schedule of rates in compliance with applicable provisions of the law. This increase is within the limits approved in the five-year schedule of rates. While the District continues to cut costs and optimize effectiveness to minimize passing through higher rates to customers, including reducing the number of fulltime employees 21 percent, company vehicles and equipment 17 percent, and cutting fuel consumption 36 percent, as well as instituting automation and technology measures that since 2007 have resulted in nearly $24 million in savings, these actions alone cannot mitigate the 116 percent rate increase imposed by the City of San Diego. Customers interested in reducing their water use to minimize the impact of this rate increase can visit the District’s Conservation pages at www.otaywater.gov. The District provides information on rebates, incentives, water audits, plus other resources to help you save water. In addition, the Water Conservation Garden located in Rancho San Diego is free to the public and has water conservation exhibits, resources and classes to help you save water. Please visit the Water Conservation Garden, or visit www.thegarden.org. Customers wanting more information about the City of San Diego’s recycled water rate increase can visit www.fairwatersd.com. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978 619-670-2222 www.otaywater.gov Si gusta assistencia en Español, referente a esta notificacion, favor llamar al 619-670-2222. Consumption Blocks by Unit and System Fees by Meter Size Footnote 1. This cost varies based on water usage and can be calculated using the consumption block tables. One unit of consumption equals 748 gallons of water. 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. Prolonged drought conditions or declared water shortages may impact rates. Public and Commercial Water Usage Fee (<10” meter) Consumption Blocks (units)1 Current New 0 - 185 $3.27 $3.51 186 - 1,400 $3.32 $3.56 1,401 or more $3.37 $3.62 Public and Commercial Water Usage Fee (10” meter) Consumption Blocks (units)1 Current New 0 - 7,426 $3.27 $3.51 7,427 - 14,616 $3.32 $3.56 14,617 or more $3.37 $3.62 Si gusta assistencia en Español, referente a esta notificacion, favor de llamar al 619-670-2222.