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HomeMy WebLinkAbout2011 Rate Increase Notice - Commercial Sewer Service Notice of Commercial Sewer Rate Increase NOTICE OF INCREASED SEWER RATES AND CHARGES EFFECTIVE ON SEWER SERVICE BEGINNING IN JANUARY 2011 Dear Customer, An overall rate increase of 6.8% was approved by the Otay Water District’s (the “District”) Board of Directors as part of the annual budget adoption process completed in May, 2010. The new sewer rates and charges will apply to service billed beginning February 1, 2011 and, depending on your billing cycle, may apply to service as early as the beginning of January, 2011. This letter provides a 30-day prior 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 services, the District must implement certain rate increases and must pass-through to its customers higher costs from the District’s sewage treatment and disposal providers, including the City of San Diego and the County of San Diego. On August 24, 2009, the District adopted a five-year schedule of rates in compliance with applicable provisions of law. The rate increases herein noticed reflect a pass-through increase of 6.8%. One hundred percent of this increase is the result of higher service rates from the City of San Diego and the County of San Diego. The sewer rate increase is within the limits contemplated in the five-year schedule of rates. For its part, the District has worked diligently to reduce internal costs to minimize the impact of higher costs from public sewage treatment and disposal agencies. For more information, 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 619-670-2777 www.otaywater.gov Non-Residential Sewer Rates To meet State of California requirements, customers must pay their fair share of sewer costs. The Otay Water District is required to determine sewer rates in accordance with the State’s Revenue Program Guidelines. The formula takes into consideration the cost associated with the Daily Flow, Chemical Oxy- gen Demand and the removal of Suspended Solids. The Chemical Oxygen Demand and Suspended Solids determine whether the Strength Factor is high, medium, or low, consistent with the State Water Resources Control Board’s guidelines. Monthly bills are calculated based on Assigned Service Units (ASU). One ASU is equal to the demand placed on the system by a residential unit. ASUs are calculated by multiplying the Daily Flow by the Strength Factor. Daily Flow x Strength Factor = Assigned Service Unit Strength Factors 1.0 Churches 1.0 Low Strength Commercial 1.238 Medium Strength Commercial 2.203 High Strength Commercial The sewer bill is then calculated by multiplying the ASUs by the rate per ASU. This charge is increasing by $2.51 per ASU from $36.88 to $39.39. A $54 per ASU assessment is collected on the property tax bill for sewer debt. The state sewer loan will be paid in full by 2012. Rate Increase Notice Current New Rate per ASU $ 36.88 $39.39 This information reflects only changes to rates. For a comprehensive listing of rates, please see the Otay Water District’s Code of Ordinance at www.otaywater.gov.