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HomeMy WebLinkAbout2025 Rate Increase Notice - Commercial and Industrial Sewer ServiceSi requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978 619-670-2222 otaywater.govNotice of Commercial and Industrial Sewer Rate Increase NOTICE OF SEWER RATES, FEES, AND CHARGES EFFECTIVE FOR SEWER SERVICE BILLED IN JANUARY 2025 Dear Customer, On October 7, 2020, the Otay Water District (District) Board of Directors adopted a five-year maximum schedule of sewer rates in compliance with applicable provisions of law. Consistent with that rate schedule, and as part of the annual budget adoption process completed in June 2024, the District approved implementing a sewer rate increase to proportionately recover the increasing costs of providing sewer service to the District’s customers. The District operates as a revenue- neutral agency and is obligated to pass through any cost increases imposed by its power, treatment, and disposal providers. To offset these power, treatment, and disposal provider increases, the District will raise its rates by 4.8%, effective for billings starting January 1, 2025. The new sewer rates, fees, and charges will apply to service billed beginning January 1, 2025. Depending on your billing cycle, the new rates and charges will apply to sewer service as early as the beginning of December 2024. This letter serves as a 30-day notice of rate increases. The District is a not-for-profit public agency. As a governmental entity, the District does not make a profit from providing sewer service and cannot operate at a loss. Sewer bills reflect only those rates, fees, and charges sufficient to support sewer service. To continue providing reliable service, the District must implement and pass through to its customers the full cost of providing sewer service, including cost increases imposed by the District’s power, treatment, and disposal providers. Power is provided by San Diego Gas and Electric. Treatment and disposal providers include the County of San Diego (County) and the City of San Diego (City). This year, the increase is a direct result of ongoing District operation, maintenance, and capital improvement costs as well as increases in treatment costs charged by the City and the shared service costs for facilities operated by the County. 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. The District works diligently to reduce internal costs and continues to be one of the lower cost sewer service providers in San Diego County. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Dedicated to Community Service INDUSTRIAL SEWER SERVICE Sewer Rates (per unit) Current New Low-Strength4 $3.40 $3.56 Medium-Strength $3.87 $4.05 High-Strength $5.45 $5.70 System Charges (monthly) Meter Size Current New .75” $18.99 $19.87 1” $47.45 $49.64 1.5” $94.88 $99.25 2” $151.80 $158.80 3” $284.65 $297.77 4” $474.41 $496.28 6” $948.82 $992.56 8” $1,518.13 $1,588.12 10” $2,182.31 $2,282.91 Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Commercial and Industrial Sewer Service Bill Calculation 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 an SFR, with an SFR having a strength factor of one. (Average Annual Consumption1 x 85%2 x Sewer Rate) + System Charges = Total Monthly Bill3 Rates and Charges Footnotes 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. 1. The Average Annual Consumption is defined as the total number of units of water billed from January through December of the previous year divided by 12. 2. A 15% usage discount is applied to all sewer customers to acknowledge that not all water purchased goes through the sewer system. 3. The District’s total rate increase is 4.8%. This rate increase is 100% attributable to increased charges passed through from the treatment providers and shared facilities. 4. Schools and churches are categorized as low-strength commercial customers.