HomeMy WebLinkAbout2016 (March) Rate Increase Notice - Recycled Water ServiceNotice of Recycled Water
Rate Increase
NOTICE OF INCREASED RECYCLED WATER RATES AND CHARGES EFFECTIVE
FOR WATER BILLED IN MARCH 2016
Dear Recycled 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. Producing and distributing recycled water is also costly. To help offset the cost of
supplying alternative water sources, the District receives financial incentives from its potable water
suppliers. Recycled rates are then discounted 15 percent, recognizing the added expense of using
recycled water. Today, approximately 13 percent of the District’s water supply is made up of recycled
water.
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 rate increase for recycled water
can visit www.fairwatersd.com.
Dedicated to Community Service
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978-2014
619-670-2222
www.otaywater.gov
Si gusta assistencia en Español, referente a esta notificacion, favor de llamar al 619-670-2222.
1. Recycled water rates are based on meter size and the number of recycled water units used each
month. Customers outside the Otay Water District, an Improvement District, or using temporary
meters pay two times this rate. A unit of recycled water equals 748 gallons.
Consumption Fees by Meter Size
Recycled Irrigation Usage Fee1
(3/4" & 1" meter) Recycled Irrigation Usage Fee1
(1 1/2" & 2" meter)
Consumption
Blocks (units) Current New Consumption
Blocks (units) Current New
0 - 32 $3.80 $4.08 0 - 130 $3.80 $4.08
33 - 75 $3.86 $4.14 131 - 325 $3.86 $4.14
76 or more $3.91 $4.20 326 or more $3.91 $4.20
Recycled Irrigation Usage Fee1
(3" & 4" meter) Recycled Irrigation Usage Fee1
(>6" meter)
Consumption
Blocks (units) Current New Consumption
Blocks (units) Current New
0 - 440 $3.80 $4.08 0 - 4,000 $3.80 $4.08
441 - 1,050 $3.86 $4.14 4,001 - 10,000 $3.86 $4.14
1,051 or more $3.91 $4.20 10,001 or more $3.91 $4.20
Footnote
Si gusta assistencia en Español, referente a esta notificacion, favor de llamar al 619-670-2222.
This information reflects only changes to rates. For a comprehensive listing, please see the
Otay Water District’s Code of Ordinances at www.otaywater.gov. Prolonged drought
conditions or declared water shortages impact rates.
Recycled Water Usage Commercial1
(<10" meter)
0 - 173 $2.77 $2.97
174 - 831 $2.82 $3.03
832 or more $2.86 $3.07
Recycled Water Usage Commercial1
(>10"meter)
0 - 7,426 $2.77 $2.97
7,427 - 14,616 $2.82 $3.03
14,617 or more $2.86 $3.07
Consumption
Blocks (units) Current New
Consumption
Blocks (units) Current New