HomeMy WebLinkAboutPRR19420 Driscoll - Response from Supervising Utility Billing Assistant Espejo-MosesCity of San Luis Obispo, Finance and Information Technology, 990 Palm Street, San Luis Obispo, CA, 93401-3249, 805.781.7130,
slocity.org
November 19, 2019
Donald P. Driscoll
dond@driscollomens.com
Re: City of San Luis Obispo, Claim 19-420 Driscoll – Govt Water Services Rates
Dear Mr. Driscoll,
Accounts for any governmental entity are subject to non-residential water and sewer
rates. For a breakdown of these rates, please refer to the attached Proposition 218
Notice.
All water services provided to any governmental entity are provided with the same
charges as would be subject to any non-governmental entity for those services.
There were no Water Services provided without charge to any governmental entity
during 2018 or 2019.
If you have any questions regarding this account, please call us at 805-781-7133, or
email us at ub@slocity.org.
Thank you,
Maryanna Espejo-Moses
Supervising Utility Billing Assistant
City of San Luis Obispo
NOTICE OF PUBLIC HEARINGS
FOR PROPOSED RATE INCREASES
FOR WATER AND SEWER SERVICES
This notice is provided to all property owners and customers who currently receive water and sewer services from the
City of San Luis Obispo. The San Luis Obispo City Council will be holding public hearings to consider proposed
adjustments to water and sewer rates. The hearings will be held on:
DATE: June 18, 2019
TIME: 6:00 PM
PLACE: City of San Luis Obispo, Council Chambers
990 Palm Street, San Luis Obispo, CA 93401
The public hearings will cover the proposed rate increases over two years (from July 1, 2019 to June 30, 2020 and from
July 1, 2020 to June 30, 2021) for water and sewer services. If adopted, the proposed rate increases will become
effective on July 1, 2019 and on July 1, 2020.
This Notice of Public Hearings provides information about increases to the City's water and sewer rates pursuant to the requirements
of California Constitution Article Xlll (commonly referred to as Proposition 218). This notice provides information on (1) reasons for the
rate adjustments, (2) how water and sewer rates are calculated, (3) how customers can receive more information on the effect of the
proposed changes to their water and sewer bills, and (4) how to file a protest against the proposed rate increases.
What is Proposition 218?
In November 1996, California voters approved Proposition 218. As a result, California agencies must comply with its
requirements when setting utility rates. One provision requires that a noticed public hearing on utility rates be held and
that rates not be increased if a majority of affected property owners protest the increased rates in writing.
Why Are Increased Water and Sewer Rates Necessary?
Several factors drive the need to increase the City's water and sewer rates, some of which are:
• Infrastructure age and condition
■ Regulatory requirements
• Increased equipment, maintenance, and operational costs
• Bond financing requirements (debt covenants)
What Do Water and Sewer Rates Pay For?
The City's water and sewer operations rely on rate revenue to pay for operation and maintenance, infrastructure
replacement, and debt service. General funds (such as property tax or sales tax) do not support these essential services.
Utilities must generate sufficient income through water and sewer rates to cover expenditures, debt service, and maintain
a reasonable operating reserve. Water and sewer services are provided 24 hours a day, seven days a week, 365 days a
year.
Rates for both water and sewer service include maintaining and replacing critical infrastructure, meeting regulations
related to public health, and paying the people who provide these essential services. Water rates pay for all costs
associated with bringing water from surface reservoirs to the City's water treatment plant and distributing drinking water
to over 15,000 connections. Sewer rates pay for all costs associated with the conveyance of disposed water from each
connection to the facility where the wastewater is treated and valuable resources, such as energy, recycled water, and
compost, are recovered. The treated water is used for irrigation or discharged into San Luis Obispo Creek for wildlife
habitat.
The proportionate share of system expansion costs to serve new development is recovered through water and wastewater
development impact fees imposed on the developer requesting City services. By State law (Assembly Bill 1600), the City
may not collect more revenue than is necessary to recover the costs of providing services.
Basis Upon Which Water and Sewer Rates Are Calculated
The proposed rates are calculated to recover the cost of providing water and sewer services and to proportionately
allocate the costs among the users. To derive the proportionality, the City completed a comprehensive Cost of Services
Study in 2018 to look out five years. Additional analysis was conducted in 2019 to confirm revenue projections and
expenses and determine the proposed water and sewer rates for the next two fiscal years. The water and sewer rate
structures, updated in 2018, recognize different customer classes and their proportionate costs associated with the
system. Based on the analysis, water rates are proposed to increase 5.5 percent in 2019-20 and 5.5 percent in 2020-21,
and sewer rates are proposed to increase 5.5 percent in 2019-20 and 5.0 percent in 2020-21. If approved, the proposed
water and sewer rates would become effective on July 1 of each fiscal year.
WATER RATES
Residential:
Base Fee
Current Rates'
$20.61
Proposed
2019-20 Rates
$21.74
Proposed
2020-21 Rates
$22.94
Usage (per unit cost)Z
Current Rates'
Tier 1: 0 to 5 units
$5.90 $6.22 $6.56
Tier 2: 6 to 12 units
$6.87 $7.25 $7.65
Tier 3: 13+ units
$12.59 $13.28 $14.01
Multi -Family, Non -Residential, Irrigation:
Usage per unit cost)Z Per Unit Cost
Current Rates'
Proposed
2019-20 Rates
Proposed
2020-21 Rates
Base Fee by Water Meter Size Monthly Base Fee
% inch or less
$20.61
$21.74
$22.94
1 -inch meter
$34.40
$36.29
$38.29
1.5 -inch meter
$68.65
$72.43
$76.41
2 -inch meter
$109.85
$115.89
$122.26
3 -inch meter
$206.10
$217.44
$229.40
4 -inch meter
$343.55
$362.45
$382.38
6 -inch meter
$686.95
$724.73
$764.59
8 -inch meter
$1,099.15
$1,159.60
$1,223.38
Usage per unit cost)Z Per Unit Cost
Multi -Family - all use $6.73 $7.10
$7.49
Non -Residential - all use $8.17 $8.62
$9.09
Landscape Irrigation - all use $10.02 $10.57
$11.15
Water System Access Charge 1$83.57 1 $88.17 1 $93.02
WATER RATES NOTES:
Current rates effective July 1, 2018.
2. One Unit = 748 Gallons
3. This charge applies where the City provides fire protection only to businesses that utilize a private well for domestic purposes.
SEWER RATES
For single-family and multi -family residential customers, a winter water use average is the three-month average of water
use during December, January, and February. This is also referred to as a "sewer cap" and is the basis of the usage portion
of the customer's monthly sewer charges. For non-residential customers, all "usage" is based on monthly metered water
consumption.
Usage:
Current Rates'
Single -Family and Multi -Family Residential
Per Unit Cost (Up to Sewer Cap)Z ` $7.85
Proposed
2019-20 Rates
$8.28
Non -Residential
Per Unit Cost (for All Water Consumption
)Z $7.85 $8.28
Monthly Base Fee:
milv Residential
Current Rates'
$18.69
Proposed
2020-21 Rates
$8.69
Proposed Proposed
2019-20 Rates 2020-21 Rates
$19.72 $20.71
Multi -Family and Non -Residential
By Water Meter Size:
Average Monthly Residential Bill under Proposed Rates
% inch or less $18.69
$19.72
$20.71
1 -inch meter $31.21
$32.93
$34.58
1.5 -inch meter $62.24
$65.66
$68.94
2 -inch meter $99.62
$105.10
$110.36
3 -inch meter $186.90
$197.18
$207.04
4 -inch meter $311.56
$328.70
$345.14
6 -inch meter $622.93
$657.19
$690.05
8 -inch meter $996.72
$1,051.54
$1,104.12
10 -inch meter $1,432.94
$1,511.75
$1,587.34
SEWER RATES NOTES:
1. Current rates effective July 1, 2018.
2. One Unit = 748 Gallons
How would the Proposed Rate Increases Impact my Water and Sewer Bill?
Under the proposed rate changes, a typical single-family home using six units of water per month can expect the water
portion of their monthly bill to increase from $56.98 to $60.09 in July 2019, and to $63.39 in July 2020. A typical single-
family home with a sewer cap of four units can expect the sewer portion of their monthly bill to increase from $50.09 to
$52.84 in July 2019, and to $55.47 in July 2020.
Average Monthly Residential Bill
Average Monthly Residential Bill under Proposed Rates
under Current Rates
2019-20 Rates,
2020-21 Rates,
Effective July 1, 2019
Effective July 1, 2019
Water (base fee + six units) $56.98
$60.09
$63.39
Sewer (base fee +four units) $50.09
$52.84
$55.47
Total Monthly Bill: $107.07
$112.93
$118.86
How Can I Find Out More About the Proposed Rate Increases?
To calculate how the proposed water and sewer rates affect your bill, visit www.slocity.org/waterservice and click on
"Calculate My Bill". If you keep your monthly water and sewer bill, you can look back at the units of water used and your
residential sewer cap to determine how the proposed rate will impact your bill. Look up your bill online by going to
www.slocity.org/ and click "Online Payments" followed by "Pay Utility Bill". Please call the City of San Luis Obispo Utilities
Department at 805-781-7133 for assistance.
Utilities Department
li 879 Morro Street, San Luis Obispo, CA 93401
4
l
PRESORTED
STANDARD
U.S. POSTAGE PAID
CENTRAL COAST
PRINTING
How Do I Protest the Proposed Water and/or Sewer Rate?
Under Proposition 218, if you are the owner of record of a parcel or parcels or a tenant directly liable for payment of the
water and sewer bill, you may submit a written protest against the proposed changes to the water or sewer rates
presented in this notice. Only one written protest per affected property will be counted towards the majority protest. If
written protests are filed by a majority of the affected parcel owners and/or customers, the proposed rate increases will
not be imposed. Althouah oral comments at the public hearine will not aualifv as formal nrotests unless accomnanied by
a written protest, the Mayor and City Council welcome input from the community during the public hearing.
It Is Important to Follow These Instructions for Your Protest to Be Valid:
1. The protest must be submitted and received by the Citv Clerk at or before the end of the public hearing on Tuesday,
June 18, 2019. Written protests may be mailed or personally delivered to the City of San Luis Obispo, City Clerk Office,
990 Palm Street, San Luis Obispo, CA 93401. E-mail and fax protests will not be valid.
2. The box(es) identifying that you are protesting the water and/or sewer rates must be checked.
3. The written protest must contain the service address.
4. The protest must be signed by either the account holder or the property owner of the service address.
The protest form provided below is your official form. This form can either be mailed or personally delivered to the City
of San Luis Obispo, City Clerk Office, 990 Palm Street, San Luis Obispo, CA 93401. For owners of multiple properties,
additional protest forms are available at the City Clerk Office. 9
PROPOSED WATER AND/OR SEWER RATE INCREASE PROTEST FORM
NAME (please print):
SERVICE ADDRESS (please print):
DATE:
❑ I am protesting the proposed Sewer Rate (check the box)
❑ I am protesting the proposed Water Rate (check the box)
SIGNATURE (above)
❑ Property Owner ❑ Account Holder