AgdaPkt 2016-06-13 Interview and Joint SA PFA

Browse Search

7.B. - Page 3 accounts with up to nine dwelling units will face an overall 4.4% sewer rate increase over the next three fiscal years. Multi-family dwelling units with 10 or more dwelling units will face an overall 6.0% decrease in their sewer rates over the next three fiscal years. The impact on commercial accounts will vary based on customer class and billed usage. Projected Monthly Bills with Proposed Rates 3-Year Increase Current 2016-17 2017-18 2018-19 $ Dwelling Residential Units Residential 1-9 Dwelling Units 19,000 $74.95 $75.11 $76.66 $78.24 $3.29 4.4% Multi-Famil 10+ Dwellin. Units 7,400 $74.95 $67.60 $68.99 $70.42 $4.53 -6.0% Non-Residential Average Monthly Use (hcf) Class B-Low Strength 20 $130.15 $133.87 $136.63 $139.45 $9.30 7.1% Class C-Standard Strength 40 $259.45 $283.20 $289.20 $294.80 $35.35 13.6% Class E-His Strength 35 $448.20 $593.25 $605.85 $618.10 $169.90 37.9% The proposed rates also incorporate a few modifications to the City's sewer rate structure to align rates with the cost of providing service. Proposed rate structure modifications include: • Implementing a reduced fixed charge equal to 90% of the standard residential rate for customers with 10 or more total residential dwelling units. • Transitioning the City's commercial rate structure to a rate structure that bills for every unit of usage, subject to a minimum monthly charge. • Consolidating the City's non-residential sewer customer classes based on wastewater strength. In consideration of the proposed sewer rate and charge increases, staff initiated the following public notification activities: • Published three display ads in the Daily News with information about the proposed rate increases along with the date, time, and location of the June 13, 2016 public hearing. • Held two community meetings that provided an in-depth overview of why rates are increasing and information about the rate protest process. • Mailed over 20,000 notices of the increase according to Proposition 218 notification processes on April 26, 2016. • Posted notices on the City's social media accounts. • Posted all of the above information on the City's website. To date, the City has received 13 letters protesting the sewer service charge increases. ALTERNATIVES According to the requirements of Proposition 218, the City must receive protests from more than fifty percent of current property owners and rate-paying customers on record