Public Hearing to Consider Introduction of Ordinance
Revising the City’s Sewer Service Charges
1 Agenda
• Proposition 218 process
• City and regional sewer systems
• Consent Decree progress and ongoing requirements
• Proposed Rate Increase
• Protest tabulation
• Council vote
2 Sewer Rate Study/Prop 218
• On April 1st , City Council:
– Approved a Sewer Rate Study
– Declared intent to revise the sewer service charge
– Set a Public Hearing for this evening
– Established procedures for accepting protests, per Prop 218. • On April 14th, 19,243 properties were mailed written notice (in 3 languages), announcing proposed sewer service charge increase, the date of this Public Hearing, and protest procedures.
3 City Sewer System
• City sewer system is separate from storm water system • Many of the City's sewers were installed in the early to mid-20th century • Storm water that should enter the storm system instead enters the sewer system through cracks and other defects in sewer pipes.
• Excessive sanitary flows during wet weather events can exceed conveyance and treatment capacity.
• EBMUD constructed three wet weather facilities (WWFs) with regulatory approval in the 1980s; facilities no longer meet standards
5 Consent Decree
• EPA filed suit against EBMUD in 2009 for the continued use of the WWFs. • EPA filed separate suits against each satellite collection system discharging to the EBMUD system, including Alameda.
• Negotiations took several years ending in 2014 with a 23-year term Consent Decree with EPA, Department of Justice, State and Regional Water Boards • Consent Decree has operational and capital work requirements for each agency with emphasis on pipeline replacement to reduce wet weather flows and ultimately, the use of the WWFs
• Consent Decree requirements on top of other statewide regulatory requirements for the safe and effective operation of sewer collection systems 6 Progress and Ongoing Requirements
• City has replaced 34 miles of sewer pipe- nearly 25% of system – 2.6 miles ongoing annual requirement
• 34 pump stations renovated for reliability
• Overflows minimized and impacts mitigated (cleaning, condition assessment, spot repairs, fats, oils, grease and root control) • Continued participation in Regional Private Sewer Lateral program • In 2022, confirmed work is reducing wet weather flows and use of WWF; another review to occur in 2030
7 Proposed Rate Increase
• The Sewer Rate Study assessed funding needs and revenue sources and recommended an annual 3% revenue increase over the next five years. Analysis based on rates being adequate to:
• Cash fund sewer pipeline replacements and other capital improvements • Maintain reasonable and adequate operating and capital reserves • Meet or exceed debt coverage requirements
• Mitigate impacts on the ratepayers
8 Proposed Rate Increase
9 Customer Class
Current FY
2024/25
Proposed Monthly Sewer Rates
FY
2025/26
FY
2026/27
FY
2027/28
FY
2028/29
FY
2029/30
% Increase in Rate Revenue 3.00% 3.00% 3.00% 3.00% 3.00% Single Family ($/month) $31.22 $31.95 $32.91 $33.90 $34.92 $35.97 Multi-Family ($/month) $28.13 $27.77 $28.61 $29.47 $30.35 $31.26 Commercial
Fixed Rate ($/month) includes
first 730 cubic feet
$28.13 $29.50 $30.39 $31.30 $32.24 $33.21
Flow Based Rate ($ per HCF) $3.86 $4.01 $4.13 $4.25 $4.38 $4.51
Rate Comparison to Region
10 $12.31
$31.22
$31.95
$36.92
$40.08
$46.41
$53.18
$58.25
$0
$25
$50
$75
City of
Emeryville
City of
Alameda
(current)
City of
Alameda
(proposed)
Stege
Sanitary
District
City of
Oakland
City of
Berkeley
City of
Albany
City of
Piedmont
Monthly Sewer Bill Comparison - Single Family
Protest Tabulation/Staff Recommendation
If there is no majority protest, staff recommends
Council adopt the resolution revising the City’s sewer
service charges
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