Proposed Sewer Rates
1 Website: www.chulavistaca.gov/SewerRates
Email: [email protected]
Phone: 619-476-5380
Public Hearing Date
April 26, 2022 @ 5pm
Chula Vista City Hall (276 Fourth Ave, Chula Vista)
Agenda Items
• Public Outreach
• Sewer Infrastructure Background
• Overview of Expenses
• Sewer Service Billing Components
• Revenue and Expense Study (Sewer Rate Study)
• Questions
2 Public Outreach
3 Public Outreach
• Mailed notices (English and Spanish)
• Public Outreach Information Meetings
• City Newsletter posting
• Social media posts
• Website: www.chulavistaca.gov/SewerRates
4 5
Date Action
Oct. 22, 2021
Posted Sewer Rate Study & Prop. 218 Notice to
www.chulavistaca.gov/SewerRates
Nov. 22, 2021
Mailed Notice of Sewer Rate Increase (Proposition
218)
Dec. 8, 2021 Virtual Public Outreach Meeting
Dec. 14, 2021 Virtual Public Outreach Meeting
Feb. 10, 2022
2nd Mailing of Notice of Sewer Rate Increase
(Proposition 218)
April. 26, 2022
Public Hearing @ 5pm at Chula Vista City Hall 276
Fourth Ave, Building A, Chula Vista, CA
Sewer Infrastructure Background
6 7
Benefits of sewage collection and treatment
• Promotes health by containing
sewage
• Betters the Environments by
keeping sewage out of our water
ways
• Improves aesthetics by reducing
odors and visual disturbances
8 Chula Vista – Collection System
Asset No.
Pipelines 500 miles
Maintenance
Holes
15,000
Pump
Stations
13 Flow meters 12
10 San Diego –
Transport &
Treatment
San Diego Regional Facilities
• Point Loma Wastewater
Treatment Plant & Outfall
• 4 Pump Stations
• Metro Interceptors & Force
Mains
• North City Water Reclamation
Plant
• Metro Biosolids Center
• South Bay Wastewater
Treatment Plant & Water
Reclamation Plant
• Pure Water – Phase I & 2
11 Overview of Expenses
12 Chula Vista Costs (35% of total sewer costs)
• Operations and Maintenance
Expenses
• Provide reliable infrastructure
• Capital projects to protect
environment
13Chula Vista Costs: $14.5M (Fiscal Year 2021-2022)
San Diego Costs (65% of total sewer costs)
• Operations and Maintenance of
Regional Facilities
• Point Loma WWTP
• South Bay Treatment Facilities
• Metro Biosolids Center
• Pipes, pump stations, etc.
• Regional capital projects
• Point Loma WWTP
• Pipes, pump stations, & manholes
• Pure Water Program
14 San Diego Regional Costs: $24.5M (Fiscal Year 2021-2022) Sewer Service Billing Components
15 Sewer Charges
Each sewer bill has two parts:
• Fixed Charge
• Volumetric Charge
Rates vary based on customer classes:
• Single Family
• Multi-Family
• Mobile Home
• Commercial (low, medium, high strength)
16 Single Family Residential Sewer Bill
Fixed Charge
Same charge for all Single-Family
Homes
Volumetric Charge
Single family residential bills are
based on water average or water
use during winter (November 1 –
April 30) and are set for the
subsequent year.
17 Winter Average (Single Family Only)
• Winter averaging is a billing method developed to estimate the amount of water going to the sewer.
• This method takes the lowest 2 months of water consumed in the winter or rainy season (November 1 through April 30 or 6 months) as the basis for billing sewer charges throughout the year. • Winter water usage better represents indoor water use which typically goes to the sewer whereas summer water use includes more water used for outdoor usage (e.g. landscaping, swimming pools, etc.).
• The lowest consecutive 2-months of winter water usage is converted to a monthly usage and is further reduced by 10% to account for some water not going to the sewer.
18 Monthly Single Family Sewer Bill Calculation
19 90% of
Winter
Average
Volume
Charge:
$/Winter
Ave Water
Fixed
Charge
*Single Family Residential does not include multifamily residential (apartments, condos, etc.).
Example:
[90% x 7 HCF x $4.26/HCF] + $14.53 = $41.37 Multifamily, Commercial, Industrial
• Fixed charge: based on meter size
• Volume Charge:
based on monthly water usage and a Rate of Return (ROR) to the sewer 20 ROR x
Monthly
Water Usage
Cost /
Water [HCF]
Fixed
Charge
Rate of Return (ROR) to the sewer:
Multifamily: 79%
Mobile Home Park: 84%
Commercial/Industrial: 90%
HCF = hundred cubic feet
Revenues and Expenses Study
(Sewer Rate Study)
21 Sewer Rate Study – Willdan Financial Group
• Independent and 3rd Party Study
• 10 and 5-year Financial Plan
• Review included:
• Operating and Maintenance expenses
• Debt service
• Capital Projects projections
• Adequacy of Cash Reserves
• San Diego Regional Expenses*
22 *San Diego Public Utilities Department 5-Year Financial Outlook published annually Sewer Rate Study - Recommendations
1. Removal of US EPA Permit Renewal Liability Reserve
2. Implementation of City of San Diego Direct Cost Recovery
3. Annual increases of 4.5% to 5.5% (4 years)
23 1. Remove the US EPA Permit Renewal Liability Reserve • Reason for Reserve in 2013
• Capital investments were needed to maintain the permit waiver • Costs were unknown
• Financing was unknown
• Today
• Waiver was renewed on the condition of the water reuse project would be implemented, Pure Water Program
• Cost Estimates are known and a maximum contractual amount included • San Diego is financing the capital expenses and including them in the quarterly bills • Reason for Removal
• Costs are known
• Chula Vista’s contribution is financed
• Chula Vista’s contribution is included expense projects • Proposed rates include the financed costs
24 2. Implement San Diego Direct Cost Recovery
• City of San Diego bills for treatment
expenses based on actual costs.
• The rates shown include projected San
Diego treatment expenses.
• Each year the actual expenses will be
known, and actual amount will be
reflected in customer’s rates the
following year.
• Notice of changes provided 30-days in
advance of billing.
25California Government Code allows pass through of changes in wholesale expenses from other public agencies
3. Proposed Sewer Rates Increases
Start Date Sewer Rate
Increase
Upon Approval 0%
July 1, 2022 4.5%
July 1, 2023 5%
July 1, 2024 5%
July 1, 2025 5.5%
26 Regional Monthly Sewer Bill – 2021 Avg Residence
27 $111.96
$65.58
$53.08
$49.82
$49.39
$48.75
$48.00
$47.64
$46.78
$43.23
$42.47
$41.37
$39.52
$34.56
$-
$20
$40
$60
$80
$100
$120
Typical Single Family Residential Bill
2022 2023 2024 2025 2026
Fixed Charge Volume Charge
28 $41.37 $43.22 $45.36 $47.67 $50.29
Rate Through July 1 of [Year]
29 CURRENT FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 RATE INCREASE 0% 0% 4.5% 5% 5% 5.5%
Single Family $14.53 $14.53 $15.18 $15.94 $16.74 $17.66 All Others
Meter Size: 5/8" $14.53 $14.53 $15.18 $15.94 $16.74 $17.66 Meter Size: 3/4" $14.53 $14.53 $15.18 $15.94 $16.74 $17.66 Meter Size: 1" $28.49 $28.49 $29.77 $31.26 $32.82 $34.63 Meter Size: 1 1/2" $51.77 $51.77 $54.10 $56.80 $59.64 $62.93 Meter Size: 2" $79.68 $79.68 $83.27 $87.43 $91.80 $96.85 Meter Size: 3" $154.15 $154.15 $161.08 $169.14 $177.59 $187.36 Meter Size: 4" $237.91 $237.91 $248.62 $261.05 $274.10 $289.17 Meter Size: 6" $470.61 $470.61 $491.70 $516.38 $542.20 $572.02 Meter Size: 8" $936.01 $936.01 $978.13 $1,027.04 $1,078.39 $1,137.70 Residential
Single Family $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Multi-Family $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Mobile Homes $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Non-Residential
Commercial - Low $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Commercial - Med $6.02 $6.02 $6.29 $6.61 $6.94 $7.32
Commercial - High $9.59 $9.59 $10.02 $10.52 $11.05 $11.66 Special Users Varies Varies Varies Varies Varies Varies VOLUME CHARGE/HCF*
MONTHLY FIXED SERVICE CHARGE
*HCF - Hundred Cubic Feet
Rates include the Sewer Service Charge and Sewer Facilities Replacement Fee. The rates do not include the Storm Drain Fee.
Questions
30 Background Slides
31 Sewer Variance Process
• Written request to the City Manager
• Application Fee of $150 to cover investigation costs
• Residential – requires sufficient evidence to prove that the winter average does not correlate to the amount of sewage discharged • Non-residential –water consumption is not substantially discharged into the sewer system
• Detailed in Chula Vista Municipal Code 13.14.130
32 33
34 Master Fee Schedule
35