ATTACHMENT VII
Memorandum
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
DATE: April 5, 2024
TO: Nicole Gonzales, Director of Finance
FROM: Alex Ameri, Director of Public Works
SUBJECT: Proposed Revisions to Master Fee Schedule FY 2025 – Minimum Charges for Water Meter Hydrant Usage
The Department of Public Works and Utilities requests the following changes to the section of the Master Fee Schedule pertaining to minimum charges for hydrant and meter monthly consumption.
Hayward Municipal Code Chapter 11, Article 2, Sec. 2.22 requires that all water furnished for construction or related work shall be measured through a water hydrant meter provided by the City and shall be paid for by the customer at the same rates as metered consumption. A deposit to cover the full cost of replacement of the meter and backflow assembly and the estimated cost of water consumption for two (2) months will be retained by the City at the time application is made to insure the safe return of all materials and supplies and the payment of water usage charges.
In instances where customers fail to report the water consumption read, a Failure to Report Fee and a minimum monthly charge is applied to the customer’s account. These minimum monthly charges have not been updated in over 15+ years, were not in accordance with the estimated potential consumption, and no longer accurately reflect cost. Staff is proposing a 25% increase to minimum charges for water meter hydrant usage.
Full cost recovery may require incremental increases over several fiscal years. As such, fees will be reviewed annually and adjusted as needed in such a way that limits impacts to water users. To improve cost recovery for these services, staff recommend including the following changes to the Master Fee Schedule starting FY 2025:
Fee Type Current Proposed
¾" meter 1,000 cu ft. 1,600 cu ft. (16 CCF)
3” meter 2,800 cu ft. 12,750 cu ft. (127.5 CCF)
4” meter 4,000 cu ft. 28,000 cu ft. (280 CCF)
6” meter 6,000 cu ft. 50,000 cu ft. (500 CCF)
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
The proposed updates are based on the following standards and assumptions:
Meter size 3/4" 3" 4" 6”
Cu ft 1,600 12,750 28,000 50,000
CCF 16 127.5 280 500
Hydrant usage rate per CCF (FY24
rate) $8.29 $8.29 $8.29 $8.29
Total Consumption charge (per
month) $132.64 $1,056.98 $2,321.20 $4,145.00
Total Consumption charge (per
bimonthly) $265.25 $2,113.95 $4,642.40 $8,290.00
Also, staff is proposing these updated minimum charges be billed only to those customers who do not report water consumption data in the time period specified in municipal code, which states it is the responsibility of the customer to return all hydrant meters to the Water Distribution System Office within the first five (5) working days each month to be read. Customers who report water consumption per municipal code shall only be charged the amount consumed, in addition to the monthly meter service charge. Staff propose the following update in the Water Services Charges and Installation Fees section b. (3):
From: All hydrant and construction meter accounts accrue charges for minimum monthly consumption on the following amounts, whether or not this amount of water is actually used.
To: All hydrant and construction meter accounts accrue charges for monthly consumption on the following amounts. However, customers who report water consumption data and can provide proof they have consumed less than the proposed minimum charges in the table below shall only be billed for the amount consumed.
Memorandum
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
DATE: April 30, 2024
TO: Nicole Gonzales, Director of Finance
FROM: Alex Ameri, Director of Public Works
SUBJECT: Proposed Revisions to Master Fee Schedule FY 2025 – Monthly Meter Service Charges for Water Hydrant Meters
The Department of Public Works and Utilities requests the following changes to the section of the Master Fee Schedule pertaining to monthly meter service charges for all hydrant and construction meters.
Hayward Municipal Code Chapter 11, Article 2, Sec. 2.22 requires that all water furnished for construction or related work shall be measured through a water hydrant meter provided by the City and shall be paid for by the customer at the same rates as metered consumption. This Section also requires that an additional service charge shall be applied to the bill for this service. The service charge is a charge for customer service, meter reading, billing, and meter maintenance.
Furthermore, these fees are not property related. These monthly service charges are for construction meters that are lent out to developers and other customers for temporary use only. These fees do not fall under Proposition 218.
Full cost recovery may require incremental increases over several fiscal years. As such, fees will be reviewed annually and adjusted as needed in such a way that limits impacts to water users. To improve cost recovery for these services, staff recommend including the following changes to the Master Fee Schedule starting FY 2025:
Fee Type Current Proposed
¾" meter $8.00 $16.00
3” meter $75.00 $120.00
4” meter $117.00 $210.00
6” meter $233.00 $650.00