Public hearingproposition 218: WASTEWATER RATES
May 16, 2023
Tonight’s action
May 16, 2023
Proposition 218 wastewater rates
Conduct Public Hearing
to Consider Adopting New
wastewater Rate fees for
Manhattan beach wastewater Services
Effective for 5 years
November 1, 2023
Through
November 1, 2027
MUNICIPAL WASTEWATER BASICS
May 16, 2023
Proposition 218 wastewater rates
OPERATIONS & CAPITAL INFRASTRUCTURE
Fiscal Year 2022-2023 Staffing
6.5 Full-Time Employees (FTE) Assigned to Wastewater
1 Engineer Assigned to Wastewater Projects
82 miles of Gravity Sanitary Sewer Pipelines
5,114 Feet of Force Mains
2,086 Manholes
8 Lift Stations
MUNICIPAL WASTEWATER BASICS
May 16, 2023
Proposition 218 wastewater (sewer) rates
2010 Identified $42M in improvements
2014 Last wastewater rate increase
2023 Black & Veatch conducted a rate analysis
March 21, 2023 Council initiated Prop 218 process
TIMELINE
Municipalities typically determine long-term revenue needs to support their Wastewater Programs by performing Rate Studies
WHY DO RATES NEED TO BE ADJUSTED?
May 16, 2023
Proposition 218 wastewater rates
Wastewater costs have gone up since 2014.
Increased costs of parts and materials
Compounded inflation since 2014 is 25.4%.
Capital project and maintenance costs are increasing.
Future infrastructure needs identified
Proposed rate table
May 16, 2023
Proposition 218 wastewater rates
Excerpt from Proposition 218 Notice
Meter Size
Current
Nov. 1, 2023
Nov. 1, 2024
Nov. 1, 2025
Nov. 1, 2026
Nov. 1, 2027
Bi-Monthly Fixed Charge ($/bi-mo)
5/8" or 3/4"
11.12 12.80
14.98 15.58
16.20 16.69
1"
15.56 17.90
20.95 21.79
22.66 23.34
1-1/2"
22.98 30.65
35.87 37.30
38.79 39.96
2"
31.86 45.95
53.77 55.92
58.15 59.90
3"
55.56 86.76
101.50
105.56
109.79
113.08
4"
82.20 132.66
155.21
161.42
167.87
172.91
6"
156.24
260.16
304.38
316.56
329.22
339.10
8"
245.10
413.16
483.40
502.73
522.84
538.53
10"
348.76
617.16
722.08
750.96
781.00
804.43
Variable Usage Charge ($/HCF)
All Usage
1.27 1.46
1.71 1.78
1.85 1.90
bill impacts
May 16, 2023
Proposition 218 wastewater rates
For the most common meter size and usage, a typical single-family residential customer will see an increase of $5.49 or 15.0% on their bi-monthly bill.
November 1, 2023: Effective Date of new rates.
January 1, 2024: New rates reflected on bills.
Single Family Residential
Meter Size
Usage (HCF)
Currently Bi-Monthly Bill
Proposed Bi-Monthly Bill
Difference ($)
Difference (%)
5/8" or 3/4"
0 $11.12
$12.80
$1.68
15.1%
5 $17.47
$20.11
$2.64
15.1%
10 $23.82
$27.41
$3.59
15.1%
15 $30.17
$34.71
$4.54
15.0%
20 $36.52
$42.01
$5.49
15.0%
40 $61.92
$71.22
$9.30
15.0%
80 $112.72
$129.63
$16.91
15.0%
POTENTIAL UTILITY BILL
May 16, 2023
Proposition 218 wastewater rates
www.manhattanbeach.gov/wwrates
Wastewater Bill Calculator to assist with possible rate scenarios Meter Size
+
Water Usage
=
CUSTOMER WASTEWATER BILL
PROP 218 process
May 16, 2023
Proposition 218 wastewater rates
What is Proposition 218?
Passed by CA voters in 1996
Limits methods local government can create or increase taxes/fees/charges Allows property owners/rate payers to protest rate increases (limited to one protest per parcel) Process requires:
City mail a notice to property owners/ratepayers
45 day protest period
Hold Public Hearing after protest period
Prop. 218 Notice
May 16, 2023
Proposition 218 wastewater rates
PROP 218 process TIMELINE
Dates
Item
March 21, 2023
City Council initiated the Proposition 218 process; set May 16, 2023 for Public Hearing.
March 28, 2023
Postmarked Proposition 218 notice, mailed to property owners/rate payers (required) and tenants/occupants (courtesy).
April 19, 2023
Community Meeting (in-person & Zoom).
May 16, 2023
Public Hearing to announce protest count and determine if Council can approve rate increase.
November 1, 2023
New rates go into effect (if protest count is less than 50% + 1 and Council approves rate increase).
January 1, 2024
New wastewater rates reflected on customer bills.
May 16, 2023
Proposition 218 wastewater rates
If more than 6,600
protests are received
If less than 6,600
protests are received
A majority protest exists
City Council may not approve the rate increase
City Council can initiate the Proposition 218 process again at any time The City Council may approve the new rate increase
The new rates will take effect November 1, 2023
New rate will be reflected in customer bills for first time beginning January 2024 Approval of the rate increase is good for 5 years, at which time another Prop 218 will be required to increase rates At May 16, 2023 Public Hearing, City Clerk’s Office will announce the final protest count received by the end of the Public Hearing Prop 218 protest COUNT
May 16, 2023
Proposition 218 wastewater rates
NEXT STEPS
CITY CLERK ANNOUNCES THE FINAL PROTEST COUNT RECEIVED BY THE END OF THE PUBLIC HEARING.
IF A MAJORITY PROTEST IS NOT REACHED, COUNCIL MAY ADOPT RESOLUTION 23-XXXX APPROVING THE NEW RATES.
Recommendation
May 16, 2023
Proposition 218 wastewater rates
Adoption of Resolution No. 23-XXXX adopting the annual proposed rate increases effective November 1, 2023 through November 1, 2027.