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HomeMy WebLinkAbout2007-09-11; City Council; 19162; Public Hearing for Proposed Rate Increases for Water Sewer and Trash Fees18 CITY OF CARLSBAD AND CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL AB# 19,162 MTG. 9/11/07 DEPT. FIN PUBLIC HEARING FOR PROPOSED RATE INCREASES FOR WATER, OCI4/CB A Af fk TD/1OLJ CCCOSEWER AND TRASH FEES DEPT. HEAD' ^^ CITY ATTY. &&' CITY MGR. "^-^ RECOMMENDED ACTION: Conduct a public hearing to receive public comment and adopt Resolutions No. 1304 and No. 2007-239 approving increases for water, sewer and trash fees for properties within the Carlsbad Municipal Water District and the City of Carlsbad, so long as there is not a majority protest regarding the proposed fee increases. ITEM EXPLANATION: As part of the ongoing financial management program, the City annually prepares five-year forecasts for the water, sewer and solid waste funds. The forecasts for the water, sewer and solid waste funds show that rate increases are needed to keep up with increases in expenditures as well as the new state mandated requirements. Per a recent California Supreme Court ruling, local governments must hold a public hearing before raising any water, sewer or trash fees. Customers must be notified forty-five (45) days in advance of the hearing of the proposed fee changes. At their meeting on June 26, 2007, the Board of Directors of the Carlsbad Municipal Water District and the City Council adopted Resolutions No. 1301 and No. 2007-158 setting a public hearing on September 11, 2007 to accept public comment on the proposed water, sewer and trash fee increases. The public hearing is to be held forty-five (45) days after noticing the ratepayers. Any person interested in objecting to the increases may file a signed written protest with the City Clerk. The written protest must contain the address of service, the fee change being protested, the grounds of protest, and received prior to the close of the public hearing. The protestor may appear at the hearing and be heard on the matter. Staff has taken the following actions at least 45 days prior to this hearing: • Affected utility customers were notified by mail of the public hearing. • Notification of this hearing was published in the North County Times. DEPARTMENT CONTACT: Colette Wengenroth 760-602-2430 cweng@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D OTHER - SEE MINUTES D Page 2 • The notice (see Exhibit 1) outlined the proposed fee changes. • The notice outlined the protest process. • The notice provided information relating to the public hearing. As of August 29, 2007 three protests have been received. The protests are attached (see Exhibit 2). Two protest comments relate to the hardship to seniors and the third to a flat trash rate for all customers, rather than based on usage. If there is no majority protest, staff is recommending that the Board of Directors and City Council, after hearing public comment, ratify these increases. FISCAL IMPACT: The proposed rate increases, if ratified, will be effective November 1, 2007 and will increase the revenue generated in the water, sewer and solid waste funds. The rate increases will help pay for services provided by these funds. See Exhibit 1 for more detail regarding the fiscal impact. ENVIRONMENTAL IMPACT: The California Environmental Quality Act (CEQA) does not apply to the establishment or modification of fees for the purpose of meeting operating expenses (CEQA Guidelines Regulation 15273). EXHIBITS: 1. Notice of Public Hearing. 2. Protest letters received. 3. Resolution No. 1304 of the Board of Directors of the Carlsbad Municipal Water District approving water fee increases. 4. Resolution No. 2007-239 of the City Council of the City of Carlsbad approving sewer and trash fee increases. EXHIBIT 1 Notice of Public Hearing City of Carlsbad and Carlsbad Municipal Water District Utility Customers Dear City of Carlsbad and Carlsbad Municipal Water District Utility Customer: NOTICE IS HEREBY GIVEN that the City Council and Board of Directors will hold a public hearing regarding proposed increases for water, sewer, and trash fees for properties within the City of Carlsbad and Carlsbad Municipal Water District. This hearing is to comply with a ruling of the California Supreme Court. The public hearing will be held on the 11th of September at 6:00 p.m., in the Council Chambers, City Hall, 1200 Carlsbad Village Drive, Carlsbad, California, at which time the Council will hear all persons interested in the matter. Any person interested in objecting to the amount of the proposed increases may file a signed written protest with the City Clerk, at or before the hour fixed for the hearing. The written protest must contain the address of service, the rate change being protested and the ground or grounds of protest. The protestor may appear at the hearing and be heard on the matter. How Do We Compare to Other Cities Water Rate Comparison per 20 Units and Sewer Flat Fee Rate Comparison Water and Sewer Rates Carlsbad proposed FY08 Carlsbad FY07 San Dieguito WD (Leucadia) Santa Fe ID (Solana Beach) Oceanside, City of San Dieguito WD (Encinitas) Vista Irrigation District (Vista) San Diego, City of Santa Fe ID (RSF) Del Mar, City of $0 $50 $100 $150 Monthly Cost As reflected on the previous page, even with these proposed increases, the City's rates continue to be among the lowest in the region. Due to rising operating costs, unfunded State mandates, the increased cost of water purchased from the San Diego County Water Authority and increased costs from the Encina Wastewater Authority, the City is proposing to raise the rates. Below is a summary of the proposed increases that are the subject of this hearing: The average household increase is expected to be approximately $6.89 or 9.1%. Monthly water purchase fee increase is approximately 5.0%. • The standard rate increases from $1.68 to $1.76. • The conservation rate increases from $1.51 to $1.59. • The recycled water rate increases from $1.60 to $1.68. • The agricultural water rate increases from $1.37 to $1.45. Both residential and commercial monthly water service fees vary depending on meter size. • The increase for a standard 5/8" meter is from $9.75 to $12.12. Both residential and commercial monthly sewer service fee increases are approximately 10.5%. • The residential fee increase is from $14.65 to $16.20. • The commercial fee increase is approximately 10.5%. Residential monthly trash fee increase is approximately 7.8%. • The residential fee increases from $17.50 to $18.87. A detailed schedule of the water and sewer utility rates is attached. Other documents detailing the fee calculations are on file with the City Clerk. If adopted, the fee increases will be reflected on utility bills dated on or after November 1, 2007. For questions about the public hearing process, please contact the Finance Department's Customer Service Dept. at (760)602-2403 Commodity Rates - Proposed 2007-08 Meter Size 5/8" 3/4" 1" 1-1/2" 2" 3" 4" 6" 8" Current Conservation Rate 1 $1.51 $1.51 $1.51 $1.51 $1.51 $1.51 $1.51 $1.51 $1.51 Units/Mo, (or less) 7 5.00% Adjustment Conservation Rate 1 $1.59 10 $1.59 16 30 45 $1.59 $1.59 $1.59 79 I $1.59 123 ! $1.59 228 $1.59 336 $1.59 Units/Mo, (or less) 7 10 16 30 45 79 123 228 336 Standard (Base) Rate Recycled Water Rate ^ Agricultural Water Rate J $1.68 $1.60 $1.37 $1.76 $1.68 $1.45 1 Conservation Rate is 90 percent of Standard (Base) Rate. 2 Recycled Water Rate is 95 percent of Standard (Base) Rate. 3 Agricultural Water Rate is $0.31 off the Standard (Base) Rate (per the MWD "Interim Agricultural Water Program"). Delivery Charge Current Meter size Fee 5/8" 3/4" 1.0" 1.5" 2.0" 2.5" 3.0" 4.0" 6.0" 8.0" $ 9.75 12.35 17.60 30.70 45.45 55.15 83.45 136.00 267.00 424.75 Proposed Fee 12.12 14.85 20.36 35.12 50.60 60.79 90.50 146.68 284.23 449.87 Wastewater (Sewer) Rates - Proposed 2007-2008 Group I Residential Single Family Duplex1 Multi-Family1 Mobile Home1 Group I Commercial ^ Group II Commercial ^ Group III Commercial i Group IV Commercial i Group V Institutional Schools per ADA3 Elementary * Junior * High* Boarding * Group VI Large Volume (also called Commercial Group V) Beckman Micro Ops Current Unit Cost ($/hcf of water) — $2.08 $2.08 $1.73 $2.27 $3.58 $1.71 $0.23 $0.44 $0.66 $3.30 $1.33 $4.33 Uniform Rate $14.65 $29.30 $14.65 10.50% Adjustment Unit Cost ($/hcf of water) ---. $2.30 $2.30 $1.91 $2.51 $3.96 $1.89 $0.25 $0.49 $0.73 $3.64 $1.47 $4.78 Uniform Rate $16.20 $32.40 $16.20 1 Two times the Single Family uniform rate. 2 Wastewater flow is 90 percent of metered water use. 3 Schools: assumes a 200-day working year; ADA: average daily attendance. * Denotes charge per student based on ADA. &AUG 103W CITYOFCAR11SBAD.CITY CLERK'S OFFICE DORINE S. WOLPA 830 Caminito Verde Carlsbad, CA 92C (760) 438-3436 £/ c--^i^ — &sCs&£^ 8-807 We Morris and Virginia Redding of 2246 Janisway Carlsbad Ca. object and do strongly oppose the 9.1% rate increase. We as seniors find the continuous utility rate increases are never ending and create financial hardship on all of us. Why should we have to pay for all the new industrial parks that the city council wanted (not us). Respectfully, Morris and Virginia Redding FRED AND HEE HEMMING Sunday, August 05, 2007 AU6 - 7 2MT CITY OF CARLSBADCITY CLERK'S OFFICE The City Clerk City of Carlsbad City Hall 1200 Carlsbad Village Drive Carlsbad, CA Dear Sir, I am writing regarding the proposed increases for water, sewer and^ fe^hfle fee fee increases appear reasonable at first glance your recent notification skims over fte underlying problems of protecting the environment while serving the needs of Car sbad s resident. To this observer Waste Management's recycling program iTdiriv Sn°Zr ^^f6 "* ^ ^ ^ ChargeS l6Vied b* *> 4 rfS£££2distinguish residents who generate small amounts of waste from those whose generateenormous quantities of garbage. generate You are doubtless aware that the city of Burbank has one of the most effective recycling prOKTwlrlS 111 tile U.S Evcrv RnrHntiV r/»ct/4<Mi+ *« «««-.<.». J n. ft *. ^v^ijr ouioanK resiaeni is issued, free of charge, three 64-eallon w^f^L816611 f°- garden Waste' Wue for recyclables and black for non-hazardouswaste. If these containers are too large for a resident's needs they are replaced with 32- gallon^containers and the fees are reduced accordingly. Residents^ alsoTequeTt exL containers and ^cordingly pay more. This fee structure is therefore more equitable Why" doesn t Carlsbad adopt a more equitable and effective fee structure? It would be interesting to learn what the city of Carlsbad is planning to do to enhance the environmental aspects of its waste management and if it plans to base its fees on usage Is long-term to the for-profit provider Waste Management and are there any I!A«* +*-fc "D-,,—1_-._~1_9 __ _ _ t * . . Sincerely, * Frederick Hemming 3911 Rockfleld Court, Carlsbad, California 92010-7085 760 729 8683 fhemming1@roadrunner.com / AGENDA ITEM # [_ Subject: Proposed Utility Rate Increases « Mayor J City Council City Manager CityAttoAddress of Service: 2245 Nob Hill Drive • Carlsbad, CA 92008 The following rate increases are, herewith, protested. 1 Monthly Water Service Fee: The proposed increase for a 5/8" meter from $9.75 to $1212 represents an increase of 24.30%, far in excess of any confirmable Cost o Living rise since the last increase (from the $9.25 charge) in September 2006, only one year ago. 2 Monthly Sewer Charge: The proposed increase from $14.65 to $16.20 represents a ' 10 58% increase, again far in excess of any confirmable Cost of Living rise since the last increase (from the $13.50 charge) in September 2006, only one year ago. 3 Monthly Trash Fee: The proposed increase from $17.50 to $18.87 represents a 7 83% increase also in excess of any confirmable Cost of Living rise since the last increase (from the $16.47 charge) in September 2005, two years ago. Further it must be observed that the chart comparing costs for similar services, charged by various cities of San Diego County, as presented in the "Notice of Public Hearing", appears to be misleading in suggesting that Carlsbad's proposed charges are lower than those of all of these other communities. A careful review of the graphic presentation, given its limits of visual interpretation, indicate that, in fact, Leucadia, Solana Beach, and Santa Fe ID rates are lower for Water Service and approximately the same for this service as both Oceanside and Encinitas Graphically combining Water and Sewer rates presented a distortion of these facts and, I feel fairly certain, lulled many Carlsbad residents into a false sense of complacency regarding the proposed increases. Don Friedlander r-v , ^ (.,.,-..,... Vi ,,•,, ; - SEP ] 1 2007 LC'V.OI.-CA^C.-D. Ci i Y w-,;nK S Grr.i-E 1 RESOLUTION NO. 1304 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF CARLSBAD MUNICIPAL WATER DISTRICT (CMWD), TO 3 APPROVE INCREASES IN WATER FEES. 4 5 WHEREAS, the California Supreme Court recently made a ruling that local 6 governments must hold a public majority-protest hearing, and notify customers forty-five 7 (45) days in advance of increases in water fees; and 8 WHEREAS, the Carlsbad Municipal Water District is proposing an increase in water fees; and 10 WHEREAS, on June 26, 2007, The Board approved Resolution No. 1301 setting 11 a public hearing for September 11, 2007; and 12 WHEREAS a public hearing was held on September 11, 2007. 14 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the 15 Carlsbad Municipal Water District, as follows: 16 1. That the above recitations are true and correct. 17 2. That the Board of Directors of the Carlsbad Municipal Water District 1 O approves the increases in water fees, effective November 1, 2007. 19" 20 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Carlsbad Municipal Water District Board of Directors and the Carlsbad City Council held on the 11th day of September, 2007, by the following vote: AYES: Board Members Lewis, Kulchin, Hall, Packard, Nygaard NOES: None ABSENT: None ATTEST: mi* S. c LORRAINE M. WOOD, Secretary (SEAL) 1 RESOLUTION NO. 2007-239 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, TO APPROVE INCREASES IN 3 SEWER AND TRASH FEES. 4 5 WHEREAS, the California Supreme Court recently made a ruling that local 6 governments must hold a public majority-protest hearing, and notify customers forty-five 7 (45) days in advance of increases in sewer and trash fees; and 8 WHEREAS, the City of Carlsbad is proposing an increase in sewer and trash fees; and 10 WHEREAS, on June 26, 2007, City Council approved Resolution No. 2007-158 11 setting a public hearing for September 11, 2007; and 12 WHEREAS a public hearing was held on September 11, 2007. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 16 1. That the above recitations are true and correct. 17 2. That the City Council of the City of Carlsbad approves the increases in 18 sewer and trash fees, effective November 1, 2007. 19 20 21 22 23 " 24 " 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Carlsbad City Council and the Carlsbad Municipal Water District Board of Directors held on the 11th day of September 2007, by the following vote: AYES: Council Members Lewis, Kulchin, Hall, Packard, Nygaard NOES: None ABSENT: None ATTEST: LORRAINE M. WOOD, City Clerk (SEAL) PROOF OF PUBLICATION (201 0& 2011 C.C.P.) This space is for the County Clerk's Filing Stamp STATE OF CALIFORNIA County of San Diego I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years and not a party to or interested in the above-entitled matter. I am the principal clerk of the printer of __ Proof of Publication of North Coui Formerly known as the E Times-Advocate and whi< been adjudicated new circulation by the Superior < San Diego, State of Calif Oceanside and the City Decree number 171349, f< Diego, that the notice of • printed copy (set in fy nonpariel), has been put and entire issue of said ne1 supplement thereof on the July 28"1 I certify (or declare) unde the foregoing is true and c Dated at SAN MARCOS Cc This 30\day of July, 200; V Signa Jane All: NORTH COL Legal Notice of Public Hearing City of Carlsbad and Carlsbad Municipal Water District Utility Customers Dear City of Carlsbad and Carlsbad Municipal Water District Utility Customer: NOTICE IS HEREBY GIVEN that the City Council and Board of Directors will hold a public hearing regarding jroposed increases for water, sewer, and trash fees for properties within the City of Carlsbad and Carlsbad Municipal Water District. This hearing is to comply with a ruling of the California Supreme Court. The public hearing will be held on the 11th of September at 6:00 p.m., in the Council Chambers, City Hall, 1200 Carlsbad Village Drive, Carlsbad, California, at which time the Council will hear all persons interested in the matter. Any person interested in objecting to the amount of the proposed increases may file a signed written protest with the City Clerk, at or before the hour fixed for the hearing. The written protest must contain the address of service, the rate change being protested and the ground or grounds of protest. The protestor may appear at the hearing and be heard on the matter. How Do We Compare to Other Cities? Water Rate Comparison per 20 Units and Sewer Flat Fee Rate Comparison Water and Sewer Rates Carlsbad proposed FYOS Carlsbad FY07 San Dieguito WD (Leucadia) Santa Fe ID (Solana Beach) Oceanstde. City of San Diaguito WD (Encinitas) Vista Irrigation District (Vista) San Diego, City of Santa Fe ID (RSF) Del Mar. City of $0 $50 $100 Monthly Cost $150 As reflected on the previous page, even with these proposed increases, the City's rates continue to be among the lowest in the region. Due to rising operating costs, unfunded State mandates, the increased cost of water purchased from the San Diego County Water Authority and increased costs from the Encina Wastewater Authority, the City is proposing to raise the rates. Below is a summary of the fee increases already implemented that are the subject of this hearing: The average household increase is expected to be approximately $6.89 or 9.1%. Monthly water purchase fee increase is approximately 5.0%. • The standard rate increases from $1.68 to $1.76. • The conservation rate increases from $1.51 to $1.59. • The recycled water rate increases from $1.60 to $1.68. • The aaricultural water .rate increases from $1.37 tn $1 4R PROOF OF PU (201 0& 201 STATE OF CALIFORNIA County of San Diego 1 am Q citizsn of th© Units* of the County aforesaid: eighteen years and not a the above-entitled matte clerk of the printer of North Cou Formerly known as the Times-Advocate and wh been adjudicated nev circulation by the Superior San Diego, State of Cal Oceanside and the City Decree number 171349, Diego, that the notice of ' printed copy (set in ty nonpariel), has been put and entire issue of said ne1 supplement thereof on the July 28th 1 certify (or declare) unde the foregoing is true and c Dated at SAN MARCOS Cc This 30th day of July, 2007 "f JLT /111/o Signer Jane Alls NORTH COU Legal Ad\ Both residential and commercial monthly water service fees vary depending on meter size. • The increase for a standard 5/8" meter is from $9.75 to $12.12. 3oth residential and commercial monthly sewer service fee increases are approximately 10.5%. • The residential fee increase is from $14.65 to $16.20. • The commercial fee increase is approximately 10.5%. Residential monthly trash fee increase is approximately 7.8%. • The residential fee increases from $17.50 to $18.87. A detailed schedule of the water and sewer utility rates is attached. Other documents detailing the fee calculations are on file with the City Clerk. If adopted, the fee increases will be reflected on utility bills dated on or after November 1 , 2007. I For questions about the public hearing process, I please contact the Finance Department's Customer Service Dept. I at (760) 602-2403 I Commodity Rates - Proposed 2007-08 Current • 5.00% Adjustment Meter Size Units/Mo, (or ' Units/Mo, (or Conservation Rate ' less) Conservation Rate ' less) 5/8" : $1.51 7 | 51.59 ; 7 3/4' """ " S1.51 i" " 10 i ST.59 10 1' $1.51 i 16 " i S1.59 16 i-1/2" ' : Sf.51 ' 30 \ $1,59 30 2" ' 51,51 ! 45 ! S1.59 45 3' " ~ S1.51 i 79 " 51 59 ' 79 4" ' $1.51 | 123 b1 59 I ' 123 6" " S1.51 i 228 ~ 1 S1.59 228 " 8" " 31,51 I 336 " 1 S" 59 " ~338 £.i.->nd.'in(B,~so)Rute S1.68 ' j Si f6 Rocycl'v; Wntp' KrMe S1.60 j S" 68 Agricultural Water Rate ' 51,37 $' 43 1 CONSERVATION RATE tS 90 PERCENT OF STANDARD {BASE} RATE. 2 RECYCLED WATER RATE IS 95 PERCENT OF STANDARD (BASEI RATE 3 AGRICULTURAL WATER RATE IS $0.31 OFF THE STANDARD (BASE) RATE (PER THE MWD "INTERIM AGRICULTURAL WATER PROGRAM"). Delivery Charge Current ] Proposed 1 Meter size Fee ! I Fee I W $ 975 IS 12.12 3/4" • 12.35 j 14,851.0" ! - - - 1760 - 2f)ib 10' _ 3070 [ 35.12 i 2,0" ' 45.45 " i 50.60 2.5" 55.15 , ; " 6079 3.0" ' ' 83.45 ' 90.50 4,0" i 136,00 I 146,68 6 0" 267 DO ; 284 23 8.U' _424 75 _ _ _ f 449.87 Wastewater (Sewer) Rates - Proposed 2007-2008 j Current 10.50% Adjustment Unit Cost I Uniform Rate Unit Cost Uniform i ($/hcf of water) |_ ^jj/hcf of water) Rate Gro^L. I Residential Single Family ] --- '• S14.65 | --- ! $16.20 Duplex . • S29.30 --- ! $32 40 Multi-Family1 ; 52.08 , --- "" $2.30 Mu^ lo 1 tumo S>2 06 - - - $2.30 GrouD 1 Co'nmeical * - - $14.65 -- $16,20 Group II Commercial " i S1.73 i — I S~1.91 i_'ojj III Commercial " _ S2 27 _ — $251 "* C'tku IVCommi inal5 ' 5358 ' — I S3.96~ — Group V Institutional ; $171 i --- i $1 89 - - Schools per ADA' i j r E-ln.-rientary * , $0,23 : SO. 25 ; Juni.T ' SO. 44 '• SO. 49 : ' iiuii ; SO. 66 j SO. 73 ' Boardrig - ; S3.30 j S3.64 [ CSroup VI Largo VoiiifTHj (also "' 31,33 ] ' "-"- - " ~ Si.47~ " " --- called Commercial Group V) : : Bockman Micro Ops • S4.33 ' -- - ', S4.78 Two times the Single Family uniform rate.2 Wastewater flow is 90 percent of metered water use.3 Schools: assumes a 200-day working year; ADA: average daily attendance. «* Denotes charge per student based on ADA. Notice of Public Hearing City of Carlsbad and Carlsbad Municipal Water District Utility Customers Dear City of Carlsbad and Carlsbad Municipal Water District Utility Customer: NOTICE IS HEREBY GIVEN that the City Council and Board of Directors will hold a public hearing regarding proposed increases for water, sewer, and trash fees for properties within the City of Carlsbad and Carlsbad Municipal Water District. This hearing is to comply with a ruling of the California Supreme Court. The public hearing will be held on the 11th of September at 6:00 p.m., in the Council Chambers, City Hall, 1200 Carlsbad Village Drive, Carlsbad, California, at which time the Council will hear all persons interested in the matter. Any person interested in objecting to the amount of the proposed increases may file a signed written protest with the City Clerk, at or before the hour fixed for the hearing, The written protest must contain the address of service, the rate change being protested and the ground or grounds of protest. The protestor may appear at the hearing and be heard on the matter. How Do We Compare to Other Cities? Water Rate Comparison per 20 Units and Sewer Flat Fee Rate Comparison Water and Sewer Rates Carttb»C piopoiwt FY08 CarttbM FY07 San DoguXo WO (LeucMi*) Ginti F« ID (Solini Bttcf,) OcMnaKta. City o* San 0*OUPto WO (EnUnitM) Viite imjaijort Dulina (V«M| S»n DxjflO City W As reflected on the previous page, even with these proposed increases, the City's rates continue to be among the lowest in the region. Due to rising operating costs, unfunded State mandates, the increased cost of water purchased from the San Diego County Water Authority and increased costs from the Encina Wastewater Authority, the City is proposing to raise the rates. Below is a summary of the fee increases already implemented that are the subject of this hearing: The average household increase is expected to be approximately $6.89 or 9.1%. Monthly water purchase fee increase is approximately 5.0%. • The standard rate increases from $1.68 to $1.76. • The conservation rate increases from $1.51 to $1.59. • The recycled water rate increases from $1.60 to $1.68. • The agricultural water rate increases from $1.37 to $1.45. Both residential and commercial monthly water service fees vary depending on meter size. • The increase for a standard 5/8" meter is from $9.75 to $12.12. Both residential and commercial monthly sewer service fee increases are approximately 10.5%. • The residential tee increase is from $14.65 to $16.20. • The commercial fee increase is approximately 10.5%. Residential monthly trash fee increase is approximately 7.8%. The residential fee increases from $17.50 to $18.87. A detailed schedule of the water and sewer utility rates is attached. Other documents detailing the fee calculations are on file with the City Clerk. If adopted, the fee increases will be reflected on utility bills dated on or after November 1, 2007. For questions about the public hearing process, please contact the Finance Department's Customer Service Dept. at (760) 602-2403 Commodity Rates - Proposed 2QQ7-06 Wastewater (Sewer) Rales - Proposed 2Q07-20Q8 Unit Cost(S'hcf of water] 'Two times the Single Family uniform tale.2 Wastewater flow is 90 percent of metered water use. '' Schools: assumes a 200-day working year; ADA: average daily attendance.' Denotes charge per student based on ADA. Public HearingPublic HearingCity of Carlsbad/City of Carlsbad/Carlsbad Municipal Water Carlsbad Municipal Water DistrictDistrictSeptember 11, 2007September 11, 2007 ™™Utility rates are subject to Prop 218Utility rates are subject to Prop 218™™Public hearing must be heldPublic hearing must be held™™45 day written notice prior to public hearing45 day written notice prior to public hearing™™On June 26, 2007 Council set the public On June 26, 2007 Council set the public hearing datehearing dateBackgroundBackground ™™FiveFive--year forecasts are completed annually for year forecasts are completed annually for Water, Sewer and Solid Waste FundsWater, Sewer and Solid Waste Funds™™Forecasts indicate that increases are Forecasts indicate that increases are necessary: necessary: ™™To keep up with the increasing costs from To keep up with the increasing costs from SDCWA and Encina Wastewater AuthoritySDCWA and Encina Wastewater Authority™™To keep up with increasing operating To keep up with increasing operating expendituresexpenditures™™To meet new legislated mandatesTo meet new legislated mandatesBackground (cont.)Background (cont.) Water Enterprise Water Enterprise ExpendituresExpendituresReplacement 13%City Operations26%County Water Authority56%Debt5% Water Enterprise Water Enterprise IncreasesIncreasesCity Operations16%County Water Authority43%Debt21%Replacement20% Wastewater Enterprise Wastewater Enterprise ExpendituresExpendituresReplacement31%Encina31%City Operations 31%Capital7% Wastewater Enterprise Wastewater Enterprise IncreasesIncreasesReplacement20%Encina14%Capital37%City Operations 29% Wastewater Discharge Wastewater Discharge RequirementRequirement(WDR)(WDR)™™State Water Resources Control Board State Water Resources Control Board Mandate (Order No. 2006Mandate (Order No. 2006--0303--DWG)DWG)™™Goal is to reduce sewer overflowsGoal is to reduce sewer overflows™™Increase in personnel and equipmentIncrease in personnel and equipmentUnfunded MandatesUnfunded Mandates Storm WaterStorm Water™™San Diego Regional Water Quality Control San Diego Regional Water Quality Control Board (RWQCB) issued a National Pollutant Board (RWQCB) issued a National Pollutant Discharge Elimination System (NPDES)Discharge Elimination System (NPDES)™™RWQCB issued a Municipal Storm Water RWQCB issued a Municipal Storm Water Permit in January 2007Permit in January 2007™™Goal is to have cleaner recreational waterGoal is to have cleaner recreational water™™Increase in personnel and equipmentIncrease in personnel and equipmentUnfunded MandatesUnfunded Mandates Proposed Rate IncreasesProposed Rate Increases$ 0.08$1.45$1.37Agricultural$ 0.08$1.68$1.60Recycled$ 0.08$1.76$1.68Standard$ 0.08$1.59$1.51Conservation$ ChangeProposedCurrentServiceWater Commodity Rates5% Increase Proposed Rate IncreasesProposed Rate Increases(cont.)(cont.)$ 1.45VariesCommercial$16.20$14.65Residential$ChangeProposedCurrentServiceSewer Rates – 10.6% Increase$1.37Commercial$18.87$17.50Residential$ ChangeProposedCurrentServiceSolid Waste/Storm Water Rates7.8% IncreaseVariesVariesVaries Average Household Monthly Average Household Monthly Utility RateUtility RateProposed IncreaseProposed IncreaseCurrentCurrentProposedProposedSewerSewerSolid WasteSolid WasteWaterWaterMonthly IncreaseMonthly Increase% Increase% Increase$ 14.65$ 14.65$ 17.50$ 17.50$ 43.35$ 43.35$ 75.50$ 75.50$ 16.20$ 16.20$ 18.87$ 18.87$ 47.32$ 47.32$ 82.39$ 82.39$ 6.89$ 6.899.1%9.1% How Do We Compare to How Do We Compare to Other Cities?Other Cities?As of June 2007Water Rate Comparison per 20 UnitsWater and Sewer Rates$0$50 $100 $150Del Mar, City ofSanta Fe ID (RSF)San Diego, City ofVista Irrigation District (Vista)San Dieguito WD (Encinitas)Oceanside, City ofSanta Fe ID (Solana Beach)San Dieguito WD (Leucadia)Carlsbad FY07Carlsbad proposed FY08Monthly CostWaterSewer Protest SummaryProtest Summary™™Three written protests have been received Three written protests have been received prior to this hearingprior to this hearing™™Two protests relate to the hardship on Two protests relate to the hardship on seniorsseniors™™One protest relates to a flat trash rate One protest relates to a flat trash rate for residentsfor residents Public HearingPublic Hearing Questions?Questions? Action ItemsAction ItemsCarlsbad Municipal Water Board:Carlsbad Municipal Water Board:Resolution 1304 approving water Resolution 1304 approving water rate increases.rate increases.City Council:City Council:Resolution 2007Resolution 2007--239 approving 239 approving sewer and trash increases.sewer and trash increases. ProtestProtestPublic HearingPublic HearingCity of CarlsbadCity of CarlsbadCarlsbad Municipal Water Carlsbad Municipal Water DistrictDistrict