HomeMy WebLinkAbout2008-09-09; City Council; 19564; Increases For Water and Sewer RatesCITY OF CARLSBAD AND CARLSBAD MUNICIPAL WATER
DISTRICT - AGENDA BILL
16
AB# 19,564
MTG. 9/9/08
DEPT.FIN
PUBLIC HEARING FOR PROPOSED
RATE INCREASES FOR WATER AND
SEWER RATES
DEPT. HEAD
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION:
Conduct a public hearing to receive public comment and adopt Resolutions No. 1334
and No. 2008-249 approving increases for water and sewer rates 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 rate increases.
ITEM EXPLANATION:
As part of the ongoing financial management program, the City annually prepares five-year
operating and maintenance forecasts for the water and sewer funds. The most recent forecasts
for the water and sewer funds show that rate increases are needed for the following reasons:
• To keep up with the increasing costs from the San Diego County Water Authority
(SDCWA), Metropolitan Water District (MWD), and Encina Wastewater Authority.
• To keep up with increasing maintenance and operating expenditures.
• To meet the ongoing cost of legislated mandates.
• To maintain adequate operating and replacement reserves.
Water Rates: Several factors are contributing to the proposed water rate of $2.12 per unit, a
20% increase over the current rate of $1.68.
• The cost of purchased water from the SDCWA has increased 12.4% from Fiscal Year
2007-08 to Fiscal Year 2008-09.
• The number of water meters has grown approximately 47% in the last 10 years, with
little additional resources allocated for maintenance of the system. As the meters
age, they no longer function optimally, and need to be replaced.
• Additional maintenance activities are needed to properly maintain the aging water
infrastructure, such as corrosion control and reservoir repairs. These activities will
require both additional staffing and operating resources over the next five years and
beyond.
• Operating reserve levels were depleted over the last few years to amounts below the
recommended 40% and need to be brought back up to recommended levels.
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D
D
D
Dn
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER - SEE MINUTES
P.
<5n
Page 2
Sewer Rates: The proposed rate for the wastewater services is an increase of 9%, or a
monthly residential fee increase from $16.20 to $17.65. This increase will fund on-going
maintenance needs, increases in charges from the Encina Wastewater Authority, and the cost
of legislated mandates which were implemented in Fiscal Year 2007-08.
Per a California Supreme Court ruling, local governments must hold a public hearing before
raising any water and sewer rates. Customers must be notified forty-five (45) days in advance
of the hearing of the proposed rate changes. At their meeting on June 24, 2008, the Board of
Directors of the Carlsbad Municipal Water District and the City Council adopted Resolutions No.
1324 and No. 2008-194 setting a public hearing on September 9, 2008 to accept public
comment on the proposed water and sewer rate 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 rate change being protested, the
grounds of protest, and be 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.
• The notice (see Exhibit 1) outlined the proposed rate changes.
• The notice outlined the protest process.
• The notice provided information relating to the public hearing.
As of August 26, 2008 two protests have been received. The protests are attached (see Exhibit
2). One protest comment relates to the hardship to seniors and the second comments that the
increase should not exceed the increase in the cost of living. 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, 2008 and will provide
adequate funding to properly operate and maintain Carlsbad's water and sewer systems. Even
with these rate increases, Carlsbad still has some of the lowest rates in the region when
compared to other agencies.
See Exhibit 1 for more detail regarding the proposed rate increases.
ENVIRONMENTAL IMPACT:
The California Environmental Quality Act (CEQA) does not apply to the establishment or
modification of rate for the purpose of meeting operating expenses (CEQA Guidelines
Regulation 15273).
EXHIBITS:
1. Notice of Public Hearing.
2. Protest letters received.
3. Resolution No. 1334 of the Board of Directors of the Carlsbad Municipal Water
District approving water rate increases.
4. Resolution No. zuuo-^49 of the City Council of the City of Carlsbad approving sewer
rate increases.
DEPARTMENT CONTACT: Colette Wengenroth, 760-602-2430, cweng@ci.carlsbad.ca.us
Exhibit 1
Notice of Public Hearing
City of Carlsbad and
Carlsbad Municipal Water District
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 and sewer 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 9th 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.
Even with these proposed increases, the City's rates continue to be among the
lowest in the region. Rates are being increased due to rising operating costs,
unfunded State mandates, and the increased cost of water purchased from the
San Diego County Water Authority.
Agency Monthly Water Rate Comparison
Del Mar
Poway
Rainbow
San Diego
Sweet water Authority
Escondido
Otay Water District
Fallbrook
Valley Center
SantaFe
Vistalrrigation
Carlsbad- Proposed
Oceanside
SanDieguito
Olivenhain
Vallecitos
Carlsbad -Current
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Agency Monthly Wastewater Rate Comparison
Del Mar
Buena Sanitation District
Poway
City of Vista
La Mesa
Encinitas Sanitary Division
Chula Vista
Otay Water District
Lakeside
Vallecitos Water District (2009)
El Cajon
Leucadia Wastewater (2009)
Carlsbad - Proposed
Carlsbad - Current
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$0 $10 $20 $30 $40 $50 $60 $70 $80
Below is a summary of the proposed increases that are the subject of this
hearing:
Monthly water purchase fee increase is 20%:
• The standard rate increases from $1.76 to $2.12
• The conservation rate increases from $1.59 to $1.91.
• The recycled water rate increases from $1.68 to $2.01.
• The agricultural water rate increases from $1.45 to $1.81.
Both residential and commercial monthly water service fees vary depending on
meter size.
• The increase for a standard 5/8" meter is from $12.12 to $14.54.
Both residential and commercial monthly sewer service fee increase is 9%:
• The residential fee increases from $16.20 to $17.65.
• The commercial fee increased 9%.
A detailed schedule of the water and sewer utility rates is attached.
For questions about the public hearing process,
please contact the Finance Department's Customer Service Dept.
at (760)602-2403
Commodity Rates - Proposed 2008-09
Meter Size
5/8"
3/4"
1"
1-1/2"
2"
3"
4"
6"
8"
Current
Conservation Rate 1
$1.59
$1.59
$1.59
$1.59
$1.59
$1.59
$1.59
$1.59
$1.59
Units/Mo, (or
less)
7
10
16
30
45
79
123
228
336
20.00% Adjustment
Conservation Rate 1
$1.91
$1.91
$1.91
$1.91
$1.91
$1.91
$1.91
$1.91
$1.91
Units/Mo, (or less)
7
10
16
30
45
79
123
228
336
Standard (Base) Rate
Recycled Water Rate 2
Agricultural Water Rate J
$1.76
$1.68
$1.45
$2.12
$2.01
$1.81
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"
3.0"
4.0"
6.0"
8.0"
$ 12.12
14.85
20.36
35.12
50.60
90.50
146.68
284.23
449.87
Proposed
Fee
14.54
17.87
24.50
42.26
60.88
108.89
176.49
341.99
541.28
Wastewater (Sewer) Rates - Proposed 2008-2009
Group I Residential
Single Family
Multi-Family
Mobile Home1
Group II Commercial ^
Group III Commercial ^
Group IV Commercial z
Group V Institutional
Schools per ADA3
Elementary *
Junior*
High*
Boarding *
Group VI Large Volume
Beckman Micro Ops
Culligan
Current
Unit Cost
($/hcf of water)
$2.30
$2.30
$1.91
$2.51
$3.96
$0.25
$0.49
$0.73
$3.64
(based on volume and
wastewater strengths)
$4.78
$1.36
Uniform Rate
$16.20
—
9.0% Adjustment
Unit Cost
($/hcf of water)
$2.51
$2.51
$2.08
$2.73
$4.31
$0.27
$0.53
$0.80
$3.97
(based on volume and
wastewater strengths)
$5.21
$1.48
Uniform Rate
$17.65
—
...
Exhibit 2
August 6,2008
City of Carlsbad
Carlsbad Municipal Water District
1200 Carlsbad Village Drive
Carlsbad, CA 92018
RE: PROPOSED INCREASE OF WATER RATES
Account #05505300-09
Meter # 0077353340
Council Members:
I am protesting the proposed increase of my water rates. After purchasing my condo in September
2006 [ made $15,000 worth of energy saving upgrades. According to my bills, my water usage has
been 2 units with a cost of $27.42. Since February 2008, my water usage remains at 2 unite with a cost
of $31.50. Through the months of June, July and August 2008,1 worked at the Four Seasons Resort
and did not use any water for cooking, bathing, etc. (these were provided by the Four Seasons during
my temporary employment) and my water bill continued to reflect usage of 2 units according to the
City's records. A minimum standard was established. Even though I continue to conserve water and
other energy sources you are now asking me to continue to pay more:
Conservation Rate from $1.59 to $1.91
Delivery Charge from $12.12 to $14.54
Wastewater Rates from $16.20 to $17.65
Your proposal represents a $4.19 increase to me - an $8*27 increase since February 2008. I live
on a fixed retirement income. It is quite difficult finding employment at my age to make life a little
easier during these appalling economic times. I have already decreased my driving to two trips a week
to the Senior Center and stay home instead of socializing with others. I have even changed my eating
habits. Because of the large amount I had to use for energy saving upgrades in my home and the need
to refinance my home due to the greed of Countrywide Home Loans, my funds are low.
Everyone is raising their prices. We are all hurting. My monthly retirement check only stretches so
far. I have done everything in my power to conserve energy and water. Carlsbad is a wealthy city. Is
it really necessary to cause such hardship to the seniors living here? I love living here in Carlsbad and
would like to stay. Please don't force me to move by continually raising your various fees. I need to
be able to live not just exist. Please consider my request not to raise my water bill any higher than it is
now.
Sincerely,
'o
L—^^^
Mary Hill
6999 Carnation Drive
Carlsbad, CA. 92011
Exhibits
1 RESOLUTION NO. 1334
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF
CARLSBAD MUNICIPAL WATER DISTRICT (CMWD), TO
3 APPROVE INCREASES IN WATER RATES.
4
5 WHEREAS, the California Supreme Court made a ruling that local governments
6 must hold a public majority-protest hearing, and notify customers forty-five (45) days in
7 advance of increases in water rates; and
8 WHEREAS, the Carlsbad Municipal Water District is proposing an increase in
water rates; and
10 WHEREAS, on June 24, 2008, The Board approved Resolution No. 1324 setting
11
a public hearing for September 9, 2008; and
12
WHEREAS a public hearing was held on September 9, 2008.13
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
18 approves the increases in water rates, effective November 1, 2008.
19"
20
21
22
23
24
25
26
27
28
1 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
2 Carlsbad Municipal Water District Board of Directors and the Carlsbad City Council,
3 held on the 9th day of September, 2008, by the following vote:
4
5
AYES: Board Members Lewis, Kulchin, Hall, Packard and Nygaard.
6
NOES: None.
7
ABSENT: None.
8
9
10
11
CLAUDE A LEWIS, President
12
ATTEST:
13
14
LORRAINE M. WOOD, Secretary
16 (SEAL)
17
18
19
20
21
22
23
24
25
26
27
28
Exhibit 4
1 RESOLUTION NO.2008-2*3
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, TO APPROVE INCREASES IN
3 SEWER RATES.
4
5 WHEREAS, the California Supreme Court made a ruling that local governments
6 must hold a public majority-protest hearing, and notify customers forty-five (45) days in
7 advance of increases in sewer rates; and
WHEREAS, the City of Carlsbad is proposing an increase in sewer rates; and
o
WHEREAS, on June 24, 2008, City Council approved Resolution No. 2008-194
10 setting a public hearing for September 9, 2008; and
11
WHEREAS a public hearing was held on September 9, 2008.
12
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
15 1. That the above recitations are true and correct.
16 2. That the City Council of the City of Carlsbad approves the increases in
17 sewer rates, effective November 1, 2008.
18
19
20
21
22
23 "
24 //
25 //
26
27
28
1 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
2 Carlsbad City Council and Carlsbad Municipal Water District Board of Directors, held on
3 the 9th day of September, 2008, by the following vote:
4
5 AYES: Council Members Lewis, Kulchin, Hall, Packard and Nygaard.
6
NOES: None.
7
ABSENT: None.
8
9
10
11
CLAUDE A LEWIS, Mayor
12
ATTEST:
13
14
LORRAINE M. WOOD, City Clerk
16 (SEAL)
17
18
19
20
21
22
23
24
25
26
27
28
JL Carl to a .
„ . „ . „ . A CaUfornia. General Partnership
Cftimno Heal, Suite 105 (7^0) 439.7380 1902 Wright Place, Suite 200
La Costa, CA 92009 (760) 438-7385 Fax Carlsbad, CA 92008
(858) 569-4387 ,
* Pleas* addreny till correspondence
to the La Co*ta address.
Number of pages: 1
(including Cover Sheet)
Date: __ 8/14/08 _
' ~Lorraine Wood
OtyOerk
Carlsbad, CA
From: Dennis F. Penn
U-
Message: Jjw* protesting the increase in water rates from $1.76 to $2.12
because this represents greater than a 3% increase. The City of
Carlsbad is not entitled to increase the water rates more than the
cost of living which is 3%. The yearly rate should go from SI .76
to $1.81.
EXPERTISE IN COMMERCIAL MEDIATION AND CRISIS FINANCIAL MANAGEMENT
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COST SUMMARY TO FULLY FUND WATER OPERATIONS (MANUAL READING*
Potable Water Ops.
- Contract - Cathodic Prot.
- Additional Staff
Potable Water Maint.
- Additional Staff
Recycled Water Ops.
- Contract-Res Maint
- Additional Staff
SCADA
- Additional Staff
One-Time Costs - Vehicles
YEAR1 YEAR 2 YEAR 3 YEAR 4 YEARS
FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13
$ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
$ - $ - $ - $ 95,809 $ 180,918
(1)WtrSysOp (1)WtrSysOp
$- $ 118,831 $ 194,783 $ 194,783 $ 270,735
(1) Utility Worker (1) Utility Worker (1) Utility Worker
$ 24,000 $ 24,000 $ 24,000 $ 24,000 $ 24,000
$ - $ 118,831 $ 194,783 $ 194,783 $ 194,783
(1) Utility Worker (1) Utility Worker
$ 78,050 $ 103,178 $ 195,656 $ 195,656 $ 195,656
(1) SCADA Tech (1) SCADA Tech
$ 59,575
(1) 1-Ton, (1)
Van, (1) Laptop
$ 26,000
(1) 3/4-Ton
SUBTOTAL $ 127,050 $ 449,415 $ 634,222 $ 756,031 $ 891,092
Meter Services
- Additional Staff
- Meter Purchases
- Contract-Meter Installation
One-Time Costs -Vehicles/Equip
$ - $ 153,488 $ 306,975 $ 306,975 $ 306,975
(2) Mtr Svc Wrkr (2) Mtr Svc Wrkr
$ 205,650 $ 112,252 $ 172,737 $ 106,134 $ 315,112
$ 67,300 $ 31,845 $ 33,066 $ 30,860 $ 86,821
$ 53,000 $ 53,000
(2) 1/2-Tons, (2) (2) 1/2-Tons, (2)
Handhelds Handhelds
SUBTOTAL
TOTAL PROGRAM COST
Total Meters Replaced
No. of < 3/4-inch
No. of > 1-inch
$ 272,950 $
$ 400,000 $
143
4
139
350,585
800,000
738
686
52
$ 565,778
$ 1,200,000
117
3
114
$ 443,969
$ 1,200,000
648
592
56
$ 708,908
$ 1,600,000
1,032
767
265
F:\Budget Development\FY 08-09\Short Fall Funding_Cashflow Adjustments_3.xls
2236 Janis Way
Carlsbad, CA 92008
28 August 2008
irectors, and City Clerk,
I protest the 20% increase in the monthly water purchase fee and the 20% monthly water
service fee. In today's economic "recession" a 20% increase is outrageous. I also protest the
9% monthly sewer service fee.
Monthly Water Purchase Fee
The Notice of Public Hearing states that rates are being increased due to rising operating
costs, unfunded State mandates and increase cost of water purchase from the San Diego
County Water Authority. I question why the proposed increase is so large. The increase was
only 5% last year.
1. The North County Times reported only a 5.6 % increase in the Consumer Price Index
(CPI) from last year. For San Diego North County only a 6.6% annual increase in CPI
was calculated based on the first half of the year. ("As summer heats up, so does
inflation" NCT August 15, 2008)
2. My concern is that a part of the requested increase is compensation for revenue
shortfalls caused by less than anticipated demand or anticipation of decreased demand.
In a recent discussion with a staff member at CWD Finance department I was
informed that overall water consumption has remained fairly flat over the last
year. It was explained that reduced consumption may be caused by consumer
water conservation efforts, decrease developer construction, etc.
In regard to water conservation, less demand -
Rucker, general manager of the Vallecitos Water District stated "If
they cut back 30 percent, you've just lost 30 percent of your variable
income. The bottom line is, you're going to pay more for less." The
North County Times reported that in 1991 as result of the 30%
reduction in consumption. The Metropolitan Water District raised its
water rates 18% to make up for lost revenue. ("Drought-induced
conservation could trigger higher water rates" NCT June 21, 2008)
3. San Diego County Water Authority, which distributes water to Carlsbad Municipal
Water District, is going to raise its rates 11.9% at the first of the year. So the water
purchase rate is only going to increase 11.9% which is far short of 20%.
4. In today's economy businesses are faced with unanticipated/unfunded expenses,
increased costs, etc. What efforts have been made to absorb these expenses and
reduce operating cost, etc. or is the 20% the solution?
5. A staff member at CWD Finance department explained the relationship between the
delivery charge and the water meter size. The meter size is used to determine the
amount of water that must be available (stored). If this is the primary cost
consideration, I do not believe this cost has increased 20%. There is no relationship
between actual usage and delivery charge, which in itself seems unfair.
6. It appears that the chart "Agency Monthly Water Rate Comparison" chart is provided
as an attempt to justify the 20% increase. Proposed rate changes by other water
districts remains unknown.
Monthly Sewer Service Fee
During the last few years my average monthly water usage has been 3 to 4 units* per month.
Looking at my June 2008 Utility Bill:
Water Usage 3@ 1.59 $4.77
Delivery Charge $14.85
Sewer Charge $16.20
There is obviously no relationship between the amounts of water used and waste water
produced. I am charged $16.20 whether I contribute 3 units of waste water of 20 units of
waste water. It is not fair for low users to bear the same cost as high users. In my case I think
the 9% increase is unreasonable; find a way to increase the charge for high usage.
Conservation?
As it stands now, I am beginning to wonder about the advantages of water conservation. If I
double my usage to 6 units, I would only incur a charge of about 5 to 6 dollars, and my cost of
usage would still be less than the Delivery Charge and not affect the Sewer charge. The
proposed 21 cent per unit break is little incentive especially when a 32 cent rate increase is
also proposed. I think that a tiered usage charging of water usage, delivery, and sewer needs
to be explored; let high users pay more.
As a side note, I asked the CWD Finance representative to explain the different color bars on
the Agency Monthly Wastewater Rate Comparison chart. She stated it must be a mistake. I
would appreciate an explanation.
Sincerely,
Dale Kubacki
* 1 unit = 1 hundred cubic feet = 748 gallons
August 6,2008
City of Carlsbad
Carlsbad Municipal Water District
1200 Carlsbad Village Drive
Carlsbad, CA 92018
RE: PROPOSED INCREASE OF WATER RATES
Account #05505300-09
Meter #0077353340
Council Members:
I am protesting the proposed increase of my water rates. After purchasing my condo in September
2006 I made $15,000 worth of energy saving upgrades. According to my bills, my water usage has
been 2 units with a cost of $27.42. Since February 2008, my water usage remains at 2 units with a cost
of $31.50. Through the months of June, July and August 2008, 1 worked at the Four Seasons Resort
and did not use any water for cooking, bathing, etc. (these were provided by the Four Seasons during
my temporary employment) and my water bill continued to reflect usage of 2 units according to the
City's records. A minimum standard was established. Even tough I continue to conserve water and
other energy sources you are now asking me to continue to pay more:
Conservation Rate from $1 .59 to $1 .91
Delivery Charge from $12.12 to $14.54
Wastewater Rates from $16.20 to $17.65
Your proposal represents a $4.19 increase to me - an $8.27 increase since February 2008. I live
on a fixed retirement income. It is quite difficult finding employment at my age to make life a little
easier during these appalling economic times. I have already decreased my driving to two trips a week
to the Senior Center and stay home instead of socializing with others. I have even changed my eating
habits. Because of the large amount I had to use for energy saving upgrades in my home and the need
to refinance my home due to the greed of Countrywide Home Loans, my funds are low.
Everyone is raising their prices. We are all hurting. My monthly retirement check only stretches so
far. I have done everything in my power to conserve energy and water. Carlsbad is a wealthy city. Is
it really necessary to cause such hardship to the seniors living here? I love living here in Carlsbad and
would like to stay. Please don't force me to move by continually raising your various fees. I need to
be able to live not just exist. Please consider my request not to raise my water bill any higher than it is
now.
Sincerely,
Mary Hill
6999 Carnation Drive
Carlsbad, CA. 92011
July 17, 2008
MEMO TO FILE:
Per verbal discussion with Deputy City Attorney Ron Kemp, no publishing in an
adjudicated newspaper is required for the Water/Sewer Rate Increase public hearing at
the City Council meeting set for September 9, 2008. Mr. Kemp researched the Water Act
Code and stated the mailing notice to Carlsbad residents met the notification
requirements.
Public HearingPublic HearingCity of Carlsbad/City of Carlsbad/Carlsbad Municipal Water Carlsbad Municipal Water DistrictDistrictSeptember 09, 2008September 09, 2008
Background Background ––Proposition 218Proposition 218Proposed Water rate increaseProposed Water rate increaseProposed Sewer rate increaseProposed Sewer rate increaseImpact to single family householdImpact to single family householdPublic Hearing and discussionPublic Hearing and discussionCouncil actionCouncil actionAgendaAgenda
Utility rates are subject to Prop 218Utility rates are subject to Prop 218Public hearing must be heldPublic hearing must be held45 day written notice prior to public hearing45 day written notice prior to public hearingOn June 24, 2008 Council set the public On June 24, 2008 Council set the public hearing datehearing dateBackgroundBackground
FiveFive--year forecasts are completed annually for year forecasts are completed annually for Water and Sewer FundsWater and Sewer FundsForecasts indicate that increases are necessary: Forecasts indicate that increases are necessary: To keep up with the increasing costs from To keep up with the increasing costs from SDCWA , MWD and SDCWA , MWD and EncinaEncinaWastewater Wastewater AuthorityAuthorityTo adequately resource maintenance and To adequately resource maintenance and operating requirementsoperating requirementsTo meet ongoing cost of legislated mandatesTo meet ongoing cost of legislated mandatesTo maintain adequate operating and To maintain adequate operating and replacement reservesreplacement reservesBackground (cont.)Background (cont.)
Water Enterprise Water Enterprise Expenditures Expenditures --$34.7 Million$34.7 MillionReplacementTransfers14%City Operations25%WaterPurchases55%DebtDebtPaymentsPayments6%6%
Increase in Water Utility ExpendituresFY07-08 to 08-09$3.8 Million58%26%16%WaterPurchasesReplacementOperationsPurchased Water from Other Agencies
Proposed Water Rate IncreaseProposed Water Rate Increase20%20%••Standard Rate Standard Rate ••Current Rate $1.76 per unitCurrent Rate $1.76 per unit••Proposed Rate $2.12 per unitProposed Rate $2.12 per unit••StandStand--by chargeby charge••Current Rate $12.12 per monthCurrent Rate $12.12 per month••Proposed Rate $14.54 per monthProposed Rate $14.54 per month••Average Monthly Bill Average Monthly Bill ––Single Family ResidenceSingle Family Residence••Current Rate $45.56 per monthCurrent Rate $45.56 per month••Proposed Rate $54.82 per monthProposed Rate $54.82 per month••Increase = $9.26 per monthIncrease = $9.26 per month
Proposed Water Rate IncreaseProposed Water Rate Increase••Recycled Water Rate Recycled Water Rate ••Current Rate $1.68 per unitCurrent Rate $1.68 per unit••Proposed Rate $2.01 per unitProposed Rate $2.01 per unit••Agricultural Water Rate Agricultural Water Rate ••Current Rate $1.45 per unitCurrent Rate $1.45 per unit••Proposed Rate $1.81 per unitProposed Rate $1.81 per unit
Agency Monthly Water Rate Comparison$40 $45 $50 $55 $60 $65 $70Carlsbad - CurrentVallecitos OlivenhainSan DieguitoOceansideCarlsbad - ProposedVista IrrigationSanta FeValley CenterFallbrookOtay Water DistrictEscondidoSweetwater AuthoritySan DiegoRamonaRainbowPowayDel Mar
Wastewater Enterprise Wastewater Enterprise Expenditures Expenditures --$10.2 million$10.2 millionCity OperationsCity Operations28%28%
ProposedProposedSewer Rate IncreaseSewer Rate Increase••Commercial and Residential Commercial and Residential ••9% increase for FY 089% increase for FY 08--0909••Residential Rate Residential Rate ••Current Rate $16.20/monthCurrent Rate $16.20/month••Proposed Rate $17.65/monthProposed Rate $17.65/month
Agency Monthly Wastewater Rate Comparison$0 $10 $20 $30 $40 $50 $60 $70 $80Carlsbad - CurrentCarlsbad - ProposedLeucadia Wastew ater (2009)El CajonVallecitos Water District (2009)LakesideOtay Water DistrictChula VistaEncinitas Sanitary DivisionLa MesaCity of VistaPow ayBuena Sanitation DistrictDel Mar
Proposed IncreaseProposed IncreaseTotal Monthly Utility Bill Total Monthly Utility Bill CurrentProposedSewerSolid WasteWaterMonthly Increase% Increase$ 16.20$ 18.87$ 45.56$ 80.63$ 17.65$ 18.87$ 54.82$ 91.34$ 10.7113.3%
Protest SummaryProtest SummaryupdateupdateTwo written protests have been received Two written protests have been received prior to this hearingprior to this hearingOne protest relate to the hardship on One protest relate to the hardship on seniorsseniorsOne protest states the increase should One protest states the increase should not be greater than the cost of living not be greater than the cost of living increaseincrease
ProtestProtestPublic HearingPublic HearingCity of CarlsbadCity of CarlsbadCarlsbadCarlsbadMunicipal Water Municipal Water DistrictDistrict
Action ItemsAction ItemsCarlsbad Municipal Water Board:Carlsbad Municipal Water Board:Resolution Resolution 13341334approving water approving water rate increases.rate increases.City Council:City Council:Resolution Resolution 20082008--249249approving approving sewer increases.sewer increases.
Public HearingPublic HearingCity of Carlsbad/City of Carlsbad/Carlsbad Municipal Water Carlsbad Municipal Water DistrictDistrictSeptember 09, 2008September 09, 2008
Water Operations ExpendituresIncreases over next 10 years$0$5,000,000$10,000,000$15,000,000$20,000,000$25,000,000$30,000,000$35,000,000$40,000,0002007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018YearDollarsWater purchasesOperationsReplacement54%119%25%
$0.39/Unit $0.20/Unit $1.17/Unit MWDCWACWMD$0.42/Unit $0.37/Unit $1.33/Unit CARLSBAD MUNICIPAL WATER DISTRICTCARLSBAD MUNICIPAL WATER DISTRICTPotable Water Potable Water ––Commodity Rate Summary Commodity Rate Summary 2008 - $1.76/Unit2009 - $2.12/Unit(Proposed)66%22%12%63%20%17%