2008-05 A Resolution of the Board of Directors of San Dieguito Water District Adjusting Water Rates & Meter Service Charges for Fiscal Years 2007/08 to 2009/10
RESOLUTION 2008-05
A RESOLUTION OF mE BOARD OF DIRECTORS
OF SAN DIEGUlTO WATER DISTRICT
ADJUSTING WATER RATES AND METER SERVICE CHARGES
FOR FISCAL YEARS 2007/08 TO 2009/10
WHEREAS, notice has been given that a public hearing be held on February 27, 2008 on
the necessity to increase water rates and meter service charges for fiscal years 2007/08 to
2009/10; and
WHEREAS, said notice of public hearing was done in accordance with Proposition 218
and all other statutory requirements; and
WHEREAS, such hearing was duly convened at the Council Chambers of the City of
Encinitas and at said hearing all interested persons were given an opportunity to be heard; and
WHEREAS, the Board of Directors finds that it is in the interest of the District to
increase its water rates and meter service charges;
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND
ORDERED by the Board of Directors of San Dieguito Water District as follows:
1.
That the water rates and meter service charges for fiscal year 2007/08 shall be and
they are fixed as set forth in Exhibit "A" which is attached hereto, effective with
all billings sent on or after March 1, 2008.
-
2. That the water rates and meter service charges for fiscal year 2008/09 shall be and
they are fixed as set forth in Exhibit "A" which is attached hereto, effective with
all billings sent on or after January 1, 2009.
3. That the water rates and meter service charges for fiscal year 2009/1 0 shall be and
they are fixed as set forth in Exhibit "A" which is attached hereto, effective with
all billings sent on or after January 1,2010.
4. That drought rates for fiscal years 2007/08, 2008/09 and 2009/10 shall be
implemented if mandatory water reductions at a minimum of 10% are adopted by
the District at rates fixed as set forth in Exhibit "B" which is attached hereto.
5. That the water rates and meter service charges established by this resolution do
not exceed the estimated amounts required to provide the services for which the
rates and charges are levied.
6. That the foregoing changes and establishments of water rates and meter service
charges of the District are for the purpose of meeting operating expenses of the
District, purchasing and leasing supplies, equipment and materials, meeting
financial reserves needs and requirements, and to obtain funds for capital projects
necessary to maintain service within existing service areas, constitute a revision in
the existing rates of the District, and, therefore, the foregoing changes and
establishment of such rates and charges are exempt from the provisions of the
California Enviromnental Quality Act.
- 37 -
PASSED AND ADOPTED at a meeting of the Board of Directors of San Dieguito
Water District held on February 27, 2008, by the following vote:
~
AYES:
NAYS:
ABSENT:
ABSTAIN:
ATTEST:
~.QJ. u.,
Barth, Bond, Dalager, Houlihan, Stocks.
None.
None.
None.
Phil Cotton, Secretary
Meter
Size
5/8"&3/4"
1"
1 112"
2"
3"
4"
6"
8"
Meter
Size
1"
1112"
2"
3"
4"
6"
8"
EXHIBIT "A"
Bi-Monthlv Water Rate Schednle
ProDOsed Bi-Monthlv Meter Service Charee
Existing
Charge
$25.84
$41.35
$77.58
$134.37
$248.08
$423.80
$775.24
$1343.74
Effective
3/112008
$26.08
$41.71
$80.77
$134.37
$248.08
$423.80
$783.93
$1343.74
Proposed Bi-Montblv Fire Meter Service Charl!"e
Existing Effective Effective Effective
Charge 3/1/2008 11112009 11112010
$7.09 $5.07 $5.35 $5.64
$7.09 $9.68 $10.21 $10.77
$7.09 $17.64 $18.61 $19.63
$21.26 $46.20 $48.74 $51.42
$42.51 $95.46 $100.71 $106.25
$1l8.09 $272.27 $287.24 $303.04
$247.99 $577.22 $608.97 $642.46
Proposed Commoditv Water Rates
Per Hundred Cubic Feet CHCF) ofWater*
Customer Existing Existing Proposed Effective Effective Effective
Class Block Rates Block 3/112008 11112009 1/112010
Single Family 0-6 $1.70 0-12 $1.70 $1.79 $1.89
Residential 7-20 $2.04 13.20 $2.32 $2.45 $2.58
(SFR) 21+ $2.77 21-40 $2.91 $3.07 $3.24
- 41+ $3.53 $3.72 $3.93
Single Family 0-6 $1.70 0-12 $1.70 $1.79 $1.89
Residential 7-20 $2.04 13-20 $2.32 $2.45 $2.58
w/Agriculture 21+ $2.77 21-40 $2.91 $3.07 $3.24
(SFR w/Ae:) 41+ $2.14 $2.26 $2.38
Single Family 0-12 $1.70 $1.79 $1.89
Residential N/A 13-20 $2.32 $2.45 $2.58
w/Commercial 21-40 $2.91 $3.07 $3.24
(SFR w/Com) 41+ $2.36 $2.49 $2.63
Multi-family 0-4 $1.70 0-8 $1.70 $1.79 $1.89
Residential*'" 5-12 $2.04 9-12 $2.32 $2.45 $2.58
(MFR) 13+ $2.77 13-16 $2.91 $3.07 $3.24
17+ $3.53 $3.72 $3.93
Multi-family 0-4 $1.70 0-8 $1.70 $1.79 $1.89
Residential 7-12 $2.04 9-12 $2.32 $2.45 $2.58
w/Agriculture"'''' 13+ $2.00 13-16 $2.91 $3.07 $3.24
(MFR w/Ae:) 17+ $2.36 $2.49 $2.63
Multi-family 0-8 $1.70 $1.79 $1.89
Residential N/A 9-12 $2.32 $2.45 $2.58
w/Commercial""" 13-16 $2.91 $3.07 $3.24
(MFR w/Com) 17+ $2.36 $2.49 $2.63
Agriculture $2.00 $2.14 $2.26 $2.38
Commercial $2.20 $2.36 $2.49 $2.63
Landscaping $2.77 $2.88 $3.04 $3.21
Public $2.20 $2.36 $2.49 $2.63
Government $2.20 $2.36 $2.49 $2.63
Excess Use $2.77 $2.88 $3.04 $3.21
Construction $2.77 $2.88 $3.04 $3.21
Recycled Water - 85% of applicable potable water rate
. HCF = 748 gallons
""" Multi-family block is per unit.
EXHIBIT "B"
~
Proposed Droueht Rates for Fiseal Year 2007/08
~
Slaoe: 10% Reduction 20% Reduction 30% Reduction 40% Reduction 50% Reduction
SFR 0-12 $ 1.87 0-12 $2.09 0-10 $2.23 0-8 $2.48 0-8 $2.86
13-20 $ 2.49 13-20 $2.71 11-18 $2.85 9-16 $3.10 9-14 $3.48
21-40 $ 3.08 21-40 $3.28 19-36 $3.46 17-32 $3.69 15-28 $4.07
41+ $ 3.74 41+ $3.90 37+ $4.09 33+ $4.31 29+ $4.84
SFR wi Ag 0-12 $ 1.87 0-12 $2.09 0-10 $2.23 0-8 $2.48 0-8 $2.86
13-20 $ 2.49 13-20 $2.71 11-18 $2.85 9-16 $3.10 9-14 $3.48
21-40 $ 3.08 21-40 $3.28 19-36 $3.46 17-32 $3.69 15-28 $4.07
41+ $ 2.23 41+ $2.35 37+ $2.49 33+ $2.69 29+ $2.96
SFR 0-12 $ 1.87 0-12 $2.09 0-10 $2.23 0-8 $2.48 0-8 $2.86
wI Comm. 13-20 $ 2.49 13-20 $2.71 11-18 $2.85 9-16 $3.10 9-14 $3.48
21-40 $ 3.08 21-40 $3.28 19-36 $3.46 17-32 $3.69 15-28 $4.07
41+ $ 248 41+ $2.62 37+ $2.81 33+ $3.05 29+ $3.39
MFR 0-8 $ 1.87 0-8 $2.09 0-6 $2.23 0-4 $2.48 0-4 $2.86
9-12 $ 2.49 9-12 $2.71 7-10 $2.85 5-8 $3.10 5-8 $3.48
13-16 $ 3.08 13-16 $3.28 11-14 $3.46 9-12 $3.69 9-10 $4.07
17+ $ 3.74 17+ $3.90 15+ $4.09 13+ $4.31 11+ $4.84
MFR wI Ag 0-8 $ 1.87 0-8 $2.09 0-6 $2.23 0-4 $2.48 0-4 $2.86
9-12 $ 2.49 9-12 $2.71 7-10 $2.85 5-8 $3.10 5-8 $3.48
13-16 $ 3.08 13-16 $3.28 11-14 $3.46 9-12 $3.69 9-10 $4.07
17+ $ 2.23 17+ $2.35 15+ $2.49 13+ $2.69 11+ $2.96
MFR 0-8 $ 1.87 0-8 $2.09 0-6 $2.23 0-4 $2.48 0-4 $2.86
wI Comm. 9-12 $ 2.49 9-12 $2.71 7-10 $2.85 5-8 $3.10 5-8 $3.48
13-16 $ 3.08 13-16 $3.28 11-14 $3.46 9-12 $3.69 9-10 $4.07
17+ $ 2.48 17+ $2.62 15+ $2.81 13+ $3.05 11+ $3.39
Agriculture $ 2.23 $2.35 $2.49 $2.69 $2.96
Commercial $ 2.48 $2.62 $2.81 $3.05 $3.39
Landscaping $ 3.06 $3.27 $3.55 $3.92 $4.44
Public $ 2.48 $2.62 $2.81 $3.05 $3.39
Government $ 2.48 $2.62 $2.81 $3.05 $3.39
Excess Use $ 3:06 $3.27 $3.55 $3.92 $4.44
Construction $ 3.06 $3.27 $3.55 $3.92 $4.44
Recycled Water - 85% of applicable potable water rate
EXHIBIT "B" (Continued)
Proposed Drouebt Rates for Fiscal Year 2008/09
~
Stage: 10% Reduction 20% Reduction 30% Reduction 40% Reduction 50% Reduction
SFR 0-12 $ 1.97 0-12 $2.20 0-10 $2.35 0-8 $2.62 0-8 $3.02
13-20 $ 2.63 13-20 $2.86 11-18 $3.01 9-16 $3.27 9-14 $3.67
21-40 $ 3.25 21-40 $3.46 19-36 $3.65 17-32 $3.89 15-28 $4.29
41+ $ 3.95 41+ $4.11 37+ $4.31 33+ $4.55 29+ $5.11
SFR wi A9 0-12 $ 1.97 0-12 $2.20 0-10 $2.35 0-8 $2.62 0-8 $3.02
13-20 $ 2.63 13-20 $2.86 11-18 $3.01 9-16 $3.27 9-14 $3.87
21-40 $ 3.25 21-40 $3.46 19-36 $3.65 17-32 $3.89 15-28 $4.29
41+ $ 2.35 41+ $2.48 37+ $2.63 33+ $2.84 29+ $3.12
SFR 0-12 $ 1.97 0-12 $2.20 0-10 $2.35 0-8 $2.62 0-8 $3.02
wi Comm. 13-20 $ 2.63 13-20 $2.86 11-18 $3.01 9-16 $3.27 9-14 $3.67
21-40 $ 3.25 21-40 $3.46 19-36 $3.65 17-32 $3.89 15-28 $4.29
41+ $ 2.62 41+ $ 2.76 37+ $2.96 33+ $3.22 29+ $3.58
MFR 0-8 $ 1.97 0-8 $2.20 0-6 $2.35 0-4 $2.62 0-4 $3.02
9-12 $ 2.63 9-12 $2.86 7-10 $3.01 5-8 $3.27 5-8 $3.67
13-16 $ 3.25 13-16 $ 3.46 11-14 $3.65 9-12 $3.89 9-10 $4.29
17+ $ 3.95 17+ $4.11 15+ $4.31 13+ $4.55 11+ $5.11
MFR wI Ag 0-8 $ 1.97 0-8 $ 2.20 0-6 $2.35 0-4 $2.62 0-4 $3.02
9-12 $ 2.63 9-12 $2.86 7-10 $3.01 5-8 $3.27 5-8 $3.67
13-16 $ 3.25 13-16 $3.46 11-14 $3.65 9-12 $3.89 9-10 $4.29
17+ $ 2.35 17+ $2.48 15+ $2.63 13+ $2.84 11+ $3.12
MFR 0-8 $ 1.97 0-8 $2.20 0-6 $2.35 0-4 $2.62 0-4 $3.02
wi Comm. 9-12 $ 2.63 9-12 $2.86 7-10 $3.01 5-8 $3.27 5-8 $3.67
13-16 $ 3.25 13-16 $3.46 11-14 $3.65 9-12 $3.89 9-10 $4.29
17+ $ 2.62 17+. $2.76 15+ $2.96 13+ $3.22 11+ $3.58
Agriculture $ 2.35 $2.48 $2.63 $2.84 $3.12
Commercial $ 2.62 $2.76 $2.96 $3.22 $3.58
Landscaping $ 3.23 $3.45 $3.75 $4.14 $4.68
Public $ 2.62 $2.76 $2.96 $3.22 $3.58
Government $ 2.62 $2.76 $2.96 $3.22 $3.58
Excess Use $ 3.23 $3.45 $3.75 $4.14 $4.68
Construction $ 3.23 $3.45 $3.75 $4.14 $4.68
Recycled Water - 85% of applicable potable water rate
~
EXHIBIT "B" (Continued)
Proposed Droueht Rates for Fiscal Year 2009110
Slane, 10% Reduction 20% Reduction 30% Reduction 40% Reduction 50% Reduction
SFR 0-12 $ 2.08 0-12 $2.33 0-10 $2.48 0-8 $ 2.78 0-8 $3.18
13-20 $ 2.77 13-20 $3.02 11-18 $3.17 9-16 $3.45 9-14 $3.87
21-40 $ 3.43 21-40 $3.65 19-36 $3.85 17-32 $4.11 15-28 $4.53
41+ $ 4.16 41+ $4.34 37+ $4.55 33+ $4.80 29+ $5.39
SFR wi Ag 0-12 $ 2.08 0-12 $2.33 0-10 $2.48 0-8 $2.76 0-8 $3.18
13-20 $ 2.77 13-20 $3.02 11-18 $3.17 9-16 $3.45 9-14 $3.87
21-40 $ 3.43 21-40 $3.65 19-36 $3.85 17-32 $4.11 15-28 $4.53
41+ $ 2.48 41+ $2.62 37+ $2.77 33+ $2.99 29+ $3.29
SFR 0-12 $ 2.08 0-12 $2.33 0-10 $2.48 0-8 $2.78 0-8 $3.18
wI Comm. 13-20 $ 2.77 13-20 $3.02 11-18 $3.17 9-16 $3.45 9-14 $3.87
21-40 $ 3.43 21-40 $3.85 19-38 $3.85 17-32 $4.11 15-28 $4.53
41+ $ 2.78 41+ $2.92 37+ $3.13 33+ $3.39 29+ $3.77
MFR 0-8 $ 2.08 0-8 $2.33 0-6 $2.48 0-4 $2.76 0-4 $3.18
9-12 $ 2.77 9-12 $3.02 7-10 $3.17 5-B $3.45 5-8 $3.87
13-16 $ 3.43 13-16 $3.65 11-14 $3.85 9-12 $4.11 9-10 $4.53
17+ $ 4.16 17+ $4.34 15+ $4.55 13+ $4.80 11+ $5.39
MFR wI Ag 0-8 $ 2.08 0-8 $2.33 0-6 $2.48 0-4 $2.76 0-4 $3.18
9-12 $ 2.77 9-12 $3.02 7-10 $3.17 5-8 $3.45 5-8 $3.87
13-16 $ 3.43 13-16 $3.65 11-14 $3.86 9-12 $4.11 9-10 $4.53
17+ $ 2.48 17+ $2.82 15+ $2.77 13+ $2.99 11+ $3.29
MFR 0-8 $ 2.08 0-8 $2.33 0-6 $2.48 0-4 $2.76 0-4 $3.18
wi Comm. 9-12 $ 2.77 9-12 $3.02 7-10 $3.17 5-8 $3.45 5-B $3.87
13-16 $ 3.43 13-18 $3.65 11-14 $3.85 9-12 $4.11 9-10 $4.53
17+ $ 2.76 17+ $2.92 15+ $3.13 13+ $3.39 11+ $3.77
Agriculture $ 2.48 $2.62 $2.77 $2.99 $3.29
Commercial $ 2.76 $2.92 $3.13 $3.39 $3.77
landscaping $ 3.41 $3.64 $3.95 $4.38 $4.94
Public $ 2.76 $2.92 $3.13 $3.39 $3.77
Government $ 2.76 $2.92 $3.13 $3.39 $3.77
Excess Use $ 3.41 $3.64 $3.95 $4.38 $4.94
Construction $ 3.41 $3.64 $3.95 $4.36 $4.94
Recycled Water - 85% of applicable potable water rate
~
CITY OF ENCINITAS
SAN DIEGUITO WATER DISTRICT
AGENDA REPORT
Meeting Date: February 27, 2008
TO:
FROM:
Board of Directors
Phil Cotton, District Secretary ~ ..........
Lawrence A. Watt, General Manager .~ It
Jennifer Smith, Director ofFinance~
Bill O'Donnell, Senior Engineet1k'
SDWD Engineering & Planni~l{epartment
FOR YOUR RECORDS
From City Clerk
VIA:
SUBJECT: Public Hearing for the Adoption of Resolution No. 2008-05, Implementing
Adjustments to the District's Water Rates and Me;ter Service Charges for Fiscal
Vears 2007/08 to 2009/10.
~
BACKGROUND: At the December 5, 2007 District Board meeting, the Board was presented
with a draft report of the District's Water Rate Study prepared by Raftelis Financial Consultants,
Inc. (Attachment "8"). Oversight and review of this study was provided by a Board subcommittee
consisting of Board members Barth and Bond. The study recommended a prudent reserve program
for the operating, capital replacement and emergency funds, and proposed a water rate and fee
structure that would meet the District's cost and revenue requirements for fiscal years 2007/08 to
2009/10. The Board reviewed the report and discussed the information presented. The Board did
not propose any changes to the study and directed staff to schedule a public hearing in compliance
with Proposition 218 requirements to consider adoption of the recommendations made in the water
rate study.
In accordance with Proposition 218 requirements, notification of the proposed rates and charges
(Attachment "C") was mailed to all property owners and water customers in the District. Customers
opposed to the proposed rates and charges were directed to submit a written protest to the District.
If written protests against the proposed rates and charges are presented by a majority of the
customers, the District shall not increase the rates and charges. As of February 12, forty written
protests have been received. A:final tabulation of protests will be provided at the public hearing as
protests will be accepted through the hearing.
ANALYSIS: The Water Rate Study recommends a rate structure that will result in an overall
5.5% increase in revenues in each of the next three fiscal years. The main reasons for the increases
include:
. Imported water costs, which represent a majority of the District's expenses, are scheduled to
increase 6% to 9% annually.
. The cost of local water, which accounts for approximately 30% of the District's supply, has
increased from $31 per acre-foot (AF) to $70 per AF.
. Due to the drought, the District is anticipating a permanent 10% reduction in sales, which
will result in a reduction in revenues.
~
The recommended rate structure would result in small modifications to the District's existing rate
structure. For single family and multi-family rate classes, a fourth tier is proposed to be added and
the tier limits will be increased. With this rate structure, low water consumers will see either a very
small increase or even a decrease in their water bill. The District's average customer (hi-monthly
usage of 3400 cubic feet of water use with a %" meter) will see a 2.3% increase in their bill. Large
water consumers will see bigger increases. This will send a strong conservation signal to District
customers.
Drought rates have also been developed as part of the Study. These rates are established to
internalize the costs to the District of providing water to customers during a water shortage. The
proposed drought rates will only be implemented if mandatory water reductions at a minimum of
1 0% are adopted by the District Board.
Bi-monthly service charges (the fixed charge based on the size of the meter) are proposed to
increase slightly the first year and will be adjUsted for the remaining two years so that fixed
revenues will continue to account for approximately 25% of the District's total revenue. This will
give the District a steady revenue source that is immune to fluctuations in water sales.
The study also reconunends a gradual build-up of the District's operating fund, capital replacement
fund and rate stabilization reserve. The study proposes new levels for each fund that are based upon
accepted industry standards. Adopting the new levels will enhance the financial stability of the
District.
As part of the contract, RFC was also required to complete a miscellaneous fee study. These fees
'---- (charged for services such as plan check, meter installation, post notice, etc.) are meant to recover
the cost for the service provided. This study will be brought to the Board separately from the Water
Rate Study.
FISCAL AND STAFF IMPACT: The recommended rate structure will allow the District to
continue to remain in a balanced financial position.
RECOMMENDATION: Receive public testimony, review and discuss the information
presented, and adopt Resolution No. 2008-05, implementing adjustments to the District's water
rates and meter service charges for fiscal years 2007/08 to 2009/10.
LIST OF ATIACHMENTS
Attachment "A": Resolution No. 2008-05
Attachment "8": Water Rate Study
Attachment "C": Public Notice to Property Owners and Customers
The Coast News
'-
Decreed A Legal Newspaper by the Superior Court
of San Diego County.
Mail all correspondence regarding public
notice advertising to
The Coast News, P.O. Box 232-550,
Encinitas, CA 92023 (760) 436-9737
Proof of Publication
STATE OF CALIFORNIA, ss.
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 principal clerk of the printer of The Coast News, a
newspaper printed and published weekly and which news~
paper has been adjudged a newspaper of general circulation
for the cities of Del Mar, Solana Beach, Encinitas/Cardiff,
Carlsbad. Oceanside, San Marcos/Vista and the County
Judicial District by the Superior Court of the State of
'- California. County of San Diego (8/4/94. #677114, 82393.
P396); and that the notice, of which the annexed is a print-
ed copy, has been published in, each regular and entire issue
of said newspaper and not in any supplement thereof on the
following dates, to-wit:
February 8th. 15th. 2008
I certify under penalty of perjury that the
foregoing is true and correct. Executed at
Encinitas, Count of San Diego, State of
California on the I of February. 2008.
Clerk of the Printer
Space above for County Clerk's Filing Stamp
~_.."""""
~5402,Ftlb.a.2OCIll
~\
San Dieguito Water District
Notice of Public Hearing
NOTICE IS HEREBY GIVEN pursuant to Article XmD of the California Constitution
(Proposition 218) that the San Dieguito Water District ("District") will hold a Public
Hearing on February 27, 2008 at 6:00 p.m. at 505 South Vulcan Avenue, Encinitas,
California 92024 in the City of Encinitas Council Chambers to consider proposed
increases to its water rates and service charges to the parcel for which you are shown as
the record owner or water customer of record. This notice describes: 1) the amount of the
water rate increase; 2) reasons for the proposed increase; 3) how the proposed rates were
calculated; 4) how to file a protest for the proposed rates; and 5) how you can find
additional information about the proposed increase.
The purpose of the hearing is to consider all written protests against the proposed
increases to the rates and charges to the parcel for which you are shown as owner or
customer of record. Ifan identified parcel is owned by more than a single owner or more
than one name appears on the District's records as the customer for the identified parcel,
or ifthe customer is not the owner, each owner or customer may submit a written protest
to the proposed increases, provided, however, only one protest will be counted per
identified parcel. Each protest must: (l) Be in writing; (2) State that the identified owner
or customer is in opposition to the proposed increase to the rates and charges; (3) Provide
the location of the identified parcel (by assessor's parcel number or street address); and
(4) Include the original signature of the owner or customer submitting the protest.
Protests submitted bye-mail, facsimile, or other" electronic means will not be
accepted. Written protests may be submitted by mail to the District Secretary at 505 S.
Vulcan Avenue, Encinitas, CA 92024-3633, or in person at the public hearing, so long as
they are received prior to the conclusion of the public hearing. Please identify on the
front of the envelope for any protest, whether mailed or submitted in person to the
District Secretary, that the enclosed letter is for the Public Hearing on the Proposed
Increase to Water Rates and Charges.
At the conclusion of the public hearing, the District Board will consider adoption of the
proposed increases to the rates and charges. Oral comments at the public hearing will not
qualify as formal protests unless accompanied by a written protest. If, at the close of the
public hearing. written protests against the proposed increases to the rates and charges as
outlined above are presented by a majority of the owners, the increase can not be
imposed. If adopted, the increases to the rates and charges are proposed to be effective
for bills dated on or after March 1,2008, January 1,2009, and January 1,2010,
Proposed Water Rates and Service Charges
-/
The District's water rates are evaluated periodically to maintain an adequate rate and fee
structure to recover costs. A Fiscal Year 2008-2010 Water Rate Study ("Study") has
been conducted based on cost of service principles. Under this approach, there is a direct
connection between the cost of providing seIVice and the end charge applied to the user.
Actual rates may vary among users depending on their individual demands on the system.
All revenue generated by the proposed water rate increases will be used to recover the
rising costs of wholesale water, operation and maintenance of the system, planned
projects, and to meet debt coverage required by bond covenants.
Copies of the Study further detailing the basis and reasoning of the proposed rate and
service charge increases are available for public review at the Encinitas City Hall located
at 505 South Vulcan Avenue, Encinitas, or on the District's web page at
http://www.ci.encinitas.ca.us/Govemment/CityD/SanDWD/. To determine the rate class
to which your property is subject, reference may be made to your water bill or you may
contact the District office at (760) 633-2709.
The following tables reflect the current and maximum proposed rates and charges to be
effective March 2008, January 2009 and January 20 I O. for bi-monthly meter service
charges, fire service charges and water rates.
Proposed Bi-Monthlv Meter Service Chal"2e ~
Meter Existing Effective Effective Effective
Size Chare:e 3/1/2008 1/1/2009 1/1/2010
518"&3/4" $25.84 $26.08 $27.52 $29.03
1" $41.35 $41.71 $44.00 $46.42
11/2" $77.58 $80.77 $85.21 $89.90
2" $134.37 $134.37 $134.67 $142.08
3" $248.08 $248.08 $250.07 $263.82
4" $423.80 $423.80 $423.80 $437.74
6" $775.24 $783.93 $827.04 $872.53
8" $1343.74 $1343.74 $1343.74 $1394.28
Proposed Bi-Monthlv Fire Meter Service Charee
Meter Existing Effective Effective Effective
Size Charge 3/1/2008 1/1/2009 1/1/2010
1" $7.09 $5.07 $5.35 $5.64
1112" $7.09 $9.68 $10.21 $10.77
2" $7.09 $17.64 $18.61 $19.63
3" $21.26 $46.20 $48.74 $51.42
4" $42.51 $95.46 $100.71 $106.25
6" $118.09 $272.27 $287.24 $303.04
8" $247.99 $577.22 $608.97 $642.46
J
'~
Proposed Commodity Water Rates
Per Hundred Cubic Feet (lieF) ofWater*
Customer Existing Existing Proposed Effective Effective Effective
Class Block Rates Block 3/1/2008 1/112009 1/112010
Single Family 0-6 $1.70 0-12 $1.70 $1.79 $1.89
Residential 7-20 $2.04 13-20 $2.32 $2.45 $2.58
(SFR) 21+ $2.77 21-40 $2.91 $3.07 $3.24
41+ $3.53 $3.72 $3.93
Single Family 0-6 $1.70 0-12 $1.70 $1.79 $1.89
Residential 7-20 $2.04 13-20 $2.32 $2.45 $2.58
w/Agriculture 21+ $2.77 21-40 $2.91 $3.07 $3.24
(SFR w/Ae:) 41+ $2.14 $2.26 $2.38
Single Family 0-12 $1.70 $1.79 $1.89
Residential N1A 13-20 $2.32 $2.45 $2.58
w/Commercial 21-40 $2.91 $3.07 $3.24
(SFR w/Com) 41+ $2.36 $2.49 $2.63
Multi-family 0-4 $1.70 0-8 $1.70 $1.79 $1.89
Residential"'''' 5-12 $2.04 9-12 $2.32 $2.45 $2.58
(MFR) 13+ $2.77 13-16 $2.91 $3.07 $3.24
17+ $3.53 $3.72 $3.93
Multi-family 0-4 $1.70 0-8 $1.70 $1.79 $1.89
Residential 7-12 $2.04 9-12 $2.32 $2.45 $2.58
w/Agriculture*. 13+ $2.00 13-16 $2.91 $3.07 $3.24
(MFR w(Ae) 17+ $2.36 $2.49 $2.63
Multi-family 0-8 $1.70 $1.79 $1.89
Residential N/A 9-12 $2.32 $2.45 $2.58
w/Commercial** 13-16 $2.91 $3.07 $3.24
(MFR wJCorn) 17+ $2.36 $2.49 $2.63
Agriculture $2.00 $2.14 $2.26 $2.38
Commercial $2.20 $2.36 $2.49 $2.63
Landscaping $2.77 $2.88 $3.04 $3.21
Public $2.20 $2.36 $2.49 $2.63
Government $2.20 $2.36 $2.49 $2.63
Excess Use $2.77 $2.88 $3.04 $3.21
Construction $2.77 $2.88 $3.04 $3.21
Recycled Water - 85% of applicable potable water rate
. HCF = 748 gallons
** Multi-family block is per unit.
Overall, as a result of the proposed increases to the District's rates and service charges,
an average single family household will see an increase of approximately $].20 per
month (2.3%) in 2008, $2.90 per monlh (5.2%) in 2009, and $2.70 per monlh (4.7%) in
2010.
Proposed Drought Rates
J
Drought rates have also been developed as part of the Study. These rates are established
to internalize the costs to the District of providing water to its customers during a water
shortage. The proposed drought rates will only be implemented if mandatory water
reductions at a minimum of 10% are adopted by the District. The following table
contains proposed drought rates for Fiscal Year 2008. Rates for Fiscal Years 2009 and
2010 would increase by an additional 5.5% each year.
Droue:bt Rates for Fiscal Year 2008
Staas: 10% Reduction 20% Reduction 30% Reduction 40% Reduction 50% Reduction
SFR 0-12 $ 1.87 0-12 $2.09 0-10 $2.23 0-8 $2.48 0-8 $2.86
13-20 $ 2.49 13-20 $2.71 11-18 $2.85 9-16 $3.10 9-14 $3.48
21-40 $ 3.08 21-40 $3.28 19-36 $3.46 17-32 $3.69 15-28 $4.07
41+ $ 3.74 41+ $3.90 37+ $4.09 33+ $4.31 29+ $4.84
SFRWlAg 0-12- $ 1.87' 0-12 - $2:09 -"'0=10 "$2~n ,," $2. .' .
13-20 $ 2.49 13-20 $2.71 11-18 $2.85 9-16 $3.10 9-14 $3.48
21-40 $ 3.08 21-40 $3.28 19-36 $3.46 17-32 $3.69 15-28 $4.07
41+ $ 2.23 41+ $2.35 37+ $2.49 33+ $2.69 29+ $2.96
SFR 0-12 $ 1.87 0-12 $2.09 0-10 $2.23 0-8 $2.48 0-8 $2.86
w/Com 13-20 $ 2.49 13-20 $2.71 11.18 $2.85 9-16 $3.10 9-14 $3.48
21-40 $ 3.08 21-40 $3.28 19-36 $3.46 17.32 $3.69 15-28 $4.07
41+ $ 2.48 41+ $2.62 37+ $2.81 33+ $3.05 29+ $3.39
MFR 0-8 $ 1.87 0-8 $2.09 0-6 $2.23 0-4 $2.48 0-4 $2.86
9-12 $ 2.49 9-12 $2.71 7-10 $2.85 5-8 $3.10 5-8 $3.48
13-16 $ 3.08 13-16 $3.28 11-14 $3.46 9-12 $3.69 9-10 $4.07
17+ $ 3.74 17+ $3.90 15+ $4.09 13+ $4.31 11+ $4.84
MFR wI Ag 0-8 $ 1.87 0-8 $2.09 0-8 $2.23 0-4 $2.48 0-4 $2.86
9-12 $ 2.49 9-12 $2.71 7-10 $2.85 5-8 $3.10 5-8 $3.48
13-16 $ 3.08 13-16 $3.28 11-14 $3.46 9-12 $3.69 9.10 $4.07
17+ $ 2.23 17+ $2.35 15+ $2.49 13+ $2.69 11+ $2.96
MFR 0-8 $ 1.87 0-8 $2.09 0-6 $2.23 0-4 $2.48 0-4 $2.86
w/Com 9-12 $ 2.49 9-12 $2.71 7-10 $2.85 5-8 $3.10 5-8 $3.48
13-16 $ 3.08 13-16 $3.28 11.14 $3.46 9-12 $3.69 9-10 $4.07
17+ $ 2.48 17+ $2.62 15+ $2.81 13+ $3.05 11+ $3.39
Agriculture $ 2.23 $2.35 $2.49 $2.69 $2.96
Commercial $ 2.48 $2.62 $2.81 $3.05 $3.39
Landscaping $ 3.06 $3.27 $3.55 $3.92 $4.44
Public $ 2.48 $2.62 $2.81 $3.05 $3.39
Government $ 2.48 $2.62 $2.81 $3.05 $3.39
Excess Use $ 3.06 $3.27 $3.55 $3.92 $4.44
Construction $ 3.06 $3.27 $3.55 $3.92 $4.44
--
Recycled Water -85% of applicable potable water rate
Questious
If you have questions about the proposed water rate and service charge increase, please
call the District office at (760)633-2709.
-'