Laserfiche WebLink
File Number: 19-368 <br />notice. <br />As is typical when studies of this type propose changes to rates, the first year of the proposed <br />rate changes is primarily dedicated to fairly reallocating rates among classes of customers. The <br />overall first year increase proposed by the Study was only slightly higher than the rates that the <br />City Council authorized at its May 6, 2019 City Council meeting , which raised rates by a CPI of <br />3.87%. For this reason, some of the proposed rates are slightly lower than the rates already <br />adopted by the City Council while others are slightly higher. In particular, residential customers <br />would have a slight decrease in rates. Exhibit A shows Fiscal Year 2018-19 rates, Fiscal Year <br />2019-20 currently in effect, and the proposed rates for the next five years. <br />The proposed rates would be effective January 1, 2020. In future years, City Council would be <br />authorized to raise rates up to the amounts shown in Exhibit B. Staff will calculate the authorized <br />rate increase to meet the operational and fiscal goals as indicated in the Study and will present <br />these to the City Council as part of the annual adjustments to rates and fees that start on July 1 of <br />each year. If operational and fiscal needs for a particular year do not require the full rate amount <br />authorized, customers would be charged only the amount required to meet the stated operational <br />and fiscal need. <br />Previous Actions <br />·At the May 6, 2019 Council Meeting, Council passed Resolution Number 19-235 to adjust <br />user fees and service charges effective July 1, 2019. Sewer rates and connection fees <br />were increased by CPI of 3.87%. <br />·At the May 6, 2019 Council Meeting, Council passed Resolution Number 19-225 <br />accepting the Wastewater Utility Financial Plan and Rates Study and directing staff to <br />proceed with the processes and procedures to increase the sewer service rates as <br />required by Proposition 218. <br />ATTACHMENTS <br />·Exhibit A: Summary of current and proposed sewer monthly rates <br />·Exhibit B: Maximum allowable increases for fiscal years 2021 through 2024. <br />·Wastewater Utility Financial Plan and Rates Study <br />PREPARED BY: Justin Jenson, Plant Manager, Public Works Department and Hayes <br />Morehouse, Administrative Analyst II, Public Works Department <br />Page 2 City of San Leandro Printed on 7/9/2019 <br />82