HomeMy WebLinkAboutReso 2022-093 DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
RESOLUTION NO. 2022-093
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA: (1) ACCEPTING THE SEWER RATE STUDY;
(2) APPROVING THE STUDY'S RECOMMENDATIONS FOR
FISCAL YEARS 2021/22 THROUGH 2025/26, (3) ADOPTING
INCREASED SEWER RATES AND APPROVING
AMENDMENTS TO THE MASTER FEE SCHEDULE; (4)
AUTHORIZING THE PASS-THROUGH OF ALL FUTURE
FEES AND CHARGES IMPOSED FOR WHOLESALE
CHARGES FOR SEWAGE TREATMENT OR WASTEWATER
TREATMENT; (5) APPROVING AMENDMENTS TO CITY
COUNCIL POLICY 220-04; (6)AUTHORIZING AN INCREASE
TO THE SERVICE CHARGE REVENUE ALLOCATIONS TO
THE SEWERAGE FACILITIES REPLACEMENT FUND; AND
(7) APPROPRIATING SIX MILLION DOLLARS FROM THE
TRUNK SEWER CAPITAL FUND TO THE SEWER SERVICE
REVENUE FUND
WHEREAS, on December 17, 2013, the City Council adopted City Council Resolution
No. 2013-267,implementing a five-year rate plan commencing Fiscal Year 2014/15 and amending
the Master Fee Schedule accordingly; and
WHEREAS, on January 1, 2019, the City retained Willdan Financial Services to prepare
the Sewer Rate Study (Study) which was completed in June 2021 (Exhibit 1 - on file in the City
Clerk's Office); and
WHEREAS, the purpose of the Study was to develop a 10-year financial plan with the
focus on the first 5 years, identifying the revenues required to meet the costs of operating and
maintaining an adequate sewer system and identifying adjustments needed to generate sufficient
revenue for the systems objectives; and
WHEREAS, the Study established the annual revenue needed to meet the utility's existing
and projected obligations for five years (FY 2021/22 to FY 2025/26) and developed a plan to
provide for the continued fiscal health of the sewer utility; and
WHEREAS, the Study recommendations include: (1) increase the sewer rates to fund the
costs of sewer service, (2) implement pass-through rate adjustments for the expenses from City of
San Diego Metropolitan Wastewater (Metro); (3) rescind the US EPA Permit Renewal Liability
Reserve (Permit Reserve) category, (4) increase the service charge revenue allocations to the
Sewerage Facilities Replacement Fund, and (5) allocate $6 million from the Trunk Sewer Capital
Fund for payment of a portion of the Metro capital expenses in FY 2022/23,; and
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
Resolution No. 2022-093
Page No. 2
Increases to Sewer Rates and Pass-Through Rate Adjustments for Metro Expenses
WHEREAS, the Study's recommendations include increases to the City's Sewer Service
Charges, as shown in Exhibit 2, which will be needed to meet projected costs of sewer service
during the Study period(FY 2021/22 to 2025/26); and
WHEREAS, the Study analyzed proposed rate increases so that revenues derived from the
proposed increased sewer service charges do not exceed the funds required to provide the property
related service; and
WHEREAS, the Study analyzed proposed rate increases so that sewer service charges
proposed to be imposed upon any parcel as an incident of property ownership do not exceed the
proportional costs of the service attributable to the parcel; and
WHEREAS, sewer service charges imposed are for a service used by, or immediately
available to, the owner of the property; and
WHEREAS, staff intends to manage all revenues derived from the increased sewer service
charges and ensure they shall not be used for any purpose other than that for which the charge was
imposed; and
WHEREAS, after staff's review of the Study's recommendations to increase the proposed
rates, the City prepared and provided written notice by mail, in English and Spanish, of the
proposed sewer rate increases to all record owners and sewer customers of each identified parcel
upon which the increased rate is proposed for imposition and that the notice included the amount
of the rate increase,the basis upon which the amount of the proposed rate increase was calculated,
the reason for the proposed rate increase, together with the date, time, and location of the public
hearing on the proposed rate increase (Exhibit 3); and
WHEREAS, the Notice(s) of Public Hearing were mailed to the above record owners 45
days or more prior to the public hearing; and
WHEREAS, mailed Notices(s) of Public Hearing that were returned were evaluated and
City staff made reasonable efforts to re-mail; and
WHEREAS, re-mailed Notices(s) of Public Hearing were mailed 45 days or more prior to
the public hearing; and
WHEREAS, the City Council held a public hearing on April 26, 2022 to consider the
proposed increases to sewer service rates and any protests thereto; and
WHEREAS, the City Council considered all protests to the proposed increases to sewer
rates at said public hearing; and
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
Resolution No. 2022-093
Page No. 3
WHEREAS, the total number of protests against the proposed sewer rate increases were
less than a majority of record owners of real property and other persons entitled to submit protests
of such increases; and
WHEREAS, the Study recommends pass through rate adjustments for Metro costs
associated with wholesale charges for sewage treatment; and
WHEREAS, California Government Code Section 53756 permits agencies that provide
sewer service to adopt a schedule of fees or charges authorizing automatic adjustments for a five-
year period that pass through inflationary adjustments and/or changes in wholesale charges from
other public agencies providing services such as wastewater treatment; and
WHEREAS, the Metro wastewater treatment charges from the City of San Diego will be
annually compared to the projected expenses and significant differences applied to the following
year's rates; and
WHEREAS, in accordance with California Government Code 53756, notices of the
changes as a result of the Metro Pass Through would be sent at least 30 days prior to billing; and
WHEREAS, staff recommends that City Council adopt increases to the City's sewer rates
and approve an amendment to the City's Master Fee Schedule, as recommended by the Study and
shown in Exhibit 2,and authorizes and directs City staff to pass-through all future fees and charges
imposed on the City by other entities related to wholesale charges for sewage treatment or
wastewater treatment, as recommended in the Study; and
Rescinding U.S. EPA Permit Renewal Liability Reserve
WHEREAS, on December 17, 2013, the City Council adopted City Council Resolution
No. 2013-265 creating a Sewer Service Revenue Fund Reserve Policy; and
WHEREAS, one of the categories of the Sewer Service Revenue Fund Reserve Policy, the
Permit Reserve Category,was established to ensure monies were set aside to fund the Metro costs
associated with maintaining the wastewater treatment National Pollution Discharge Elimination
System permit (Permit) (e.g. upgrade to secondary treatment of the Point Loma Wastewater
Treatment Plant (PLWWTP) or equivalent alternative); and
WHEREAS, the City of San Diego's PLWWTP 2015 Permit waiver, which allows the
PLWWTP to treat sewage going to the ocean at an advanced primary level as opposed to the
secondary treatment level, was approved by regulators on the condition that the regional Pure
Water Program be implemented; and
WHEREAS, the City's portion of the Pure Water expenses are included in the quarterly
bills from Metro to the City; and
WHEREAS, the basis for establishing the Permit Reserve category as a proactive measure
is no longer needed for the City's Permit Reserve category; and
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Resolution No. 2022-093
Page No. 4
WHEREAS, the prior sewer rate study done in 2013 targeted revenue to the Sewerage
Facilities Replacement Fund at about 50%of annual depreciation for infrastructure funding needs;
and
WHEREAS, the current Study recommends an increase in allocation of revenue to the
Sewerage Facilities Replacement Fund to target annual revenues equal to annual depreciation and
ensure that infrastructure is kept reliable as it shows signs of wear and/or failure; and
WHEREAS, staff recommends that the City Council approve the increased allocation of
revenue in accordance with the Study's recommendation; and
Increase Service Charge Revenue Allocations to the Sewerage Facilities Replacement Fund
WHEREAS,-the Study recommends the sewer service revenue allocation be increased to
ensure the goals the Sewer Facilities Replacement Fund as outlined in the Study are adequate; and
WHEREAS, staff recommends that the City Council approve increasing service charge
revenue allocations to the Sewerage Faculties Replacement Fund in accordance with the Study's
recommendation; and
Appropriation from Trunk Sewer Capital Fund to the Sewer Service Revenue Fund
WHEREAS, on April 2, 1985, City Council adopted Ordinance No. 2107, approving the
establishment of the Trunk Sewer Capital Reserve Fund which is used for paying all or part of the
cost and expenses to plan and/or evaluate any future proposals for areawide sewage treatment
and/or water reclamation systems or facilities; and
WHEREAS, the Study recommends use of $6 million from the Trunk Sewer Capital
Reserve Fund to pay for a portion of the regional Metro capital during the Study period; and
WHEREAS, Staff recommends an appropriation of six million dollars from the Trunk
Sewer Capital Reserve Fund to the Sewer Services Revenue Fund to be used on Metro related
costs in FY 2022/23.
NOW, THEREFORE, the City Council finds as follows:
1. A public hearing was held at the regular City Council on April 26, 2022 to consider the
proposed increases to sewer rates.
2. Due notice of the public hearing on the proposed increases to sewer rates was given by
mail to all record owners of real property in the City of Chula Vista as provided in
Government Code Section 53755 and as required by Article 13D, Section 6 of the
California Constitution (Proposition 218).
3. At the hearing, the City Council heard testimony for and against the proposed increases
and was provided with a staff report recommending their approval.
4. Copies of the written protests were provided and available to the City Council.
5. All protests have been considered by the City Council.
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Resolution No. 2022-093
Page No. 5
6. The total number of protests against the proposed sewer rate increases were less than a
majority of record owners of real property and other persons entitled to submit protests of
such increases.
7. On April 26, 2022, the City Council considered the proposed sewer rate increases and
determined to approve increases as set forth below.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it:
1. Accepts the Sewer Rate Study (Study), which is attached hereto as Exhibit 1 and
incorporated herein.
2. Approves the Study's recommendations for Fiscal Years 2021/22 through 2025/26,which
include: (1)increasing sewer rates to cover costs of sewer service during the Study period;
(2) implementing a pass through for the expenses from Metro associated with wholesale
charges for sewage treatment; (3) rescinding the US EPA Permit Renewal Liability
Reserve (Permit Reserve) category of Sewer Service Revenue Fund Reserve Policy; (4)
increasing the service charge revenue allocations to the Sewer Facilities Fund; (5)
allocating six mil lion from the Trunk Sewer Capital Fund for payment of a portion of the
Metro capital expenses in FY 2022/23).
3. Adopts increases to sewer rates as provided in the Study and approves an amendment to
Chapter 12-200 of the Master Fee Schedule, which is attached hereto as Exhibit 2 and
incorporated herein,to implement the newly adopted sewer rates for Fiscal Years 2021/22
through 2025/26, effective immediately.
4. Authorizes and directs City staff to pass-through all future fees and charges imposed on
the City of Chula Vista by other entities related to wholesale charges for sewage treatment
or wastewater treatment, for a five-year period beginning July 1, 2022.
5. Approves an amendment to City Council Policy 220-04 (Sewer Service Revenue Fund
Reserve Policy), which is attached hereto as Exhibit 4 and incorporated herein, to
implement the Study's recommendation to rescind the US EPA Permit Renewal Liability
Reserve (Permit Reserve) category.
6. Authorizes an increase to the service charge revenue allocation to the Sewerage Facilities
Replacement Fund as provided in the Study.
7. Appropriates six million dollars($6,000,000)from the Trunk Sewer Capital Reserve Fund
to the Sewer Service Revenue Fund to pay for Metro capital expenses during Fiscal Year
2022/23.
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
Resolution No. 2022-093
Page No. 6
Presented by Approved as to form by
�DocuSigned by: DocuSigned by:
t; \f
05056EE1933347F... CF40650850444BF...
William S. Valle P.E. Glen R. Googins
Director of Engineering and Capital Projects City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 26th day of April 2022 by the following vote:
AYES: Councilmembers: Cardenas,Galvez,McCann,Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
DocuSigned by:
062BFD7C0386456...
Mary Casillas Salas, Mayor
ATTEST:
DocuSigned by:
3074D104EAF342E_.
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2022-093 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 26th day of April 2022.
Executed this 26th day of April 2022.
DocuSigned by:
c
3074D104EAF342E...
Kerry K. Bigelow, MMC, City Clerk
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
MASTER FEE SCHEDULE """lllll 'lllll 'lllu IIIII
Chapter 12 - Sewer Fees
Sewer Service Charges u
CITY OF City of Chula Vista Engineering Department
CHULA VISTA 276 Fourth Avenue, Chula Vista, CA 91910
In addition to other fees, assessments or charges provided by the Chula Vista Municipal Code or
otherwise, the owner or occupant of any parcel of real property which said parcel is connected to the
sewer system of the City and to a water system maintained by the Sweetwater Authority, California
American Water District or the Otay Municipal Water District shall pay a sewer service charge as follows:
MONTHLY FIXED SERVIGE GHARGE-
7TAt'' E) hev..
fI"�TfCTS
$11.62 $12.97 $14.53
1.66 X24.7 ' $28.49
$58.49 $67.82 $79.68
. 442.9:7 $130.52
. 172 74 91�9' 1
. 74:64: $788.83 $936-0-1-
VOLUME GHARGE HGF-
Res irccai der rte
Non Residential
effiffieFeial Lew
Geffiffieremal Med $5.6 $5.79
5.n chG.98 $6
$9-4-7
ti�e� "ter+es "yes
City of Chula Vista www.chulavistaca.gov 619.476.5380
ouousignEnvelope ID:243Eo5cp+A58o-48E2-85ox+CEx8230po0eo
MASTER FEE SCHEDULE
Chapter 12 - Sewer Fees
Sewer Service Charges
CITY OF City of Chula Vista Engineering Department
CHULA VISTA 276 Fourth Avenue, Chula Vista, CA 91-910
RATE START CURRENT APPROAFAL 2022 1 2023 12024 2025
M,ONTELY FIXED SERVICE CHARGE
All Others,
Meter Size- 6" $4701.611 $470.61
Resideiifial
Special Users v2urles Varies Varies Varies Vaf les Varies
*HCF- Hundred Cubic Feet
Rates include Sewer Service Charge,Sewer Facilities Replacement Fee and Storm Drain Fee.
RESIDENTIAL RATES Sinji-le Family Billinji-Formula
I. Single Family Lowest $Sewer Fixed Monthly
The sewer service charge for each single family "Winter x 90% x rate/ + Service = Sewer
dwelling unit serviced by separate water meter is Average" ROR HCF Charge Charge
based on the lowest "Winter Average", which is the
lowest amount of water consumed during the
preceding winter months (November through 2. Mu|ti - Fami|y
April). The rate shall be in accordance with the The sewer service charge for other parcels ofreal
adopted rate schedule. Each single family property used for domestic purposes and serviced
dwelling will be charged a fixed service charge and by a water meter shall be a the prevailing rate per
avariable commodity rate. each one hundred cubic feet (HCF) of water usage
by such parcel Each parcel will be charged a fixed
A rate of return (R0R) of 90% in assumed for all service charge and a variable commodity charge.
singe family dwelling units. The fixed charge will be assessed for each meter
that services the facility and will be dependent on
the size ofthe meter.
City ofChula Vista vmww.nhu|oviatoco.gov 610.476.5380
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
pol 2022 M STE R FETE.SICH EDUILIE: F"'EE SU+LLE'T"Illi _122'00 Page 2 of 4
A rate of return (ROR) of 79% is assumed for all Commercial Billing Formula
multi-family dwellings and 84%for mobile homes.
Multi - Family BillingTotal HCF Fixed Monthly
Formula Meter Rate for + Service = Sewer
Readings x ROR x Sewage
(Monthly) Class Charge Charge
Total HCF Fixed Monthly
Meter x ROR x Rate for + Service = Sewer
Readings Sewage 1. Rate of Return
(Monthly) Class Charge Charge
Unless otherwise established by an approved
variance, wastewater discharge shall be assumed
3. Sewer Service Charge for Low Income to be 90% of water consumed. Therefore, where
Households commercial or industrial facilities are billed on the
basis of wastewater discharge, the regular sewer
Low Income Households (as defined in Fee service rate shall be multiplied by 0.90.
Bulletin 1-100) including renters of property who
are eligible to receive a reduced rate for monthly 2. Wastewater Strength
sewer service charges, shall be billed a commodity
rate that is 70% of the prevailing rate. The Wastewater strength categories will be determined
Finance Department of the City shall make using either Table 2-2 "City of Chula Vista
available the required application form and Compilation of Published Data on Sewer User
process all applications. Application will require Strength classifications" (excerpted from the
the submittal of information on total household Wastewater User & Rate Restructuring by PBS&J
income, the number of persons in the household dated May 2003) or actual sampling results, as
and the type of dwelling unit. Proof of total annual determined by the City Engineer. Dischargers who
income shall be furnished. believe that their total suspended solids
concentration is sufficiently low to qualify for a
Requests for annual refunds shall be made by different category of sewer service charge billing
eligible households between August 1 and may apply to the City Manager in writing for a
September 30 of each year for the past fiscal year variance in accordance with Chula Vista Municipal
beginning July and ending in June. The applicant Code Section 13.14.130. When there is a change
will be notified of eligibility status within thirty (30) in the rate payer,the category will be re-evaluated.
days of application and if eligible, the refund
forwarded within ninety(90) days of application. TAX BILL
COMMERCIAL & INDUSTRIAL RATES Charges for single-family residential dwellings,
multiple family dwelling and commercial industrial
The sewer service charge for premises used for discharges collected on the Tax bill shall be based
other than domestic purposes shall be at the on a recent 12 month water usage period.
prevailing rate per hundred cubic feet (HCF) of
water usage. The non-residential sewer service HIGH VOLUME DISCHARGERS
charge shall consist of a fixed service charge and Premises that discharge over 25,000 gallons per
a variable commodity charge. The fixed charge will day (gpd) are classified as high volume
be assessed for each meter that serves the facility dischargers. These dischargers shall be billed bi-
and will be dependent on the size of the meter. monthly by the City of Chula Vista. Wastewater
The variable commodity charge shall be based on discharge shall be assumed to be 90 percent of
the quantity and strength of the sewage generated water consumed, unless established otherwise by
using a rate of return (ROR) of 90% and two an approved variance.
strength parameters: BOD - biochemical oxygen The Sewer Service Charge is determined on an
demand and TSS - total suspended solids individual basis, and is comprised of a Fixed
concentrations Service Charge (FSC) and a Variable Commodity
Charge (VCC). The FSC is based on the water
meter size and the VCC is calculated by multiplying
the Sewer Rate by the Volume of Sewer Discharge
City of Chula Vista www.chulavistaca.gov 619.476.5380
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
prflll 2022 MASTER FEE SCHEDULE FEE BULLETIN 12-200, Page 3 of 4
in hundred cubic feet (HCF). The Sewer Rate is
determined by the strength of the discharge
(Chemical Oxygen Demand (COD) and Total
Suspended Solids(TSS)).
The Sewer Service Charge is calculated as follows:
FSC + VCC = Sewer Service Charge
FSC= Based on the water meter size
VCC = Sewer Rate ($/HCF) x Volume of Sewer
Discharge (HCF)
The Sewer Rate is subject to change. Said change
is usually necessitated by the increase in the cost
of wastewater treatment and the maintenance of
the City's sewer collection system. The Sewer
Rate is reviewed on a yearly basis.
SEWER SERVICE VARIANCE FEES
The owner or occupant of any premises requesting
a variance from the sewer service charges
pursuant to the provisions of this section and the
rules and regulations approved by resolution of
the City Council shall pay a fee in the sum of
$150.00 to cover the cost of investigation of said
request; provided, however, that no fee shall be
charged for a request for total exemption from the
sewer service charge. In addition, a special
handling charge to cover the cost of billing and
inspection to be paid per building may be
established in the resolution granting the variance,
provided that the minimum such charge shall be in
the sum of$3.75.
City of Chula Vista www.chulavistaca.gov 619.476.5380
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
A,phill 2022 MASTER FEE SCHEDULE FEE BULLETIN 12-200 Page 4 of 4
INDUSTRIAL WASTEWATER DISCHARGE 2• Annual Permit Fee
The fee for an initial, annual renewal, or amended Starting Date
industrial wastewater discharge permit shall be Permit Type 7/1/22 7/1/23 7/1/24 7/1/25
based upon the Industrial User (IU) permit type. SIU-Standard $ 2,250 $ 4,500 $ 6,749 $ 8,999
The IU permit types are naming conventions
originating from the City of San Diego's Industrial SIU Complex $ 7,476 $ 14,952 $ 22,427 $ 29,903
Wastewater Discharge Control Program (Program). Non-SIU/
The Program generally defines a SIU in accordance Categorical $ 1,319 $ 2,639 $ 3,958 $ 5,277
with Federal regulations, as an Industrial User that: Enhanced
Source n r l 1 1,302 1,952 2
1. Types of Industrial User(IU) Permits - The IU
permit types assigned through the City of San An administrative fee of$25 will be included in each
Diego's Industrial Wastewater Discharge Control bill in addition to the fee for each permit type to cover
Program based on their approved Pretreatment bill assembly, review and approval.
Program. The Program generally defines a SIU in
accordance with Federal regulations, as an 3. Compliance Charges
Industrial User that: Industries not in compliance with industrial
wastewater discharge permit requirements shall
o Is subject to federal categorial pretreatment pay a fee to recover the full cost including overhead
standards under 40 Code of Regulations(CFR)403 of enforcing compliance.
o Any other industrial discharger that:
• Discharges an average of 25,000 gallons per STORM DRNNS
day or more of process wastewater to the publicly
owned treatment works. ' Storm Dua6lurl
• For groundwater remediation sites, the lin r.ddlftiiit),411i to ®rther fees,r r (:,hair&m
presence of free product or discharges >14,000 provided Ilby the City code or otftemse, the ow,rtier
gallons per day have"reasonable potential"and are or occupant of arry parcels of Ireal plrolperly whwh
regulated as Sl Us. Parcel is s olflllfl're,ctemd to llh�r.A ioast(.'^W iter sy.,A;rvi� io,t
tt„lir Qty aired to a wastewatot cyst im rnalh,itoilited by
Swe twat'ei' Aottfl�orlty, the Otay Miuini6pal Water
Di'strlllct'.„ or the, Callufolilrlia-,Anileiuucar,U Wateir
SIU - Standard Not complex Ooampany, sliaH pay a storrrm drain tee as toll laws.
SIU - Complex Typically includes production based,
education campuses, hospitals, orurr ale tela°guru
facilities with 3 or more sewer poMrV ll�„......... .w . ,.. ., .... . . ::...w ....... 0.710
connections.
Non-SIU / Class 2C, 3C, 4C, 2Z, 3Z, & 4Z MuIIItII-IFainillly ,. Co,ryinielflcanl Ilrrdu.rstr'iall
Categorical facilities with a non-discharging onVIIJly^...... ..... . ................ , ... . ..,....$0.06/HCF
Process categorical process i axuw ,is,,g , per s'srr”nthl ...� .mn .$$0
Enhanced Includes non-SIU facilities that do
Source Control not also have non-discharging
categorical process and for which
local requirements have been
established or are required by the
Pure Water NPDES permit adopted
May 2020.
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
NOTICE OF PUBLIC HEARING
REGARDING PROPOSED SEWER RATES IN CHULA VISTA, CALIFORNIA
The City of Chula Vista previously mailed out a "Notice of Public Hearing Regarding Proposed Sewer Rates in
Chula Vista, California"for a public hearing scheduled on February 8, 2022 to consider the adoption of proposed
changes to the sewer rates that were last modified on July 1, 2018. The public hearing previously scheduled
for 5:00 P.M. on February 8, 2022 has been canceled and will now instead be held on April 26, 2022 at
5:00 P.M. Written protests previously submitted to the City need not be resubmitted and will be counted
as valid protests for the rescheduled public hearing on April 26, 2022.
Below,please find the full Notice of Public Hearing,to reflect the new April 26,2022 hearing date and to provide
notice of a 120-day requirement for commencement of any judicial action or proceeding to attack, review, set
aside, void, validate, or annul an ordinance, resolution, or motion adopting a fee or charge for water or sewer
service, or modifying or amending an existing fee or charge for water or sewer service.
NOTICE OF PUBLIC HEARING
REGARDING PROPOSED SEWER RATES IN CHULA VISTA, CALIFORNIA
Public Hearing Date & Thne: Tuesday, April 26, 2022 5:00 P.M.
How do you participate in the public hearing?
This meeting of the City of Chula Vista (City) City Council will be held at City Hall, 276 Fourth Avenue, Chula
Vista, CA 91910. Please check the final City Council meeting agenda, which will be published no later than 72
hours prior to the meeting. The agenda may be obtained online at www.chulavistaca.gov, by email to
cityclerkAchulavistaca._oovv, or by calling (619) 691-5041.
Why are you receiving this notice?
The City is mailing this notice to you because you are a sewer customer or are the owner of record of a property
that receives sewer service. This notice describes proposed changes to the sewer rates that were last modified on
July 1, 2018 and gives information about a public hearing that will be held on Tuesday, April 26, 2022, at
5:00 P.M, at City Hall, 276 Fourth Avenue, Chula Vista, CA 91910 concerning the proposed rate increases. If
you are the property owner of record and you have a tenant that is responsible to pay sewer rate bills to the City,
please forward this notice to the tenant.
What do sewer rates fund?
The City provides sewer service to about 50,000 residential and commercial customers. Monthly sewer rates
charged to system users (customers) are the primary source of revenue to operate and maintain the sewer system
and are used for this purpose. Sewer rate revenue provides funding for operation and maintenance of City-owned
sewer collection and conveyance facilities, capital projects, debt service, administration, as well as costs related
to prudent long-term operation and financial management of the utility system, such as maintaining adequate
reserves and planning for contingencies. Since the City does not operate its own wastewater treatment facilities,
sewer rate revenue is also used to pay for wastewater treatment provided by the City of San Diego Metropolitan
Wastewater Authority (Metro).
Page 1 of 4
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
Why are rate increases needed?
In 2021, a financial rate study was completed by Willdan Financial Services, an independent third-party financial
consultant, to evaluate the financial condition of the sewer utility, specifically the ability of current sewer rates to
generate sufficient revenue to cover the costs of the sewer utility. The proposed sewer rate increases need to fund
the operation of the sewer utility, including costs to fund future capital expenditures, increased costs related to
operations and maintenance and increasing payments for third-party costs from the City of San Diego's
metropolitan wastewater treatment. In order to meet the projected costs identified in the financial rate study, the
proposed rate changes include zero change through June 30, 2022, followed by rate increases of 4.5% from July
1, 2022 through June 30, 2023, 5% from July 1, 2023 through June 30, 2024, 5% from July 1, 2024 through June
30, 2025, and 5.5% from July 1, 2025 through June 30, 2026. The rate structure consists of a base charge and is
fixed and a charge that varies based on water usage (volumetric charge). The structure of the rates with a fixed
and volumetric charge is proposed to remain in place. The financial rate study projected expenses from Metro
which currently comprises about 65%of the City's sewer expenses. The actual and future expenses are not known
or controlled by the City. These charges will be evaluated annually, and rate increases,or decreases will be passed
through and applied to the sewer rates. Notice of future changes will be sent 30 days in advance of billing in
compliance with Government Code Section 53756. The full financial rate study is available on the City's website
at www.chulavistaca.gov/SewerRates.
How do you file a protest?
If an owner or customer of record of a parcel subject to the proposed sewer rate increases wishes to oppose the
increases, the owner or customer of record must submit a written protest against the proposed sewer rate
increases. If written protests are filed by a majority of the affected property parcels, the proposed rate increases
will not be adopted.
A written protest to the proposed sewer rate increases must clearly state and contain the following information:
(a) an opposition to the proposed change, (b) the street address or Assessor's Parcel Number for the parcel(s)
affected by the proposed sewer rate increases, (c) an original signature and legibly printed name of the affected
record owner or customer, a protest form can be printed from the City's website
(www.chulavistaca.gov/SewerRates). Written protests may be mailed, or hand delivered during business hours to
the City Clerk at: 276 Fourth Ave., Chula Vista, CA 91910, hand delivered after business hours and deposited in
the drop box located in front of the Finance Department main entrance at 276 Fourth Ave., Building A, Chula
Vista, CA 91910, or hand delivered during the public hearing to City Council Chambers, located at City Hall, 276
Fourth Ave., Building A, Chula Vista, CA 91910. To be counted, written protests must be received by the City
prior to the close of the above-noticed public hearing, including those written protests that are mailed to the City.
Written protests that are post-marked prior to above-noticed public hearing date and time but not physically
received by the City prior to the close of the above-noticed public hearing will not be counted. Faxed, emailed,
or verbal protests will not be accepted as an original signature is required.
Page 2 of 4
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
How to suhmit comments?
The City Council welcomes your participation in its ratemaking and will consider all comments presented at the
public hearing, including comments on the proposed rates, rate-making formulas, and the basis upon which rates
are calculated in the financial rate study prepared by Willdan Financial Services. It will consider as-applied
questions (how the rates apply to you or your property) as well as facial issues (how the rates apply to all
customers). Comments can be submitted through the online eComment portal for a City Council meeting at
www.chulavistaca.gov/councilmeeting_s or in person. Comments must be received prior to the time the City
Council calls for the close of the commenting period. Although only written protests by a property owner or a
customer subject to the charges will count toward a majority protest, the City Council welcomes all input,
including oral and electronic comments from the community during the public hearing.
Who should I call with questions?
Questions can be sent via email to wastewatergchulavistaca.-oovv or(619) 476-5380.
Are special accommodations availahle?
Individuals with disabilities or special needs are invited to request modifications or accommodations to access
and/or participate in a City meeting by contacting the City Clerk's Office at cit. clerk(a�chulavistaca.._o�v or(619)
691-5041 (California Relay Service is available for the hearing impaired by dialing 711)at least forty-eight hours
in advance of the meeting.
NOTE: In accordance with Government Code section 53759, any judicial action or proceeding to attack,
review, set aside, void, validate, or annul an ordinance, resolution, or motion adopting a fee or charge for
water or sewer service, or modifying or amending an existing fee or charge for water or sewer service,shall
be commenced within 120 days of the effective date or the date of the final passage, adoption, or approval
of the ordinance, resolution, or motion, whichever is later.
Page 3 of 4
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
New sewer rates
The proposed rates keep the basic fixed and volume rates and are intended to fund the projected increased
expenses noted above.
AT July 1, July 1, July 1, July 1,
RATE START CURRENT APPROVAL 2022 2023 2024 2025
RATE INCREASE 0% 0% 4.5% 5% 5% 5.5%
MONTHLY FIXED SERVICE CHARGE
Single Family $14.53 $14.53 $15.18 $15.94 $16.74 $17.66
All Others
Meter Size: 5/8" $14.53 $14.53 $15.18 $15.94 $16.74 $17.66
Meter Size: 3/4" $14.53 $14.53 $15.18 $15.94 $16.74 $17.66
Meter Size: 1" $28.49 $28.49 $29.77 $31.26 $32.82 $34.63
Meter Size: 1 1/2" $51.77 $51.77 $54.10 $56.80 $59.64 $62.93
Meter Size: 2" $79.68 $79.68 $83.27 $87.43 $91.80 $96.85
Meter Size: 3" $154.15 $154.15 $161.08 $169.14 $177.59 $187.36
Meter Size: 4" $237.91 $237.91 $248.62 $261.05 $274.10 $289.17
Meter Size: 6" $470.61 $470.61 $491.70 $516.38 $542.20 $572.02
Meter Size: 8" $936.01 $936.01 $978.13 $1,027.04 $1,078.39 $1,137.70
MONTHLY VOLUME CHARGE/HCF*
Residential
Single Family $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Multi-Family $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Mobile Homes $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Non-Residential
Commercial - Low $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Commercial - Med $6.02 $6.02 $6.29 $6.61 $6.94 $7.32
Commercial - High $9.59 $9.59 $10.02 $10.52 $11.05 $11.66
Special Users Varies Varies Varies Varies Varies Varies
*HCF means hundred cubic feet.
Impact on your single-family home hill
For a typical single-fa ilhome with a winter average water consumption of 7 HCF, the sewer bill would be:
July 1, July 1, July 1, July 1,
RATE START CURRENT AT APPROVAL 2022 2023 2024 2025
SEWER RATE $41.37 $41.37 $43.23 $45.39 $47.66 $50.28
RATE INCREASE $0.00 $0.00 $1.86 $2.16 $2.27 $2.62
Page 4 of 4
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
AVISO DE AUDIENCIA PUBLICA
SOBRE LAS TARIFAS PROPUESTAS DEL SERVICIO DE ALCANTARILLADO EN CHULA VISTA, CA
La Ciudad de Chula Vista envio previamente por correo un "Aviso de Audiencia Publica sobre las Tarifas
Propuestas del Servicio de Alcantarillado en Chula Vista, California" programada para el 8 de febrero del 2022
para considerar la adopcion de los cambios propuestos a las tarifas del servicio de alcantarillado que se
modificaron por Ultima vez el 1 de julio del 2018. La audiencia publica previamente programada para las 5
p.m. del 8 de febrero del 2022 ha lido cancelada y ahora se llevara a cabo el 26 de abril del 2022 a las 5
p.m. Las protestas por escrito que fueron enviadas previamente a la Ciudad no necesitan reenviarse y se
contaran como protestas validas para la audiencia publica reprogramada para el 26 de abril del 2022.
A continuacion encontrara el Aviso de Audiencia Publica completo, que incluye la nueva fecha de la audiencia
programada para el 26 de abril del 2022 y proporciona el aviso del requisito de 120 dias para el inicio de cualquier
accion judicial o proceso para impugnar, revisar, apartar, eliminar, validar o anular un reglamento, resolucion o
mocion que adopte una tarifa o cargo por el servicio de agua o alcantarillado, o que modifique o enmiende una
tarifa o cargo existente por el servicio de agua o alcantarillado.
AVISO DE AUDIENCIA PUBLICA
SOBRE LAS TARIFAS PROPUESTAS DEL SERVICIO DE ALCANTARILLADO DE CHULA VISTA, CA
Fecha y Hora de la Audieneia Publica: martes 26 de abril del 2022 alas 5:00 p.m.
�Como puede participar en la audiencia publica?
Esta sesion del Cabildo de la Ciudad de Chula Vista se llevara a cabo en las oficinas municipales, 276 Fourth
Avenue, Chula Vista, CA. 91910. Favor de consultar la agenda final de la sesion de Cabildo de la Ciudad, que se
publicara a mas tardar 72 horas antes de la reunion. La agenda se puede obtener en linea en
www.chulavistaca.gov,por correo electronico en e tye�erko chtdavistaca. , o llamando al (619) 691-5041.
Por que recibio este aviso?
La Ciudad le envio este aviso porque usted es un cliente o es el dueno registrado de una propiedad que recibe el
servicio de alcantarillado. Este aviso describe los cambios propuestos a las tarifas del servicio de alcantarillado
que se modificaron por Ultima vez el 1 de julio del 2018 y brinda informacion de una audiencia publica sobre los
aumentos de tarifas propuestos que se llevara a cabo el martes 26 de abril del 2022 a las 5:00 p.m., en las oficinas
municipales, 276 Fourth Avenue, Chula Vista, CA 91910. Si usted es el dueno registrado de la propiedad y tiene
un inquilino que es responsable del pago de las facturas del servicio de alcantarillado a la Ciudad,favor de reenviar
este aviso al inquilino.
i Qui fznancian las tarifas del servicio de alcantarillado?
La Ciudad ofrece el servicio de alcantarillado a aproximadamente 50,000 clientes residenciales y comerciales.
Las tarifas mensuales del alcantarillado que se cobran a los usuarios del sistema (clientes) son la principal fuente
de ingresos para operar y mantener el sistema de alcantarillado y se utilizan para este proposito. Los ingresos
obtenidos por las tarifas del servicio de alcantarillado proporcionan fondos para la operacion y mantenimiento de
las instalaciones de recoleccion y transporte del sistema de alcantarillado de la Ciudad, proyectos de capital,
servicio de la deuda, administracion, asi como costos relacionados con la operacion prudente a largo plazo y la
gestion fmanciera del sistema de servicios publicos, como el mantenimiento adecuado de las reserves y la
planificacion para contingencias. Dado que la Ciudad no opera sus propias instalaciones de tratamiento de aguas
residuales, los ingresos obtenidos por las tarifas del servicio de alcantarillado tambien se utilizan para pagar el
tratamiento de aguas residuales proporcionado por la Autoridad Metropolitana de Aguas Residuales de la Ciudad
de San Diego (Metro).
Page 1 of 4
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
Por qui son necesarios los aumentos de tarifas?
En 2021, Willdan Financial Services, un consultor financiero externo independiente, llevo a cabo un estudio de
tarifas financieras para evaluar la situacion financiera del servicio de alcantarillado, especificamente la capacidad
de las tarifas actuales de alcantarillado para gencrar ingresos suficientcs para cubrir los costos del servicio de
alcantarillado. Los aumentos propuestos en las tarifas del servicio de alcantarillado deben financiar la operacion
del servicio de alcantarillado, incluyendo los costos para financiar gastos futuros de capital, el aumento de los
costos relacionados con la operacion y mantemmiento, y el aumento de los pagos por costos a terceros del
tratamiento de aguas residuales metropolitanas de la Ciudad de San Diego. Para cumplir con los costos
proyectados que fueron identificados en el estudio de tarifas financieras, los cambios de tarifas propuestos
incluyen cero cambios hasta el 30 de junio del 2022, seguido de aumentos de tarifas del 4.5% desde el 1 de julio
del 2022 hasta el 30 de junio del 2023, 5% desde el 1 de julio del 2023 hasta el 30 de junio del 2024, 5% desde
el 1 de julio del 2024 hasta el 30 de junio del 2025, y 5.5% desde el 1 de julio del 2025 hasta el 30 de junio del
2026. La estructura tarifaria consiste en un cargo base y es fijo, y un cargo que varia segun el consumo de agua
(carga volumetrica). Se propone mantener la estructura tarifaria con cargo fijo y volumetrico. El estudio de tarifas
financieras proyecto los gastos de Metro, que actualmente comprende alrededor del 65% de los gastos del
alcantarillado de la Ciudad. La Ciudad no conoce, ni controla los gastos actuales y futuros. Estos cargos se
evaluaran anualmente y los aumentos o disminuciones de tarifas se transferiran y aplicaran a las tarifas del servicio
de alcantarillado. Se enviara un aviso de futuros cambios 30 digs previos a la facturacion de conformidad con la
Seccion 53756 del C6digo de Gobierno. El estudio completo de tarifas financieras esta disponible en la pagina de
Internet de la Ciudad en___ w.chuf va_slac ,,.�ov/Sewer]Rates.
i Como se presenta una protesta?
Si un propietario o cliente que esta registrado en una parcela que esta sujeta a los aumentos propuestos de tarifas
del servicio do alcantarillado desea oponersc a los aumentos, el propietario o cliente registrado dcbe presentar una
protesta por escrito contra los aumentos propuestos en las tarifas del servicio de alcantarillado. Si la mayoria de
las parcelas afectadas presentan protestas por escrito, no se adoptaran los aumentos de tarifas propuestos.
Una protesta por escrito por los aumentos propuestos en las tarifas del servicio de alcantarillado debe contener de
manera clara la siguiente informacion: (a) una oposicibn al cambio propuesto, (b) la direccibn o el numero de
parcela (APN) afectada(s) por los aumentos propuestos a las tarifas del servicio de alcantarillado, (c) una firma
original y el nombre impreso de manera legible del propietario o cliente del registro afectado, se puede imprimir
un formulario de protesta desde la pagina de Internet de la Ciudad (.............. w c IiWay.ist aCq.gov/SewerRates). Las
protestas por escrito pueden enviarse por correo postal o ser entregadas personalmente durante el horario de
servicio a la Oficina del Secretario de la Ciudad en: 276 Fourth Ave., Chula Vista, CA 91910, depositarse
personalmente despues del horario de servicio en el buzon ubicado frente a la entrada principal del Departamento
de Finanzas en el 276 Fourth Ave., Edificio A, Chula Vista, CA 91910, o ser entregadas a mano durante la
audiencia publica en la Sala de Cabildo de la Ciudad ubicada en las oficinas municipales, 276 Fourth Ave.,
Edificio A, Chula Vista, CA 91910. Para ser tomadas en cuenta, la Ciudad debe recibir las protestas por escrito
antes del cierre de la audiencia publica que se menciona en este aviso, incluyendo las protestas por escrito que se
envian por correo postal a la Ciudad. No se tomaran en cuenta las protestas por escrito que tengan un sello de
envio previo a la fecha y hora de la audiencia piublica mencionada en este aviso, pero que la Ciudad no haya
recibido fisicamente antes del cierre de la audiencia publica mencionada en este aviso. No se aceptaran protestas
enviadas por fax, correo electr6mco, o protestas verbales, ya que requieren incluir una firma original.
Page 2 of 4
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
G Como enviar comentarios?
El Cabildo de la Ciudad agradece su participacion en la elaboracion de las tarifas y tomara en cuenta todos los
comentarios presentados en la audiencia pfiblica, incluyendo los comentarios sobre las tarifas propuestas, las
formulas de elaboracion de las tarifas y la base sobre la cual se calculan las tasas en el estudio de tarifas financieras
preparado por Willdan Financial Services. Considerara preguntas sobre su implementacion (como se aplican las
tarifas a usted o su propiedad), asi como es inconstitucional de su faz (como se aplican las tarifas a todos los
clientes). Los comentarios que se quieran presentar ante el Cabildo de la Ciudad se pueden enviar a traves del
portal de comentarios electronicos en www,.chu�avastaca�...uov/councilmeet ings o en persona. Los comentarios
deben recibirse antes de que el Cabildo cierre el periodo para comentarios. Aunque solo las protestas por escrito
de un propietario o cliente sujeto a los cargos contaran para una protesta mayoritaria, el Cabildo de la Ciudad
agradece todas las aportaciones de la comunidad, incluyendo comentarios orales y electronicos que se presenten
durante la audiencia piiblica.
�A quien deho llamar si tengo preguntas?
Las preguntas se pueden presentar por correo electronico a. .a...t.. ra, cr�ae), uh avavistaca�o (619) 476-5380.
iEstarkn disponihles atenciones especiales?
Se invita a las personas con discapacidades o necesidades especiales a solicitar modificaciones o adaptaciones
que les permitan tener acceso y/o participar en una audiencia de la Ciudad, contactando directamente a la Oficina
del Secretario de la Ciudad en cid cicrkO)chullavistaca.�o al (619) 691-5041 (El Servicio de Retransmision de
California esta disponible para personas con discapacidad auditiva llamando al 711) cuando menos cuarenta y
ocho horas antes de la sesion.
NOTA: De acuerdo con la seccion 53759 del Codigo del Gobierno, cualquier accion o procedimiento
judicial para impugnar, revisar, apartar, eliminar, validar o anular un reglamento, resolucion o mocion
que adopte una tarifa o cargo por el servicio de agua o alcantarillado, o que modifique o enmiende una
tarifa o cargo existente por el servicio de agua o alcantarillado,se iniciara dentro de los 120 dias posteriores
a la fecha de entrada en vigencia o la fecha de la aprobacion final, adopcion o aprobacion del reglamento,
resolucion o mocion, to que ocurra mas tarde.
Page 3 of 4
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
Nuevas tarifas del servicio de alcantarillado
Las tarifas propuestas mantienen las tarifas bdsicas f jas y por volumen, y estdn destinadas a financiar los gastos
proyectados que se mencionaron anteriormente.
1 julio 1 julio 1 julio 1 julio
TASA DE INICIO ACTUAL PROPUESTA 2022 2023 2024 2025
TASA DE AUMENTO 0% 0% 4.5% 5% 5% 5.5%
CARGO DE SERVICIO FIJO MENSUAL
Unifamiliar $14.53 $14.53 $15.18 $15.94 $16.74 $17.66
Todos los demds
Medidor: 5/8" $14.53 $14.53 $15.18 $15.94 $16.74 $17.66
Medidor: 3/4" $14.53 $14.53 $15.18 $15.94 $16.74 $17.66
Medidor: l" $28.49 $28.49 $29.77 $31.26 $32.82 $34.63
Medidor: 11/z" $51.77 $51.77 $54.10 $56.80 $59.64 $62.93
Medidor: 2" $79.68 $79.68 $83.27 $87.43 $91.80 $96.85
Medidor: 3" $154.15 $154.15 $161.08 $169.14 $177.59 $187.36
Medidor: 4" $237.91 $237.91 $248.62 $261.05 $274.10 $289.17
Medidor: 6" $470.61 $470.61 $491.70 $516.38 $542.20 $572.02
Medidor: 8" $936.01 $936.01 $978.13 $1,027.04 $1,078.39 $1,137.70
CARGO POR VOLUMEN MENSUAL/HCF*
Residencial
Unifamiliar $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Multifamiliar $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Casas Moviles $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
No Residencial
Comercial -Bajo $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Comercial -Medio $6.02 $6.02 $6.29 $6.61 $6.94 $7.32
Comercial -Alto $9.59 $9.59 $10.02 $10.52 $11.05 $11.66
Usuarios especiales Varia Varia Varia Varia Varia Varia
*HCF significa cion pies dibicos.
Impacto en la factura de su Vivienda unifamiliar
Para una casa unifamiliar tipica con un consumo promedio de agua de 7 HCF durante el invierno, la factura del
servicio de alcantarillado sena:
1 julio 1 julio 1 julio 1 julio
TASA DE INICIO ACTUAL PROPUESTA 2022 2023 2024 2025
TARIFA DE
ALCANTARILLADO $41.37 $41.37 $43.23 $45.39 $47.66 $50.28
TASA DE AUMENTO $0.00 $0.00 $1.86 $2.16 $2.27 $2.62
Page 4 of 4
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
NOTICE OF PUBLIC HEARING
REGARDING PROPOSED SEWER RATES IN CHULA VISTA, CALIFORNIA
Public Hearing Date & Thne: Tuesday, February 8, 2022 5:00 P.M.
How do you participate in the public hearing?
This meeting of the City of Chula Vista (City) City Council will be held at City Hall, 276 Fourth Avenue, Chula
Vista, CA 91910. Please check the final City Council meeting agenda, which will be published no later than 72
hours prior to the meeting. The agenda may be obtained online at www.chulavistaca.gov, by email to
cityclerkLdchulavistaca._oovv, or by calling (619) 691-5041.
Why are you receiving this notice?
The City is mailing this notice to you because you are a sewer customer or are the owner of record of a property
that receives sewer service. This notice describes proposed changes to the sewer rates that were last modified on
July 1, 2018 and gives information about a public hearing that will be held on Tuesday, February 8, 2022, at 5:00
P.M„ at City Hall, 276 Fourth Avenue, Chula Vista, CA 91910 concerning the proposed rate increases. If you
are the property owner of record and you have a tenant that is responsible to pay sewer rate bills to the City, please
forward this notice to the tenant.
What do sewer rates fund?
The City provides sewer service to about 50,000 residential and commercial customers. Monthly sewer rates
charged to system users (customers) are the primary source of revenue to operate and maintain the sewer system
and are used for this purpose. Sewer rate revenue provides funding for operation and maintenance of City-owned
sewer collection and conveyance facilities, capital projects, debt service, administration, as well as costs related
to prudent long-term operation and financial management of the utility system, such as maintaining adequate
reserves and planning for contingencies. Since the City does not operate its own wastewater treatment facilities,
sewer rate revenue is also used to pay for wastewater treatment provided by the City of San Diego Metropolitan
Wastewater Authority (Metro).
Why are rate increases needed?
In 2021, a financial rate study was completed by Willdan Financial Services, an independent third party financial
consultant, to evaluate the financial condition of the sewer utility, specifically the ability of current sewer rates to
generate sufficient revenue to cover the costs of the sewer utility. The proposed sewer rate increases need to fund
the operation of the sewer utility, including costs to fund future capital expenditures, increased costs related to
operations and maintenance and increasing payments for third-party costs from the City of San Diego's
metropolitan wastewater treatment. In order to meet the projected costs identified in the financial rate study, the
proposed rate changes include zero change through June 30, 2022, followed by rate increases of 4.5% from July
1, 2022 through June 30, 2023, 5% from July 1, 2023 through June 30, 2024, 5% from July 1, 2024 through June
30, 2025, and 5.5% from July 1, 2025 through June 30, 2026. The rate structure consists of a base charge and is
fixed and a charge that varies based on water usage (volumetric charge). The structure of the rates with a fixed
and volumetric charge is proposed to remain in place. The financial rate study projected expenses from Metro
which currently comprises about 65%of the City's sewer expenses. The actual and future expenses are not known
or controlled by the City. These charges will be evaluated annually and rate increases or decreases will be passed
through and applied to the sewer rates. Notice of future changes will be sent 30 days in advance of billing in
compliance with Government Code Section 53756. The full financial rate study is available on the City's website
at www.chulavistaca.gov/SewerRates.
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
How do you file a protest?
If an owner or customer of record of a parcel subject to the proposed sewer rate increases wishes to oppose the
increases, the owner or customer of record must submit a written protest against the proposed sewer rate
increases. If written protests are filed by a majority of the affected property parcels, the proposed rate increases
will not be adopted.
A written protest to the proposed sewer rate increases must clearly state and contain the following information:
(a) an opposition to the proposed change, (b) the street address or Assessor's Parcel Number for the parcel(s)
affected by the proposed sewer rate increases, (c) an original signature and legibly printed name of the affected
record owner or customer, a protest form can be printed from the City's website
(www.chulavistaca.gov/SewerRates). Written protests may be mailed or hand delivered during business hours to
the City Clerk at: 276 Fourth Ave., Chula Vista, CA 91910, hand delivered after business hours and deposited in
the drop box located in front of the Finance Department main entrance at 276 Fourth Ave., Building A, Chula
Vista, CA 91910, or hand delivered during the public hearing to City Council Chambers, located at City Hall, 276
Fourth Ave., Building A, Chula Vista, CA 91910. To be counted, written protests must be received by the City
prior to the close of the above-noticed public hearing, including those written protests that are mailed to the City.
Written protests that are post-marked prior to above-noticed public hearing date and time but not physically
received by the City prior to the close of the above-noticed public hearing will not be counted. Faxed, emailed,
or verbal protests will not be accepted as an original signature is required.
Will information events be available?
Yes,the following information events are available virtually,to learn more about the proposed sewer rates, similar
information will be presented at each meeting:
• Wednesday, December 8, 2021 from 9:00 A.M. to 9:45 A.M.
• Tuesday, December 14, 2021 from 6:00 P.M. to 6:45 P.M.
Please check this website: www.chulavistaca.gov/SewerRates for information on the virtual meeting access.
How to submit comments?
The City Council welcomes your participation in its rate-making and will consider all comments presented at the
public hearing, including comments on the proposed rates, rate-making formulas, and the basis upon which rates
are calculated in the financial rate study prepared by Willdan Financial Services. It will consider as-applied
questions (how the rates apply to you or your property) as well as facial issues (how the rates apply to all
customers). Comments can be submitted through the online eComment portal for a City Council meeting at
www.chulavistaca.gov/councilmectings or in person. Comments must be received prior to the time the Mayor
calls for the close of the commenting period. Although only written protests by a property owner or a customer
subject to the charges will count toward a majority protest, the City Council welcomes all input, including oral
and electronic comments from the community during the public hearing.
Who should I call with questions?
Questions can be sent via email to wastewaterkehulavistaca. og_v or(619) 476-5380.
Are special accommodations available?
Individuals with disabilities or special needs are invited to request modifications or accommodations to access
and/or participate in a City meeting by contacting the City Clerk's Office at ci . clerkAchulavistaca.gov or
(619) 691-5041 (California Relay Service is available for the hearing impaired by dialing 711) at least forty-
eight hours in advance of the meeting.
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
New sewer rates
The proposed rates keep the basic fixed and volume rates and are intended to fund the projected increased
expenses noted above.
RATE START CURRENT AT APPROVAL 20221 12025
RATEINCREASE 1. 1.
MONTHLY FIXED SERVICE CHARGE
Single Family $14.53 $14.53 $15.18 $15.94 $16.74 $17.66
All Others
Meter Size: 5/8" $14.53 $14.53 $15.18 $15.94 $16.74 $17.66
Meter Size: 3/4" $14.53 $14.53 $15.18 $15.94 $16.74 $17.66
Meter Size: 1" $28.49 $28.49 $29.77 $31.26 $32.82 $34.63
Meter Size: 1 1/2" $51.77 $51.77 $54.10 $56.80 $59.64 $62.93
Meter Size: 2" $79.68 $79.68 $83.27 $87.43 $91.80 $96.85
Meter Size: 3" $154.15 $154.15 $161.08 $169.14 $177.59 $187.36
Meter Size: 4" $237.91 $237.91 $248.62 $261.05 $274.10 $289.17
Meter Size: 6" $470.61 $470.61 $491.70 $516.38 $542.20 $572.02
Meter Size: 8" $936.01 $936.01 $978.13 $1,027.04 $1,078.39 $1,137.70
MONTHLY VOLUME CHARGE/HCF*
Residential
Single Family $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Multi-Family $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Mobile Homes $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Non-Residential
Commercial - Low $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Commercial - Med $6.02 $6.02 $6.29 $6.61 $6.94 $7.32
Commercial - High $9.59 $9.59 $10.02 $10.52 $11.05 $11.66
Special Users Varies Varies Varies Varies Varies Varies
*HCF means hundred cubic feet.
Impact on your single-family home hill
For a t pical sin le-famil home with a winter average water consumption of 7 HCF, the sewer bill would be:
July I'
July
July
July
AT " ' • 1 1 1 1
SEWER ' $41.37 $41.37 $43.23 $45.39 $47.66 $50.28
RATE $0.00 $0.00 $1.86 $2.16 $2.27 $2.62
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
AVISO DE AUDIENCIA PUBLICA
SOBRE LAS TARIFAS PROPUESTAS DEL SERVICIO DE ALCANTARILLADO EN CHULA VISTA, CA
Fecha y Hora de la Audiencia Publica: martes 8 de febrero del 2022 5:00 P.M.
i Como puede participar en la audiencia publica?
La ses16n de Cabildo de la Ciudad de Chula Vista se llevard a cabo en las oficinas municipales, 276 Fourth
Avenue, Chula Vista, CA. 91910. Favor de consultar la agenda final de la sesi6n de Cabildo de la Ciudad, que se
publicard a mds tardar 72 horas antes de la reunion. La agenda se puede obtener en linea en
www.chulavistaca.gov, por correo electr6nico en ca �� � �� jgtyistaca. , o llamando al (619) 691-5041.�
Por que recibio este aviso?
La Ciudad le envi6 este aviso porque usted es un cliente o es el dueiio registrado de una propiedad que recibe el
servicio de alcantarillado. Este aviso describe los cambios propuestos a las tarifas del servicio de alcantarillado
que se modificaron por ii1tima vez el 1 de Julio del 2018 y brinda informaci6n de una audiencia pfiblica sobre los
aumentos de tarifas propuestos que se llevard a cabo el martes 8 de febrero del 2022 a las 5:00 P.M.,en las oficinas
municipales, 276 Fourth Avenue, Chula Vista, CA 91910. Si usted es el dueno registrado de la propiedad y tiene
un inquilino que es responsable del pago de las facturas del servicio de alcantarillado a la Ciudad,favor de reenviar
este aviso al inquilino.
i Qui fznancian las tarifas del servicio de alcantarillado?
La Ciudad ofrece el servicio de alcantarillado a aproximadamente 50,000 clientes residenciales y comerciales.
Las tarifas mensuales del alcantarillado que se cobran a los usuarios (clientes) son la principal fuente de ingresos
para operar y mantener el sistema de alcantarillado y se utilizan para este prop6sito. Los ingresos obtenidos por
las tarifas del servicio de alcantarillado proporcionan fondos para la operaci6n y mantenimiento de las
instalaciones de recolecc16n y transporte del sistema de alcantarillado de la Ciudad,proyectos de capital, servicio
de la deuda, administracion, asi como costos relacionados con la operac16n prudente a largo plazo y la gest16n
financiera del sistema de servicios publicos, como el mantenimiento adecuado de las reservas y la planificacion
para contingencias. Dado que la Ciudad no opera sus propias instalaciones de tratamiento de aguas residuales, los
ingresos obtenidos por las tarifas del servicio de alcantarillado tambien se utilizan para pagar el tratamiento de
aguas residuales proporcionado por la Autoridad Metropolitana de Aguas Residuales de la Ciudad de San Diego
(Metro).
Por que se necesitan los aumentos de tarifas?
En 2021, Willdan Financial Services, un consultor financiero independiente, llev6 a cabo un estudio de tarifas
financieras para evaluar la s1tuac16n financiera de la red de alcantarillado, especificamente la capacidad de las
tarifas de alcantarillado actuales de generar ingresos suficientes para cubrir los costos de la red de alcantarillado.
Los aumentos propuestos en las tarifas del servicio de alcantarillado deben financiar la operaci6n de la red de
alcantarillado, incluyendo los costos para financiar los gastos futuros de capital, el aumento de los costos
relacionados con la operaci6n y mantenimiento, y el aumento de los pagos a terceros por costos del tratamiento
de aguas residuales metropolitanas de la Ciudad de San Diego.Para cumplir con los costos proyectados que fueron
identificados en el estudio de tarifas financieras, los cambios de tarifas propuestos incluyen cero cambios hasta
el 30 de junio del 2022, seguido de aumentos de tarifas del 4.5% desde el 1 de julio del 2022 hasta el 30 de junio
del 2023, 5% desde el 1 de julio del 2023 hasta el 30 de junio del 2024, 5% desde el 1 de julio del 2024 hasta el
30 de junio del 2025, y 5.5% desde el 1 de julio del 2025 hasta el 30 de junio del 2026. La estructura tarifaria
consiste en un cargo base y es fijo, y un cargo que varia segun el use de agua (carga volumetrica). Se propone
que se mantenga la estructura tarifaria con cargo fijo y volumetrico. El estudio de tasas financieras proyect6 los
gastos de Metro, que actualmente comprenden alrededor del 65% de los gastos del alcantarillado de la Ciudad.
La Ciudad no conoce, ni controla los gastos actuales y futuros. Estos cargos se evaluardn anualmente y los
aumentos o disminuciones de tarifas se transferirdn y aplicardn a las tarifas del servicio de alcantarillado. Se
enviard un aviso de futuros cambios 30 dias previos a la facturac16n de conformidad con la Secc16n 53756 del
C6digo de Gobiemo. El estudio completo de tarifas financieras estd disponible en la pdgina de Internet de la
Ciudad en _c( 1ra, .,. ov/Sewe rRates.
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
Como se presenta una protesta?
Si un cliente o propietario que esta registrado en una parcela que esta sujeta a los aumentos propuestos de tarifas
del servicio de alcantarillado desea oponerse a los aumentos, el propietario o cliente registrado debe presentar una
protesta por escrito contra los aumentos propuestos en las tarifas de alcantarillado. Si la mayoria de las parcelas
afectadas presentan protestas por escrito, no se adoptaran los aumentos de tarifas propuestos.
Una protesta por escrito contra los aumentos propuestos en las tarifas del servicio de alcantarillado debe contener
de manera clara la siguiente informaci6n: (a)una oposici6n al cambio propuesto, (b)la direcci6n o el numero de
parcela (APN) afectada(s) por los aumentos propuestos a las tarifas del servicio de alcantarillado, (c) una firma
original y el nombre impreso de manera legible del propietario o cliente del registro afectado, se puede imprimir
un formulario de protesta desde la pagina de Internet de la Ciudad (www............_ c huavaslaca...gov/Sewer]Cates). Las
protestas por escrito pueden enviarse por correo postal o ser entregadas personalmente durante el horario de
servicio a la Oficina del Secretario de la Ciudad en: 276 Fourth Ave., Chula Vista, CA 91910, depositarse
personalmente despues del horario de servicio en el buz6n ubicado frente a la entrada principal del Departamento
de Finanzas en el 276 Fourth Ave., Building A, Chula Vista, CA 91910, o ser entregadas a mano durante la
audiencia publica en la Sala de Cabildo de la Ciudad ubicada en las oficinas municipales, 276 Fourth Ave.,
Building A, Chula Vista, CA 91910. Para ser tomadas en cuenta, la Ciudad debe recibir las protestas por escrito
antes del cierre de la audiencia piiblica que se menciona en este aviso, incluyendo las protestas por escrito que se
envian por correo a la Ciudad. No se tomaran en cuenta las protestas por escrito que tengan un sello de envio
previo a la fecha y hora de la audiencia pfiblica mencionada en este aviso, pero que la Ciudad no haya recibido
fisicamente antes del cierre de la audiencia publica mencionada en este aviso.No se aceptaran protestas enviadas
por fax, correo electr6nico, o protestas verbales, ya que requieren incluir una firma original.
iEstarun disponibles eventos de informaci6n publica?
Si, los siguientes eventos de informaci6n publica estaran disponibles de manera virtual, para conocer mas sobre
las tarifas propuestas del servicio de alcantarillado, se presentara informaci6n similar en cada una de estas juntas:
• Miercoles, 8 de diciembre del 2021, de las 9:00 A.M. a las 9:45 A.M.
• Martes, 14 de diciembre del 2021, de las 6:00 P.M. alas 6:45 P.M.
Favor de visitar: c u.[. vis..q ..&)v/SewerRates para obtener informaci6n sobre el acceso a la junta virtual.
i Como envian comentarios?
El Cabildo de la Ciudad agradece su participaci6n en la elaboraci6n de las tarifas y tomara en cuenta todos los
comentarios presentados en la audiencia publica, incluyendo los comentarios sobre las tarifas propuestas, las
f6rmulas de elaboraci6n de las tarifas y la base sobre la cual se calculan las tarifas en el estudio de tarifas
financieras preparado por Willdan Financial Services. Se consideraran las preguntas aplicadas (c6mo se aplican
las tarifas a usted o a su propiedad), asi como los problemas faciales (c6mo se aplican las tarifas a todos los
clientes). Los comentarios que se quieran presentar ante el Cabildo de la Ciudad se pueden enviar a traves del
portal de comentarios electr6nicos en www,cliuIavistacal.gov/c(y neilmeetings o en persona. Los comentarios
deben recibirse antes de que la alcaldesa cierre el periodo para comentarios. Aunque solo las protestas por escrito
de un propietario o cliente sujeto a los cargos contaran para una protesta mayoritaria, el Cabildo de la Ciudad
agradece todas las aportaciones de la comunidad, incluyendo comentarios orales y electr6nicos que se presenten
durante la audiencia publica.
iA quien debo llamar si tengo preguntas? Las preguntas se pueden presentar por correo electr6nico a
wastewa(e.r. o por telefono (619) 476-5380.
�Estarkn disponibles atenciones especiales?
Se invita a las personas con discapacidades o necesidades especiales a solicitar modificaciones o adaptaciones
que les permitan tener acceso y/o participar en una audiencia de la Ciudad, contactando directamente a la Oficina
del Secretario de la Ciudad en c��ycler �),chuilavistaca.gov o llamando al (619) 691-5041 (El Servicio de
Retransmisi6n de California esta disponible para personas con discapacidad auditiva llamando al 711) cuando
menos cuarcnta y ocho horas antes de la ses16n.
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
Nuevas tarifas de alcantarillado
Las tarifas propuestas mantienen las tarifas fijas bdsicas y por volumen, y estdn destinadas a financiar los gastos
proyectados que se mencionaron anteriormente.
Julio I Julio I julto I Julio
TASA DE • ACTUAL PROPPROPUESTA 20221 12025
TASA DE •
CARGO MENSUAL FIJO POR SERVICIO
Unifamiliar $14.53 $14.53 $15.18 $15.94 $16.74 $17.66
Todos los demds
Medidor: 5/8" $14.53 $14.53 $15.18 $15.94 $16.74 $17.66
Medidor: 3/4" $14.53 $14.53 $15.18 $15.94 $16.74 $17.66
Medidor: 1" $28.49 $28.49 $29.77 $31.26 $32.82 $34.63
Medidor: 11/2" $51.77 $51.77 $54.10 $56.80 $59.64 $62.93
Medidor: 2" $79.68 $79.68 $83.27 $87.43 $91.80 $96.85
Medidor: 3" $154.15 $154.15 $161.08 $169.14 $177.59 $187.36
Medidor: 4" $237.91 $237.91 $248.62 $261.05 $274.10 $289.17
Medidor: 6" $470.61 $470.61 $491.70 $516.38 $542.20 $572.02
Medidor: 8" $936.01 $936.01 $978.13 $1,027.04 $1,078.39 $1,137.70
CARGO MENSUAL POR VOLUMEN/HCFh
Residencial
Unifamiliar $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Multifamiliar $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Casas M6viles $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
No Residencial
Comercial - Bajo $4.26 $4.26 $4.45 $4.67 $4.91 $5.18
Comercial - Medio $6.02 $6.02 $6.29 $6.61 $6.94 $7.32
Comercial - Alto $9.59 $9.59 $10.02 $10.52 $11.05 $11.66
Usuarios Es eciales Varia Varia Varia Varia Varia Varia
*HCF significa cion pies cfibicos.
Impacto en la factura de su vivienda unifamiliar
Para una casa unifamiliar tipica con un consumo promedio de agua de 7 HCF durante el inverno, la factura del
servicio de alcantarillado seria:
• $41.37 $41.37 $43.23 $45.39 $47.66 $50.28
• $0.00 $0.00 $1.86 $2.16 $2.27 $2.62
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
SUBJECT: Se,.%,er Sen•ice Revenue Fund Reserve POLICE' EFFECTIVE
Police NUMBERDATE PAGE
220-04 12/13/4-3 1 of 4
4/26/22
ADOPTED BY: ? z-n'-u -3,*-2- DATED: December 17, 201.31
April 26, 2022
PURPOSE:
Public entities accumulate and maintain adequate reserves levels to help ensure both financial stability
and the ability to provide core services during difficult times. Adequately funded reserves allow= for:
1) funding infrastructure replacement, 2) economic uncertainties and other financial hardships, 3)
future debt and capital obligations. 4) cash flow= requirements. 6) improved credit ratings, 5)-unfunded
mandates including costly regulatory requirements.
BACKGROUND:
The City's Sewer Enterprise Funds account for specific services funded directly by fees and charges
users of the City's sewer system. These funds are intended to be self-supporting as well as restricted
and cannot be used for other City services. They account for revenues and expenses related to the
City's sewer programs; including maintenance and expansion of the City's conveyance system and
payment of San Diego Metro wastewater treatment costs.
The Sewer Service Revenue Enterprise Fund accounts for revenue collected from monthly sewer
service charges for all properties that are connected to the City's sew=er system. These funds can only
be used for sewer related operations and maintenance. The primary use of these funds is payment for
the City's annual San Diego Metropolitan Sewer Capacity and to fund maintenance and operational
costs associated with the sewer collection system.
The Government Finance Officers Association (GFOA), an international organization that promotes
the professional financial management of governments for the public interest, recommends
maintaining minimum reserve balances. A government's particular situation may require levels of
reserves significantly in excess of their recommended minimum levels. Cities with higher reserve
levels are better positioned to protect public services during economic downturns.
GFOA recommends that in establishing a policy governing the level of reserves or working capital in
enterprise funds, a government should consider a variety of factors, including but not limited to the
following:
• The predictability of its revenues and the volatility of its expenditures (i.e. higher levels of
reserves may be needed if significant revenue sources are subject to unpredictable fluctuations
or if operating expenditures are highly volatile.)
• Liquidity (i.e. a disparity between when financial resources actually become available to make
paN,ments and the average maturity of related liabilities may require that a higher level of
resources be maintained).
• Designations (i.e. governments may wish to maintain higher levels of reserves to compensate
for any portion of available fund balance already designated for a specific purpose).
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
POLICY
SUBJECT: Sewer Service Revenue Fund Reserve EFFECTIVE
Policy NUMBER DATE PAGE
220-04 1?J-17/-1 2 of 4
4/26/22
ADOPTED BY: 241J-245 DATED:
April 26, 2022
POLICY:
This Policy establishes four distinct reserves within the Sewer Service Revenue Fund:
1. Working Capital and Rate Stabilization Reserve
2. Emergency Reserve
3. Vehicle Replacement Reserve
Working Capital and Rate Stabilization Reserve
Working Capital and Rate Stabilization reserves in the Seger Service Revenue Fund will be restricted
to maintaining and operating the wastewater collection system and paying treatment charges to City of
San Diego Metropolitan Wastewater ("Metro"'). The reserve will be funded from revenues
accumulated in the Sewer Service Revenue Fund. It is intended to accommodate any natural
variability in revenues and expenditures, including potential disruptions of cash flows due to varied
billing methodology, short tenn fluctuations and annual cycles. The reserve will also assist in
addressing shortfalls which may occur due to unanticipated cost increases in labor or energy and other
consumption based goods and services, such as wastewater treatment services provided by Metro.
The reserves represent unrestricted resources available for appropriation by the City Council
addressing unforeseen needs for sewer services.
The Working Capital and Rate Stabiiization Reserves will assist the City in addressing the following
items:
• Rate Stabilization — the reserves will allow the City the flexibility to "smooth" rates and phase
increases in over multiple years, which is prudent given the potential variability in the City's
payments to Metro.
• Revenue Collection Fluctuations - the reserves will be used to protect the City from natural
fluctuations in revenue and expenditure cycles which is prudent given that the City bills
customers at different points in time but incurs expenses continuously throughout the year.
• Rates of delinquencies—delays in collection of outstanding revenues.
• Payroll cycles — the timing of a fixed cash requirement for payroll, as related to the timing of
revenue cycles.
• Unanticipated expenses - expenses whose characteristics make accurate estimation difficult,
such as increases in wastewater treatment services provided by the City of San Diego. energy
costs, labor benefits and other consumption based goods and services.
The City shall maintain a Sewer Revenue reserve equivalent to 90 days of operating expenditures and
a Rate Stabilization reserve equivalent to 90 days of operating expenditures for a minimum combined
total of 180 days and a maximum reserve balance of 125% of the minimum balance.
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
SUBJECT: Sciver Sen-ice Revenue Fund Reserve POLICY EFFECTME
Polio- NUMBER DATE PAGE
220-04 1211711- 3 of 4
ADOPTED BY: 2013 26 DATED: D c-e��?;
April 26, 2022
If funds are appropriated from the Sewer Revenue Working Capital and Rate Stabilization Reser-,,es.
the funds should be replenished in the budget process during subsequent fiscal years to the minimum
reserve balance. If the magnitude of the event caused the Sewer Revenue Working Capital and a
Stabilization Reserves to be less than 30 days of the operating and maintenance budget; the Finance
Director shall provide the City Council with a plan to incrementally replenish the reserves to the 180
days minimum reserve balance.
Emergencv Reserve
The Sewer Service Revenue Fund Emergencv Reserve is necessary to secure funding for insurance
deductibles, unforeseen liabilities/litigation and settlement costs related to the City's wastewater
system.
The Cite shall maintain a minimum Sewer Service Revenue Fund Emergency Reserve target level of
5% of the operating and maintenance budget and a maximum reserve balance of 125% of the
minimum balance. If funds are appropriated from the Sewer Revenue Emergency Reserves due to
unanticipated needs; the Finance Director shallprovide the Cite Council with a plan to incrementally
replenish the reserves to the minimum reserve balance.
Vehicle Replacement Reserve
The Sever Service Revenue Fund Vehicle Replacement Reserves represents monies set aside to fund
the replacement of aging vehicles. The allocation is funded from revenues accumulated in the Sewer
Service Revenue Fund.
The City shall maintain a minimum Sewer Service Fund Vehicle Replacement Reserve target of 2% 11
of the operating and maintenance budget. This reserve will ensure that vehicles utilized for sewer
operations are replaced as scheduled and available to deploy as needed.
To achieve a minimum impact to cost of services and rates, funds will be included in the proposed
budget on an annual basis as identified in the City's Vehicle Replacement schedule. The cost of
replacing all the vehicles will be averaged over the lifespan of the existing fleet. This will generate a
more normalized cost of services by evenly distributing revenue requirements on a year-to-year basis
offsetting temporary cash flow deficiencies and avoid significant increases in rates charges to
customers in the years the replacement cost are incurred.
I Is;F. PPt FMit eane- A T l]bIllrll Il PCPTS]P
The Sewer- Sen,ice Revenue Fund USEPA Permit Renewal Liability Reserve- will account for- --1
a
DocuSign Envelope ID:243ED5CF-A58C-48E2-850A-CEA8230FC09D
�
pn
SUBJECT: S�w� � z ori E �.�a : �s� -QD �rry
DATE PAGE
230-94 12/17/13 4
ADOPTED BY: 224ta-2265 DATED: Dpyp .,hpr- »��
r T r 7nt cost
significant *_of�
Vkin',z zhqre in the Cost of an), x
7 1 N4
7
T ! treatment o_ _hjS
resen,e esta icated filind that xmill offset a nortion of the City's share of any obligation
Ihe Or- will be in a stronger financial rin6tirin to affox"uch costs NA, -nupacL"
ratepayers.-payers.
Ihe Permit Reneural Liability Reserve Nuill be filinded ih h annual ro ns Nu;th t
Feach a i e} balance of 2110/
aftcF the....e:?, .at-rc}n_ef the..... l—Ver} .
expe ted, the City may draw down reseme levels; prior to FY 2024/25 t �npaa&-40
7 7b2lances for its other i
the rw;ywi�
proprimed befor�&-inte-ded use-, the funds should be replenished i
• 7
7
Cluding maintenance and expansion of the citxlz�s conveyance. system and paymen! of San
n
MASTER FEE SCHEDULE FEE BULLETIN
Chapter 12 – Sewer Fees 12-200 Sewer Service Charges
City of Chula Vista Engineering & Capital Projects Department
276 Fourth Avenue, Chula Vista, CA 91910 April 2022
City of Chula Vista www.chulavistaca.gov 619.476.5380
In addition to other fees, assessments or charges provided by the Chula Vista Municipal Code or
otherwise, the owner or occupant of any parcel of real property which said parcel is connected to the
sewer system of the City and to a water system maintained by the Sweetwater Authority, California
American Water District or the Otay Municipal Water District shall pay a sewer service charge as follows:
RATE START April 26, 2022 July 1, 2022 July 1, 2023 July 1, 2024 July 1, 2025
MONTHLY FIXED SERVICE CHARGE ($/MONTH)
Single Family $14.53 $15.18 $15.94 $16.74 $17.66
All Others - Meter size
Meter size: 5/8 inch $14.53 $15.18 $15.94 $16.74 $17.66
Meter size:4/3 inch $14.53 $15.18 $15.94 $16.74 $17.66
Meter size: 1 inch $28.49 $29.77 $31.26 $32.82 $34.63
Meter size: 1-1/2 inch $51.77 $54.10 $56.80 $59.64 $62.93
Meter size: 2 inch $79.68 $83.27 $87.43 $91.80 $96.85
Meter size: 3 inch $154.15 $161.08 $169.14 $177.59 $187.36
Meter size: 4 inch $237.91 $248.62 $261.05 $274.10 $289.17
Meter size: 6 inch $470.61 $491.79 $516.38 $542.20 $572.02
Meter size: 8 inch $936.01 $978.13 $1,027.04 $1,078.39 $1,137.70
VOLUME CHARGE ($/HCF)*
Residential
Single Family $4.26 $4.45 $4.67 $4.91 $5.18
Multi-Family $4.26 $4.45 $4.67 $4.91 $5.18
Mobile Homes $4.26 $4.45 $4.67 $4.91 $5.18
Non-Residential
Commercial - Low $4.26 $4.45 $4.67 $4.91 $5.18
Commercial - Med $6.02 $6.29 $6.61 $6.94 $7.32
Commercial - High $9.59 $10.02 $10.52 $11.05 $11.66
Special Users Varies Varies Varies Varies Varies
*HCF – Hundred Cubic Feet.
Rates include Sewer Service Charge, Sewer Facilities Replacement Fee but not the Storm Drain Fee.
RESIDENTIAL RATES
1. Single Family
The sewer service charge for each single-family
dwelling unit serviced by a separate water meter is
based on the lowest “Winter Average”, which is the
lowest amount of water consumed during the
preceding winter months (November through
April). The rate shall be in accordance with the
adopted rate schedule. Each single-family
dwelling will be charged a fixed service charge and
a variable commodity rate.
A rate of return (ROR) of 90% is assumed for all
singe family dwelling units.
Single Family Billing Formula
Lowest
“Winter
Average”
x 90%
ROR x
$ Sewer
rate/
HCF
+
Fixed
Service
Charge
=
Monthly
Sewer
Charge
April 2022 MASTER FEE SCHEDULE FEE BULLETIN 12-200 Page 2 of 4
City of Chula Vista www.chulavistaca.gov 619.476.5380
2. Multi – Family
The sewer service charge for other parcels of real
property used for domestic purposes and serviced
by a water meter shall be a the prevailing rate per
each one hundred cubic feet (HCF) of water usage
by such parcel Each parcel will be charged a fixed
service charge and a variable commodity charge.
The fixed charge will be assessed for each meter
that services the facility and will be dependent on
the size of the meter.
A rate of return (ROR) of 79% is assumed for all
multi-family dwellings and 84% for mobile homes.
Multi – Family Billing Formula
Total
Meter
Readings
(Monthly)
x ROR x
HCF
Rate for
Sewage
Class
+
Fixed
Service
Charge
=
Monthly
Sewer
Charge
3. Sewer Service Charge for Low Income
Households
Low Income Households (as defined in Fee
Bulletin 1-100) including renters of property who
are eligible to receive a reduced rate for monthly
sewer service charges, shall be billed a commodity
rate that is 70% of the prevailing rate. The
Finance Department of the City shall make
available the required application form and
process all applications. Application will require
the submittal of information on total household
income, the number of persons in the household
and the type of dwelling unit. Proof of total annual
income shall be furnished.
Requests for annual refunds shall be made by
eligible households between August 1 and
September 30 of each year for the past fiscal year
beginning July and ending in June. The applicant
will be notified of eligibility status within thirty (30)
days of application and if eligible, the refund
forwarded within ninety (90) days of application.
COMMERCIAL & INDUSTRIAL RATES
The sewer service charge for premises used for
other than domestic purposes shall be at the
prevailing rate per hundred cubic feet (HCF) of
water usage. The non-residential sewer service
charge shall consist of a fixed service charge and
a variable commodity charge. The fixed charge will
be assessed for each meter that serves the facility
and will be dependent on the size of the meter.
The variable commodity charge shall be based on
the quantity and strength of the sewage generated
using a rate of return (ROR) of 90% and two
strength parameters: BOD – biochemical oxygen
demand and TSS – total suspended solids
concentrations
Commercial Billing Formula
Total
Meter
Readings
(Monthly)
x ROR x
HCF
Rate for
Sewage
Class
+
Fixed
Service
Charge
=
Monthly
Sewer
Charge
1. Rate of Return
Unless otherwise established by an approved
variance, wastewater discharge shall be assumed
to be 90% of water consumed. Therefore, where
commercial or industrial facilities are billed on the
basis of wastewater discharge, the regular sewer
service rate shall be multiplied by 0.90.
2. Wastewater Strength
Wastewater strength categories will be determined
using either Table 2-2 “City of Chula Vista
Compilation of Published Data on Sewer User
Strength classifications” (excerpted from the
Wastewater User & Rate Restructuring by PBS&J
dated May 2003) or actual sampling results, as
determined by the City Engineer. Dischargers who
believe that their total suspended solids
concentration is sufficiently low to qualify for a
different category of sewer service charge billing
may apply to the City Manager in writing for a
variance in accordance with Chula Vista Municipal
Code Section 13.14.130. When there is a change
in the rate payer, the category will be re-evaluated.
TAX BILL
Charges for single-family residential dwellings,
multiple family dwelling and commercial industrial
discharges collected on the Tax bill shall be based
on a recent 12 month water usage period.
April 2022 MASTER FEE SCHEDULE FEE BULLETIN 12-200 Page 3 of 4
City of Chula Vista www.chulavistaca.gov 619.476.5380
HIGH VOLUME DISCHARGERS
Premises that discharge over 25,000 gallons per
day (gpd) are classified as high-volume
dischargers. These dischargers shall be billed bi-
monthly by the City of Chula Vista. Wastewater
discharge shall be assumed to be 90 percent of
water consumed, unless established otherwise by
an approved variance.
The Sewer Service Charge is determined on an
individual basis and is comprised of a Fixed
Service Charge (FSC) and a Variable Commodity
Charge (VCC). The FSC is based on the water
meter size and the VCC is calculated by multiplying
the Sewer Rate by the Volume of Sewer Discharge
in hundred cubic feet (HCF). The Sewer Rate is
determined by the strength of the discharge
(Chemical Oxygen Demand (COD) and Total
Suspended Solids (TSS)).
The Sewer Service Charge is calculated as follows:
FSC + VCC = Sewer Service Charge
FSC = Based on the water meter size
VCC = Sewer Rate ($/HCF) x Volume of Sewer
Discharge (HCF)
The Sewer Rate is subject to change. Said change
is usually necessitated by the increase in the cost
of wastewater treatment and the maintenance of
the City’s sewer collection system. The Sewer
Rate is reviewed on a yearly basis.
SEWER SERVICE VARIANCE FEES
The owner or occupant of any premises requesting
a variance from the sewer service charges
pursuant to the provisions of this section and the
rules and regulations approved by resolution of
the City Council shall pay a fee in the sum of
$150.00 to cover the cost of investigation of said
request; provided, however, that no fee shall be
charged for a request for total exemption from the
sewer service charge. In addition, a special
handling charge to cover the cost of billing and
inspection to be paid per building may be
established in the resolution granting the variance,
provided that the minimum such charge shall be in
the sum of $3.75.
INDUSTRIAL WASTEWATER DISCHARGE
The fee for an initial, annual renewal, or amended
industrial wastewater discharge permit shall be
based upon the Industrial User (IU) permit type.
The IU permit types are naming conventions
originating from the City of San Diego’s Industrial
Wastewater Discharge Control Program (Program).
1. Types of Industrial User (IU) Permits – The IU
permit types are assigned through the City of
San Diego’s Industrial Wastewater Discharge
Control Program. The Program generally
defines a SIU in accordance with Federal
regulations, as an Industrial User that:
o Is subject to federal categorical pretreatment
standards under 40 Code of Regulations (CFR)
403
o Any other industrial discharger that:
Discharges an average of 25,000 gallons
per day or more of process wastewater to
the publicly owned treatment works.
For groundwater remediation sites, the
presence of free product or discharges of
>14,000 gallons per day have
“reasonable potential” and are regulated
as SIUs.
SIU –
Standard
Not complex
SIU –
Complex
Typically includes production
based, education campuses,
hospitals, or facilities with 3 or
more sewer connections.
Non-SIU /
Categorical
Process
Class 2C, 3C, 4C, 2Z, 3Z, & 4Z
facilities with a non-discharging
categorical process
Enhanced
Source
Control
Includes non-SIU facilities that do
not also have non-discharging
categorical process and for which
local requirements have been
established or are required by the
Pure Water NPDES permit
adopted May 2020.
April 2022 MASTER FEE SCHEDULE FEE BULLETIN 12-200 Page 4 of 4
City of Chula Vista www.chulavistaca.gov 619.476.5380
2. Annual Permit Fee (in dollars)
Starting Date
Permit
Type
July 1,
2022
July 1,
2023
July 1,
2024
July 1,
2025
SIU-
Standard 2,250 4,500 6,749 8,999
SIU-
Complex 7,476 14,952 22,427 29,903
Non-SIU/
Categorical 1,319 2,639 3,958 5,277
Enhanced
Source
Control 651 1,302 1,952 2,603
An administrative fee of $25 will be included in
each bill in addition to the fee for each permit type
to cover bill assembly, review and approval.
3. Compliance Charges
Industries not in compliance with industrial
wastewater discharge permit requirements shall
pay a fee to recover the full cost including
overhead of enforcing compliance.
STORM DRAINS
1. Storm Drain fees
In addition to other fees, assessments, or charges
provided by the City code or otherwise, the owner
or occupant of any parcels of real property which
parcel is connected to the wastewater system of
the City and to a wastewater system maintained by
Sweetwater Authority, the Otay Municipal Water
District, or the California-American Water
Company, shall pay a storm drain fee as follows:
Single family
Monthly ............................................................. $0.70
Multi-Family, Commercial, Industrial
Monthly .................................................... $0.06/HCF
Maximum, per month ....................................... $500
J:\Engineer\SEWER\300 Revenue Rates and Fees\06 Monthly Fees\Director Memo Sewer Rates (Annual)\FY23 Letter from Director on Sewer
Service Rates.docx
MEMO
Department of Engineering & Capital Projects
1. Sewer Rate Study for Fiscal Year 2021/22 through 2025/26 Accepted (Sewer Study)
2. Recommendations for Sewer Study Approved
a. Annual increases in sewer rates starting July 1, 2022
b. Metro Pass Through
c. Removal of the Permit Liability Reserve Category from the Reserve Policy
d. Increased allocation of the sewer carge to the Sewer Facilities Fund
e. Allocation of $6M from the Trunk Sewer Capital Fund to pay for Metro capital
Attachment: 1. Resolution 2022-093
2. Master Fee Schedule 12-200 Sewer Service Charges
The Chula Vista Municipal Code Section 13.14.110.B, requires the following:
Every year the Director of Engineering shall determine the sewer service charge for the current
fiscal year in accordance with Section (A) of this section. The Director shall file a report with the
City Clerk annually prior to August 10th, setting forth the description of each property affected
and the amount of the proposed charge.
On April 26, 2022, the City Council passed, approved and adopted Resolution 2022-093, accepting
the Sewer Rate Study which included recommenations for Fiscal Years 2021/22 through 2025/26.
Summarized below are the actions included in actions in Resolution 2022-093 with the full
resolution in Attachment 1.
3. Amend the Master Fee Schedule (Attachment 2)
The updated sewer service rates are posted in the Master Fee Schedule “Fee Bulletin 12-200”
(Attachment 2).
File: KY-090
DATE: August 9, 2022
TO: Kerry K. Bigelow, City Clerk
FROM: William S. Valle, Director of Engineering & Capital Projects
VIA: Patrick Moneda, Acting Principal Civil Engineer
VIA: Beth Gentry, Senior Civil Engineer
SUBJECT: SEWER RATES – FISCAL YEAR 2023