NOTICE OF 5 YEAR WATER RATE INCREASE EFFECTIVE JULY 1, 2010 - JUNE 30, 2015
Dear Customer:
This notice explains the proposed water service rate increases for customers receiving water from the Mid-Peninsula Water District (MPWD). MPWD is proposing to phase in a series of rate adjustments over the next five years to fund wholesale water supply cost increases and pay for the District’s costs of providing water service and maintaining the distribution system.
NOTICE OF PUBLIC HEARING
A public hearing for the proposed rate increases will be held on May 27, 2010 at 6:30 p.m. at the District’s headquarters at 3 Dairy Lane, Belmont, CA. If adopted, the proposed rate increases would become effective and be applied to all bills sent to customers on or after July 1, 2010.
WHY ARE WATER RATES BEING INCREASED?
The District relies on imported water from the San Francisco Public Utility Commission (SFPUC) for 100% of its water supply. The SFPUC has commenced a $4.3 billion Capital Improvement Program to improve the reliability, capacity and seismic safety of the aging Hetch-Hetchy water system. MPWD and the other regional water agencies that purchase their water from the SFPUC will fund their share of the cost of funding this Capital Improvement Program through increased wholesale water rates. The SFPUC’s wholesale water rates have already increased 62% over the past 4 years and are projected to more than double over the next 6 years.
MPWD PROPOSING GRADUAL RATE ADJUSTMENTS
MPWD is proposing to phase in a series of gradual water rate adjustments over the next 5 years in order to fund the increased costs of SFPUC water supply and pay for the District’s cost of providing service. The District is a self-supporting agency and relies primarily on water rates to fund its operations. The proposed rates are designed to generate a 9% increase in rate revenues in each of the next 5 years. Due to proposed modifications to the District’s rate structure designed to improve rate equity, the rate impacts will vary based on customer type (i.e. residential, commercial, industrial, multi family dwelling, other public authority) and water use.
MPWD MAINTAINING FOCUS ON COST-EFFICIENCY
MPWD has implemented a number of cost-cutting measures over the years and remains committed to providing high-quality water service as cost-efficiently as possible. The District maintains a small staff compared to other water agencies and follows a prudent “pay as you go” financial management policy. The District currently has no outstanding debt. In an effort to minimize costs, the District anticipates implementing additional cost-reduction measures in upcoming years including a reduction in capital expenditures and across-the-board budget cuts. MPWD’s water rates are currently in the middle range compared to other peninsula water agencies and are expected to remain in the middle range with the proposed rate adjustments.
PROPOSED WATER RATES
The following table shows a schedule of proposed water rates for the next 5 years. Water bills include both a fixed monthly charge based on meter size, plus a water consumption charge based on each customer’s metered water use. The rate adjustments include the minimum prudent rate increases needed to fund the District’s costs for water supply, operations, maintenance, and ongoing capital improvement needs. The proposed rates also incorporate some modifications to the rate structure designed to improve equity and provide slightly more conservation incentive.
The proposed rates assume that the SFPUC will increase its wholesale water rates per hundred cubic feet on July 1 each year to $1.90 in 2010, $2.09 in 2011, $2.71 in 2012, $2.85 in 2013, and $3.21 in 2014. Pursuant to the Government Code, the District reserves the right to increase its water consumption charges to recover any additional unanticipated SFPUC water rate increases.
HOW TO PROTEST THE PROPOSED INCREASES
Under Proposition 218, if you are the owner of record for a parcel or parcels or a tenant directly liable for payment of the charges subject to the proposed rate increases, you may submit a written protest against the proposed rate increases. If written protests are filed by a majority of the affected property owners and customers responsible for paying the water bills, the proposed rate increases will not be imposed.
Any written protest must be signed by the property owner or the customer responsible for payment of the charges and must identify the property by parcel number, address, or District account number. Only one protest will be counted per parcel or service address. Written protests regarding the proposed rate increases may be mailed or personally delivered to: Mid-Peninsula Water District, 3 Dairy Lane, P.O. Box 129, Belmont, CA 94002. Protests submitted by e‑mail or facsimile will not be accepted. To be valid, a protest must be in writing and received by the District prior to the close of the public hearing scheduled for May 27, 2010 at 6:30 p.m. Please contact the District at (650) 591-8941 if you have any questions regarding this Notice or visit our website @ www.midpeninsulawater.org.
