Title
Adoption of Resolution Declaring the City's Intention to Revise the Sewer Service Charge and Establish Procedures for Accepting Protests Pursuant to Article XIID, Section 6(a) of the California Constitution Regarding Property-Related Fees and Charges, and
Recommendation to Set a Public Hearing on June 16, 2020 to Consider Adoption of New Sewer Service Charges. (Public Works 602)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda (City) owns and operates 128 miles of sewer collection system and 32 pump stations. Sewer service charges are viewed as property-related fees and are subject to specific requirements of the California Constitution Article XIII D ? 6(a), commonly referred to as Proposition (Prop) 218. The fees must only cover expenses to provide service to the customer assessed, including salaries and benefits, contractual services, materials, equipment and infrastructure rehabilitation. Prop 218 allows a multi-year schedule of fee increases for up to five years and requires an increase in the fee(s) to be approved by the customers under a protest-ballot procedure, where all affected property owners are notified and given the opportunity to protest the increase in writing or at a public hearing, and a majority protest prohibits the increase.
On May 19, 2015, the City held a public hearing to consider 3% annual increases in the sewer service charge for Fiscal Year (FY) 2016 through FY2020, with the final passage of the ordinance on June 2, 2015. In October 2019, staff contracted with Bartle Wells Associates (BWA) to conduct a sewer financial plan and rate study (Exhibit 1). Based on an evaluation of sewer funding needs and revenue sources, the report recommends an annual increase of 3% to the sewer service charges through FY2025, as shown in the table below. A comparison of monthly sewer service charges with regional agencies shows that City rates are on the low end and are projected to remain low...
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