Title
Public Hearing to Consider Introduction of Ordinance Revising the City's 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 33 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.
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 Fiscal Year (FY) 2025, 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 over the next five years. On April 7, 2020, the City Council adopted a Resolution declaring the City's Intention to revise the Sewer Service Charge Establishing Procedures for Accepting Protests Pursuant to Article XIID, Section 6 (a) of the California Constitution Regarding Property-Related Fees and Charges. On April 15, 2020, BWA mailed property owners a written notice, in accordance with Prop 218, announcing the proposed sewer service charge increas...
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