Title
Staff Report for the City of San Leandro City Council Finance Committee to Receive Wastewater Utility Rates Study and Provide Direction to Staff on Proposition 218 Notices
Staffreport
COUNCIL PRIORITY
* Infrastructure
* Sustainability & Resiliency
* Fiscal Sustainability and Transparency
SUMMARY
The Water Pollution Control Division (WPC) initiated a sewer rate study to determine the fiscal requirements to maintain high quality service, repair aging infrastructure, and meet regulatory requirements. The draft Wastewater Rate Study report includes proposed updated sewer rates to support these expenses and is necessary to initiate the Proposition 218 noticing process.
RECOMMENDATIONS
Staff recommends that the City Council Finance Committee receive the attached draft Wastewater Utility Rate Study, provide feedback, and to move forward with the Proposition 218 process by recommending approval at a future Council Meeting.
BACKGROUND
The City's wastewater infrastructure serves about 60,000 residents and businesses in the northern two-thirds of the City. The system includes 125 miles of collection system pipelines, 12 lift stations, and a Water Pollution Control Plant (WPCP) that processes an average of about 5 million gallons per day of wastewater. Because of the preponderance of business and industrial users, the WPCP receives some of the strongest wastewater in the Bay Area and processes this water to exceed stringent requirements set by state and federal regulating agencies.
Proposition 218 requires that sewer rates be justified by expenses incurred in the collection and processing of wastewater, including capital expenses and reserve requirements. The City worked with Bartle Wells Associates, a public finance consulting firm with expertise in the areas of utility rates and finance, to analyze all financial data from the wastewater enterprise fund including operating expenses and Capital Improvement Program (CIP) costs to develop cost-of-service base...
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