File #: 19-224    Version: 1 Name: Staff Report for Wastewater Rate Study
Type: Staff Report Status: Filed
In control: City Council
Meeting Date: 5/6/2019 Final action: 5/6/2019
Enactment date: Enactment #:
Title: Staff Report for the City of San Leandro City Council to Receive a Report on Wastewater Utility Financial Plan and Rates Study and Wastewater Utility Capacity Charges Study and Provide Direction to Proceed with the Necessary Procedural Requirements Pursuant to Proposition 218 for Proposed Sewer Rate Increases
Sponsors: Debbie Pollart
Attachments: 1. HDR Nutrient Report SL_FinalReport_20180524A_Reduced (002).pdf, 2. Survey of 2020 Wastewater Rates, 3. Proposition 218 Public Notice 2.pdf, 4. Presentation-2019 WPCP Rate Study
Related files: 19-225, 19-368
Title
Staff Report for the City of San Leandro City Council to Receive a Report on Wastewater Utility Financial Plan and Rates Study and Wastewater Utility Capacity Charges Study and Provide Direction to Proceed with the Necessary Procedural Requirements Pursuant to Proposition 218 for Proposed Sewer Rate Increases
Staffreport
SUMMARY AND RECOMMENDATIONS

Staff recommends that City Council receive the attached Wastewater Utility Financial Plan and Rates Study and Wastewater Utility Capacity Charges Study. Staff further recommends that City Council direct staff to proceed with the process for the proposed sewer rate increase pursuant to Proposition 218 by mailing a Rate Notice to affected property owners and holding a Public Hearing on July 15, 2019.

BACKGROUND

The City's wastewater infrastructure serves about 60,000 residents and businesses in the northern two-thirds of the City. The system includes about 130 miles of collection system pipelines, 10 lift stations, and a Water Pollution Control Plant (WPCP) that processes an average of 5 million gallons per day of wastewater. Because of the preponderance of business and industrial users, the WPCP receives some of the most concentrated wastewater in the Bay Area and processes this water to far exceed stringent requirements set by state and federal regulating agencies.

From 2010-2017, the WPCP underwent a major renovation and upgrade, the largest CIP project to date for the City. The upgrade replaced antiquated equipment and allowed for more consistent treatment during wet weather. However, there were some unforeseen costs of the upgrade that will need to be covered by the existing WPCP fund balance.


Construction of a 1-megawatt solar array, for which the City received a $1.9 million California Energy Commission grant covering approximately 50% of the cost, is nearing completion. A project funded by the San Francisco Bay Restoration Authority (Measure AA) to create plans for building of a Treatment Wetland pr...

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