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By Miriam Raftery
October 3, 2017 (Spring Valley) – Otay Water District’s Board of Directors, at its October 4 meeting at 3:30 p.m., will hold a public hearing and vote on rates, fees and charges for fiscal year 2017-18 and to consider authorizing a five-year pass-through of cost increases from water wholesalers and district rate increases. That rate may not exceed 10 percent a year for all costs other than pass-through costs.
When Helix Water District similarly adopted a policy allowing five years of potential rate increases due to extended drought, it prompted a ratepayer revolt. A large crowd showed up to object at the public hearing, but the board majority approved the measure anyway. That vote became a sore point in the next election, when two incumbents who voted for the five-year rate hike lost their reelection bids, defeated by challengers who pledged to hold the line against rate hikes or to roll back rates.
Passing a five-year rate plan allows a water district to raise rates annually within the range specified within the district's Prop 218 notice to its customers, without mailing notices to ratepayer households each year. Public hearings would be held every five years instead of annually.
"Otay Water District has a long-standing practice of noticing customers every time there is a rate increase, prior to Prop 218 requiring it," says Tenille Otero, communications officer for the Otay Water District. "Any increase in the five-year period, our board still needs to vote on." The public can speak on those agenda items, she added.
However it would be up to the public to watch agendas for rate hikes proposed; there would not be special notices of proposed rate changes mailed to ratepayers' homes, only notices after rate changes were approved by the board. Board packets are posted 72 hours or more before the first Wednesday of each month board meeting on the district's website at http://otaywater.gov.
Otero explains the proposed changes this way. "At the hearing the District is presenting no overall water rate increases beginning Jan. 1, 2018. However, the Board is proposing rate changes as a result of a cost of service study completed in April 2017. While this does not raise the rates overall, it does shift rates for customers between various fee types to collect revenues in accordance with the requirements of Prop 218."
The Otay Water District board meets at the district’s headquarters at 2554 Sweetwater Springs Road in Spring Valley.
View full agenda:
http://otaywater.gov/wp-content/uploads/files/agendas/AGENDA,%2010-04-17.pdf
View board packet with attachments and details on agenda items:
http://otaywater.gov/wp-content/uploads/files/agendas/Agenda_Board_Packet_10_04_17_Reduced_Size.pdf
View board press release on budget:
http://otaywater.gov/wp-content/uploads/2017/10/Budget-Approval_FY2018_F...
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