Sewer Rates May Rise in South San Ramon

The price of and sewage service for residents in southern San Ramon could increase if the service provider approves a proposed fee hike later this month.

Board of directors of the Dublin San Ramon Services District, which serves areas of San Ramon south of Montevideo Drive and all of Dublin and Pleasanton, are discussing upping wastewater rates.

Already the cuts run deep. Last year, the district cut operating costs by about $2 million, according to its General Manager Bert Michalczyk. He said the plan is to slash another $700,000 in the coming year. And all but critical capital improvements were cancelled and staff positions were reduced by almost 18 percent in two years.

Still, a 2010 rate study determined that the proposed and enacted cuts are not enough to cover the cost of keeping up regional sewer treatment plant and disposal pipeline operations, Michalczyk said.

It should be the last rate increase for the next four years, he said.

Under the proposed wastewater rates, a single-family household would pay $3.30 more per month, totaling about $40 more per year. Since homeowners pay for wastewater services annually with property taxes, the rate would increase by half the amount on Jan. 1, midway through the tax year. The full increase would occur on July 1, 2011.

At the proposed rates, wastewater service for single-family homes would cost about $1 more per month in 2011 than it did in 2002, and represent a 1 percent increase annually since 2000. Michalczyk added.that the proposed fee hike comes after the district lowered its fees in 2008.

Homeowners have been informed through public notices, said Sue Stephenson, the district's community affairs supervisor.

"It's a very open, transparent process but if we didn't do that most people would probably not even notice it," she said. "This is the equivalent of one tank of gas."

But some residents thought the increase was significant enough to sound off about.

At least a dozen community members spoke out at the board of directors' workshop Tuesday night. San Ramon resident Gary Sheth, 45, was among those who felt the increase is "unjustified in light of the economic climate right now."

"There could be federal money to do this under the economic stimulus funds," said Sheth, who lives in the Windemere area. 

A second proposal — which only affects DSRSD water customers in Dougherty Valley and Dublin but not San Ramon residents who who get water from the East Bay Municipal Utility District — would increase the maximum amount of the temporary infrastructure charge to ensure the district can make water-related debt payments.

A year and a half ago, the board of directors established a bimonthly $18 charge on all water accounts to help the district to pay back debt incurred between 2003 and 2008 to build parts of the water and recycled water infrastructure, according to Richard Halket, a director on the board.

Under normal circumstances, debt payments are covered completely by connection fees paid by developers.

However, "construction has come to a standstill," and raising the maximum amount that the district can charge customers to $30 would help "refinance some more debt," Halket said.

"We'll do everything possible to make sure it's not much more than $18," he said, adding that the actual charge would be determined at a later date.

But Sardeep Harigopal, 44, a San Ramon resident who lives in the Windemere area, said the name of the charge itself "sounds very misleading" and wondered if the district has explored all financial options.

"I am very skeptical that it is temporary," he said. "In this economy where interest rates are at an all-time low I think the district should be able to negotiate with vendors or suppliers to streamline, reduce costs instead of charging their customers."

Included during the workshop was a presentation laying out the projected impacts of the increases for large city and county customers like jails and schools. The estimated annual increase to the San Ramon Valley Unified School District is 52 percent, or $22,753.

The city of San Ramon would see an estimated 19-percent increase in charges, a point of concern for Jim Eaneman, who serves as chair of the city's Parks Commission.

"The budget for the parks and city was approved four weeks ago and I know for a fact hat there's no inclusion or consideration for the increase for sewage fee from this district," he said.

Eaneman, 65, who lives in Old Ranch Estate and said he has been in the utility business for more than 30 years and served as the a general manager of PG&E, also questioned the board of directors' plan for financial rebound.

"It appears that they are trying to do things right but the issue is, are those the right things to be doing?" he said.

District board members are scheduled to make a decision at a public hearing on July 20.