Politics & Government

Utilities District Tonight to Consider Upping Cost of Water, Sewer Services

The Dublin San Ramon Services District will vote tonight on whether to increase one fee and raise sewer rates overall for some San Ramon households.

The cost of water and sewer services may soon get a lot more costly for some San Ramon residents.

All 5,500 Dougherty Valley account holders may pay up to 67 percent more for a water fee if Dublin San Ramon Services District OK's the increases to refinance debt incurred years ago to pay for new pipelines and reservoirs. About 5,100 south San Ramon residents also may pay about 13 percent more for wastewater services to cover increased operating expenses.

There will be a public hearing at 6 p.m. tonight to talk about upping a debt service charge from $18 to a maximum of $30 every two months. The increase would go into effect sometime next year if the agency's board of directors approves the plan tonight.

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The district said it is trying to take advantage of historically low interest rates to lock in some debt into a fixed rate bond, though the new interest rate will be higher than the existing one.

"Since variable rates in the future cannot be predicted, it is prudent to obtain a fixed rate in the event that variable rates increase as they did in the 1980s," said Lori Rose, the district's financial services manager.

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The district's long-term debt totals $38.5 million, which includes loans used between 2003 and 2008 to build pipelines and reservoirs. A year-and-a-half ago, the board of directors imposed the $18 fee – dubbed a "temporary infrastructure charge" – payable every two months by water customers in Dougherty Valley and Dublin.

San Ramon residents who get their water from the East Bay Municipal Utilities District dont' have to pay that. It's the sewer rate increase that will affect San Ramon, since more than 10,000 customers in the city get their wastewater service from the water district.

The district has 17,734 customers in San Ramon and Dublin. The City of Pleasanton contracts with the district to treat its sewer water, though it gets its water services from another district.

Some of those San Ramon customers are big businesses or public agencies that have more than one account. One San Ramon school, for example, would have to pay 52 percent more, or an added $22,753, every year under the increase.

Since the district is in a joint-power agreement with two neighboring water and sewer service providers, it pays its share of $130.8 million of debt to those districts, but counts that an operating expense.

Next fiscal year, the district estimates that is will pay $6.9 million to chip in for part of the Livermore Amador Valley Water Management Agency's debt and another $1.5 million for debt incurred by the San Ramon Valley Recycled Water Authority.

San Ramon parks commissioner Jim Eaneman, 65, said at a recent city council meeting that the plan to ramp up the price of water service proves that the district lacks leadership.

Eaneman called for someone from the city of San Ramon to attend tonight's hearing to speak against the price increases. As a former manager for Pacific Gas & Electricity with 30 years in the utilities business, Eaneman said he questions the district's plan for financial recovery and the timing of a fee hike in a deep, protracted recession.

Already, the district has had to pare back expenses to cope with a dearth of revenue. It cut operating expenses by roughly $2 million 2009 and the plan is to slash another $700,000 this next year. Also, 18 percent of the district's workforce was laid off – leaving 110 employees despite an expanding customer base – and all but critical capital improvements were canceled since 2008.

A district-led study concluded, however, that the cuts aren't enough to cover the cost of running the agency and maintaining its pipelines.

Under the proposal, the average household would pay $3.30 more a month, which runs to about $40 a year. Since the price is rolled up in the property tax bill, the price would increase by half on Jan. 1, with the full increase due on July 1, 2011.

Normally, the district could pay off its debt using water hookup fees from developers. But with construction at a standstill, there isn't enough to cover the cost, Rose said.

Water rates in neighboring districts are 13 to 24 percent lower than what's paid by customers in the Dublin-San Ramon district.

As of this afternoon, the district said it received 70 letters protesting either the fee or rate increase.

At a glance

WHAT: Public hearing on the rate increase

WHEN: 6 p.m. Tuesday

WHERE: Dublin San Ramon Services District, 7051 Dublin Blvd., in Dublin


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