DSRSD board to vote on sewer rate increase

Next Tuesday the Dublin San Ramon Services District board of directors will consider a proposed five-year wastewater rate increase that would take effect July 1 for customers in Dublin and south San Ramon.

The board will hold a public hearing on the proposed rates at 6 p.m. in the DSRSD boardroom at 7051 Dublin Blvd. before voting on the matter.

Affected residents who live in single-family homes and townhouses would see their bills go up $15 in 2017-18, or 3.9% over the current rate, according to the agency. Condo owners would see an increase of roughly $11 next fiscal year, while owners of multi-family properties would pay nearly $10 more for wastewater services.

Annual rates would increase every year through 2021-22, with single-family and townhome owners ultimately paying $474.14, condo owners $327.03, and multi-family property owners $276.96, according to DSRSD.

Wastewater rates did not change this fiscal year.

“We did a rate study, (which) tells you how you need to adjust your rates so you’re charging fair and equitable rates to all your different customer classes,” DSRSD spokeswoman Sue Stephenson said.

Commercial customers would be charged under a new structure where rates would no longer be based on customer categories like car wash and grocery store, but on wastewater strength levels and volume of wastewater treated.

While low-level commercial customers could expect a rate decrease next fiscal year, all commercial rates would increase the following four fiscal years based on the annual change in the Consumer Price Index, according to DSRSD.

For more information, including how to protest the proposed changes, visit DSRSD online.

In other business

* At its meeting earlier this month, DSRSD’s board adopted operating and capital improvement budgets for the next two fiscal years, along with a 10-year plan to guide spending on infrastructure, for the agency that provides water and wastewater service in Dublin and parts of San Ramon as well as sewer in Pleasanton by contract.

The agency expects total revenues to amount to roughly $99 million in 2017-18 and $110 million the following year — increases of 22.5% and 11.1%, respectfully, general manager Dan McIntyre wrote in a letter to the board. That growth, he said, is primarily due to growth in the customer base from new development, as well as anticipated post-drought increases in water use.

“The pace of development continues to strengthen the district’s financial position, with the benefit that the addition of new resources will have only a modest impact on utility rates over the next five years,” McIntyre said.

DSRSD will use some of that added revenue to create eight new staff positions next fiscal year that are largely focused on operations, deferred maintenance, and preventative maintenance of treatment systems. The additions will bring the number of total full-time positions up from 113 to 121 and are meant to address a large amount of staff turnover from retirements over the last two years, McIntyre said.

The cost of adding eight positions combined with Zone 7 wholesale water expenses means operating expenditures are projected to increase 16% to $63 million next fiscal year and 2% in 2018-19 to $65 million. In 2018, the $1.1 million cost of salaries and benefits for these positions will be partially offset by $477,000 in reduced spending on contract and temporary workers, DSRSD officials said.

The separate $66 million capital improvement program budget authorizes 64 projects for the next two fiscal years. The larger 10-year plan anticipates spending a total of $176 million on 107 projects by 2027.

Dublin trunk sewer line rehabilitation, the expansion of the water recycling plant in Pleasanton and the replacement of a drinking water reservoir serving central Dublin are among the agency’s major capital improvement projects planned over the next two years.

“We are investing in people, infrastructure, and prudent asset management to keep up with growth and get maximum value from our water and sewer systems as they age,” DSRSD board president Richard Halket stated. “The district is in excellent financial health and has clearly defined a path to continue providing reliable and sustainable services to the community.”