PROPERTY OWNERS MEETING SEWER SERVICE CHARGE RATES
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1 PROPERTY OWNERS MEETING SEWER SERVICE CHARGE RATES Burlingame Hills Sewer Maintenance District (District) Burlingame Public Library Lane Community Room 480 Primrose Road Burlingame, CA January 14, :00 P.M. County of San Mateo Department of Public Works
2 MEETING PURPOSE What s Taken Place Since Public Meeting Last Year Recommended Rate Composition of Rate
3 AGENDA 1. Existing Agreement 2. State Revolving Fund Loan 3. Baykeeper Complaint with City of Burlingame 4. Baykeeper Complaint Against the District 5. Communication with Town of Hillsborough 6. Recommended Rate & Rate Setting Process 7. Questions and Input
4 1. EXISTING AGREEMENT WHAT DOES THE AGREEMENT SPECIFY? District pays the City of Burlingame for: Collection System Cost (Transport) 1.7% of total cost of O&M of City s system and improvement projects An additional 15% for overhead and supervision of 1.7% O&M cost Treatment Cost Percentage is based on annual water consumption An additional 15% for overhead and supervision of treatment cost
5 AGREEMENT NEEDS TO BE MODIFIED All parties agree Agreement negotiation to begin in 2009 Agreement negotiations can take 6 18 months
6 2. STATE REVOLVING FUND LOAN District has applied for a State Revolving Fund loan to finance District s identified capital improvement projects (estimated cost $2,300,000) Currently placed on the Priority List - estimated funding year of Loan Terms (2.5%, 20 year loan) Allows District to perform capital improvement projects at one time (economy of scale) District has scheduled a kick-off meeting with State Water Board later this month
7 3. BAYKEEPER COMPLAINT AGAINST THE CITY OF BURLINGAME (City) Baykeeper served a complaint against the City in February 2008 Settlement has been reached City paid Baykeeper s legal fees City required to make improvements to reduce wet weather overflows City required to perform I&I study for their system
8 4. BAYKEEPER COMPLAINT AGAINST THE DISTRICT Baykeeper served the District with a complaint in November 2008 Settlement has not been reached, but settlement could require District to: Construct sewer improvements within specific timelines Perform specific sewer system studies Pay Baykeeper s legal fees
9 5. COMMUNICATION WITH TOWN OF HILLSBOROUGH Town s sewage transported through District facilities (28 properties) Working to develop an agreement between Town and District for the Town s use of District s system to include reimbursement of: O&M costs Proportionate share of capital improvements
10 6. RECOMMENDED RATE AND RATE SETTING PROCESS DISTRICT IS AN INDEPENDENT ENTITY WITH ITS OWN SEPARATE BUDGET District receives sewer service charges and limited property tax revenue within the District boundaries to fund sewer service The sewer service charges are a fee for service, not a tax District collects sewer service charges on the tax bill because it is the least costly way to collect the fee
11 RECOMMENDED RATE FOR : $ 1,150 per year per equivalent residential unit (Current Rate - $950 per year) Proposed increase of $16.67/month One year rate proposed Supports District capital improvement projects through State Revolving Fund Loan Program Supports City s current downstream capital improvement costs Does not support anticipated Baykeeper legal fees
12 COMPOSITION OF RATE PER ERU ($1,150) Revenue Sewer Service Charges $ 1,150 Property Tax $ 112 Interest $ 21 Expenditure Sub-total $ 1,283 O&M $ 338 Treatment $ 448 Out of District CIP $ 192 District CIP (SRF) $ 355 Regulations $ 65 Baykeeper Legal Fees unknown Sub-total $ 1,398 Difference $ (115)
13 RATE SETTING PROCESS Key Dates March 3, 2009 April 28, 2009 Actions Introduce Ordinance with proposed sewer service rate for fiscal year and set Public Hearing for April 28. Hold public hearing and adopt Ordinance setting rate.
14 Emergency Response 24 Hours a Day, 7 Days a Week Mainline (Blockage) Customer Sewer Laterals Call (650) to Report Sewage Overflows
15 QUESTIONS & INPUT
16 CONTACT INFORMATION Please e your comments and questions to: sewers@co.sanmateo.ca.us Information is available on our website at: /sewers
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