City of Davis

UTILITY RATE INCREASES

Water

The Davis City Council approved water rate increases that will increase our revenue by 14% each year, for five years, from the typical single family customer. Individual bills will vary depending on actual water use. Bills for non-residential customers will increase by different percentages based on their water use and consumption unit rates. The need to increase revenue an additional 14% is expected in Year 6 (under a new Prop. 218 process) to cover the expected capital and operational costs of the utility infrastructure improvements.

The Davis City Council also approved a motion that included the following directives:

• Establish a technical advisory committee (TAC), restricting its membership to two individuals per council member. Appointees shall have strong financial knowledge and no economic conflicts. This is a committee that is intended to have the expertise to review: water rates annually, projects, bid processes, bonds, terms and any other items that are related to the project and its construction. The City Manager and an attorney from the City Attorney’s Office with water expertise shall staff the committee. The TAC will make recommendations to the Council as the water project and its financing develop.
• Ensure any significant decision by the Woodland Davis Clean Water Agency (WDCWA) be brought before the Council.
• Seek flexibility on the timelines for the project and raising capital, including requesting the assistance of the city’s legislative delegation, with the idea of stretching out the rate schedule.
• Explore a publicly-operated alternative for the water treatment facility, not private. Seek guarantees to ensure the project will only use local and regional businesses and labor, to the maximum extent feasible.
• Utilize and lobby for as much federal and state funding as possible, including state water bonds and potential Delta restoration dollars headed toward the Yolo Bypass and look also at utilizing other local dollars besides user fees.
• Access state and federal funds if feasible, to offset the costs to residents of implementing water conservation strategies or replacing equipment.
• Provide for regular community meetings and updates.
• Explore the creation of a rate-subsidy program for low-income households.

Staff will return to Council with a suggested work plan for the technical advisory committee (TAC) in October and seek Council appointments to the group. Through the TAC and in conjunction with ongoing public outreach, staff will explore and pursue many of the additional measures the Council included in its motion. The Council would be updated regularly on the surface water capital project, WDCWA agenda items and financing plan implementation efforts. The proposed capital projects would be incorporated into the annual City budget process and updated or modified as required within the constraints of the approved utility rates.

Staff will implement the following annual process to evaluate whether or not water rates can be modified (lowered) in a given year based on actual project costs, financing terms and conditions, customer water demands, and/or other factors that could influence water rates:

A community outreach program will be a part of each annual water rate review process. The City will provide customers with at least 30-days notice prior to each effective date of any water rate changes.

Adopted Water Rates

For more information please go to the Water Rate Calculator.

Other Utilities

On September 6, 2011, City Council approved the rate increases for Sanitary Sewer and Sanitation as proposed in the Prop 218 notice. These rates are shown below.

Sanitary Sewer

^* Customers are charged a basic flat monthly rate plus a variable discharge rate, which is based on the individual customer’s winter water use for the months of November through February and is computed using the cost per ccf of water used.
^▪cff = 1 billing unit = 100 ft³ or 748 gallons
^‡ cap = If your average bi-monthly winter water use exceeds the cap shown above, your sanitary sewer ccf charge shall be based on the cap. If the City goes to a monthly billing cycle, the ccf caps would be half of the ccf amount shown. (e.g., single-family monthly cap = 23 ccf).

Commercial Sanitary Sewer Rate Increases

^* Customers are charged a basic flat monthly rate plus a variable discharge rate, which is based on the individual customer’s winter water use for the months of November through February and is computed using the cost per ccf of water used.
^▪cff = 1 billing unit = 100 ft³ or 748 gallons

^‡ cap = If your average bi-monthly winter water use exceeds the cap shown above, your sanitary sewer ccf charge shall be based on the cap. If the City goes to a monthly billing cycle, the ccf caps would be half of the ccf amount shown.

Sanitation

^* For bi–monthly charge, multiply the rates by 2.

Commercial Sanitation