NOTICE
OF PROPOSED
INCREASES IN
THE SEWER SERVICE CHARGE (SSC)
FOR THE CITY OF LOS ANGELES
People will be receiving a notice because they are identified as being
in
one or more of the following categories:
- the record
owner of property
that may be receiving sewer service from the City of Los Angeles, or
- the account
holder for a property that may be billed for sewer service by the City
of Los Angeles.
If
you do
not currently use
sewer services provided by the City of Los Angeles or this service is
not immediately available to you, this notice does not apply to you. To
determine if you receive this City service, you can review your Los
Angeles Department of Water and Power (LADWP) bill, or call (800)
773-2489.
The wastewater from
your
property is discharged to the City of Los
Angeles’ wastewater system for treatment and disposal. The City’s
wastewater system serves more than four million residential, commercial
and industrial users in the City of Los Angeles, in addition to 29
other cities and agencies that contract for this utility service. The
system includes more than 6,700 miles of sewers, 44 pumping plants, and
four wastewater treatment and water reclamation plants capable of
processing more than 550 million gallons of flow each day citywide. The
majority of the costs associated with the operation, maintenance, and
capital infrastructure of this sytem is recovered
through the Sewer Service Charge (SSC), which appears in the
“Sanitation Charges” section of your LADWP bill. This rate structure
for the SSC equitably allocates costs to all types of users on a basis
proportional to your use of the City’s wastewater facilities.
Individual bills will vary based on your winter water consumption for
residential customers, or a percentage of your actual water consumption
for multi-family dwellings and commercial and industrial customers. The
fees collected for the SSC are not used to provide facilities for new
developments. The City has a separate fee for new developments
connecting to the wastewater system.
The
City of Los Angeles Department of Public Works is proposing a series of
Sewer
Service Charge (SSC) rate adjustments over the next ten
years. The additional fees
collected from the
proposed rate adjustment will enable the City to continue to rebuild
and repair
essential aging infrastructure, keep pace with projected materials,
utilities,
labor costs, and comply with permits and on-going litigation settlement
agreements. Additionally,
the proposed
rate adjustment will provide for the City’s low-income subsidy program,
assist
residents with sewer lateral replacements and abandonment of septic
tank
systems.
The current SSC rate is $3.27 per Hundred Cubic Feet (HCF). One HCF is
equal to 748 gallons. Currently, the typical single family residential
SSC bill is $29.88 per month, which places the City’s SSC in the middle
third of local cities, as shown in Figure 1 below. After this series of
increases, it is anticipated that the City’s rates will remain in the
middle third of the rates of these cities. Nationwide surveys indicate
that the typical wastewater bill will increase between 6.5-7.5% per
year for the next five years. Therefore, Los Angeles’ wastewater
increase will be equal to or below the national average.
For
typical commercial customers, the Sewer Service Charge is calculated on
90% of your water consumption. Due to water conservation measures, most
commercial customers have reduced irrigation and now discharge a higher
percentage of the water to the sewer. Based on LADWP’s current Water
Shortage Pricing, the percentage discharge will be updated from 90% to
93%. To estimate your new sewer service
charge increase, multiply your current sewer service charge by 1.03
times 1.045, or
the percentage increase in Table 1 of the notice plus 3%.
Seeking an increase for ten (10) years rather than going through
multiple approval processes will secure the wastewater program’s
standings with the credit rating agencies, increasing our ability to
leverage our funds more efficiently and allowing us to reduce the
overall cost of the program. An additional $1.89 billion will be
required over the next ten years to fund $1.73 billion in additional
capital project costs and repayment of bonds used to fund capital
projects.
Figure 2 (shown in the notice) illustrates the distribution of
additional
revenues. The City bills an average wastewater volume of 147,000,000
HCF annually. The rates shown in Table 1 were calculated based on this
billable volume and the additional revenue needed over the next ten
years. For more information on the expansion of the construction
program, please see the list of proposed projects at http://lacitysan.org/wastewater/publications/pdfs/2011/Ten_year_project_list.pdf.
Click the following link to see
the
full text of the SSC Notification.
The
Public Hearing regarding the
proposed rate
adjustment will be held on
January
27, 2012,
at 10:00 a.m. in
the John Ferraro Council Chamber,
Room 340, City Hall, 200 North Spring Street, Los Angeles,
California 90012
Written
comments may be
submitted by the property
owner at
the public hearing or mailed to the City
Clerk, 200 North
Spring Street,
Room 395, Los Angeles, California, 90012, no later
than 5 p.m. on January
26, 2012. Please include the
Assessors Parcel Number (APN), if shown, and service address located at
the top of the first page, and write “Proposed
Sewer Service Charge”
on
your written
comment. Parking is available in private lots surrounding City Hall,
and City Hall is accessible by public transportation.